Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Q1 2024 Earnings Presentation
59 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Apr 29, 2024
Slide 1: 1Q24 Earnings
BBVA 1Q24 Earnings April 29, 2024
Slide 2: Disclaimer
1Q24 Earnings 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 by a
Slide 3: BBVA once again reports an excellent quarter
1Q24 Earnings 3 BBVA once again reports an excellent quarter NET ATTRIBUTABLE PROFIT CET1 RATIO (CURRENT €M) (%) +19% +6.9% +15bps Includes -€285M extraordinary Spanish tax 12.82% 12.67% Target Range 11.5%-12.0% SREP Requirement 9.10% 1Q231 4Q23 1Q24 Dec-23 Mar-24 EPS (€)2 0.29 0.33 0.36 (1) 1Q23 re
Slide 4: Operating income continues its strong upward trajectory
1Q24 Earnings 4 Operating income continues its strong upward trajectory OPERATING INCOME (CURRENT €M) 4,835 3,942 LAST 2 YEARS QUARTERLY AVERAGE 2,989 €4.0 Bn 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24
Slide 5: Outstanding shareholder value creation and profitability metrics
1Q24 Earnings 5 Outstanding shareholder value creation and profitability metrics TBV + DIVIDENDS PROFITABILITY METRICS (€ / SHARE1) (%) TBV / share Dividends / share +20% ROTE +6.5% 8.62 9.17 0.552 7.65 0.162 ROE 8.46 8.62 Mar-23 Dec-23 Mar-24 1Q23 2023 1Q24 (1) Total number of shares considered: 5,7
Slide 6: Unique combination of growth and profitability
1Q24 Earnings 6 Unique combination of growth and profitability LOAN GROWTH GROSS LOANS (2023 VS 2022 CURRENT €) Peer 8 1Q24 Peer 3 Peer 11 Peer 5 Peer 10 Peer 6 Peer 1 Peer Peer 9 Peer 12 Peer 2 13 Peer 4 Peer 7 PROFITABILITY RETURN ON TANGIBLE EQUITY (2023) European Peer Group: BARC, BNPP, CABK, CAS
Slide 7: Positive prospects going forward in Spain
1Q24 Earnings 7 Positive prospects going forward in Spain GDP EVOLUTION SIGNIFICANT DELEVERAGING ALREADY HAPPENED (REAL GDP GROWTH, 2014 BASE 100) (DEBT OVER GDP, %, 2008-2023) CORPORATE DEBT HOUSEHOLD DEBT 125% 100% Spain SPAIN Spain 75% Eurozone 50% Eurozone 2008 2013 2018 2023 2008 2013 2018 2023
Slide 8: Strong growth opportunities in Mexico
1Q24 Earnings 8 Strong growth opportunities in Mexico GDP EVOLUTION SUBSTANTIAL ROOM TO INCREASE LEVERAGE (REAL GDP GROWTH, 2014 BASE 100) (DOMESTIC CREDIT TO PRIVATE SECTOR OVER GDP, %) MEXICO LATIN USA CHILE BRAZIL PERU COL MEXICO AMERICA Source: World Bank. Figures as of 2022, except USA and Peru
Slide 9: 1Q24 key messages
1Q24 Earnings 9 1Q24 key messages CORE REVENUES (NII+FEES) TOTAL LOAN GROWTH1 OUTSTANDING CORE REVENUES +27.0% +18.6% +9.5% +7.0% 1 AND SOLID ACTIVITY GROWTH (YOY, CONSTANT) (YOY, CURRENT) (YOY, CONSTANT) (YOY, CURRENT) vs. 1Q23 vs. MAR 2023 EFFICIENCY RATIO LEADING AND IMPROVING 2 EFFICIENCY WITH P
Slide 10: 1Q24 Profit & Loss
1Q24 Earnings 10 1Q24 Profit & Loss Change Change 1Q24/1Q23 1Q24/4Q23 BBVA Group (€M) 1Q24 % constant % % constant % Net Interest Income 6,512 25 15 4 24 Net Fees and Commissions 1,887 37 31 3 11 Net Trading Income 772 124 76 -13 3 Other Income & Expenses -952 39 70 271 273 Gross Income 8,218 31 18 -
Slide 11: Remarkable core revenues growth trend
1Q24 Earnings 11 Remarkable core revenues growth trend NET INTEREST INCOME NET FEES AND COMMISSIONS (CONSTANT €M) (CONSTANT €M) +25% +37% +3.6% +3.5% Strong NII growth Sound fee income driven by activity levered on and improving payments and customer spreads asset management businesses 1Q23 2Q23 3Q2
Slide 12: Further improving industry-leading efficiency with positive jaws
1Q24 Earnings 12 Further improving industry-leading efficiency with positive jaws POSITIVE JAWS EFFICIENCY RATIO (1Q24 YOY, CONSTANT €) (COST-TO-INCOME, % CONSTANT €) FOOTPRINT INFLATION1 -398bps +31.0% 19.7% 12M AVERAGE +19.5% Gross Operating 1Q23 1Q24 Income Expenses (1) Weighted by operating expen
Slide 13: In a context of strong activity growth, asset quality within guidance
1Q24 Earnings 13 In a context of strong activity growth, asset quality within guidance FINANCIAL ASSETS IMPAIRMENTS NPL (CONSTANT €M) (€BN) 1Q23 2Q23 3Q23 4Q23 1Q24 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 COST OF RISK NPL & COVERAGE RATIOS (%, QUARTERLY) (%) COVERAGE NPL 1Q23 2Q23 3Q23 4Q23 1Q24 Mar-23 J
Slide 14: Sound capital position above our target
1Q24 Earnings 14 Sound capital position above our target CET1 RATIO (%, BPS) +60 bps -33 bps -43 bps 12.82% +31 bps 12.67% Target Range 11.5%-12.0% SREP Requirement 9.10% Dividend RWAs Dec -23 Results accrual & AT1 Others1 Mar -24 (constant €) coupons (1) Includes, among others, FX and mark to marke
Slide 15: Keeping good traction in customer acquisition
1Q24 Earnings 15 Keeping good traction in customer acquisition NEW CUSTOMERS1 (BBVA GROUP, MILLION; % ACQUISITION THROUGH DIGITAL CHANNELS) DIGITAL 67% TOTAL DIGITAL 21% 1Q19 1Q20 1Q21 1Q22 1Q23 1Q24 (1) Gross customer acquisition through own channels for retail segment. Excludes the US business sol
Slide 16: Advancing in sustainable business
1Q24 Earnings 16 Advancing in sustainable business SUSTAINABLE BUSINESS (€ BN, ACCUMULATED DATA 2018-1Q24) BY SEGMENT (€ BN) New target (2022) €20 Bn YoY growth 300 €Bn channeled in 1Q24 20.0 +41% €226 Bn Revised target 2.6 Retail -19% Channeled since 2018 (2021) 200 €Bn 14.2 3.2 7.0 Enterprises +81
Slide 17: Positive impact on society through our activity
1Q24 Earnings 17 Positive impact on society through our activity BBVA GROUP LOAN GROWTH1 +9.5 +7.0 % (YOY, CONSTANT €) % (YOY, CURRENT €) INCLUSIVE GROWTH FINANCING 35,000 155,000 70,000 4.9 €Bn MOBILIZED IN 1Q24 FAMILIES BOUGHT SMEs AND LARGER THEIR HOME2 SELF - EMPLOYED CORPORATES BOOSTED THEIR IN
Slide 18: We continue on our path to success regarding our ambitious 2021-2024 goals
1Q24 Earnings 18 We continue on our path to success regarding our ambitious 2021-2024 goals COST-TO-INCOME ROTE1 TBV + DIVIDENDS (%) (%, ANNUALIZED) (€/SHARE, %) CAGR HIGH 2021-3M24 TEENS MID TEENS CAGR SLIGHT IMPROVEMENT 2021-24 CAGR 3M 3M 3M NEW TARGET CUSTOMERS2 SUSTAINABLE BUSINESS (MILLION CUMU
Slide 19: Business Areas
1Q24 Earnings 19 Business SPAIN Areas MEXICO TURKEY SOUTH AMERICA
Slide 20: Spain
1Q24 Earnings 20 Spain PROFIT & LOSS (€M) ACTIVITY (MAR-24) €Bn YoY €Bn YoY Δ (%) 1Q24 vs. 1Q23 vs. 4Q23 +0.8% +4.0% Net Interest Income 1,599 35.2 2.0 Net Fees and Commissions 566 5.6 0.9 Mortgages -0.9% Net Trading Income 205 71.6 104.5 Demand Other Income & Expenses -209 85.9 20.6 Deposits -3.7%
Slide 21: Mexico
1Q24 Earnings 21 Mexico PROFIT & LOSS (CONSTANT €M) ACTIVITY (MAR-24) Δ Constant (%) Δ Current (%) (CONSTANT €) €Bn YoY €Bn YoY +8.8% +12.5% 1Q24 vs. 1Q23 vs. 4Q23 vs. 1Q23 Net Interest Income 2,999 6.5 1.2 15.8 Mortgages +8.7% Net Fees and Commissions 642 22.4 4.2 33.0 Demand +4.9% Net Trading Inco
Slide 22: Turkey
1Q24 Earnings 22 Turkey PROFIT & LOSS (CURRENT €M) ACTIVITY (MAR-24) Δ Current (%) (CONSTANT €; BANK ONLY) €Bn YoY1 1Q24 vs 1Q23 vs 4Q23 €Bn FC +1.2% Net Interest Income 277 -55.7 -3.5 YoY1 Time -45.5% Net Fees and Commissions 423 145.9 14.8 Net Trading Income 316 41.1 127.1 FC +2.6% Other Income &
Slide 23: South America
1Q24 Earnings 23 South America NET ATTRIBUTABLE PROFIT (CURRENT €M) ACTIVITY (MAR-24) (CONSTANT €) €Bn YoY Δ Current (%) €Bn YoY -9.1% 1Q24 vs. 1Q23 vs. 4Q23 +8.4% Colombia +7.8% Colombia 20 -50.6 -50.9 Peru 42 -24.3 -9.8 Colombia +3.5% Argentina 34 -33.2 n.s. Other ¹ 23 -31.1 -22.9 +4.6% Peru South
Slide 24: Takeaways
1Q24 Earnings 24 Takeaways BBVA delivered Significant progress in the ● Raising 2024 Group core another record execution of our strategy revenue outlook on the quarter mainly driven focused on digitization, back of upgraded Spain NII by Spain and Mexico innovation and guidance and rate sustainability
Slide 25: Annex
1Q24 Earnings 25 Annex 01 Net Attributable Profit 08 CET1 Sensitivity to market evolution impacts 02 Gross Income breakdown 09 RWAs by business area 03 P&L Accounts by business unit 10 Book Value of the main subsidiaries 04 Customer spread by country 11 TBV per share & dividends Stages breakdown by b
Slide 26: Net Attributable Profit evolution
1Q24 Earnings 26 Net Attributable Profit evolution
Slide 27: Business Areas Contribution to Group's NAP 1Q24 yoy growth
1Q24 Earnings 27 Business Areas Contribution to Group's NAP 1Q24 yoy growth NET ATTRIBUTABLE PROFIT (BUSINESS AREAS CONTRIBUTION TO 1Q24 YOY GROWTH; CURRENT €M) +19% 1Q23 Spain Mexico Turkey South Rest of Corporate 1Q24 America Business Center NAP 1Q24 (€M) 725 1,441 144 119 121 -350 NAP growth (YoY
Slide 28: Gross Income breakdown
1Q24 Earnings 28 Gross Income breakdown
Slide 29: Gross Income breakdown
1Q24 Earnings 29 Gross Income breakdown 1Q24 (€M, %) Rest of business 336 €M Spain South America 4% 2,162€M 1,201 €M 14% 25% Turkey 11% 897 €M 46% Mexico 3,967 €M Note: Figures exclude Corporate Center.
Slide 30: P&L Accounts by business unit
1Q24 Earnings 30 P&L Accounts by business unit Rest of Business Corporate Center Turkey (hyperinflation adjustment) Argentina (hyperinflation adjustment) Colombia Peru
Slide 31: Rest of Business - Profit & Loss
1Q24 Earnings 31 Rest of Business - Profit & Loss PROFIT & LOSS (€M) Δ (%) 1Q24 vs 1Q23 vs 4Q23 Net Interest Income 157 38.6 17.5 Net Fees and Commissions 67 -2.4 27.9 Net Trading Income 111 44.6 69.1 Other Income & Expenses 1 -23.1 n.s. Gross Income 336 29.3 33.7 Operating Expenses -160 18.0 -3.3 Op
Slide 32: Corporate Center - Profit & Loss
1Q24 Earnings 32 Corporate Center - Profit & Loss PROFIT & LOSS (€M) Δ (%) 1Q24 vs 1Q23 vs 4Q23 Net Interest Income -76 25.9 -43.2 Net Fees and Commissions -4 -2.8 5.1 Net Trading Income -269 4.4 n.s. Other Income & Expenses 5 -56.1 -87.0 Gross Income -344 10.7 297.1 Operating Expenses -167 -8.3 -21.
Slide 33: Turkey - hyperinflation adjustment
1Q24 Earnings 33 Turkey - hyperinflation adjustment PROFIT & LOSS (€M) 3M24 Hyperinflation 3M24 (reported) (1) adjustment (2) Ex.Hyperinflation Net Interest Income 277 -2 279 Net Fees and Commissions 423 -2 425 Net Trading Income 316 -4 319 Other Income & Expenses -119 -602 483 Gross Income 897 -609 1
Slide 34: Argentina - hyperinflation adjustment
1Q24 Earnings 34 Argentina - hyperinflation adjustment PROFIT & LOSS (€M) 3M24 Hyperinflation 3M24 (reported) (1) adjustment (2) Ex.Hyperinflation Net Interest Income 861 70 792 Net Fees and Commissions 57 6 51 Net Trading Income 125 14 111 Other Income & Expenses -730 -659 -70 Gross Income 314 -570 88
Slide 35: Colombia - Profit & Loss
1Q24 Earnings 35 Colombia - Profit & Loss PROFIT & LOSS (€M CONSTANT) Δ (%) 1Q24 vs 1Q23 vs 4Q23 Net Interest Income 241 17.3 7.2 Net Fees and Commissions 28 -2.7 -13.1 Net Trading Income 25 -36.3 -28.7 Other Income & Expenses -2 n.s. -38.8 Gross Income 292 6.0 1.1 Operating Expenses -146 13.3 12.4 O
Slide 36: Peru - Profit & Loss
1Q24 Earnings 36 Peru - Profit & Loss PROFIT & LOSS (€M CONSTANT) Δ (%) 1Q24 vs 1Q23 vs 4Q23 Net Interest Income 352 15.4 3.2 Net Fees and Commissions 79 7.8 11.2 Net Trading Income 38 -20.1 -23.5 Other Income & Expenses -10 -21.8 -1.0 Gross Income 459 11.1 1.6 Operating Expenses -174 11.7 6.9 Operat
Slide 37: Customer Spread by country
1Q24 Earnings 37 Customer Spread by country
Slide 38: Customer spreads: quarterly evolution
1Q24 Earnings 38 Customer spreads: quarterly evolution AVERAGE 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 Spain 2.75% 3.12% 3.33% 3.42% 3.44% Turkey TL 3.92% 0.81% 0.51% 0.38% -0.74% Yield on Loans 3.11% 3.64% 4.01% 4.28% 4.35% Yield on Loans 16.84% 16.50% 20.20% 28.49% 33.02% Cost of Deposit
Slide 39: Stages breakdown by business areas
1Q24 Earnings 39 Stages breakdown by business areas
Slide 40: Stages breakdown by business areas
1Q24 Earnings 40 Stages breakdown by business areas CREDIT RISK BUSINESS BREAKDOWN BY AREA (MAR-24, € M) Gross Accumulated Gross Accumulated Gross Accumulated BBVA GROUP Exposure impairments SPAIN Exposure impairments MEXICO Exposure impairments Stage 1 405,765 2,198 Stage 1 169,890 466 Stage 1 90,1
Slide 41: Exposure to Covid-related loans and Commercial Real Estate
1Q24 Earnings 41 Exposure to Covid-related loans and Commercial Real Estate
Slide 42: Exposure to Covid-related loans backed by State guarantees and Commercial Real Estate
1Q24 Earnings 42 Exposure to Covid-related loans backed by State guarantees and Commercial Real Estate COVID-RELATED LOANS, SPAIN AND PERU COMMERCIAL REAL ESTATE (OUTSTANDING LOANS AS OF MAR’24) (GROUP’s CRE EAD, %, AS OF MAR’24) € 8.2 Bn 1 € 0.4 Bn €c. 11 Bn 2 of which of which 66% Retail 56% Retai
Slide 43: ALCO Portfolio, NII Sensitivity and LCRs & NSFRs
1Q24 Earnings 43 ALCO Portfolio, NII Sensitivity and LCRs & NSFRs
Slide 44: ALCO Portfolio
1Q24 Earnings 44 ALCO Portfolio ALCO PORTFOLIO BREAKDOWN BY REGION (€ BN) Amort Cost Fair Value (HTC) (HTC&S) (duration Mar-24 (€BN) (€BN) incl. hedges) South America 0.2 4.9 1.5 years Turkey 6.8 2.4 3.6 years Mexico 7.0 13.3 2.7 years Euro 27.6 11.6 2.6 years (1) Spain 21.8 5.1 Italy 2.9 4.1 Rest 2
Slide 45: NII sensitivity to interest rates movements
1Q24 Earnings 45 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 INCREASE, %) +c.5% +2.3% EURO BALANCE MEXICO SHEET Note: NII sensitivities to parallel interest rates movements as of Feb-24, usi
Slide 46: Liquidity and funding ratios
1Q24 Earnings 46 Liquidity and funding ratios BBVA GROUP AND SUBSIDIARIES LCR & NSFR (MAR-24) LCR NSFR Loan To Total Group 186% / 151%1 132% Deposits BBVA, S.A. 179% 124% 86% Mexico 165% 135% 99% 2 Turkey 193% 168% 80% S. America 96%3 All countries >100% >100% (1) Using a more restrictive criterion
Slide 47: CET1 Sensitivity to market impacts
1Q24 Earnings 47 CET1 Sensitivity to market impacts
Slide 48: CET1 Sensitivity to Market Impacts
1Q24 Earnings 48 CET1 Sensitivity to Market Impacts1 TO A 10% CURRENCY DEPRECIATION2 TO A 10% DECLINE IN TELEFONICA’S (MAR-24) SHARE PRICE (MAR-24) MXN -10bps -3 pbs TRY -4bps TO +100 BPS MOVEMENT IN THE SPANISH SOVEREIGN BOND (MAR-24) USD +17bps -10 pbs (1) CET1 sensitivity considering the FL capit
Slide 49: RWAs by business area
1Q24 Earnings 49 RWAs by business area
Slide 50: Risk-weighted assets by business area
1Q24 Earnings 50 Risk-weighted assets by business area Fully-Loaded RWAs Δ (%) Breakdown by business area (€M) Mar-23 Dec-23 Mar-24 vs. Mar-23 vs. Dec-23 Spain 116,542 121,779 122,056 4.7% 0.2% Mexico 78,316 91,865 97,517 24.5% 6.2% Turkey 58,683 54,506 58,558 -0.2% 7.4% South America 47,341 49,117
Slide 51: Book Value of the main subsidiaries
1Q24 Earnings 51 Book Value of the main subsidiaries
Slide 52: Book Value of the main subsidiaries
1Q24 Earnings 52 Book Value of the main subsidiaries1,2 € BN; MAR-24 Δ (%) QoQ Mexico 20.8 -2.2% Turkey 6.8 +0.3% Colombia 1.8 -0.7% Argentina 1.6 +42.9% Peru 1.3 -2.9% Chile 0.3 -4.3% Venezuela 0.1 -14.4% (1) Includes the initial investment + BBVA’s undistributed results + FX impact + other valuati
Slide 53: TBV per share & dividends evolution
1Q24 Earnings 53 TBV per share & dividends evolution
Slide 54: Shareholders' return: TBV per share & dividends evolution
1Q24 Earnings 54 Shareholders’ return: TBV per share & dividends evolution TBV PER SHARE & DIVIDENDS(1) (€ PER SHARE) TBV Dividends +19.9% (2) (2) (2) (1) Including the deduction of the whole Share Buy Back program. (1) October 2023 dividend per share paid (0.16€) and April 2024 dividend per share p
Slide 55: MREL
1Q24 Earnings 55 MREL
Slide 56: Sound MREL position
1Q24 Earnings 56 Sound MREL position POSITION AS OF MAR-24 (% RWA1) MREL REQUIREMENT + CBR SUBORDINATION REQUIREMENT + CBR 26.40% 27.81% 21.96% CBR: 3.61% 3 17.11% 3 CBR: 3.61% MREL 22.79% Subordination 13.50% 2 2 M-MDA Buffer 141 bps (3.1€bn) Subordination Buffer 486 bps (10.7€bn) Note: Preliminary
Slide 57: Digital metrics
1Q24 Earnings 57 Digital metrics
Slide 58: Digital metrics mobile customers & digital sales
1Q24 Earnings 58 Digital metrics mobile customers & digital sales MOBILE CUSTOMERS DIGITAL SALES - UNITS (MILLION CUSTOMERS, %) % OF TOTAL SALES YTD, # OF TRANSACTIONS) +30% DIGITAL SALES - PRV2 % OF TOTAL SALES YTD, PRV) CUSTOMER PENETRATION RATE1 65.8% 70.2% 73.6% (1) Mobile over active customers.
Slide 59: BBVA
BBVA
Banco Bilbao Vizcaya Argentaria — Q1 2024 Earnings Presentation on 6ix