Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — BofA Financials CEO Conference 2022
29 slides from Banco Bilbao Vizcaya Argentaria's conference presentation, Sep 21, 2022
Slide 1: BBVA Growing Profitability Engine
BBVA Growing Profitability Engine BofA Financials CEO Conference September 2022
Slide 2: Disclaimer
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 invest in securiti
Slide 3: Three key messages: performance, strengths, prospects
01 02 03 Superior performance Excellent based on our core Positive prospects ahead track record of strengths as a source of not fully reflected in delivering value to sustainable competitive market assumptions our shareholders advantages Excellent track record of delivering value to our shareholders
Slide 4: Excellent track record of delivering value to our shareholders
Excellent track record of value to our Excellent track record of delivering value to our shareholders 01
Slide 5: Industry leading profitability along the years
Industry leading profitability along the years STRONG PRE-PROVISION PROFIT GENERATING OUTSTANDING WITH LOW VOLATILITY PROFITABILITY ALONG THE YEARS PRE-PROVISION PROFIT / RWA ROTE 2019-6M22 PPP ANNUALIZED2 2019-6M22 NAP ANNUALIZED2,3 3.9 2019 2020 2021 2022 2019 2020 2021 2022 European Peer group: B
Slide 6: Delivering in profit market share growth
Delivering in profit market share growth PRE-PROVISION PROFIT MARKET SHARE1 (%) 45 45 42.0% 40 40 34.4% 35 35 30 28.5% 30 26.0% 25 23.7% 22.1% 25 19.0% 21.4% 20 20 15 11.7% 15 10.6% 10 10 5 5 0 0 6M19 6M22 6M19 1H22 6M19 6M22 6M19 5M22 6M19 6M22 SPAIN MEXICO TURKEY COLOMBIA PERU (1) Pre-provision pr
Slide 7: Impressive growth in customer franchise leveraging digital capabilities
7 Beyond industry-leading profitability, an impressive growth in customer franchise leveraging digital capabilities NEW CUSTOMER ACQUISITION1 (BBVA GROUP, MILLION; % ACQUISITION THROUGH DIGITAL CHANNELS) DIGITAL 55% 6% 6M17 6M18 6M19 6M20 6M21 6M22 (1) Gross customer acquisition through own channels
Slide 8: Leveraging digital capabilities also to grow sales
Leveraging digital capabilities also to grow sales SALES THROUGH DIGITAL CHANNELS (% GROWTH OF TOTAL SALES YTD, % OF DIGITAL TRANSACTIONS AND PRV1 OVER TOTAL SALES YTD) GROUP SPAIN MEXICO +36% +3% 73.5 +39% 76.7 UNITS 74.3 Total Sales UNITS Total Sales Total Sales UNITS 2 2,3 2 growth growth 53.5 gr
Slide 9: With a lean and efficient structure
9 With a lean and efficient structure TARGET CUSTOMERS1 AND BRANCHES EVOLUTION (2017=100; % VAR. VS 2017) SPAIN MEXICO Target Customers +18% +76% Target Customers Branches -38% -6% Branches 2017 2018 2019 2020 2021 Jun-22 2017 2018 2019 2020 2021 Jun-22 TURKEY SOUTH AMERICA +61% Target Customers +32
Slide 10: Outstanding revenues and earnings growth
10 Outstanding revenues and earnings growth LEADING TO A SIGNIFICANT PROFITABILITY SUPERIOR REVENUE GROWTH INCREASE GROSS MARGIN GROWTH EARNINGS PER SHARE (6M19-6M22 CAGR) (2019-6M22 NAP ANNUALIZED1) +3.2% +93% +74% +1.9% European European Peer Group Peer Group Average2 Average2 (1) Simple double of
Slide 11: Differential value creation to our shareholders
11 Differential value creation to our shareholders SUPERIOR SHAREHOLDER RETURN OUTPACING OUR PEERS IN VALUE CREATION TOTAL SHAREHOLDER RETURN TANGIBLE BOOK VALUE PER SHARE (%, VAR 2019-2022 Sep 16th) + DIVIDENDS (2019-6M22 CAGR) 27% 18% +9.2% +5.4% -9% European Spanish European Peer Group Peers2 Pee
Slide 12: Superior performance based on core strengths
Superior performance based on strengths as a source of competitive Superior performance based on our core strengths as a source of sustainable competitive advantages 02
Slide 13: Leading franchises in high growth markets
13 Our transformation has enabled us to have leading franchises in high growth markets STRONG POSITIONING LEADING PROFITABILITY 1 1 2 Market share (%) Ranking ROE (%) vs. industry (bps) SPAIN 13.4% #3 14.1% (+476 bps) MEXICO 24.3% #1 23.1% (+746 bps) TURKEY 17.7% #2 44.3% (-246 bps) COLOMBIA 11.0% #
Slide 14: Achieving higher or growing market share in key businesses
14 Achieving higher or growing market share in key businesses Total Loan market Bancassurance Credit Cards loans Mutual Funds share Life market share market share1 market share 40 40 35.3% 35 35 31.6% 30 30 25 25 17.9% 20 20 16.2% 14.3% 15 15.6% 15 11.4% 10.2% 8.0% 10 7.4% 10 5 5 13.4% 24.3% 10.0% 1
Slide 15: Superior digital capabilities and leveraging globality
15 Superior digital capabilities and leveraging globality to deliver efficiency and share best practices THERE IS BENEFIT TO GLOBALITY AS TECHNOLOGY COSTS, ESPECIALLY SOFTWARE DEVELOPMENT AND MAINTENANCE, CONTINUE INCREASING GLOBAL RETAIL MOBILE APP GLOBAL ENTERPRISE MOBILE APP (GLOMO)—Reutilization
Slide 16: Investing in innovation as an enabler for new capabilities
16 Investing in innovation as an enabler for new capabilities SELECTIVE DIGITAL BANK INVESTMENTS VENTURE CAPITAL VEHICLES These investments support BUILT BASED INVESTMENTS the development of new ON EXISTING capabilities in the Group INFRASTRUCTURE BBVA Italy We have been incorporating Fintech ventur
Slide 17: Leading the curve in sustainability
17 Leading the curve in sustainability LEADING BANK IN SUSTAINABLE FINANCE 2X OUR TARGET OF SUSTAINABLE FINANCING COMMITMENT ANNUALISED TARGET AS SHARE OF TOTAL ASSETS SUSTAINABILITY (%) AS GROWTH LEVER ~20% of the sustainable New target €112 Bn Peer 1 5.0 business originated is incremental Channele
Slide 18: Positive prospects ahead not fully reflected in market assumptions
Positive porospects ahead not fully reflected in market assumptions 03
Slide 19: Superior profitability and growth not reflected in share price
19 Superior profitability and growth profile not reflected in share price performance P/TBV VS ROTE BBVA’s VALUATION3 (BBVA VS EUROPEAN PEER GROUP1) (€/share, € Bn) 6.31 4.93 +28% Peer 6 BBVA Peer 1 Peer 7 Peer 10 BBVA’s Analyst’s Peer 9 Peer 5 Share Price Target Price 2 Peer 13 Peer 3 Peer 12 Peer
Slide 20: Market cap affected by events in Turkey
20 BBVA ‘s market cap continuously and excessively affected by events in Turkey EVOLUTION OF BBVA’s SHARE PRICE BBVA EUROSTOXX Banks (BBVA share price vs EUROSTOXX Banks, Base =100) 7/18 8/20 3/21 11/21 4/22 Turkey rating Additional Dismissal of Garanti VTO Garanti VTO downgrade newsflow on the Turk
Slide 21: Core businesses geared towards better results going forward
21 Core businesses geared towards better results going forward NII SENSITIVITY TO CUSTOMER SPREADS 2022 GUIDANCE2 NII SENSITIVITY INTEREST RATES (%) Loans growth: NII growth: from slight from “flat to ASSET +15-20% QUALITY growth to slight growth” to at EURO BALANCE SHEET1 low-single digit around mi
Slide 22: Prudent and proactive risk management
22 Prudent and proactive risk management PRUDENT AND PROACTIVE RISK MANAGEMENT IS THE FIRST LINE OF DEFENSE NII NPL RATIO SENSITIVITY SOLID LIQUIDITY POSITION LTD <100% ASSET across all geographies QUALITY COVERAGE RATIO CAPITAL PRE PROVISION PROFIT AS A BUFFER (as of june 22) COST OF RISK 3.6% (YTD
Slide 23: Well prepared to face a change in the economic cycle
23 Well prepared to face a change in the economic cycle SPAIN MEXICO TURKEY RETAIL BANKING CONSUMER FC LOANS NII of consumer loans of consumer loans Deleverage strategy since SENSITIVITY 85% 70% -53% origination given to origination given to 2015 “payroll” clients “payroll” clients of Project Financ
Slide 24: High quality and resilient capital
24 High quality and resilient capital to face future challenges STRONG CAPITAL HIGH RWAS DENSITY WITH A CAPITAL RESILIENCE POSITION LIMITED USE OF INTERNAL MODELS1 UNDER STRESS SCENARIOS NII SENSITIVITY CET1 FULLY LOADED RWA / TOTAL ASSETS LEVERAGE RATIO FL ADVERSE SCENARIO (%) JUN-22 JUN-22 CET1 FL
Slide 25: Well prepared to compete against new entrants and fintechs
25 Well prepared to compete against new entrants and fintechs Fintech growth story: The Mexican Case STRONG FINTECH GROWTH FIGURES BBVA MAINTAINS UNDISPUTABLE LEADERSHIP NII SENSITIVITY NEW STARTUPS FINTECH PER YEAR BBVA CREDIT CARD LOANS MARKET SHARE ( MEXICO, %) ASSET QUALITY 511 31.6% 394 CAGR 28
Slide 26: On track to achieve our long-term goals
26 On track to achieve our ambitious long-term goals COST-TO-INCOME ROTE TBV/SHARE + DIVIDENDS (%) (%, ANNUALIZED) (YOY %) NII SENSITIVITY 2021-24 CAGR ASSET QUALITY NEW TARGET CUSTOMERS1 SUSTAINABLE FINANCE CAPITAL (MILLION CUMULATIVE) (€ BILLION, CUMULATIVE SINCE 2018) FINTECHS VALUE CREATION (1)
Slide 27: Positive prospects in shareholder value creation
27 Positive prospects in shareholder value creation DIVIDEND YIELD IMPLICIT DIVIDEND YIELD RANGE ACCORDING (%, Last 12M dividend and Share Price as of 2022 Sep 16th) TO OUR PAY-OUT POLICY3 NII SENSITIVITY 40% 50% 6.3% Payout Payout ASSET QUALITY 5.4% 4.2% Div. Div. yield yield CAPITAL ~7.6% ~9.5% Eu
Slide 28: BBVA Takeaways
BBVA Takeaways BBVA Delivered differential success 1 Strong competitive advantages 2 Positive prospects ahead 3
Slide 29: BBVA Growing Profitability Engine
BBVA Growing Profitability Engine Bofa Financials CEO Conference SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Banco Bilbao Vizcaya Argentaria, S.A. D
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