Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Q2 2021 Earnings Presentation
17 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Jul 30, 2021
Slide 1: 2Q21 Results
2Q21 Results July 30%, 2021 Creating Opportunities
Slide 2: Disclaimer
2Q21 Results 2 Disclaimer This document is only provided for information purposes and does not constitute, nor should it be interpreted as, an offer to sell or exchange or acquire, or an invitation for offers to buy securities issued by any of the aforementioned companies. Any decision to buy or inv
Slide 3: Positive results evolution and strong capital position
2Q21 Results 3 Positive results evolution and strong capital position NET ATTRIBUTABLE PROFIT1 CET1 FULLY LOADED (CURRENT €M) (%) +25.3% 12.89% Jun-21 14.17% PRO-FORMA AFTER TARGETED 10% SHARE BUYBACK2 1,294 1,110 1,033 11.88% €701M 11.22% INCLUDING 516 NON-RECURRENT IMPACTS1 2Q19 2Q20 1Q21 2Q21 Jun
Slide 4: Top messages
2Q21 Results 4 Top messages 1 Strong core revenue evolution NII + FEE INCOME (constant €) NII FEE INCOME +9.7% vs.2Q20 4.1% vs.2Q20 30.8% vs.2Q20 2 Leading efficiency EFFICIENCY RATIO (%) 44.8% in 6M21 vs 61.2% European peers average1 3 Double-digit Operating Income OPERATING INCOME (constant €) +11
Slide 5: 2Q21 Profit & Loss
2Q21 Results 5 2Q21 Profit & Loss Change Change 2Q21/2Q20 2Q21/1Q21 BBVA Group (€m) 2Q21 % constant % % constant Net Interest Income 3,504 4.1 -0.9 3.9 Net Fees and Commissions 1,182 30.8 26.5 6.3 Net Trading Income 503 14.3 7.0 -10.4 Other Income & Expenses -85 20.1 6.5 n.s. Gross Income 5,104 10.0
Slide 6: Economic growth strengthening in 2021, with upward revision of expected growth
2Q21 Results 6 Economic growth strengthening in 2021, with upward revision of expected growth in most of the countries REAL GDP GROWTH PREVIOUS UPDATED (YOY GROWTH; %) BBVA FOOTPRINT1 SPAIN MEXICO 7.0 6.5 7.0 6.3 4.6 7.0 3.0 5.4 4.5 5.5 4.7 2.8 -7.4 -8.5 -10.8 2020 2021e 2022e 2020 2021e 2022e 2020
Slide 7: Retail new loan production volumes above pre-pandemic levels
2Q21 Results 7 Retail new loan production volumes above pre-pandemic levels and commercial production picking up Total loan production growth BBVA NEW LOAN PRODUCTION MORTGAGES CONSUMER LOANS COMMERCIAL1 2Q21 vs.1Q21 (BASE 100 = FEB.2020) BBVA GROUP +19% SPAIN +13% MEXICO +5% 2Q vs.1Q21 2Q vs.1Q21 2
Slide 8: Improving NII backed by activity recovery and price management
2Q21 Results 8 Improving NII backed by activity recovery and price management LOAN GROWTH CUSTOMER SPREAD NET INTEREST INCOME YTD %, PERFORMING LOANS UNDER % CONSTANT €, MILLION EUROS MANAGEMENT (CONSTANT €)1 SPAIN +3.3% Jun.21 1.92 923 1.89 1.76 896 2.1% 885 880 867 1.82 1.77 1.76 0.4% MEXICO2 Jun.
Slide 9: Strategic restructuring process in Spain and Corporate Center
2Q21 Results 9 Strategic restructuring process in Spain and Corporate Center CUSTOMER TRANSACTIONS BRANCHES FTEs (MILLION TRANSACTIONS1 IN SPAIN; (# BRANCHES IN SPAIN, % EVOLUTION) (# FTES IN SPAIN AND CORPORATE 6M19-6M21 CHANGE,%) CENTER, % EVOLUTION) DIGITAL CHANNELS BRANCHES -20.3 % 99 -10.2 % +1
Slide 10: Solid risk indicators
2Q21 Results 10 Solid risk indicators FINANCIAL ASSETS IMPAIRMENTS NPLs (€M CONSTANT) (€BN) +0.1 €Bn 1,391 15.6 15.5 15.6 15.7 906 916 15.0 785 664 2Q20 3Q20 4Q20 1Q21 2Q21 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 COST OF RISK NPL & COVERAGE RATIOS (%, YTD) (%) COVERAGE 83% 85% 82% 81% 2.07% 77% 1.68% 75%
Slide 11: Strong capital position
2Q21 Results 11 Strong capital position CET1 FULLY-LOADED (QUARTERLY EVOLUTION %, BPS) +260 bps 14.17% +38 bps -25 bps 557 bps 11.88% 11.82% ABOVE REQUIREMENTS -11 bps -6 bps -14 bps -13 bps 8.60% CET1 SREP requirement Mar.2021 Results Dividend RWAs Regulatory Others 1 Jun.2021 BBVA USA Restructurin
Slide 12: Shareholder distributions increase and dividend policy recovery
2Q21 Results 12 Shareholder distributions increase and dividend policy recovery Share buyback program expected to start in 4Q after supervisory approvals CET1 FULLY-LOADED (%) TARGETED BUYBACK1 14.17% 12.89% 10% shares 2021 DIVIDEND POLICY2 35-40% payout 100% CASH Jun.2021 Jun. 2021 Pro-Forma after
Slide 13: Customer growth and engagement through digital channels
2Q21 Results 13 Customer growth and engagement through digital channels All-time record in digital customer acquisition NEW CUSTOMERS DIGITAL ACQUISITION1 % OF NEW CUSTOMERS CONVERTED TO (CUSTOMERS ACQUIRED THROUGH DIGITAL CHANNELS, VALUE CUSTOMERS2 THOUSANDS AND % OF TOTAL ACQUISITIONS) (IN MONTH 6
Slide 14: We have doubled our target of channeling sustainable financing to €200 billion
2Q21 Results 14 We have doubled our target of channeling sustainable financing to €200 billion SUSTAINABLE FINANCING (€BN) NEW PLEDGE €8 Bn €200 Bn CHANNELED IN 2Q21 Total channeled €67 Bn ORIGINAL PLEDGE €100 Bn 2Q21 2018 2019 2020 2021 2022 2023 2024 2025 Our new pledge positions BBVA among the to
Slide 15: Business areas show a positive revenues performance coupled with lower impairments
2Q21 Results 15 Business areas show a positive revenues performance coupled with lower impairments SPAIN MEXICO TURKEY SOUTH AMERICA Strong operating Very positive core Solid gross Colombia and Peru: income growth in revenues income growth solid core revenues 1H21 supported by evolution and supporte
Slide 16: 2Q2021 in review
2Q2021 in review Positive results evolution driven by strong core revenues and solid underlying risk performance Customer acquisition boost leveraging digital capabilities We have doubled our target of channeling sustainable financing to €200 billion A new level of capital strength providing ample s
Slide 17: BBVA
BBVA
Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) — Q2 2021 Earnings Presentation on 6ix