Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Debt Investor Presentation (August 2021)
62 slides from Banco Bilbao Vizcaya Argentaria's debt investor presentation, August 2021
Slide 1: Fixed Income Presentation 2Q21
Creating Opportunities Fixed Income Presentation 2Q21
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: Index
BBVA Creating Opportunities Index 01 About BBVA 02 BBVA's Strengths d Resilient Operating Income 4 Business areas 4 Sound capital position and proven capacity to generate capital 4 Comfortable liquidity position @ MREL& Funding Plan 03 Ratings Annex
Slide 4: About BBVA
QO] About BBVA Creating Opportunities
Slide 5: About BBVA
About BBVA BBVA’S GLOBAL PRESENCE JUN.21 Total assets customers 648 €bn 78.9 m vy - a countries employees >251. - = 111,322 OUR PURPOSE mobile customers 36.3m branches 6,617 2921 Fixed Income 5 DIVERSIFICATION UNDER A DECENTRALIZED MODEL JUN.21 TOTAL ASSETS! GROSS INCOME! Rest of Rest of South Busin
Slide 6: Top messages
Top messages Strong core revenue evolution Leading efficiency Double-digit Operating Income growth Cost of Risk better than expectations, while maintaining high coverage levels Strong capital ratio and ample capital buffer even after 10% targeted share buyback Outstanding progress implementing our s
Slide 7: BBVA's strengths
O02 BBVA‘s strengths Creating Opportunities
Slide 8: BBVA's strengths
2Q21 Fixed Income 8 BBVA’‘s strengths Resilient Operating il P Income .0® Sound capital position * and proven capacity to generate capital Comfortable liquidity position
Slide 9: Resilient Operating Income
Resilient Operating Income Creating Opportunities
Slide 10: A proven track record of earnings resilience and low volatility
2Q21 Fixed Income 10 A proven track record of earnings resilience and low volatility... STRONG AND LOW VOLATILE OPERATING INCOME... .. .EVEN UNDER STRESSED SCENARIOS / OPERATING INCOME/ RWAS Z 2021 EBA STRESS TEST: ADVERSE SCENARIO 2008-3M21 ANNUALIZED (average, %) OPERATING INCOME 2021-2023/ RWAS (
Slide 11: With a prudent and proactive risk management
2Q21Fixed Income 11 ..with a prudent and proactive risk management... 5.80 5, RISK FRAMEWORK 4.10 4,00 a 460 399 329 400 430 4.20 NPL Ratio o—e “~~ e—e—e—*— 8 A Risk Management Model (%) based on prudence and proactivity 7 81 81 7 C ee RISK MANAGEMENT coverage ratio ~-_.»—°~.,_-e —e GOAL To preserve
Slide 12: Including non-recurrent impacts
INCLUDING NON-RECURRENT IMPACTS1
Slide 13: Business Areas
Creating Opportunities BUSINESS Areas
Slide 14: A well-diversified footprint with leadership positioning
2021 Fixed Income 14 A well-diversified footprint with leadership positioning / BREAKDOWN BY BUSINESS AREA TOTAL ASSETS !) JUN-21 Rest of South Business America 5% 8% al Turkey 9% - Spain Mexico 60% 17% GROSS INCOME ©) 6M21 Rest of South Buses America Spain 5% 30% Turkey C) 16% YY, 36% (1) Figuresex
Slide 15: Economic growth strengthening in 2021
2Q21 Fixed Income 15 Economic growth strengthening in 2021, with upward revision of expected growth in most of the countries 7 REAL GDP GROWTH (YOY GROWTH; %) oO” 74 2020 2021e 2022e fl TURKEY 2020 2021e 2022e | SPAIN ae -10.8 2020 2021e 2022e mm COLOMBIA ° 6.8 2020 2021e 2022e Source: BBVA Research
Slide 16: 2Q21 vs 1Q21
2Q21 vs.1Q21 2Q vs.1Q21 2Q vs.1Q21 2Q vs.1Q21 2Q vs.1Q21 2Q vs.1Q21 2Q vs.1Q21
Slide 17: Improving NII backed by activity recovery and price management
2Q21 Fixed Income 17 Improving NII backed by activity recovery and price management 74 LOAN GROWTH 7 CUSTOMER SPREAD / NET INTEREST INCOME YTD %, PERFORMING LOANS UNDER % CONSTANT €, MILLION EUROS MANAGEMENT (CONSTANT €)! = SPAIN ey 1$2 189 923 2.1% 88182 885 880 967 896 e 17717 0.4% o _ & = Bs MEXI
Slide 18: Spain
/ Spain Profit & Loss Net Interest Income Net Fees and Commissions Net Trading Income Other Income & Expenses Gross Income Operating Expenses Operating Income Impairment on Financial Assets Provisions & other gains (losses) Income Before Tax Income Tax Net Attributable Profit / KEY RATIOS CUSTOMER S
Slide 19: Mexico
B-) / Mexico Profit & Loss A Constant (%) ACurrent AConstant 2Q21 6M21 Net Interest Income 1,393 10.3 1 2,771 2.0 3.9 Net Fees and Commissions 297 272 46 581 138 157 Net Trading Income 95-391 365 165 28.8 “27.4 Other Income & Expenses 43 19.6 22 8/ -6.0 42 Gross Income 1,829 9.0 3.0 3,604 14 33 Oper
Slide 20: Turkey
2021 Fixed Income 20 EH / Turkey A Constant (%) ACurrent A Constant / ACTIVITY (un-21) Profit & Loss 2Q21 6M21 (CONTANT €; BANK ONLY) Net Interest Income 540 56 9.0 1,036 -325 “10.1 Net Fees and Commissions 2 87.0 55 297 25 497 YoY! Yoyl Net Trading Incame 62 798 -473 BO als a9 YtD -3A% Other Income
Slide 21: South America
» / South America Net Attributable Profit = Colombia Qa Peru SZ Argentina Other? South America (1) Venezuelain current€m A Constant(%)* (2) Other includes BBVA Forum, Venezuela, Paraguay, Uruguay and Bolivia, / KEY RATIOS CUSTOMER SPREAD (%) 642 651 2" _630 5161 505 491 °—~e e i 19.32 15,48 e e122)
Slide 22: Sound capital position
Sound capital positi Creating Opportunities
Slide 23: Superior resilience even under stress scenarios
2Q21 Fixed Income 23 Superior resilience even under stress scenarios 2018 EBA STRESS TEST ADVERSE SCENARIO CET1 FL 2020-2017 (Depletion, bps) PEER 1 141 BBVA 1?) = PEER 2 -219 PEER 3 -288 PEER 4 -334 PEER 5 -341 PEER6 -363 PEERS AVG -434 PEER 7 -437 PEERS -533 PEERQ -576 PEER 10 -625 PEER 11 -657 PE
Slide 24: Outstanding capital position, well above requirements
2Q21 Fixed Income 24 Outstanding capital position, well above requirements / CET1 FULLY-LOADED QUARTERLY EVOLUTION (%, bps) +260bps 1 4,17% 11.88% +38 bps 11.82% a -25 bps Ls -l1 bps -6 bps -14 bps -13 bps 8.60% . ‘0 CET1 SREP requirement Mar.2021 Results Dividend RWAs Regulatory Others! Jun.2021 BB
Slide 25: Shareholder distributions increase
2Q21 Fixed Income 25 Shareholder distributions increase Share buyback program expected to start in 4Q after supervisory approvals / CET1 FULLY-LOADED (%) TARGETED BUYBACK! ” " 14.17% 12.89% | Ox shares , (Q 2021 DIVIDEND POLICY? =50 = 100% 35 40 payout 00% Jun.2021 Jun. 2021 Pro-Forma after CASH 0 1
Slide 26: Lowest SREP requirement among peers
2021 Fixed Income 26 Lowest SREP requirement among peers / CET1 SREP REQUIREMENT / DISTANCE TO MDA BASED ON 2021 REQUIREMENT BBVA JUN.21/ PEERS MAR.21 627 10.44% 447 9 9.40% 9.23% 9.03% 9.03% 8.90% 8.85% 863% 8.60% 38 320 315 292 iw @ a x & a Ample buffer over minimum requirements R2 PEERS cen: PeER
Slide 27: Preserving a high quality of capital
2Q21 Fixed Income 27 Preserving a high quality of capital / RWA/ TOTAL ASSETS / LEVERAGE RATIO FL BBVA JUN.21/ PEERS MAR.21 BBVA JUN.21 / PEERS MAR.21 BBVA 47% BBVA a 7 4°, PEERI 36% PEER I 7.2% PEER2 36% PEER 2 6.2% PEER3 34% PEER 3 6.0% PEER 4 33% PEER4 5.7% PEERS 33% PEER 5 5.5% PEER6 29% PEER 6
Slide 28: With a limited usage of internal models
2Q21 Fixed Income 28 With a limited usage of internal models / TOTAL RWAS FULLY-LOADED JUN.21 305,543 €Mn m Spain 112,030 ™ Mexico 62,396 @™ Turkey 53,554 m™ South America 39,113 ™@ Rest of business 28,883 ™ Corporate Center 9,567 (1) Credit Valuation Adjustment. 38% IRB Models CVA’ 0.4% FX Risk 2.5
Slide 29: Comfortable liquidity position
Comfortable liqui position Creating Opportunities
Slide 30: Liquidity ratios well above 100% minimum requirements
Liquidity ratios well above 100% minimum requirements / BBVA GROUP LIQUIDITY AND FUNDING METRICS JUN.21 Eurozone? Mexico LTD 91% 90% LCR 209% 207% NSFR 127% 139% LCR Group 179% 218% considering excess liquidity in subsidiaries South Turkey America 92% 8 93% 186% >100% 160% >100% NSFR Group 134% HQLA
Slide 31: BBVA guidelines for managing Liquidity & Funding
2Q21 Fixed Income a BBVA guidelines for managing Liquidity & Funding a Self-sufficient subsidiaries from a liquidity point of view, with robust supervision and control by parent company a Retail profile of BBVA Group balance sheet with limited dependence on wholesale funding a Parent and subsidiarie
Slide 32: Principles of BBVA Group's self-sufficient business model
2Q21 Fixed Income 32 Principles of BBVA Group's self-sufficient business model: Multiple Point of Entry subsidiaries ( Self-sufficient balance-sheet “ee management y eS 4 Own capital and liquidity management _ . ° (| Market access With its own credit, name and rating (Responsible for doing ibBthess
Slide 33: MREL & Funding Plan
Creating Opportunities Plan
Slide 34: MREL position: well above requirements
2Q21 Fixed Income 34 MREL position: well above requirements 7 MRELAND SUBORDINATION REQUIREMENT 0) (2) @) m MREL Requirement: 24.78% RWA/ 10.25% LRE, by Ist Jan.22 (EU Resolution Group!) a Minimum Subordination Requirement: @ 13.50% RWA / 5.84% LRE @ ¢.90% of MREL eligible with subordination > or =
Slide 35: 2021 Funding Plan
2Q21 Fixed Income 35 2021 Funding Plan BBVA, S.A. redeemable instruments in 2019/21 were Mi. 7 BBVA, S.A. 2021 2021 Strategy “) calledat first reset date (€ bn) Executed (subject to market conditions) ATI = We do not foresee any AT1/ T2 public transaction during this year given our solid position po
Slide 36: Broaden geographical diversification of access to market
2Q21 Fixed Income 36 Broaden geographical diversification of access to market 7 MEDIUM & LONG-TERM WHOLESALE FUNDING MATURITIES JUN.21,€BN 19.0 73 68 EURO 7 49 € 40.7bn —- = EE ws MEXICO 7 7 3.0 0.1 . 0.8 € 6.1bn ot = 28 2s | 5 2.3 TURKEY* 08 \ 08 03 €6.1bn - = = = | S.AMERICA 0. os o4 Ou = € 2.3bn
Slide 37: Ratings
O3 Ratings Creating Opportunities
Slide 38: BBVA S.A. Ratings
BBVA S.A. Ratings ' 7 BBVA LONG TERM SENIOR UNSECURED RATINGS Moody's S&P Fitch DBRS Stable outlook (Jun, 19%, 2019) Stable outlook (Jun. 24*, 2021) Stable outlook (Jun. 7, 2021) Stable outlook (Mar. 31st, 2021) 2021 Fixed Income 38 7 BBVA RATINGS BY TYPE OF INSTRUMENT Moody's S&P Investment grade N
Slide 39: Annex
Annex « BBVA Group 2Q21 Profit & Loss « BBVA Group 6M21 Profit & Loss a Nil sensitivity to rates movements « ALCO portfolio « Sovereign Exposure by geography a Stages breakdown by business area d EAD to most vulnerable sectors a Loan deferrals classification é Outstanding loan deferrals « Government
Slide 40: BBVA Group 2Q21 Profit & Loss
2021 Fixed Income 40 BBVA Group 2Q21 Profit & Loss Change Change 2Q21/2Q20 2Q21/1Q21 BBVA Group 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 ns. Gross Income 5,104 10.0 5.0 14 Operating
Slide 41: BBVA Group 6M21 Profit & Loss
2021 Fixed Income 41 BBVA Group 6M21 Profit & Loss Change 6M21/6M20 BBVA Group Net Interest Income 6,955 0.9 -8.0 Net Fees and Commissions 2,315 19.7 12.5 Net Trading Income 1,084 148 6.9 Other Income & Expenses -95 ns. ns. Gross Income 10,259 4.9 -3.6 Operating Expenses -4,598 5.1 1.3 Operating Inc
Slide 42: NII sensitivity to interest rates movements
2021 Fixed Income 42 NIl sensitivity to interest rates movements / ESTIMATED IMPACT ON NII IN THE NEXT 12 MONTHS TO PARALLEL INTEREST RATE MOVEMENTS (%) NII SENSITIVITY TO +100 BPS NII SENSITIVITY TO -IOOBPS -—— : = 15% -5% 10% -10% Lo 5% 15% 0% -20% Euro Mexico Euro Mexico Note: Nil sensitivities c
Slide 43: ALCO portfolio
2021 Fixed Income 43 ALCO portfolio / ALCO PORTFOLIO BREAKDOWN BY REGION (€BN) Amort Cost Fair Value 42.9 477 487 *Cost area M40 B41 June 2021 (€BN) (€BN) (duration) South America i oy | 10.1 | 9.8 South America 0.2 3.9 14years Mexico | ; Bo Bcc >) Mexico 2.0 7.8 3.7years Turkey 8.0 Turkey 3.3 3.3 3
Slide 44: Sovereign Exposure by geography
Sovereign Exposure by geography’ June 30th, € bn Amortized Cost Fair Value debt securities §j debt securities (HTC) (HTC&S) Spain 17.6 16.7 Italy 3.7 71 Portugal 0.0 0.0 Mexico 2.9 9.1 USA 0.0 3.5 Turkey 3.2 3.3 All Others Trading securities 5.8 2.0 0.7 11.2 0.0 0.1 Non-trading financial assets mand
Slide 45: Stages breakdown by business area
2021 Fixed Income 45 Stages breakdown by business area / CREDIT RISK BREAKDOWN BY BUSINESS AREA (JUN-21, €M) rt S Accumulate: BBVA GROUP mpENTATETTS | | SPAIN 5 MEXICO. Stage 1 318,837 2,029 Stage 1 170,770 695 Stage 1 50,969 720 Stage 2 35,835 2,381 Stage 2 18,700 959 Stage 2 4,548 403 Stage 3 16,6
Slide 46: Exposure at default to most vulnerable sectors
2021 Fixed Income 46 Exposure at default to most vulnerable sectors in the current environment / BREAKDOWN BY SECTORS (JUN-21) bn€ Leisure | 8.9 Commercial Real Estate? 6.8 Retailers non food? 3.3 Air transportation 0.9 Total EAD to the most vulnerable sectors 20.0 as a % of total EAD 5.5% (1) Inclu
Slide 47: Expired deferrals by stages
Expired deferrals by stages TOTAL DEFERRALS GRANTED o/w expired As of Jun'21 as a % of total loans €BN % of total loans % Stage 1 Stage 2 Stage 3 Total Group (ex-USA) 25.4 7.4% 89% 4.1% 1.9% 0.6% By segment Mortgages 10.9 11.7% 83% 6.2% 2.5% 0.9% Consumer & credit cards 6.4 6.0% 97% 3.6% 1.5% 0.7% S
Slide 48: Government backed loans
€bn % of loans Total Group (ex-USA) 2.8 0.81% Spain 2.6 1.2% Mexico 0.0 0.0% Turkey 0.1 0.2% Peru 0.1 0.3% Colombia 0.0 0.4% Argentina 0.0 0.0%
Slide 49: Group, Spain, Mexico, Turkey, Argentina, Colombia, Peru
GROUP SPAIN MEXICO TURKEY ARGENTINA COLOMBIA PERU
Slide 50: Book Value of the main subsidiaries
2Q21 Fixed Income 50 Book Value of the main subsidiaries!:2 / € BN; JUN’21 Mexico 12.0 ATTETTELTEELLELLELEEEEEEEEEEE Turkey 3.6 ay Colombia 1.3 Ml Peru 1.0 Hal Argentina 0.9 Mil Chile 0.3 Bf Venezuela Q.1 | (1) Includes the initial investment + BBVA’s undistributed results + FX impact + other valuat
Slide 51: Main Subsidiaries Ratings
Main Subsidiaries Ratings’ 7 BBVA LONG TERM SENIOR UNSECURED RATINGS BBVA Mexico Garanti BBVA Investment [J AAA/Aaa AAA/Aaa grade AA+/Aal AA+/Aal AA/Aa2 AA/Aa2 AA-/Aa8 AA/Aa8 AH/AI AY/AI AVA2 AVA2 AAS A/A3 BEM Moopy’s ff BB8+/Beal sap BBB/Baa2 BBB-/Baa3_| FITCH BBB-/Baa3 Non BB+/Bal BB+/Bal Investme
Slide 52: BBVA Group SREP Requirement and Distance to MDA
T2: 2.38% 0.01% AT1: 1.78% 0.75% 2.50% 0.84% 4.50% 2021 CET1 SREP 2021 Total Capital Requirement SREP Requirement BBVA Group Total capital ratio phased-in Jun.21
Slide 53: Capital Base: BBVA Group & BBVA, S.A.
Capital Base: BBVA Group & BBVA, S.A. PHASED-IN CAPITAL RATIOS JUN.21(%) Tier 2 Bi Additional Tier 1 MceT CET AT1 T2 Total Capital Base RWA Note: Preliminary Data 18.75 ME 252 MM i386 14.37 BBVA Group € 43,903m €5,696m €7,688m €57,287m € 305,599 m 20.98 M245 27 15.79 BBVA, S.A. €29,913m €5,183m €465
Slide 54: BBVA, S.A. SREP Requirement and Distance to MDA
T2: 2.38% 0.01% AT1: 1.78% 2.50% 0.84% 4.50% 2021 CET1 SREP 2021 Total Capital BBVA, S.A. Total Requirement SREP Requirement capital ratio phased-in Jun.21
Slide 55: CET1 ratio sensitivity to market movements
2Q21 Fixed Income 55 “cen ratio sensitivity to market movements / TO CURRENCY DEPRECIATION ) CAPITAL SENSITIVITY TO A 10% DEPRECIATIATION poticy BBVAhedges c.70% of the excess Es | | ic: | ital ' ; capital (what is ne naturally hedged bythe ratio) usp +18 bps MXN -4 bps try=O bps coat Reduce consoli
Slide 56: Available Distributable Items (ADIs)
2021 Fixed Income 56 Available Distributable Items (ADIs) / BBVA, S.A.- PARENT COMPANY DEC.20, €BN €6.3Bn a Significant payment capacity from distributable items despite conservative calculation (Share Premium not included) a Supported by sustainable profitability €0.3Bn = ADIs 2020 AT1 net coupons
Slide 57: Debt Issuances 2018-2021
Senior Unsec Sep-20 - Sep-25 $ 500 M 1.875% Tier 2 Sep-19 Sep-29 Sep-34 $ 750 M 5.875% Tier 2 Jan-18 Jan-28 Jan-33 $ 1,000 M 5.125%
Slide 58: Called notes 2018-2021
2021 Fixed Income 58 Called notes 2018 — 2021 Outstanding currency (M) ATI Apr-I6 Apr-21 €1,000 8.875% Product |Ilssue Date| Redemption Coupon economic call policy BB Caixa Terrassa SPP Preferred Ago-05 Jan-21 £75M 1O0yCMS+0.10% BBVA Intl. Preferred I’ Ct. Maa DOM Jan-21 £312M 3m£+0.875% Unipersonal
Slide 59: Turkey - Liquidity & Funding Sources
2Q21 Fixed Income 59 Turkey — Liquidity & Funding Sources a Solid liquidity position: * Total LTD ratio is at 91.5%, decreasing by 4.3 p.p in Jun-21 driven by animprovement in TRY LtD * Foreign currency loans decreased by USD 0.7 Bn toc. USD 11.9 Bnin Jun-21 * Liquidity ratios above requirements: Li
Slide 60: Outstanding trends in digital and mobile clients
2Q21 Fixed Income 60 Outstanding trends in digital and mobile clients / DIGITAL CUSTOMERS MILLION CUSTOMERS, % +36.0% Vv 38.5 33.0 28.3 Jun-19 Jun-20 Jun-21 CUSTOMER PENETRATION RATE 54.7%) 60.9%) 66.1%) Note: data excluding USA, Paraguay and Chile / MOBILE CUSTOMERS MILLION CUSTOMERS, % +44.6% ————
Slide 61: Leveraging digital capabilities to grow sales through digital channels
2Q21 Fixed Income 61 Leveraging digital capabilities to growth sales through digital channels (% OF TOTAL SALES YTD, # OF TRANSACTIONS AND PRV') GROUP 66.9 70.7 605 _@——® UNITS oes 47.3 pry 414 Jun-19 Jun-20 Jun-21 GA TURKEY 797 80.6 83.1 a0 483 Jun-19 Jun-20 Jun-21 Group exclude USA, Venezuela, Chi
Slide 62: BBVA
BBVA
Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) — Debt Investor Presentation (August 2021) on 6ix