38 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, April 2016
Slide 1: BBVA Group First Quarter 2016
BBVA Group First Quarter 2016
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
Index 1. About BBVA 2. Vision and aspiration 3. BBVA transformation journey 4. Results’ highlights
Slide 4: 1. About BBVA
1. About BBVA 1. About BBVA 2. Vision and aspiration 3. BBVA Transformation Journey 4. Results’ highlights > BBVA’s global presence > History of BBVA > Main figures > BBVA share > Organizational chart > Our team > Presence in social media > Social commitment > Awards and recognitions
Slide 5: BBVA's global presence
1. About BBVA BBVA’s global presence Europe Germany / Belgium/ Spain/ France / Holland / Italy / Luxembourg / Malta / Portugal / U.K. / Romania / 2. Vision and aspiration Russia / Switzerland / Turkey 3. BBVA Transformation Journey 4. Results’ highlights Asia - Pacific North America Australia / Chin
Slide 6: More than 150 years of history
1. About BBVA More than 150 years of history BBVA is the result of the merger of two major Spanish banking institutions 2. Vision and aspiration 3. BBVA Transformation Journey 1999 • Banco Bilbao Vizcaya 4. Results’ highlights • Argentaria 1998 • Grupo Caja Postal • Bco. Exterior > BBVA’s global pre
Slide 7: More than 150 years of history
1. About BBVA More than 150 years of history BBVA had significant growth since 1995 2. Vision and aspiration 1995 • Banco Continental (Peru) 2005 • Granahorrar (Colombia) 2011 • Extension (Chile) of Forum SF agreement 3. BBVA Transformation • Probursa (Mexico) • Hipotecaria Nacional Journey (Mexico)
Slide 8: 1Q16 main figures
1. About BBVA 1Q16 main figures Earnings (€m) 2. Vision and aspiration Gross income Operating income Net attributable profit 3. BBVA Transformation 5,788 2,614 709 Journey 4. Results’ highlights Balance sheet (€m) Loans and advances Deposits Total assets Total equity to customers - gross from custom
Slide 9: BBVA share
1. About BBVA BBVA share Listed on the main international BBVA’s capital ownership 2. Vision and aspiration stock markets is well diversified 3. BBVA Transformation New London Shareholder breakdown Journey York Banks Non-resident Institutions 3.1 4. Results’ highlights 4.7 Employees 54.7 2.7 45.3 Re
Slide 10: Return to shareholders
1. About BBVA Return to shareholders Outstanding performance to shareholders, despite financial strains 2. Vision and aspiration 3. BBVA Transformation Total shareholders return (TSR) Journey December 2010 – March 2016 - (%) Annualized* 4. Results’ highlights 0.5 BBVA’s strengths have been BBVA grad
Slide 11: Organizational chart
1. About BBVA Organizational chart 2. Vision and aspiration Group Executive Chairman Francisco González CEO 3. BBVA Transformation Carlos Torres Vila Journey Execution & Performance New Core Competencies Risk & Finance Strategy & Control 4. Results’ highlights Corporate & Talent & Culture Finance Gl
Slide 12: Our team
1. About BBVA Our team 2. Vision and aspiration We are creating the kind of culture, environment and ways of working where the customer is at the center of everything 3. BBVA Transformation we do Journey 4. Results’ highlights The best team A first class workforce Our people are the cornerstone of o
Slide 13: Presence in social media
1. About BBVA Presence in social media BBVA’s commitment is to be where the people are, to listen and 2. Vision and aspiration understand their needs and dreams. This is the reason that makes BBVA a forward-looking entity in social media 3. BBVA Transformation Journey Number of BBVA’s social media p
Slide 14: Social commitment
1. About BBVA Social commitment Financial Literacy 2. Vision and aspiration 3. BBVA Transformation Journey Highly committed to the societies 4. Results’ highlights Social Entrepreneurship in which we operate > BBVA’s global presence > History of BBVA In 2015 > Main figures > BBVA share Knowledge 103
Slide 15: Awards and recognitions
1. About BBVA Awards and recognitions Once more, BBVA’s differentiated management has been recognized 2. Vision and aspiration 3. BBVA Transformation Journey 4. Results’ highlights > BBVA’s global presence > History of BBVA > Main figures > BBVA share > Organizational chart The best place to work in
Slide 16: 2. Vision and aspiration
1. About BBVA 2. Vision and 2. Vision and aspiration aspiration 3. BBVA Transformation Journey 4. Results’ highlights > Vision of the financial industry > Our aspiration
Slide 17: Reshaping of the financial industry
1. About BBVA Reshaping of the financial industry 2. Vision and aspiration Regulatory pressure Mobile has changed New players are and the impact in the distribution entering the value 3. BBVA Transformation Journey profitability model chain 4. Results’ highlights Banks ROE Evolution1 (%) World mobil
Slide 18: Shifting customers and needs
1. About BBVA Shifting customers and needs 2. Vision and aspiration 3. BBVA Transformation Permanently connected Journey Banking anytime, anywhere 4. Results’ highlights Used to digital experiences Expect proactive and personalized help in their finance management Interaction with multiple devices a
Slide 19: Technology and data as enablers
1. About BBVA Technology and data as enablers 2. Vision and aspiration The client will be the main beneficiary in this new 3. BBVA Transformation environment as financial services become democratized Journey 4. Results’ highlights Big Data Blockchain Cloud Better experience Artificial Data Biometric
Slide 20: Our aspiration
1. About BBVA Our aspiration Strengthening the relationship with the customer through the 2. Vision and aspiration transformation 3. BBVA Transformation Journey 4. Results’ highlights Adjusting our strategy to focus on the real needs of our customers > Vision of the financial industry > Our aspirati
Slide 21: 3. BBVA transformation journey
1. About BBVA 3. BBVA transformation journey 2. Vision and aspiration 3. BBVA Transformation Journey 4. Results’ highlights > Our purpose > Strategic priorities > Progressing in our transformation
Slide 22: Our purpose
1. About BBVA Our purpose 2. Vision and aspiration Redefining the Value Proposition 3. BBVA Transformation Journey To bring Assist people in all parts of their 4. Results’ highlights the age financial life cycle of opportunity Help customers achieve their life to everyone goals Be more than a bank,
Slide 23: Strategic Priorities
1. About BBVA Strategic Priorities To help us in this journey, we have defined six 2. Vision and aspiration strategic priorities at a Group level 3. BBVA Transformation 1 Journey 4. Results’ highlights 2 3 New standard in Drive digital sales New business customer experience models 4 5 6 Optimize cap
Slide 24: Focus on providing the best CX
1. About BBVA Focus on providing the best CX A business model with the customer at the core that offers a differential 2. Vision and aspiration service with a very ambitious goal 3. BBVA Transformation To be leaders in customer satisfaction across our global Journey footprint 4. Results’ highlights
Slide 25: Relationship model
1. About BBVA Relationship model 2. Vision and aspiration Branch activity We are improving 3. BBVA Transformation (Million of transactions) BBVA Spain our relationship model Journey to respond to the customers’ -20% 4. Results’ highlights 51 46 multichannel profile 42 41 1 2013 2014 2015 Mar.16 Digi
Slide 26: Digital sales & products
1. About BBVA Digital sales & products 2. Vision and aspiration We are promoting the development of digital products and services, for customers most convenient channel selection 3. BBVA Transformation Journey Digital product plan 4. Results’ highlights Traditional product Native product launches: d
Slide 27: New business models
1. About BBVA New business models Leveraging the fintech ecosystem to develop our 2. Vision and aspiration value proposition 3. BBVA Transformation Journey Internal Strategic Open Platform Incubation partnerships 4. Results’ highlights Enable new developments combining BBVA’s APIs, client’s technolo
Slide 28: Leveraging technology
1. About BBVA Leveraging technology In 2007 we began our transformation process 2. Vision and aspiration 3. BBVA Transformation We have been working And we are adapting to the new Journey on our platforms paradigms of development 4. Results’ highlights Front-Office / branch mobile web social network
Slide 29: Cultural change
1. About BBVA Cultural change 2. Vision and aspiration We are transforming the organization internally by fostering a new culture 3. BBVA Transformation Journey 4. Results’ highlights New ways of working: Collaborative culture, Agile, collaborative entrepreneurship tools (‘trial - error’) Zero toler
Slide 30: New global areas
1. About BBVA New global areas 2. Vision and aspiration We have built the critical competencies to succeed in this new environment 3. BBVA Transformation Journey Talent & Culture 4. Results’ highlights Promoting new schemes for talent management and adapting the Group’s culture to the new context Ne
Slide 31: At BBVA, we are accelerating our transformation process
1. About BBVA 2. Vision and aspiration 3. BBVA Transformation Journey At BBVA, we are 4. Results’ highlights accelerating our transformation process to become the best bank for our customers > Our purpose > Strategic priorities > Progressing in our transformation 30
Slide 32: 4. Results' highlights
1. About BBVA 4. Results’ 2. Vision and aspiration highlights 3. BBVA Transformation Journey 4. Results’ highlights > Highlights > Business areas 1Q16
Slide 33: 1Q16 highlights
1. About BBVA 1Q16 highlights Gross income Operating income Cost of risk and loan-loss Impacted by lower contribution of NTI Growth markets strong performance provisions + RE impairments 2. Vision and aspiration Risk indicators continue to improve 1Q16 1Q16 Cost of risk YTD 3. BBVA Transformation Jo
Slide 34: 1Q16 highlights
1. About BBVA 1Q16 highlights Change 2. Vision and aspiration BBVA Group1 (€m) 1Q16 1Q16/1Q15 % % constant 3. BBVA Transformation Net Interest Income 4,152 -3.3 9.7 Journey Net Fees and Commissions 1,161 -5.3 4.2 Net Trading Income 357 -51.2 -45.9 4. Results’ highlights Other Income & Expenses 118 -
Slide 35: Business areas – 1Q16 results
1. About BBVA Business areas – 1Q16 results Spain Banking activity 2. Vision and aspiration Net attributable profit NPL ratio Income impacted by NTI decrease 3. BBVA Transformation Journey 234 €m 6.4% Coverage ratio Costs affected by CX integration Loan-loss provisions and impairments - 23.6% vs. 1Q
Slide 36: Business areas – 1Q16 results
1. About BBVA Business areas – 1Q16 results Turkey constant € 2. Vision and aspiration Net attributable profit 1 NPL ratio NII growth supported by activity 3. BBVA Transformation Journey 133 €m 2.8% Coverage ratio NII and NTI affected by change in accounting method +13.2% vs. 1Q15 129% Double-digit
Slide 37: Business areas – 1Q16 results
1. About BBVA Business areas – 1Q16 results Corporate & Investment Banking 2. Vision and aspiration 3. BBVA Transformation Business activity Client’s revenue Results Journey (constant €, % YTD) (constant €, % YoY) (constant €, % YoY) Lending Gross margin 4. Results’ highlights 57 € bn +0.8% 583 € m
Slide 38: BBVA Group First Quarter 2016
BBVA Group First Quarter 2016