Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — FY2020 Earnings Presentation
32 slides from Banco Bilbao Vizcaya Argentaria's earnings presentation, Jan 29, 2021
Slide 1: 2020 Results
2020 Results January 29th, 2021
Slide 2: Disclaimer
2020 Results 2 January 29th 2021 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 deci
Slide 3: 2020 achievements
2020 Results 3 January 29th 2021 2020 achievements Successfully navigated through the crisis €63 billion1 with clear priorities DEFERRALS, PAYMENT FLEXIBILITY AND CREDIT FACILITIES PROVIDED THROUGH GOVERNMENT PROGRAMS Advanced in our strategy +56% addressing accelerating trends DIGITAL CLIENT ACQUIS
Slide 4: BBVA has taken a step forward in response to the COVID-19 crisis
2020 Results 4 January 29th 2021 BBVA has taken a step forward in response to the COVID-19 crisis Protect the health Provide an essential Offer financial and safety of our service to our support to our employees, clients and communities clients society BBVA has donated more Branch openings based on
Slide 5: Leveraging our digital capabilities to better serve our clients
2020 Results 5 January 29th 2021 Leveraging our digital capabilities to better serve our clients MOBILE CUSTOMERS GROUP DIGITAL SALES MILLION CUSTOMERS, PERCENTAGE YTD, PERCENTAGE 64.0% 57.7% 51.3% 34.5 36.3% 28.8 UNITS 21.8% 23.1 18.0 48.7% 41.9% 12.2 33.0% 23.1% VALUE-PRV1 14.8% Dec-16 Dec-17 Dec-
Slide 6: Our digital capabilities have proven to be differential in reaching more customers
2020 Results 6 January 29th 2021 Our digital capabilities have proven to be differential in reaching more customers GROSS NEW CUSTOMERS ACQUISITION1 (MN CUSTOMERS, % CUSTOMERS ACQUIRED THROUGH DIGITAL CHANNELS) 7.4 7.3 5.5 DIGITAL ACQUISITION 5.0 +56% vs. 2019 TOTAL 3.4 33.3% NON-DIGITAL2 21.2% 2.4
Slide 7: We continue to successfully deliver on sustainability strategy
2020 Results 7 January 29th 2021 We continue to successfully deliver on sustainability strategy Helping our clients transition towards a more sustainable future OVERDELIVERING ON BBVA’S PROVIDING SUSTAINABLE FINANCE AND ADVICE 2025 PLEDGE Wholesale clients New sustainable solutions for all segments
Slide 8: Solid quarterly profit evolution, improving capital position and tangible book value per share recovery
2020 Results 8 January 29th 2021 Solid quarterly profit evolution, improving capital position and tangible book value per share recovery in the year NET ATTRIBUTABLE PROFIT CET1 FULLY LOADED TBV/SHARE + DIVIDENDS (€M CURRENT) (%) (€/Share) PRO-FORMA3 14.58% Dec-20 1,320 1,163 1,141 304 CORPORATE 11.
Slide 9: 2020 top financial messages
2020 Results 9 January 29th 2021 2020 top financial messages 1 Solid core revenue growth NII + FEE INCOME (€ constant) +2.7% vs.12M19 2 Very strong cost control and efficiency OPERATING EXPENSES (€ constant) -2.6% vs.12M19 3 Resilient pre-provision profit growth OPERATING INCOME (€ constant) +11.7%
Slide 10: 2020 Profit & Loss
2020 Results 10 January 29th 2021 2020 Profit & Loss Change 2020/2019 BBVA Group (€m) 2020 % % constant Net Interest Income 16,801 -7.3 3.6 Net Fees and Commissions 4,616 -8.3 -0.4 Net Trading Income 1,692 22.3 37.6 Other Income & Expenses -135 n.s. n.s. Gross Income 22,974 -6.1 4.5 Operating Expens
Slide 11: 4Q20 Profit & Loss
2020 Results 11 January 29th 2021 4Q20 Profit & Loss Change 4Q20/4Q19 BBVA Group (€m) 4Q20 % % constant Net Interest Income 4,038 -14.2 1.4 Net Fees and Commissions 1,173 -9.1 2.2 Net Trading Income 213 -56.6 -46.0 Other Income & Expenses -157 n.s. n.s. Gross Income 5,266 -17.7 -3.2 Operating Expens
Slide 12: Solid core revenue growth
2020 Results 12 January 29th 2021 Solid core revenue growth NET INTEREST INCOME NET FEES AND COMMISSIONS (€M CONSTANT) (€M CONSTANT) + 1.4% + 2.2% +0.2% +4.1% 1,196 1,181 1,173 1,221 Growth thanks to 1,041 QoQ evolution 4,291 successful price driven by 4,234 4,142 4,284 4,083 management Mexico (CIB
Slide 13: Very strong cost control and efficiency
2020 Results 13 January 29th 2021 Very strong cost control and efficiency OPERATING EXPENSES GROUP OPERATING JAWS EFFICIENCY RATIO (€M CONSTANT) (12M20 YOY, %; € CONSTANT) (%; € CONSTANT) - 2.7% 63.7% FOOTPRINT 2,867 2,790 INFLATION 4.2% 46.8% 2.7% Average 12m -2.6% 4Q19 4Q20 Core Operating 12M20 Eu
Slide 14: Acceleration of digital trends reinforces our focus on efficiency
2020 Results 14 January 29th 2021 Acceleration of digital trends reinforces our focus on efficiency DIGITAL TRANSACTIONS1 COST-TO-INCOME RATIO TRANSACTIONS PER CLIENT BBVA GROUP. PERCENTAGE BBVA 29 -521 bps BBVA Group 52.0 51.9 vs. peers2 -249 bps since 2015 21 49.5 49.4 18 17 48.7 12 10 BBVA Spain
Slide 15: Risk indicators impacted by COVID-19 but better than initial expectations
2020 Results 15 January 29th 2021 Risk indicators impacted by COVID-19 but better than initial expectations FINANCIAL ASSETS IMPAIRMENTS NPLs (€M CONSTANT) (€BN) 0 Bn€ 2,380 1,594 16.7 16.0 16.4 16.2 16.7 1,023 1,031 903 4Q19 1Q20 2Q20 3Q20 4Q20 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 COST OF RISK NPL &
Slide 16: Deferrals' payment evolution better than expected
2020 Results 16 January 29th 2021 Deferrals’ payment evolution better than expected TOTAL LOAN DEFERRALS EXPIRED LOAN DEFERRALS 2ND DEFERRALS BREAKDOWN GRANTED PAYMENT BEHAVIOR (YTD DEC. 31, 2020; %) (YTD DEC. 31, 2020; %) (YTD DEC. 31, 2020; %) More than half are related to mortgages 7% Additional
Slide 17: Outstanding capital position
2020 Results 17 January 29th 2021 Outstanding capital position CET1 FULLY-LOADED QUARTERLY EVOLUTION (%, bps) 14.58% c.600 bps Above minimum +21 bps Requirement3 30 bps 15 bps 11.73% 11.52% -14 bps -10 bps 1 Sep-20 Results Dividend FX and Others2 Dec-20 Dec-20 3 Accrual & HTC&S Pro-forma AT1 Coupons
Slide 18: Capital target increase: New CET1 FL target 11.5-12.0%
2020 Results 18 January 29th 2021 Capital target increase New CET1 FL target: 11.5 - 12.0% CET1 FULLY-LOADED CET1 TARGET TO REQUIREMENT2 PERCENTAGE c. €8 bn BPS excess capital PEER 1 435 1 over target1 14.58% 341 New target PEER 2 335 New Target Range 11.50-12.00% 11.73% PEER 3 314 Previous Target R
Slide 19: BBVA USA transaction shows disciplined value-based approach to capital allocation
2020 Results 19 January 29th 2021 BBVA USA transaction shows disciplined value-based approach to capital allocation We will deploy the excess capital: In our markets through profitable growth and costs’ reduction Through increased distributions to shareholders Significant EPS and TBV per share accre
Slide 20: Capital deployment. Profitable organic growth with a disciplined approach
2020 Results 20 January 29th 2021 Capital deployment. Profitable organic growth with a disciplined approach PORTFOLIO GROWTH AND PROFITABILITY REGULATORY CAPITAL ALLOCATION RORC 2020 AND PORTFOLIO GROWTH 2017-201 RORC 2017-20 AVG. AND REGULATORY CAPITAL GROWTH 2017-201 Consumer Mexico Credit cards 2
Slide 21: Capital deployment. Shareholder distributions
2020 Results 21 January 29th 2021 Capital deployment. Shareholder distributions Extraordinary 2020 dividend 2021 ordinary dividend distributions Follows regulatory Plan to recover our clear, The excess capital allows guidance predictable and sustainable for additional policy once regulatory distribu
Slide 22: Business Areas
BBVA . reating Opportunities Business Nasties
Slide 23: Spain
2020 Results 23 January 29th 2021 Spain ACTIVITY (DEC-20) €Bn YoY 268.5 +8.1% Profit & Loss Δ (%) Δ (%) (€m) 4Q20 vs 4Q19 12M20 vs 12M19 YoY Net Interest Income 878 -3.1 3,553 -0.4 €Bn Net Fees and Commissions 453 -2.4 1,802 2.9 165.5 +0.8% Net Trading Income -43 n.s. 174 -27.2 Other Income & Expens
Slide 24: USA
2020 Results 24 January 29th 2021 USA ACTIVITY (DEC-20) (€ CONSTANT) Profit & Loss Δ Current Δ Constant YoY (€m constant) 4Q20 vs 4Q19 (%) 12M20 vs 12M19 (%) vs 12M19 (%) YoY €Bn Net Interest Income 603 6.8 2,284 -4.6 -2.6 €Bn 69.9 +13.1% Net Fees and Commissions 170 12.9 665 3.2 5.5 57.9 -0.0% Net
Slide 25: Mexico
2020 Results 25 January 29th 2021 Mexico ACTIVITY (DEC-20) (€ CONSTANT) YoY €Bn Profit & Loss Δ Current Δ Constant YoY 75.9 +10.5% (€m constant) 4Q20 vs 4Q19 (%) 12M20 vs 12M19 (%) vs 12M19 (%) Net Interest Income 1,377 -1.6 5,415 -12.8 -0.7 Net Fees and Commissions 299 -0.7 1,065 -17.9 -6.6 €Bn Net
Slide 26: Turkey
2020 Results 26 January 29th 2021 Turkey ACTIVITY (DEC-20) (€ CONSTANT; BANK ONLY) Profit & Loss Δ Current Δ Constant (€m constant) 4Q20 vs 4Q19 (%) 12M20 vs 12M19 (%) vs 12M19 (%) Net Interest Income 689 10.3 2,783 -1.1 25.2 YoY1 YoY1 Net Fees and Commissions 141 4.1 510 -28.8 -9.9 Net Trading Inco
Slide 27: South America
2020 Results 27 January 29th 2021 South America ACTIVITY (DEC-20) (€ CONSTANT) 1 Net Attributable Profit 0 Δ Current Δ Constant YoY (€m constant) 4Q20 vs 4Q19 (%) 12M20 vs 12M19 (%) vs 12M19 (%) YoY €Bn Colombia 64 3.8 165 -38.0 -28.9 50.6 +22.5% Peru 35 -21.7 110 -45.6 -41.8 €Bn 33.7 +12.6% Argenti
Slide 28: Final remarks and 2021 outlook
Final remarks and 2021 outlook
Slide 29: 2020 in review
1Q20 Results 29 April 30th 2020 2020 in review Successfully navigated through the crisis with clear priorities: first and foremost, the safety and health of our employees, clients and society, and support our clients Advanced in our strategy addressing accelerating trends Delivered excellent results
Slide 30: Macroeconomic outlook
2020 Results 30 January 29th 2021 Macroeconomic outlook GDP GROWTH ESTIMATES (% YoY) FOOTPRINT1 SPAIN MEXICO USA 5.5 4.7 3.2 3.6 2.0 2.2 1.1 0.0 -3.6 -7.2 -9.1 -11.0 2019A 2020 2021 2019A 2020 2021 2019A 2020 2021 2019A 2020 2021 TURKEY ARGENTINA COLOMBIA PERU 10.0 5.0 6.0 4.8 3.3 2.2 0.9 1.0 -2.1 -
Slide 31: 2021 Outlook
1Q20 Results 31 April 30th 2020 2021 Outlook Core revenues to continue growing with improving mix, price management and fee income as key levers Costs to grow below inflation 2021 CoR below 2020 levels, although uncertainties remain Sizeable distributions to our shareholders in 2021
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