Banco Bilbao Vizcaya Argentaria, S.A. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Q2 2017 Earnings Presentation
22 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Jul 27, 2017
Slide 1: 2Q17 Results
2Q 2017 Results July 27th 2017 / 1 2Q17 Results July, 27th 2017
Slide 2: Disclaimer
2Q 2017 Results July 27th 2017 / 2 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 de
Slide 3: Continued Strength in the 2nd Quarter
2Q 2017 Results July 27th 2017 / 3 Continued Strength in the 2nd Quarter Net Attributable Profit CET1 fully-loaded – BBVA Group Quarterly evolution (€m) Quarterly evolution (%) 1,199 +38 bps 1,123 1,107 965 11.00% 10.90% 11.01% 11.10% 678 10.72% 2Q16 3Q16 4Q16 1Q17 2Q17 Jun.16 Sep.16 Dec.16 Mar.17 J
Slide 4: 2Q17 Highlights
2Q 2017 Results July 27th 2017 / 4 2Q17 Highlights Core revenues growth Cost control Sound asset quality Net Gross Gross Operating Cost of interest income Income Expenses risk (Quarterly, %, €) income vs. Op. and fees Expenses (€ constant) +9.3% (YtD, %, € constant) +7.8% +2.2% 0.94% vs. 2Q16 vs. 6M
Slide 5: 2Q17 Profit & Loss
2Q 2017 Results July 27th 2017 / 5 2Q17 Profit & Loss Change 2Q17/2Q16 BBVA Group (€m) 2Q17 % % constant Net Interest Income 4,481 6.4 10.0 Net Fees and Commissions 1,233 3.7 6.7 Net Trading Income 378 -53.9 -51.0 Other Income & Expenses 244 8.6 -2.8 Gross Income 6,336 -1.7 1.3 Operating Expenses -3
Slide 6: 1H17 Profit & Loss
2Q 2017 Results July 27th 2017 / 6 1H17 Profit & Loss Change 1H17/1H16 BBVA Group (€m) 1H17 % % constant Net Interest Income 8,803 5.2 9.6 Net Fees and Commissions 2,456 4.5 8.0 Net Trading Income 1,069 -9.1 -2.4 Other Income & Expenses 390 13.7 -1.7 Gross Income 12,718 4.0 7.8 Operating Expenses -6
Slide 7: Earnings - Gross Income
2Q 2017 Results July 27th 2017 / 7 Earnings - Gross Income Net Interest Income Net Fees and Commissions (€m constant) +9.6% (€m constant) vs 1H16 +8.0% +10.0% +6.7% vs 1H16 4,067 4,168 4,324 4,330 4,473 1,155 1,181 1,152 1,224 1,232 Growing quarter Growth trend by quarter maintained in all +3.3 % +0
Slide 8: Operating Expenses and Operating Income
2Q 2017 Results July 27th 2017 / 8 Operating Expenses and Operating Income Group Operating Jaws 11.3 % Ex-CNCB YTD (%); (€ constant) Operating Income 15.0% Quarterly evolution (€m constant) 8.7% 7.8% Gross +13.9% 7.0% 7.2% Income vs 1H16 -0.0% 6.3% 6.3% Operating 3.8% 1.7% 2.2% Expenses 6M16 9M16 12
Slide 9: Risk Indicators
2Q 2017 Results July 27th 2017 / 9 Risk Indicators Total Impairments (Financial Assets and RE) NPLs (€m constant) (€bn) -9.8 % - 2.4 € bn 1,121 1,050 24.8 24.3 981 1,009 1,011 23.6 23.2 +0.2% 22.4 - 0.8 € bn 2Q16 3Q16 4Q16 1Q17 2Q17 2Q16 3Q16 4Q16 1Q17 2Q17 Cost of risk NPL & Coverage ratios YTD (%)
Slide 10: Capital Ratios
2Q 2017 Results July 27th 2017 / 10 Capital Ratios CET1 CET1 fully-loaded – BBVA Group phased-in QoQ Evolution (%, bps) 11.76% +9 bps 28 bps 11.10% 11.01% - 11 bps -8 bps % CET1 FL Net Earnings Dividend Others* % CET1 FL (Mar.17) accrual (Jun.17) (*) Includes, among others, the mark to market of the
Slide 11: Delivering on our Transformation
2Q 2017 Results July 27th 2017 / 11 Delivering on our Transformation
Slide 12: Customer Experience Improvements in 2Q17
2Q 2Q 2017 2017Results Results July 27thth2017 / 12 July 27 2017 / 12 Customer Experience Improvements in 2Q17 • Virtual voice assistant Products & Functionalities - MIA (Turkey) Relationship Model • EstarSeguros (Spain) • Open Market Digital MIA- Mobile Interactive Loans (USA) Assistant (Turkey) •
Slide 13: Digital Customers – BBVA Group
2Q 2Q 2017 2017Results Results July 27thth2017 / 13 July 27 2017 / 13 Digital Customers – BBVA Group Digital Customers Mobile Customers (Million, % penetration) (Million, % penetration) 50% tipping +22% +42% point in digital customers achieved 18.1 19.9 16.3 14.5 12.3 10.2 TURKEY VENEZUELA CHILE Jun
Slide 14: Digital Sales
2Q 2Q 2017 2017Results Results July 27thth2017 / 14 July 27 2017 / 14 Digital Sales (% of total sales YtD, # of transactions) GROUP SPAIN USA 22.2 24.7 17.1 22.2 16.8 19.4 Exponential Dec 16 Jun 17 growth in all Dec-16 Jun-17 Dec-16 Jun-17 franchises MEXICO TURKEY SOUTH AMERICA 16.0 31.0 22.5 11.9 1
Slide 15: Business Areas
2Q 2017 Results July 27th 2017 / 15 Business Areas
Slide 16: Business areas: Spain, Non Core Real Estate, USA
2Q 2Q 2017 2017Results Results July 27thth2017 / 16 July 27 2017 / 16 Business areas SPAIN Banking activity NET ATTRIBUTABLE PROFIT NPL RATIO NII excluding CIB remains stable in 1H. Lower contribution from 5.7% vs. 6.0% 2Q16 670 € m COVERAGE RATIO CIB due to Global Markets and securities portfolio s
Slide 17: Business areas: Mexico, Turkey, South America
2Q 2Q 2017 2017Results Results July 27thth2017 / 17 July 27 2017 / 17 Business areas MEXICO constant € NET ATTRIBUTABLE PROFIT NPL RATIO Sustained growth in all P&L lines 2.3% vs. 2.5% 2Q16 1,080 € m COVERAGE RATIO Excellent top line growth thanks to core revenues Positive operating jaws maintained,
Slide 18: 2Q17 Key Takeaways
2Q 2017 Results July 27th 2017 / 18 2Q17 Key Takeaways 1. Excellent 1H results, solid trends strengthened Growth in core revenues Costs control Low cost of risk Solid capital generation 2. Delivering on our transformation: Best mobile app in the world 3. Creating value for the shareholder
Slide 19: Creating Opportunities
2Q 19 2Q 2017 2017Results Results July 27thth2017 / 19 July 27 2017 / 19 Creating Opportunities
Slide 20: Annex
2Q 2017 Results July 27th 2017 / 20 Annex
Slide 21: Total Spain – Profit & Loss
2Q 2017 Results July 27th 2017 / 21 Total Spain – Profit & Loss Change (%) Change (%) Total Spain 2Q17 vs 2Q17 vs 1H17 vs 2Q17 1H17 (€m) 2Q16 1Q17 1H16 Net Interest Income 951 -4.7 0.7 1,896 -4.4 Net Fees and Commissions 401 7.3 4.4 785 3.0 Net Trading Income 94 -70.1 -58.3 318 -18.4 Other Income &
Slide 22: 2Q17 Results
2Q 2017 Results July 27th 2017 / 22 2Q17 Results July, 27th 2017
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