Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Investor Day (November 2021)
144 slides from Banco Bilbao Vizcaya Argentaria's investor day presentation, Nov 19, 2021
Slide 1: BBVA: accelerating profitable growth
BBVA Creating Opportunities BBVA: accelerating profitable growth BBVA Investor Day CARLOS TORRES VILA, CHAIRMAN ONUR GENÇ, CEO
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: Economic recovery in an age of opportunity
01 BBVA Creating Opportunities Economic recovery in an age of opportunity
Slide 4: The economic recovery continues despite short term pressures
The economic recovery continues despite short term pressures CONSUMPTION INDEX1 GDP GROWTH (%) (7D CUMULATIVE VS. SAME PERIOD IN 2019) Footprint2 World 6.1 200% 5.9 4.7 2.9 4.6 USA 150% 2.2 5.2 4.5 Europe -3.2 100% 1.3 -3.4 -6.5 50% Jan-20 May-20 Sep-20 Jan-21 May-21 Sep-21 2019 2020 2021e 2022e PRI
Slide 5: Covid has accelerated pre-existing trends
/ 5 Source: McKinsey Global Digital Sentiment Insights survey. Covid has accelerated pre-existing trends 0% 100% 80% 60% 40% 20% 0 100 80 60 40 20 Entertainment Utilities Telco carriers Public sector Insurance Banking Travel Retail +35 p.p. +46 p.p. +36 p.p. +45 p.p. +46 p.p. +38 p.p. +15 p.p. DIGIT
Slide 6: Disruptive innovation driven by digitalization and decarbonization
/ 6 Disruptive innovation driven by digitalization and decarbonization Deep impact in all sectors of the economy Technological disruptions have traditionally boosted economic growth and productivity We are living disruptive times, an age of opportunity Source: ARK Investment Management LLC (https://
Slide 7: Decarbonization is king among these trends
/ 7 NET ZERO 2050 ENERGY MIX (EXAJOULES1) Source: Based on data from International Energy Agency (2021) Net Zero by 2050: Net Zero by 2050 Scenario—Data product—IEA; as modified by BBVA Research. Renewables will displace fossil fuels Decarbonization is king among these trends Source: Lenaerts, Tagli
Slide 8: BBVA is uniquely positioned in this age of opportunity
02 BBVA is uniquely positioned in this age of opportunity BBVA Creating Opportunities
Slide 9: Leading franchises in very attractive markets
/ 9 Leading franchises in very attractive markets Sep-21 Market share1 (%) Ranking1 ROE (%) vs. industry2 (bps) Spain 13.1% #3 12.3% (+350 bps) Mexico 23.8% #1 22.2%(+1,070 bps) Turkey 18.2% #2 19.1%(+840 bps) Colombia 10.5% #4 16.4%(+530 bps) Peru 21.3% #2 12.6%(+270 bps) (1) Latest available marke
Slide 10: Trend-setters in Digital and Sustainability
/ 10 (1) According to ‘The Forrester Digital Experience Review™: European Mobile Banking Apps, Q3 2021’. (2) According to Dow Jones Sustainability Index.Trend-setters in Digital and SustainabilityDigital experience leaderfive years in a row1DIGITAL ACQUISITION(%; VAR 9M19-9M21)DIGITAL SALES(%, UNITS
Slide 11: Differential culture and mindset
/ 11 Differential culture and mindset To bring the age of opportunity to everyone Customer comes first We think big We are one team VALUE DRIVEN ORGANIZATION MOST ENGAGED Financial sector +8 bps +14 bps All companies +4 bps GALLUP SURVEY 2020 VS 2019 (BPS YOY IMPROVEMENT) AGILE Started in 2014 in Di
Slide 12: Proven track record of solid financial returns
/ 12 (1) European Peer Group: BARC, BNPP, CASA, CMZ, CS, DB, HSBC, ISP, LBG, NWG, SAN, SG, UBS, UCG. 9.3% 4.9% STRONG PRE-PROVISION PROFIT AND BEST-IN-CLASS EFFICIENCY Proven track record of solid financial returns PRE-PROVISION PROFIT / RWAS (2016-9M21 ANNUALIZED, %) European peer 52 group average1
Slide 13: Disciplined capital allocation
/ 13 Disciplined capital allocation Clear commitment to shareholder value creation FOCUS ON MARKETS WITH SCALE AND PROFITABILITY Market share Profitability SUCCESSFUL DIVESTMENTS CAPITAL ALLOCATION TOWARDS MARKETS WITH SCALE AND PROFITABLE FRANCHISES VALUE TO SHAREHOLDERS TOTAL SHAREHOLDER RETURN (%
Slide 14: Excess capital for shareholders distributions and growth
/ 14 Excess capital for shareholders distributions and growth 14.73% -25 bps 12.72% -130 bps -46 bps Sep.21 Restructuring costs in Spain Share Buyback Garanti BBVA takeover bid Sep.2021 3 (Pro-Forma) A CLEAR FOCUS ON VALUE CREATION FULLY-LOADED CET 1 (%) (1) CET1 as of September 2021 excluding restr
Slide 15: Shareholders distributions increase
/ 15 Shareholders distributions increase NEW DISTRIBUTION POLICY1 Payout 40-50% SHARE BUYBACK2 €1.5Bn 1st Tranche To be executed in the following 3-4 months (1) Includes the possibility of combining cash distributions with share buybacks. (2) The execution of the €3.5 Bn share buyback program scheme
Slide 16: BBVA is uniquely positioned in this age of opportunity
/ 16 BBVA is uniquely positioned in this age of opportunity KEY STRENGTHS Leading franchises in 1 very attractive markets 2 Trend setters in Digital and Sustainability 3 Differential culture and mindset 4 Proven track record of solid financial returns 5 Disciplined capital allocation 6 Excess capita
Slide 17: Our ambitious long-term goals
03 Our ambitious long-term goals BBVA Creating Opportunities
Slide 18: Accelerating profitable growth: cost to income
/ 18 Accelerating profitable growth and value creation for shareholders HISTORICAL TREND (2016-9M21 BBVA, 9M21 PEER AVG, %) COST TO INCOME 51.9 44.7 62.3 2016 9M21 2024 GOAL (%) 42% PEERS1 (1) European Peer Group: BARC, BNPP, CASA, CMZ, CS, DB, HSBC, ISP, LBG, NWG, SAN, SG, UBS, UCG.
Slide 19: Accelerating profitable growth: ROTE
/ 19 Accelerating profitable growth and value creation for shareholders HISTORICAL TREND (2016-9M21 BBVA, 9M21 PEER AVG, %) ROTE 8.2 11.7 9.5 2016 9M21 2024 GOAL (%) 14% PEERS1 (1) European Peer Group: BARC, BNPP, CASA, CMZ, CS, DB, HSBC, ISP, LBG, NWG, SAN, SG, UBS, UCG.
Slide 20: Accelerating profitable growth: TBV per share plus dividends
/ 20 Accelerating profitable growth and value creation for shareholders HISTORICAL TREND (2018-9M21, % CAGR) TANGIBLE BOOK VALUE PER SHARE + DIVIDENDS 2024 GOAL (% CAGR) 9% 7% 6% BBVA European Peers PEERS1 (1) European Peer Group: BARC, BNPP, CASA, CMZ, CS, DB, HSBC, ISP, LBG, NWG, SAN, SG, UBS, UCG
Slide 21: Accelerating profitable growth: new target customers
/ 21 Accelerating profitable growth and value creation for shareholders CUMULATIVE NEW TARGET CUSTOMERS (2018-9M21, MN CUSTOMERS) 2024 GOAL (MN CUSTOMER GROWTH) +10Mn NEW TARGET CUSTOMERS1 +7.5Mn (1) Target customers refers to those customers in which the bank wants to grow and retain, as they are c
Slide 22: Accelerating profitable growth: sustainable finance
/ 22 Accelerating profitable growth and value creation for shareholders CUMULATIVE FINANCING (2018-9M21, €BN) 2025 GOAL (€ BN) €200Bn SUSTAINABLE FINANCE €75Bn
Slide 23: Our ambitious long-term goals
/ 23 Our ambitious long-term goals (1) Target customers refers to those customers in which the bank wants to grow and retain, as they are considered valuable due to their assets, liabilities and/or transactionality with BBVA. We remain committed to our 11.5-12% CET1 target range COST-TO-INCOME 42% 2
Slide 24: Taking profitable growth to a new level
04 Taking profitable growth to a new level BBVA Creating Opportunities
Slide 25: Executing on our strategic priorities
/ 25 Data and Technology The best and most engaged team Helping our clients transition towards a sustainable future Improving our clients’ financial health Driving operational excellence Reaching more clients Differentiation Superior performance Accelerators Executing on our strategic priorities to
Slide 26: A clear focus on our objectives
/ 26 A larger and more profitable bank A distinctive bank for our clients based on a unique value proposition Continue leading efficiency through operational excellence A clear focus on our objectives
Slide 27: A larger and more profitable bank
/ 27 A distinctive bank for our clients based on a unique value proposition Continue leading efficiency through operational excellence A clear focus on our objectives A larger and more profitable bank New customer acquisition Higher growth in attractive value pockets Invest in disruption
Slide 28: New customer acquisition in the open market
/ 28 New customer acquisition in the open market Conviction: Scale is a competitive advantage in our traditional banking business 3.4 5.0 5.1 7.4 7.3 2016 2017 2018 2019 2020 2021e NEW CUSTOMER ACQUISITION (MILLIONS; % ACQUISITION THROUGH DIGITAL CHANNELS) TOTAL1 DIGITAL 3.7% 40% 8.3 MILLION (1) Gro
Slide 29: Prioritization of high value business verticals
/ 29 Prioritization of high value business verticals Conviction: Banking is the combination of distinct businesses with different return-growth profiles Distribution of leading third party products Digital products and contextualized sales ISSUING ACQUIRING One-stop-shop for merchants E2E digital ex
Slide 30: Corporate & Investment Banking: great upside potential
/ 30 CIB GROSS INCOME CONTRIBUTION (% OVER BBVA GROUP VS PEER AVERAGE) Corporate & Investment Banking: great upside potential 13.5% 13.2% 14.5% 15.0% 33.4% 32.7% 33.6% 34.8% 2018 2019 2020 9M21 16% 9M21 RORC (1) European Peer Group: BARC, BNPP, CASA, CMZ, CS, DB, HSBC, ISP, LBG, NWG, SAN, SG, UBS, U
Slide 31: Investing in disruption and financing innovators
/ 31 Investing in disruption and financing innovators SELECTIVE DIGITAL BANK INVESTMENTS FINTECH INVESTMENTS FINANCE THE CLIENTS OF THE FUTURE Capturing growth opportunities from massive change across industries: innovation banking Digitalization Decarbonization Artificial Intelligence Blockchain Qu
Slide 32: A clear focus on our objectives
/ 32 A larger and more profitable bank A distinctive bank for our clients based on a unique value proposition Continue leading efficiency through operational excellence A clear focus on our objectives Next level of financial advice Transition to a sustainable worldally focused
Slide 33: Uniquely positioned to capture value from the entire digital journey
/ 33 Uniquely positioned to capture value from the entire digital journey, from servicing to advice Servicing Sales Customer acquisition Advice DIGITAL ACQUISITION (% THROUGH DIGITAL CHANNELS) DIGITAL SALES2 (%, UNITS AND VALUE3) 16% 54% 25% 72% 2016 9M21 DIGITAL TRANSACTIONS1 (% OVER TOTAL) 85% 75%
Slide 34: Sustainability: a significant business growth opportunity
/ 34 A CLEAR COMMITMENT IN PORTFOLIO ALIGNMENT TOWARDS NET ZERO 2050 PIONEERING SUSTAINABLE PRODUCTS 2007 1st Green Bond worldwide 2021 1st green project finance worldwide A sustainable alternative for most of our core products 1st gender loan worldwide Carbon footprint calculator: world’s 1st bank
Slide 35: A clear focus on our objectives
/ 35 A clear focus on our objectives A larger and more profitable bank A distinctive bank for our clients based on a unique value proposition Transformation of the relationship model Disciplined capital management Continue leading efficiency through operational excellence
Slide 36: Relationship model transformation to support growth
/ 36Relationship model transformation to support growthwith a significantly lower cost-to-serve and sellMILLION TRANSACTIONS1(TRANSACTION; 9M18-9M21 % CHANGE)4,8886,9532019 2021e3672439582,0289M18 9M19 9M20 9M21+112%Digital channelsBranches-34%CUSTOMERS PER BRANCH(NUMBER OF CUSTOMERS)SALES VALUE2 PE
Slide 37: Mechanisms to improve pricing and optimize capital allocation
/ 37MECHANISMS TO IMPROVE PRICING AND OPTIMIZE CAPITAL ALLOCATIONProfitability metrics embedded in admission process decisionsDisciplined capital managementNEW PRODUCTION MAPPED BASED ON CLIENT ANDTRANSACTION PROFITABILITY THRESHOLDSMANAGEMENT OF EXCEPTION POOL CLIENTS TO IMPROVEPROFITABILITY, MAINL
Slide 38: Evolving the organization to capture the opportunities of the new era
/ 38Evolving the organization to capture the opportunitiesof the new eraGROWING KEY CAPABILITIES AGILE DEPLOYED ACROSSTHE ORGANIZATIONIMPACTING TIME-TO-MARKETAND PRODUCTIVITY-50%Time-to-market2(2016-2021)Productivity3(2016-2021)2017-2021,% CHANGE12x+ 40%+ 28%2021 #FTES7x2xData scientists and special
Slide 39: Countries' strategies designed to accelerate profitable growth
05Countries’ strategiesdesigned to accelerateprofitable growth BBVA Creating Opportunities
Slide 40: Market position already strong and further improving
/ 40Market position already strong and further improving02520151050252015105Spain Mexico Turkey Colombia Peru30 3035 35CORE REVENUES MARKET SHARE1(%)(1) Local peer groups for Spain (SAN, CABK, SAB, BKT), Mexico (BMX, BNT, SAN, HSBC, SCO), Turkey (AKB, ISB, YPK), Colombia (BANCOL,AVAL, DAVIV) and Per
Slide 41: Profitable organic growth with a disciplined capital approach
/ 41Profitable organic growth with a disciplined capitalapproachBubble size: Regulatory Capital 2021Regulatory Capital GrowthConstant €. CAGR 2017-Sep.21REGULATORY CAPITAL ALLOCATION(%)• Capital allocation towardsmost profitable segments:Consumer, SMEs andCommercial Banking• Continued focus on feege
Slide 42: Countries' strategies and goals fully aligned
/ 42cCountries’ strategies and goals fully alignedREVENUE GROWTH(%, CAGR, € CONSTANT)2015-9M2021annualized2021-24 CAGR GoalcCOST OF RISK(BPS, AVERAGE)2015-9M2021 Avg. 2022-24 GoalcCOST TO INCOME(%, AVERAGE)Spain -1.9 Slight growth 54.3 45 36 < 35Mexico +6.2 Close todouble digit1 34.2 Low 30’s 319 <
Slide 43: Management incentives fully aligned with long-term goals
/ 43Management incentives fully aligned with long-term goalsAccelerating profitable growth and valuecreation for our shareholdersCOST-TO-INCOME42%2024ROTE14%2024TBV/SHARE + DIVIDENDS9%2021-2024 CAGRNEW TARGET CUSTOMERS1+10MnSUSTAINABLE FINANCE€200Bn2021-2024 2018-2025(1) Target customers refers to t
Slide 44: Takeaways
/ 44BBVA is uniquely positioned to accelerate profitable growthLeading franchises in very attractive marketsTrend-setters in digital and sustainabilityDifferential culture and mindsetProven track record of solid financial resultsDisciplined capital allocationExcess capital for shareholders’ distribu
Slide 45: BBVA Creating Opportunities
BBVA Creating Opportunities
Slide 46: Leading the Industry Transformation
Leading the Industry Transformation DAVID PUENTE, HEAD OF CLIENT SOLUTIONS
Slide 47: 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 48: We launched our transformation anchored on two pillars
We launched our transformation anchored on two pillars Value Proposition Mobile as the centre of gravity CONVENIENCE Mobile as remote control of the bank TRANSPARENT & SIMPLE OFFER Very simple product catalogue and one click processes ADVICE Helping clients control day-to-day life and their financia
Slide 49: And we have delivered: differential value proposition
And we have delivered Differential Value Proposition Improved client satisfaction Digital NET PROMOTER SCORE Experience 1 Leader 5 years in a row (“Forrester Digital 2 Experience review”) 3 Brandpower Leading position in our main Leading position in our main geographies geographies, widening distanc
Slide 50: And we have delivered: unparalleled client acquisition
And we have delivered Unparalleled Client … and sustained revenue Lowering cost to serve Acquisition. Growth, based on digital ANNUAL NEW CUSTOMERS TOTAL DIGITAL SALES TOTAL ACTIVE CUSTOMERS (VALUE) PER SALESFORCE X2 1,11 3.4 MM X3 0 2016 740 5.1 2016 2018 2021e MM X2.5 PRV: Product Relative Value 2
Slide 51: A clear focus on our objectives
A clear focus on our objectives A larger and more profitable bank A distinctive bank for our clients based on a unique value proposition Continue leading efficiency through operational excellence / 6
Slide 52: A larger and more profitable bank
A larger and more profitable bank Growth in Value Segments & Products New Customer Acquisition / 7
Slide 53: Value Segments: SMEs
Value Segments: SMEs Impact Drivers DISTRIBUTION Efficient coverage & high capillarity SMEs ACCOUNTS FOR MODEL Dedicated manager for c90 of high value SMEs % 13% over total BBVA Low value SMEs manager role in every BBVA branch Gross Margin Promoting remote capabilities REVENUES RISK Solid risk model
Slide 54: Value Segments: Private Banking & Affluent
Value Segments: Private Banking & Affluent Impact Drivers Specialized investment advisory & hybrid relationship model DISTRIBUTION AM & WM ACCOUNTS FOR MODEL 28% increase in specialized Relationship Managers 34% over total BBVA Net Fees Remote Capabilities REVENUES SOLUTIONS Technology to provide ex
Slide 55: Value Segments: Cross-Border Banking
Value Segments: Cross-Border Banking (CIB & Commercial) Impact CROSS-BORDER ACCOUNTS FOR over total 25% BBVA Gross Margin (Commercial & CIB) REVENUES +25% 21e vs 19* NUMBER OF CLIENTS CROSS-BORDER +26% 21e vs 19 Drivers DISTRIBUTION Global and local client needs covered by international MODEL specia
Slide 56: Value Products: Payments
Value Products: Payments Impact Drivers PAYMENTS ACCOUNTS FOR ISSUING Differential Value Proposition over total BBVA around “Digital First” 14% Gross Margin Top security: No PAN, Dynamic CVV REVENUES Loyalty E2E Digital Funnels +10% 21e vs 19* Integrated PFM Sustainable CREDIT CARDS GROWTH x4 21e vs
Slide 57: Value Products: Insurance
Value Products: Insurance Impact Drivers DISTRIBUTION Omnichannel approach for insurance products: INSURANCE ACCOUNTS FOR MODEL Branches, Digital and Remote SMEs opportunity for further growth over total BBVA 6% Gross Margin SOLUTIONS Best in class partnerships Non Life Health Life REVENUES +11% 21e
Slide 58: New Customer Acquisition
New Customer Acquisition Impact NEW CLIENTS ACQUIRED (in Mn) 21e 8.3 +17% 21e vs 19 Own Channels OF WHICH DIGITAL 21e x221e vs 19 3.3 NEW CLIENTS ACQUIRED +37% 21e vs 19 Third Parties NEW PARTNERSHIPS x521e vs 19 Drivers E2E digital sales of all key entry products for non customers Automated fraud &
Slide 59: A distinctive bank for our clients
A distinctive bank for our clients based on a unique value proposition Enriched Advice Helping transition in Sustainability / 14
Slide 60: Improving our clients' financial health
Centered around improving our clients’ financial health Day-to-day Control Help to Save Help control my day Help optimizing monthly to day income and expenses expenses Create a safety net and Awareness of future automate periodic expenses contributions Help to Invest Financial Planning Put money to
Slide 61: Sizable impact on customer engagement and business generation
Sizable impact on customer engagement and business generation Net worth 10 Mn Day to day Customers interacting with Financial Health Experience -38% +39% Attrition* NPS* (users of FH vs non users) (users of FH vs non users) 25% 17% New mortgages sold New funds sold used BBVA Valora* used BBVA Invest
Slide 62: Continue leading efficiency through operational excellence
Continue leading efficiency through operational excellence Deeper Digital & Remote Leveraging Globality / 17
Slide 63: Deepening our Relationship Model transformation
Deepening our Relationship Model transformation. Optimizing Relationship Model to support customer . taking advantage of every growth with a significantly lower cost to serve & sell interaction to “talk” with the customer Remote Re- Roles as Productivity KEY channelli Evolutio STRATEGIES a transform
Slide 64: Re-channeling is further accelerating efficiency
… is further accelerating efficiency Re-channeling Branch 356 Transactio ns (Mn) 245 57 Active 50 Clients (Mn) 2019 2021E 7.2 -40% 4.3 Yearly branch transactions per customer Remote as Branch Roles evolution & a channel Productivity Transformation x3 +24% to 1,110 in 2021e Clients with Active Custom
Slide 65: Leveraging Globality to deliver global products & platforms
Leveraging Globality to deliver global products & platforms Global Retail Mobile Global Enterprise Mobile App (GEMA) Reutilization by Multi-segment global 75% 80% Code Design & Software reutilization reusability Top 1 (in 12 apps out of 14) Top 1 (in 6 apps out of 6) Average rating 4.5 (out of 5) Av
Slide 66: In summary
IN SUMMARY, we will continue delivering on our transformation to amplify the impact Differential Value Proposition Sustained Profitable Growth Lower Cost to Sell and Serve our clients
Slide 67: BBVA Investor Day
BBVA Investor Day
Slide 68: Sustainability as a business opportunity
Sustainability as a business opportunity JAVIER RODRÍGUEZ SOLER, HEAD OF SUSTAINABILITY
Slide 69: 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 70: Sustainability, the biggest transformation in human history
Sustainability, the biggest transformation in human history At the top of the agenda... … requiring big investments... … in all geographies European Union 196 countries NGEU with new or updated NDCs Worldwide annual Extensive policy responses (Nationally Determined Contributions) investment to limit
Slide 71: Banks play a key role in the transition
THE OPPORTUNITY Banks play a key role in the transition to a more sustainable world The future of banking is financing the Future Mobilize capital as Develop sustainable financial Manage impacts (direct channeling agent for public solutions both in climate change and indirect emissions) of funds whi
Slide 72: Significant traction in sustainable finance origination
OUR DIFFERENTIAL POSITIONING BBVA has generated significant traction in sustainable finance origination SUSTAINABLE FINANCE (EUR Mn) of the Group’s new +72% business origination(1) 12% 35,359 OF WHICH: +13% ~20% 20,516 18,157 Incremental business(2) driven by sustainable products offering 2019 2020
Slide 73: Designing and launching new sustainable solutions
OUR DIFFERENTIAL POSITIONING Designing and launching new sustainable solutions to market... New sustainable solutions... … leveraging BBVA’s digital capabilities Energy-efficient linked +270% mortgages 9M YoY Pioneer in adding sustainability BBVA offers a advice in the app Hybrid and electric +232%
Slide 74: Pioneering in sustainable activity
OUR DIFFERENTIAL POSITIONING ...and pioneering in sustainable activity 1st Bank Worldwide 1st Worldwide 2007 green bond* in launching all type 1st Worldwide of sustainable 2016 social bond financing solutions 2017 1st Worldwide 1st Worldwide 1st Spanish green syndicated loan green project finance gr
Slide 75: Net Zero 2050: portfolio alignment
OUR DIFFERENTIAL POSITIONING Net Zero 2050: Implementing portfolio alignment and excelling in managing emissions Portfolio alignment strategy well underway 2030 decarbonization goals set in CO2 selected intensive industries BBVA Baseline Benchmark vs Absolute effort Sector(1) Metric (2020) scenario
Slide 76: Growth as the cornerstone of our sustainability strategy
BOLD GROWTH AHEAD Growth as the cornerstone of our sustainability strategy Growth Enablers Doubling our target of Superior risk management capabilities channeling sustainable integrating transition risk into financing under a transversal banking processes while enabling action plan with pre defined
Slide 77: Bringing sustainability financing to the next level
BOLD GROWTH AHEAD Bringing sustainability financing to the next level 2X our target of channeling sustainable financing Leading bank in sustainable finance commitment New target ANNUALISED TARGET AS SHARE OF TOTAL ASSETS € 200 Bn (%) Peer 1 5.0 4.0 Peer 2 3.6 Peer 3 3.4 Old target Peer 4 2.9 € 100 B
Slide 78: Prioritizing transition themes for business execution
BOLD GROWTH AHEAD Prioritizing 12 transition themes for business execution Themes have been prioritized looking for a balance between Size: topics concentrating short term value Growth: emerging technologies with room for exceptional long term expansion Right to win: potential alignment with BBVA po
Slide 79: Sustainable opportunities in emerging markets
BOLD GROWTH AHEAD Leveraging differential sustainable opportunities in emerging markets Emerging countries will invest more, relative to GDP, in low-emissions assets INVESTMENTS IN LOW EMISSIONS TECHNOLOGY (as % of GDP under NGFS net-zero 2050 scenario 2020-2050) Latin 7% BBVA will lead the transiti
Slide 80: Creating specialized sectoral knowledge
BOLD GROWTH AHEAD Creating specialized sectoral knowledge Monitoring our clients’ Running and updating Analyzing and quantifying the strategies and reflecting sectoral deep dives on impact of scenarios in the them in the appropriate different transition financial and risk metrics scoring tools scena
Slide 81: Transition risk indicator as a scoring tool
BOLD GROWTH AHEAD Development of a transition risk indicator as a scoring tool to support clients’ transition and align our portfolio ADVANCED Reflects clients’ awareness Business model inherently and preparedness to benefits from the transition decarbonization STRONG Clients with strategies and pla
Slide 82: BBVA's sustainable edge
BBVA’s sustainable edge Outstanding track record Ambitious Ahead of Engaging with our channeling sustainable growth strategy the market clients’ transition finance Throughout 2021 BBVA will In June ‘21, BBVA Leading the market with Specialized sectoral have channeled €35Bn in doubled its commitment
Slide 83: BBVA Investor Day
BBVA Investor Day
Slide 84: Accelerating profitable growth in our main markets: Spain
Accelerating profitable growth in our main markets: Spain PEIO BELAUSTEGUIGOITIA, COUNTRY MANAGER SPAIN
Slide 85: 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 86: Index
Index 01 Competitive environment 02 Achievements 2016-21 03 Strategy 2022-24 04 Conclusions
Slide 87: Spanish economy in a positive cycle
Spanish economy in a positive cycle of GDP Growth GDP Growth Interest Rates System Loans Spain (YoY, %) Euribor 12M (monthly average, %) (total loans in Spain, YoY growth, %) EUR 12M Oct-21: -0.477% Source: BBVA Research In a low interest rate environment, we can glimpse better prospects for the ban
Slide 88: Relevant achievements in last years: customer growth
Relevant achievements in last 5 years Customer growth Capital allocation in the most profitable products CUSTOMER ACQUISITION CONSUMER LOANS VERY SMALL BUSINESS (€Billions, %) LOANS (€Billions., %) 3.5 million new customers 2016-21e +79% +26% 50% through digital channels in 2021 (vs. 9% in 2016) 18%
Slide 89: Relevant achievements: non interest income and efficiency
Relevant achievements in last 5 years Non interest income growth Leading efficiency ratio EFFICIENCY NET FEES & INSURANCE RISK RATIO COMMISSIONS (€Millions, %) PREMIUMS (€Millions, %) (%) 2016-2021e +44% +32% digital sales % >65% of total sales 9M21 (Units) branches -43% in 5 years cost base -20% in
Slide 90: BBVA Spain enjoys a differential position
As a result, BBVA Spain enjoys a differential position Efficiency and Profitability Retail banking Net Promoter Score* (9M21, %) (9M21, %) Peers: CaixaBank, Sabadell Spain & Santander Spain *Source: Madison Leading the industry profitability and achieving superior client satisfaction / 7
Slide 91: Looking forward, with a clear focus on our objectives
Looking forward, with a clear focus on our objectives: A larger and more profitable bank A distinctive bank for our clients based on a unique value proposition Continue leading efficiency through operational excellence / 8
Slide 92: New customer acquisition in own channels and third parties
A LARGER AND MORE PROFITABLE BANK New customer acquisition both in own channels and through third parties agreements Own channels Third parties agreement ASPIRATION 2021-24 LEVERAGING ON OUR MAIN LINES OF ACTION DIGITAL CAPABILITIES Tech players agreements Best in class 3.6 onboarding process + MILL
Slide 93: Translating sustainability into a growth opportunity
A LARGER AND MORE PROFITABLE BANK Translating sustainability into a tangible growth opportunity Our aim is to target different business RETAIL WHOLESALE Growing in Standardized solutions: Tailor-made solutions around new lending self-consumption, energy power above our efficiency, and more Large sca
Slide 94: Loan growth in consumer
A LARGER AND MORE PROFITABLE BANK Loan growth in the most profitable segments: Consumer Consumer loans market share (%) Main lines of action ASPIRATION 2021-24 +400 bps Strong risk models support pre approved loans to our customers Best in class digital capabilities +30% (+9% CAGR) Data capabilities
Slide 95: Very small business and mid-size companies
A LARGER AND MORE PROFITABLE BANK Very Small Business & Mid-Size Companies Commercial* Loans Mid-Size Companies, Very Small Business ASPIRATION (€Billions, %) focus on Growing in pre approved 2021-24 Sustainability +23% loans Financing solutions for • each asset Proactive offering • Project finance
Slide 96: Strengthen diversification: Payments
A LARGER AND MORE PROFITABLE BANK Strengthen diversification, prioritizing high value verticals: Payments Sep-20 launched Aqua credit card ASPIRATION 2021-24 Issuing x3 Strengthen Aqua value proposition Growing above Acquiring our natural Issued credit card market share • Modeled and reinforced offe
Slide 97: Asset Management and Insurance as high value verticals
A LARGER AND MORE PROFITABLE BANK Asset Management and Insurance as high value verticals Asset Management Insurance ASPIRATION OFF BALANCE 2024 NON LIFE INSURANCE SHEET* PREMIUMS (€MILLIONS, %) (€BILLIONS, %) Mobilizing excess liquidity Product +26% +47% >50% specialization Personalized proposals ac
Slide 98: Build differentiation based on advice
A DISTINCTIVE BANK FOR OUR CLIENTS BASED ON A UNIQUE VALUE PROPOSITION Build differentiation based on advice, allowing us to increase sales Monthly client interactions Customers user advice Main advisory tools tools vs. non user (Sep21) ASPIRATION with advisory (Millions) tools (Sep21) 2024 +30% ATT
Slide 99: Leading the transformation of the relationship model
CONTINUE LEADING EFFICIENCY, THROUGH OPERATIONAL EXCELLENCE BBVA leading the transformation of the relationship model with a focus on remote assistance Branch network (#) A scalable, convenient and productive model ASPIRATION 2021-24 REMOTE MODEL -43% VS. IN BRANCH (Sep21) 6 MILLION “HAVE THE Custom
Slide 100: Takeaways & Guidance
Takeaways & Guidance Continue focusing on profitable growth, based on three-pillars: â–° Increase the customer base â–° Improving our lending mix â–° Revenue diversification Maintaining an efficient allocation of our capital keeping up strict price and risk management policies Driving operational ex
Slide 101: BBVA Investor Day
BBVA Investor Day
Slide 102: Accelerating profitable growth in our main markets: Mexico
Accelerating profitable growth in our main markets: Mexico EDUARDO OSUNA, COUNTRY MANAGER MEXICO
Slide 103: 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 104: Index
Index 01 Macroeconomic environment 02 BBVA Mexico: Leading growth 03 Final remarks (ambitions)
Slide 105: Macroeconomic Environment
01 Macroeconomic Environment
Slide 106: Favorable Perspectives for Mexico
Favorable Perspectives for Mexico Solid Economic Recovery GDP & EMPLOYMENT INVESTMENT INFLATION & MONETARY POLICY USA-MEXICO CONNECTION (YoY %) (YoY %) (%, EOP) (FIGURES AS OF 2020) 7.25 Remittances 6.9 5.50 5.50 5.50 USD 40.6 bn | 11% YoY 5.25 4.25 3.2 3.5 3.5 3.5 MX Imports USA Imports 2.8 from US
Slide 107: Opportunity to continue boosting banking penetration
Opportunity to continue boosting banking penetration POPULATION LOANS TO PRIVATE SECTOR HIGHLIGHTS % 216.3 2010-2020 123.8 growth 13.0% 1.4% 108.4 38.7 Mean 29 42 USA Chile Spain Mexico population age Source: World Bank, 2020. ATMs / 10k HABITANTS 2019 figures Adults w/ bank account 47% 95% 21.4 10.
Slide 108: BBVA Mexico Leading growth
02 BBVA Mexico Leading growth
Slide 109: BBVA Mexico
BBVA Mexico | BBVA MX COMPETITIVE STRENGTHS FOOTPRINT TRANSACTIONS Sep. 21 Financial transactions usage. Figures as of Sep.21 in % Clients ATM’s 53% Mobile / Web 24.6 M 13,139 #1 23% Main Peer 9,557 Branches Employees Branches 19% Mobile / +64% Web vs. 9M20 39.4 k #2 1,721 #2 6% Main Peer 43,966 Mai
Slide 110: Solid and sound growth with a profitable mix
Solid and sound growth with a profitable mix Leading Market Shares Profitable Business Mix PERFORMING DEPOSITS LOAN MIX 21% 23% L NS 23.8% 23.2% (Sep. 21, %) Loans and deposits 23.3% 23% 17% growing above GDP 22.7% Mortgages 11% Consumer 13% 2.2x avg. Main Peer 16.5% 49% Government 43% 15.7% 15.1% E
Slide 111: We constantly transformed ourselves to lead the banking industry
We constantly transformed ourselves to lead the banking industry in Mexico A larger and more profitable bank A distinctive bank for our clients based on a unique value proposition Continue leading efficiency, through operational excellence / 10
Slide 112: A larger and more profitable bank
A larger and more profitable bank We are people’s bank We are enterprises & government’s bank / 11
Slide 113: We're the people's bank, outperforming in every product line
We’re the people’s bank, outperforming in every product line Consolidating our leadership position Our strategy for sustainable growth (Market Shares as of Sep.21) BOOST NEW CUSTOMER ACQUISITION GROWING IN PROFITABLE SEGMENTS 1st Credit Card (%) 1st Payroll Loans (%) New clients Affluent & Private B
Slide 114: We're also the enterprise and government bank
We’re also the enterprise and government bank Consolidating our leadership position (Market Shares as of Sep.21) 1st SMEs (%) 25.2 1st 16 Large Enterprises (%) Next peer .7 19.2 1st Government (%) 11.9 Next peer 28.6 Next peer 27.5 Well positioned in corporate segments (Market Shares (% Share of Wal
Slide 115: A distinctive bank for our clients
A distinctive bank for our clients based on a unique value proposition Leading growth with innovation Financial inclusion and Sustainability / 14
Slide 116: Leading growth with innovation and services beyond branches
Leading growth with innovation and services beyond branches App BBVA Card Experience App BBVA Enterprises The reference in ELECTRONIC AQUA & INFINITE BIOMETRIC DIY approach and better service PAYMENTS AND FINANCING for SMEs and Companies 290K 14.1M Mobile clients Aqua Infinite Sep.21 Mobile clients
Slide 117: Promoting financial inclusion and sustainability
Promoting financial inclusion and sustainability Increase financial inclusion Boost CoDi 5.7M 3.2M ENROLLED BBVA ACCOUNTS TXNS 61% MARKET SHARE as of Sep. 38% MARKET SHARE as of 21 Sep.21 Specific product solutions 48,200 40,100 NEW CARDS 9M21 NEW CARDS 9M21 C Crea (cl history) DEBIT CARD <18 YEARS
Slide 118: Continue leading efficiency, through operational excellence
Continue leading efficiency, through operational excellence / 17
Slide 119: More transactions through more efficient channels
Continue leading efficiency through operational excellence More transactions through more efficient channels MORE TRANSACTIONS +1,700 M +87% TXNs 9M21 9M21vs. 9M16 EFFICIENT CHANNELS % OF TOTAL FINANCIAL TRANSACTIONS 4x lower cost 53% 19% 46% 35% 23% 6% 2016 2021 2016 2021 2016 2021 BRANCH ATM DIGIT
Slide 120: Consolidating our profitable growth
Consolidating our profitable growth Surpassing Outstanding Outperforming pre-pandemic levels profitability peers NET ATTRIBUTABLE PROFIT NAP MARKET SHARE (%) ROE (MILLION CONSTANT EUROS) (9M 21, %) 21.4% BBVA Next Peer +47% 34.5% 16.0% -30% +332 bp vs. 2016 -17 bp vs. 2016 12.2% Main Peers G6 1,811
Slide 121: Final Remarks
Final Remarks 1 STRATEGY A clear strategic path around our purpose and OUR AMBITIOUS GOALS priorities to continue growing in profitable segments. 2 EXECUTION Revenues Constant transformation journey, leveraged on data and CAGR 21 -24 close technology to support our customers in their life and busine
Slide 122: BBVA Investor Day
BBVA Investor Day
Slide 123: Accelerating profitable growth in our main markets: Turkey
Accelerating profitable growth in our main markets: Turkey RECEP BAªTUĞ, COUNTRY MANAGER TURKEY w
Slide 124: 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 125: Index
BBVA Investor Day Index Market Dynamics Competitive Overview Strategy Going Forward
Slide 126: Market Dynamics
BBVA Creating Opportunites 01 Market Dynamics —— ae
Slide 127: Turkey: A Country with Strong Fundamentals and Long-Term Potential
Turkey: A Country with Strong Fundamentals and Long-Term Potential Despite Short-term Volatility GDP GROWTH TURKEY’S LON-RUN POTENTIAL & KEY ANCHORS Still high potential growth 3.5% 1.6% 9.5% in long-run 5.0% TURKEY EUROZONE 3.5% 1.8% 2.0% 0.9% 2019 2020 2021E 2022E 2023E 2024E Europe share.. Strate
Slide 128: Competitive Overview
BBVA Creating Opportunites 02 Competitive Overview
Slide 129: Outstanding Performance Among Peers: TL Lending & Funding
Outstanding Performance Among Peers Leadership in TL Lending & Sustainable Funding Base MARKET SHARE HIGHEST DEMAND DEPOSIT (TL BN) LEADERSHIP IN RETAIL LENDING MARKET SHARE GAIN ACROSS THE BOARD #1 Y-t-D bps MARKET SHARE 19% 46.3 Mortgage +98 #1 #1 TL 172 Bn 29% 44.9 35.9 20% 29.9 General TL 254 Bn
Slide 130: Outstanding Performance Among Peers: Financial Indicators
Outstanding Performance Among Peers Unrivaled Leadership in All Financial Indicators HIGHEST HIGHEST F&C INCOME NIM (TL BN) 21% 21% 4.3% 6.1 >1% gap TL 0.8 Bn gap with the next with the next Net F&C Income Interest peer peer Market Share Income Market Share HIGHEST NET INCOME (TL HIGHEST BN) ROE 25%
Slide 131: Main Competitive Advantages Leading to Outstanding Results
Main Competitive Advantages Leading to Outstanding Results Highest Leadership in Payment Network System Business & Productivity Integrated Financial & Efficiency Services Best Bank in Turkey Best-in Class Top Brand Power Technology / & Excellent Digital Customer Experience Experience / 9
Slide 132: Highest Network Productivity & Efficiency
Competitive Advantages 1) Highest Network Productivity & Efficiency HIGH GROWTH BRINGING PRODUCTIVITY & EFFICIENCY GAINS SIGNIFICANTLY HIGHEST BANKING REVENUE (9M21, TL BN & 2 YEAR GROWTH) 19.9 15.3 15.1 13.0 23.4% 19.5% 21.1% 3.3% Peer I Peer II Peer III HIGHEST IMPROVEMENT IN COST / INCOME HIGHEST
Slide 133: Leadership in Payment System Business
Competitive Advantages 2A) Leadership in Payment System Business HIGHEST CARD CUSTOMER & HIGHEST EVER MARKET MERCHANT BASE AMONG PRIVATE SHARES IN BOTH ISSUING & ACQUIRING # OF CARD CUSTOMERS #1 RETAIL ISSUING VOLUME MS% (SEP.21, MN) (9M 21) 24% #1 7.7 +41BPS # OF MERCHANTS #2 ACQUIRING E-COMMERCE #
Slide 134: Integrated Financial Services with High Value Verticals
Competitive Advantages 2B) Integrated Financial Services with High Value Verticals SUBSIDIARIES’ CONTRIBUTION PENSION BROKERAGE TO NET INCOME(1) Highest number of Highest retail #1 participants #1 brokerage in Pension System commission income 2016 9M 21 with >16% market share # 1 in IPOs as Consorti
Slide 135: Best-in Class Technology / Digital Experience
Competitive Advantages 3) Best-in Class Technology / Digital Experience NUMBER OF ACTIVE CUSTOMERS1 (MN) EXCEEDED 10 MN MOBILE CUSTOMERS! WITH +2.0 MN NEW CUSTOMERS SINCE MAR.20 Digital Mobile 10.6 10.1 9.6 Increase in the number of monthly 9.8 8.5 +60% logins since the beginning of 2020 6.0 #1 #1 P
Slide 136: Top Brand Power & Excellent Customer Experience
Competitive Advantages 4) Top Brand Power & Excellent Customer Experience BEST-IN CLASS CUSTOMER EXPERIENCE HIGHEST BRAND POWER AND MOST VALUABLE BANK SMEs #1 #1 Brand Power NPS Among Private Peers Individuals #2 Most Valuable Bank By Market Capitalization #1 NPS Note: Net Promoter Score research is
Slide 137: Strategy Going Forward
BBVA Creating Opportunites 03 Strategy ne Going Forward ————
Slide 138: A clear focus on our objectives
A clear focus on our objectives A larger and more profitable bank A distinctive bank for our clients based on a unique value proposition Continue leading efficiency through operational excellence / 16
Slide 139: Boost Customer Growth on Profitable Segments
Boost Customer Growth on Profitable Segments 1) A larger and more profitable bank fostering profitable growth STRATEGIC FOCUS KEY LEVERS 20 Mn Increase % of E2E total customer Credit Card Payroll General Purpose Micro digital onboarding base Customers & Pension Loans & Overdraft Segment Customers +1
Slide 140: Sustain Leadership in Profitable Products / Segments
Sustain Leadership in Profitable Products / Segments 1) A larger and more profitable bank fostering profitable growth CONSOLIDATING EMPOWERING MARGIN LEADERSHIP Presence on Focused in Retail Lending across Commercial Front the board GAP WITH (9M 21) #1 Core NIM Mortgag 29% 1 e TL 2 15 bps 19% 1.3 Bu
Slide 141: Unique Value Proposition
Unique Value Proposition 2) A distinctive bank with a unique value proposition Sustainability Financial Health / Advice MANY FIRSTS IN THE MARKET AND IN THE WORLD KEY First & only bank in Turkey to join Net Zero Banking Alliance PROGRESS Carbon Neutral Bank as of 2020 First bank in Turkey with coal
Slide 142: Operational Excellence
Operational Excellence 3) Continue leading efficiency, through operational excellence STRATEGIC FOCUS Cost / Income Constantly Improving Business Model with Efficiency -2.7% Focus 34.1% in last 2 yrs Optimizing # of Branches Relationship Model 968 Ä 874 Ongoing Digital Migration -94—Dec.16 Sep.21 Po
Slide 143: Key Takeaways
Key Takeaways Unrivaled leadership Looking ahead OUR AMBITIOUS GOALS Turkey’s best bank with Sustain by far Leadership (consolidated) a distinctive value proposition in profitability: REVENUE (2022-2024) and leaderships in key areas Focus on customer growth CAGR: High-Proven track record of solid Su
Slide 144: BBVA Investor Day
BBVA Investor Day SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Banco Bilbao Vizcaya Argentaria, S.A. Date: November 18, 2021 By: /s/ Patricia Bueno O
Banco Bilbao Vizcaya Argentaria — Investor Day (November 2021) on 6ix