Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Debt Investor Presentation (November 2024)
50 slides from Banco Bilbao Vizcaya Argentaria's debt investor presentation, Nov 1, 2024
Slide 1: 3Q24 Fixed Income Presentation
3Q24 Fixed Income Presentation
Slide 2: Disclaimer
3Q24 Fixed Income 2 Disclaimer This document is only provided for information purposes and is not intended to provide financial advice and, therefore, does not constitute, nor should it be interpreted as, an offer to sell, exchange or acquire, or an invitation for offers to acquire securities issued
Slide 3: BBVA Investment Case
BBVA O01 BBVA Investment Case
Slide 4: BBVA's global reach and financial performance
3Q24 Fixed Income 4 BBVA’s global reach and financial performance BBVA’s GLOBAL PRESENCE FINANCIAL HIGHLIGHTS SEPTEMBER 2024 SEPTEMBER 2024 Net attributable profit 9M24 CET1 ratio FL 7,622 M€ 12.84% Total assets Deposits from customers Loans and advances to customers (gross) 769.341 M€ 437.834 M€ Coun
Slide 5: Diversified model with leading franchises in attractive markets
3Q24 Fixed Income 5 Diversified model with leading franchises in attractive markets DIVERSIFICATION UNDER A STRONG MARKET POSITION RANKING AND LOAN MARKET SHARE (%)2 DECENTRALIZED MODEL Rest of Business South America 7% 9% TOTAL ASSETS1 Turkey Spain SPAIN # 3 13.9% SEP’24 10% 55% Mexico 20% MEXICO #
Slide 6: Profitable business mix
3Q24 Fixed Income 6 Profitable business mix LOANS AND ADVANCES TO CUSTOMERS DEPOSITS FROM CUSTOMERS (PERFORMING LOANS UNDER MANAGEMENT EX-REPOS) (CUSTOMER DEPOSITS UNDER MANAGEMENT EX-REPOS) SEP-24 SEP-24 24% Mortgages 22% CIB1 25% Time Deposits 50% Retail Commercial 44% Public sector 6% 75% Demand D
Slide 7: Proving track record of solid financial returns
3Q24 Fixed Income 7 Proving track record of solid financial returns STRONG PRE-PROVISION PROFIT AND OUTPERFORMING ON BEST-IN-CLASS EFFICIENCY PROFITABILITY PRE-PROVISION PROFIT/RWA EFFICIENCY RATIO ROTE BBVA: 2020-9M24 ANNUALIZED, % BBVA: 2020-9M24, % BBVA: 2020-9M24, % PEERS: 2020-6M24, % PEERS: 202
Slide 8: Solid fundamentals
3Q24 Fixed Income 8 Solid fundamentals SOUND ASSET QUALITY METRICS STRONG CAPITAL COMFORTABLE LIQUIDITY NPL Ratio CET 1 FULLY-LOADED (%) (%) NSFR Group 12.84% Coverage Ratio (%) 130% Target range 11.5-12.0% Cost of Risk YtD(%) CET1 Requirement LCR Group 9.13%1 184%2 Sep-23 Dec-23 Mar-24 Jun-24 Sep-2
Slide 9: Capturing value from digitization
3Q24 Fixed Income 9 Capturing value from digitization NEW CUSTOMERS1 (BBVA GROUP, MILLION; % ACQUISITION THROUGH DIGITAL CHANNELS) DIGITAL 67% TOTAL DIGITAL 20% 9M19 9M20 9M21 9M22 9M23 9M24 ACTIVE CLIENTS2 55.3 M 76.9 M (1) Gross customer acquisition through own channels for retail segment. Exclude
Slide 10: Advancing in sustainable business
3Q24 Fixed Income 10 Advancing in sustainable business SUSTAINABLE BUSINESS (€ BILLION, ACCUMULATED DATA SINCE 2018) BY SEGMENT €71 Bn (€ BN) channeled in 9M24 Current target (2022) €276 Bn 300 €Bn YoY growth Channeled since 2018 71 +44% Revised target 9.3 Retail +41% (2021) 200 €Bn 49 6.6 23.8 Ente
Slide 11: 3Q24 Earnings
BBVA O02 3Q24 Earnings
Slide 12: 3Q24 key messages
3Q24 Fixed Income 12 3Q24 key messages NET INTEREST INCOME TOTAL LOAN GROWTH1 NET ATTRIBUTABLE PROFIT +3.5% +0.0% +11.0% vs. SEP 23 (CURRENT €M) 1 NET INTEREST INCOME DRIVEN BY ACTIVITY (CONSTANT) (CURRENT) (CONSTANT) vs. 3Q23 +3.7% EX- ARGENTINA vs. 2Q24 +26% NET FEES AND COMMISSIONS -6.0% 2 OUTSTA
Slide 13: Cost control leading to widened jaws and improving efficiency
3Q24 Fixed Income 13 Cost control leading to widened jaws and further improving industry-leading efficiency POSITIVE JAWS EFFICIENCY RATIO (9M24 YOY, CONSTANT €) (COST-TO-INCOME, % CONSTANT €) FOOTPRINT -429 bps INFLATION1 21.1% +29.4% 12M AVERAGE +16.6% 38.9 Gross Operating 9M23 9M24 Income Expenses
Slide 14: Asset quality metrics remain stable and within expectations
3Q24 Fixed Income 14 Asset quality metrics remain stable and within expectations FINANCIAL ASSETS IMPAIRMENTS NPL (CONSTANT €M) (CURRENT €BN) 3Q23 4Q23 1Q24 2Q24 3Q24 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 COST OF RISK NPL & COVERAGE RATIOS (%, YTD) (%) COVERAGE NPL 9M23 12M23 3M24 6M24 9M24 Sep-23 Dec-
Slide 15: We will clearly outperform our ambitious 2024 goals
3Q24 Fixed Income 15 We will clearly outperform our ambitious 2024 goals COST-TO-INCOME ROTE1 TBV + DIVIDENDS (%) (%, ANNUALIZED) (€/SHARE, %) CAGR 2021-9M24 2021-24 CAGR 9M 9M 9M NEW TARGET CUSTOMERS2 SUSTAINABLE BUSINESS (MILLION CUMULATIVE) (€ BILLION, CUMULATIVE SINCE 2018) GOAL Current target A
Slide 16: Business Areas
Business SPAIN Areas MEXICO TURKEY SOUTH AMERICA
Slide 17: Activity growth in Spain and Mexico provide resiliency
3Q24 Fixed Income 17 Activity growth in Spain and Mexico provide resiliency for the future LOANS CUSTOMER FUNDS TOTAL GROWTH KEY SEGMENTS TOTAL GROWTH OFF BALANCE SHEET (YOY, CURRENT €) (YOY SEP-24, CURRENT €) (YOY, CURRENT €) (YOY SEP-24, CURRENT €) +13.7% SPAIN +6.3% +4.6% +5.1% +2.6% +1.5% -1.8%
Slide 18: Spain
3Q24 Fixed Income 18 Spain PROFIT & LOSS (€M) ACTIVITY (SEP-24) Δ (%) Δ (%) €Bn YoY €Bn YoY 3Q24 vs. 3Q23 vs. 2Q24 9M24 vs. 9M23 +1.5% +6.3% Net Interest Income 1,620 7.3 0.5 4,831 19.2 Net Fees and Commissions 566 11.1 -2.1 1,711 6.7 Net Trading Income 209 130.1 37.4 567 83.7 Mortgages +1.2% Other
Slide 19: Mexico
3Q24 Fixed Income 19 Mexico PROFIT & LOSS (CONSTANT €M) ACTIVITY (SEP-24) (CONSTANT €) €Bn YoY Δ Constant (%) Δ Current (%) Δ Constant (%) €Bn YoY +15.4% 3Q24 vs. 3Q23 vs. 2Q24 9M24 vs. 9M23 vs. 9M23 +12.3% Net Interest Income 3,035 8.3 6.2 8,762 7.3 7.3 Net Fees and Commissions 628 6.6 4.0 1,846 13
Slide 20: Turkey
3Q24 Fixed Income 20 Turkey PROFIT & LOSS (CURRENT €M) ACTIVITY (SEP-24) Δ Current (%) Δ Current (%) (CONSTANT €; BANK ONLY) €Bn YoY1 3Q24 vs 3Q23 vs 2Q24 9M24 vs. 9M23 €Bn FC -3.0% YoY 1 Time -35.2% Net Interest Income 320 -46.7 -2.2 925 -41.5 Net Fees and Commissions 499 44.9 3.6 1,404 122.9 Net T
Slide 21: South America
3Q24 Fixed Income 21 South America NET ATTRIBUTABLE PROFIT (CURRENT €M) ACTIVITY (SEP-24) (CONSTANT €) €Bn YoY Δ Current (%) Δ Current (%) €Bn +26.2% YoY 3Q24 vs. 3Q23 vs. 2Q24 9M24 vs. 9M23 +13.7% Colombia 34 85.9 -6.4 91 -18.9 Colombia +7.7% Peru 63 47.3 -7.3 173 14.2 Colombia +0.8% Argentina 35 -
Slide 22: We are optimistic going forward
3Q24 Fixed Income 22 We are optimistic going forward HEALTHY LOAN GROWTH MANAGED STRUCTURAL RISKS TOTAL LOAN GROWTH LOAN MARKET SHARE PROACTIVE HEDGING POLICIES (YOY SEP-24 CONSTANT €) (AUG-24, YOY INCREASE) NII SENSITIVITY 4% vs. >10% in 4Q22 +1.5% 13.9% +35 bps +12.3% 25.1% +51 bps NII SENSITIVITY
Slide 23: Capital & Liquidity
BBVA O03 Capital & Liquidity
Slide 24: High quality and resilient capital
3Q24 Fixed Income 24 High quality and resilient capital STRONG CAPITAL HIGH RWAS DENSITY, WITH A LIMITED CAPITAL RESILIENCE UNDER POSITION USE OF INTERNAL MODELS 2 STRESS SCENARIOS CET1 FULLY-LOADED RWA/TOTAL ASSETS LEVERAGE RATIO FL 2023 EBA ST -ADVERSE SCENARIO (%) BBVA SEP-24/PEERS JUN-24 BBVA SE
Slide 25: Sound capital position above our target
3Q24 Fixed Income 25 Sound capital position above our target CET1 FULLY-LOADED AT1 AND TIER 2 FL BUCKETS (%, BPS) SEP-24 (%) +9bps 2.72% +69 bps -37bps 2.38% -48 bps 12.75% +25 bps 12.84% 1.78% Target Range 1.53% 11.5%-12.0% SREP Requirement 9.13% Jun -24 Results Dividend RWAs accrual & (constant €)
Slide 26: Among the lowest SREP requirement with a comfortable MDA distance
3Q24 Fixed Income 26 Among the lowest SREP requirement with a comfortable MDA distance BBVA, GROUP CET1 REQUIREMENT AND DISTANCE TO MDA BBVA SEP-24/ PEERS JUN-24 Distance to MDA 2 13.50% 346 bps 17.09% T2 11.13% 13.29% 10.80% AT1 10.27% T2 10.26% 10.12% 9.61% 9.35% 9.13% 8.60% 8.52% 9.13% AT1 CCyB 1
Slide 27: Strong capital position in BBVA, S.A., above requirement
3Q24 Fixed Income 27 Strong capital position in BBVA, S.A., above requirement BBVA, S.A. REQUIREMENT AND DISTANCE TO MDA SEP-24 Distance to MDA2 18.25% 474 bps €10.4 Bn T2 12.15% 2 AT1 T2 AT1 7.99% 1 CCyB 1 CCB CET 1 Pillar 2R CET 1 Pillar 1 CET1 Total Capital Total Capital Ratio Requirement 2024 Re
Slide 28: Sound MREL position
3Q24 Fixed Income 28 Sound MREL position POSITION AS OF SEP-24 (% RWA1) MREL REQUIREMENT + CBR SUBORDINATION REQUIREMENT + CBR 28.82% 22.88% 26.44% CBR: 3.65% 3 17.15% 3 CBR: 3.65% MREL 22.79% Subordination 13.50% 2 2 M-MDA Buffer 238 bps (5.2€bn) Subordination Buffer 573 bps (12.4€bn) Note: Prelimi
Slide 29: Liquidity ratios well above requirements with ample quality collateral
3Q24 Fixed Income 29 Liquidity ratios well above requirements with ample quality collateral BBVA GROUP LIQUIDITY BALANCE SHEET1 BBVA GROUP LIQUIDITY AND FUNDING METRICS SEP-24 SEP-24 Mexico Turkey3 South BBVA S.A.2 America LTD 87% 105% 81% 92% LCR 180% 154% 167% >100% NSFR 122% 130% 157% >100% LCR G
Slide 30: Limited wholesale funding maturities in all geographies
3Q24 Fixed Income 30 Limited wholesale funding maturities in all geographies DEBT OUTSTANDING BY PRODUCT WHOLESALE FUNDING MATURITIES SEP-24, € BN SEP-24, € BN Others1 Senior Preferred EURO 11.0 17% 20.5 € 51 bn 32% T2 / TOTAL Subordinated 20% 64.8 12.8 MEXICO 8% 14% €8.2 bn AT1 / Preferred 9% Senio
Slide 31: Funding Plan
3Q24 Fixed Income 31 Funding Plan 2024 Funding Plan completed: €8.9bn in public deals focused on hybrid capital and senior instruments Oriented to meet call options for hybrid instruments and MREL eligibility losses. 2025 Continued focus on optimizing the capital structure. Subject to Balance Sheet
Slide 32: All Ratings Agencies assign BBVA a rating on the single A space
3Q24 Fixed Income 32 All Ratings Agencies assign BBVA a rating on the single A space BBVA LONG TERM BBVA RATINGS BY TYPE OF INSTRUMENT AND ISSUER SENIOR PREFERRED RATINGS Moody’s S&P Fitch DBRS Investment Aaa AAA AAA AAA CB Positive outlook grade Aa1 CB CB AA+ AA+ AA (H) Moody’s (Mar. 19th, 2024) A3
Slide 33: Annex
Annex 01 3Q24 Profit & Loss 09 CET1 Sensitivity to market impacts 02 9M24 Profit & Loss 10 Group RWA breakdown BBVA Group Net 11 Debt Issuances 2023-2024 YTD 03 Attributable Profit 3Q24 04 ALCO Portfolio 12 Called notes 2018-2024 YTD NII sensitivity to interest rate 05 movements 13 Wholesale maturities
Slide 34: 3Q24 Profit & Loss
3Q24 Fixed Income 34 3Q24 Profit & Loss BBVA GROUP (€M) Change Change 3Q24/3Q23 3Q24/2Q24 % % BBVA Group (€M) 3Q24 const. % const. % Net Interest Income 5,868 4 -9 0 -9 Net Fees and Commissions 1,912 28 13 8 -2 Net Trading Income 1,044 97 59 3 -6 Other Income & Expenses -107 -95 -87 -85 -67 Gross Inc
Slide 35: 9M24 Profit & Loss
3Q24 Fixed Income 35 9M24 Profit & Loss BBVA GROUP (€M) Change 9M24/9M23 % 9M24 const. % Net Interest Income 18,861 14 6 Net Fees and Commissions 5,754 32 25 Net Trading Income 2,930 146 105 Other Income & Expenses -1,383 -28 -22 Gross Income 26,161 29 18 Operating Expenses -10,189 17 10 Operating In
Slide 36: Business Areas Contribution to Group's NAP 3Q24 YoY growth
3Q24 Fixed Income 36 Business Areas Contribution to Group's NAP 3Q24 YoY growth NET ATTRIBUTABLE PROFIT (BUSINESS AREAS CONTRIBUTION TO 3Q24 YOY GROWTH; CURRENT €M) +26% 3Q23 Spain Mexico Turkey South Rest of Corporate 3Q24 America Business Center NAP 3Q24 (€M) 1,076 1,335 82 155 167 -187 NAP growth
Slide 37: ALCO Portfolio
3Q24 Fixed Income 37 ALCO Portfolio ALCO PORTFOLIO BREAKDOWN BY REGION (€ BN) Amort Cost Fair Value (HTC) (HTC&S) (duration Sep-24 (€BN) (€BN) incl. hedges) South America 0.3 6.1 1.4 years Turkey 6.5 2.5 4.1 years Mexico 4.5 10.2 2.8 years Euro 35.1 11.1 2.4 years (1) Spain 29.3 4.8 Italy 2.9 4.1 Re
Slide 38: NII sensitivity to interest rates movements
3Q24 Fixed Income 38 NII sensitivity to interest rates movements ESTIMATED IMPACT ON NII IN THE NEXT 12 MONTHS TO PARALLEL INTEREST RATE MOVEMENTS (TO +/-100 BPS INTEREST RATES MOVEMENT, %) + -4% + -2.5% EURO BALANCE MEXICO SHEET Note: NII sensitivities to parallel interest rates movements as of Sep
Slide 39: Customer spreads: quarterly evolution
3Q24 Fixed Income 39 Customer spreads: quarterly evolution AVERAGE 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 Spain 3.33% 3.42% 3.44% 3.44% 3.39% Turkey TL 0.51% 0.38% -0.74% -0.02% -0.33% Yield on Loans 4.01% 4.28% 4.35% 4.30% 4.25% Yield on Loans 20.20% 28.49% 33.02% 36.86% 38.47% Cost of D
Slide 40: Stages breakdown by business areas
3Q24 Fixed Income 40 Stages breakdown by business areas CREDIT RISK BUSINESS BREAKDOWN BY AREA (SEP-24, € M) Gross Accumulated Gross Accumulated Gross Accumulated BBVA GROUP Exposure impairments SPAIN Exposure impairments MEXICO Exposure impairments Stage 1 407,658 2,083 Stage 1 174,455 462 Stage 1
Slide 41: Capital Base BBVA Group & BBVA, S.A.
3Q24 Fixed Income 41 Capital Base BBVA Group & BBVA, S.A. CAPITAL RATIOS SEP-24 (%) 17.09% 18.25% T2 AT1 CET1 BBVA Group BBVA, S.A. CET 1 € 48,715 m € 27,943 m AT1 € 5,788 m € 5,430 m T2 € 10,341 m € 6,703 m Total Capital Base € 64,844 m € 40,076 m RWA € 379,519 m € 219,564 m Note: Preliminary Data
Slide 42: CET1 Sensitivity to Market Impacts
3Q24 Fixed Income 42 CET1 Sensitivity to Market Impacts1 TO A 10% CURRENCY DEPRECIATION2 TO A 10% DECLINE IN TELEFONICA’S (OCT-24) SHARE PRICE (SEP-24) MXN -9bps TRY -4bps -2 bps USD +18bps TO +100 BPS MOVEMENT IN THE TO +100 BPS MOVEMENT IN THE MEXICAN SOVEREIGN BOND SPANISH SOVEREIGN BOND (SEP-24)
Slide 43: Group RWA breakdown
3Q24 Fixed Income 43 Group RWA breakdown TOTAL RWA BREAKDOWN PHASED-IN 52% IRB Models ▰ Optimizing Capital Allocation is part of BBVA’S Strategic Priorities 0.3% CVA ▰ Limited usage of internal 1.05% FX Risk 87.4% Credit Risk models in Credit Risk RWAs, mitigating potential impacts 3.4% Trading Act
Slide 44: Debt Issuances 2023 - 2024 YTD
3Q24 Fixed Income 44 Debt Issuances 2023 - 2024 YTD PRODUCT ISSUE DATE CALL DATE MATURITY NOMINAL COUPON BBVA, S.A. T2 Aug-24 Aug-31 Aug-36 € 1,000 M 4.375% AT1 Jun-24 Jun-31* Perp € 750 M 6.875% SP Jun-24 - Jun-27 € 1,000 M 3mE+45 bps SP Jun-24 - Jun-30 € 750 M 3.625% SP Mar-24 - Mar-31 € 1,000 M 3
Slide 45: Called notes 2018 - 2024 YTD
3Q24 Fixed Income 45 Called notes BBVA 2018 - 2024 YTD follows an economic call policy OUTSTANDING PRODUCT ISSUE DATE REDEMPTION COUPON CURRENCY (M) BBVA, S.A. AT1 Mar-19 Mar-24 € 1,000 M 6,000% BBVA, S.A. T2 Feb-19 Feb-24 € 750 2.575% BBVA, S.A. AT1 Sep-18 Sep-23 € 1,000 5.875% BBVA, S.A. AT1 May-1
Slide 46: Wholesale maturities 2024 - 2028+
3Q24 Fixed Income 46 Wholesale maturities 2024 - 2028+ Bn € EURO 2024 2025 2026 2027 2028+ TOTAL Senior Preferred 0.0 4.7 2.0 2.3 5.7 14.7 Senior Non Preferred 1.0 1.9 1.2 1.9 3.0 9.0 Covered Bonds 0.0 2.4 1.0 1.7 0.9 5.9 Preferred Shares 0.0 0.9 1.0 0.9 2.6 5.4 Subordinated 0.0 1.2 0.4 1.3 4.7 7.5
Slide 47: Main Subsidiaries ratings
3Q24 Fixed Income 47 Main Subsidiaries ratings BBVA LONG TERM SENIOR UNSECURED RATINGS BBVA Mexico Garanti BBVA BBVA Argentina BBVA Colombia BBVA Peru Investment AAA/Aaa AAA/Aaa AAA/Aaa AAA/Aaa AAA/Aaa grade AA+/Aa1 AA+/Aa1 AA+/Aa1 AA+/Aa1 AA+/Aa1 AA/Aa2 AA/Aa2 AA/Aa2 AA/Aa2 AA/Aa2 AA-/Aa3 AA-/Aa3 A
Slide 48: Book Value of the main subsidiaries
3Q24 Fixed Income 48 Book Value of the main subsidiaries1,2 € BN; SEP-24 Δ (%) QoQ Mexico 18.7 -3.4% Turkey 7.2 -0.8% Colombia 1.9 -1.2% Argentina 1.5 +2.1% Peru 1.5 +5.2% Uruguay 0.3 -2.8% Chile 0.3 +3.0% Venezuela 0.1 -6.3% (1) Includes the initial investment + BBVA’s undistributed results + FX im
Slide 49: ESG Credentials
3Q24 Fixed Income 49 ESG Credentials SUSTAINABLE BUSINESS SOCIAL GOVERNANCE Sustainable Business Channeling Positive impact on society Directors Loan growth1 Sustainable Business 300 €Bn 2018-2025 (SEP-24, YOY, CONSTANT €) +11 % % Female 47% Goal: 40% Directors at least goal 115,000 520,000 70,000 2
Slide 50: BBVA
BBVA
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