51 slides from Banco Bilbao Vizcaya Argentaria's debt investor presentation, Aug 1, 2019
Slide 1: Fixed Income Presentation 2Q19
Creating Opportunities Fixed Income Presentation 2Q19 y
Slide 2: Disclaimer
Fixed Income Presentation 2Q19 / 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: Index
BBVA Creating Opportunities Index 01 About BBVA & Financial Highlights 02 BBVA's Strengths Diversified Footprint Sound Asset Quality Solid Capital Position Strong Liquidity & Funding Structure Leading Transformation Strategy Annex 03 Funding Plan 04 Ratings
Slide 4: About BBVA & Financial Highlights
Creating Opportunities OQ] About BBVA & Financial Highlights
Slide 5: About BBVA
Fixed Income Presentation 2019 AI About BBVA BBVA'S GLOBAL PRESENCE Jun.19 DIVERSIFICATION UNDER A DECENTRALIZED MODEL Total Assets Gross Income “? Ss Jun.19 1H19 Developed Markets m Emergin Emerging Developed € 698 bn 76 mn 29.7 mn Enering C = cre Dev assets customers digital customers 32% 62% 38%
Slide 6: Financial Highlights - BBVA Group 2Q19
Fixed Income Presentation 2019 i Financial Highlights - BBVA Group 2Q19 Robust core revenue growth Further improvement in best-in-class efficiency Sound risk indicators Strong capital position Outstanding profitability metrics Ahead of the curve in digital transformation Nil + FEES (constant) +8.7%
Slide 7: BBVA's Strengths
Creating Opportunities Q2 BBVA’s Strengths
Slide 8: BBVA's Strengths leading to superior earnings and profitability
Fixed Income Presentation 2019 AES BBVA’s Strengths leading to superior earnings and profitability a Diversified footprint a Strong liquidity & funding structure a Sound asset quality a Leading transformation strategy a Solid capital position RESILIENCE AND LOW EARNINGS VOLATILITY HIGH PROFITABILITY
Slide 9: Diversified Footprint
iting Opportunities Diversified Footprint
Slide 10: Unique footprint with leadership positioning
Fixed Income Presentation 2019 AIO Unique footprint with leadership positioning BREAKDOWN BY BUSINESS AREA TOTAL ASSETS © JUN.19 South Rest of America Eurasia 8% 3 Turkey 9% , (ee bn exico 15% US: 12% GROSS INCOME ©) 1HI9. Rest of Eurasia South 2% eN run €12.2 bn ) 14% XY Mexico 32% (1) Percentages
Slide 11: Spain
Spain Profit & Loss Net Interest Income 927 0.1 Net Fees and Commissions 432 15 Net Trading Income -16 ns Other Income & Expenses -22 -51.6 Gross Income 1,321 -8.0 Operating Expenses -814 -3.5 Operating Income 507 14.4 Impairment on Financial Assets 102 ns Provisions & other gains (losses) -65 160.2
Slide 12: USA
USA Profit & Loss Net Interest Income Net Fees and Commissions Net Trading Income Other Income & Expenses Gross Income Operating Expenses Operating Income Impairment on Financial Assets Provisions & other gains (losses) Income Before Tax Income Tax Net Attributable Profit -484 03 323 9.9 124 1741 4
Slide 13: Mexico
Mexico Profit & Loss Net Interest Income 78 3,042 Net Fees and Commissions 319 “3.0 621 Net Trading Income 72 4 135 Other Income & Expenses 62 48.2 102 Gross Income 1,985 5.9 3,901 Operating Expenses -651 45 -1,290 Operating Income 1,333 6.6 2,611 Impairment on Financial Assets -420 18.8 -818 Provis
Slide 14: Turkey
12.3 13.3 9.4 6.1 11.8 12.3 3.5
Slide 15: South America
= South America Net Attributable Profit 2Q19 ¢ ) Colombia 73 33.2 130 131 82 Peru 55 10.7 98 12.6 179 Argentina 50 ns 110 ns. ns. Other? 34 -25 66 55 11 South America 211 60.6 72.4 51.8 (1) Venezuela in current €m. (2) Other includes BBVA Forum, Venezuela, Paraguay, Uruguay and Bolivia South America
Slide 16: Sound Asset Quality
iting Opportunities Sound Asset Quality
Slide 17: Sound Risk Indicators
Fixed Income Presentation 2019 _ AMA Sound Risk Indicators NPL Ratio 51 68 58 08) a Risk Framework s ; A Risk Management Model based on prudence and proactivity . 92 4 Coverage ratio \o 2 6 2 69 64 7470 6 7378 (%) CS ii ae Risk Management Goal To preserve the Group's solvency, Cost of Risk F support
Slide 18: Solid Capital Position
iting Opportunities Solid Capital Position
Slide 19: BBVA Group: Solid capital position and ability to generate capital
Fixed Income Presentation 2019 _ BBVA Group: Solid capital position and ability to generate capital FL CAPITAL RATIOS CET1 FL Jun.19 (%) QUARTERLY EVOLUTION (%, bps) +17 bps 15.41% | v Tier 2 2.08% 35 bps 9 ar Ml isi% 11.35% = = _ 5 bps 6 bps 11.52% -16 bps -13 bps CET1 11.52% Mar-19 Net Dividends &
Slide 20: Low earnings volatility and ability to generate capital allow for lower capital needs
Fixed Income Presentation 2019 #0] Low earnings volatility and ability to generate capital allow for lower capital needs PRE-PROVISION PROFIT / NET LOANS PRE-PROVISION PROFIT® / RWAS EUROPEAN PEERS 119 / BBVA 1H19 EUROPEAN PEERS 1919 / BBVA 1H19 BBVA 3.2% Peer 1 47% Peer] 2.8% Peer 2 4.2% i 2.7% CR
Slide 21: High quality capital
High quality capital RWAS/ TOTAL ASSETS EUROPEAN PEERS MAR.19 / BBVA JUN.19, % BBVA Pcfyh |, Pee 4 () 52 it 37 ci 37 Pee 5 a 3 |. Peer 6 33 Peer aVl, EE 3] i = 2° rec Sc 28 ci a 27 i _—— 27 ij _——— 27 Peco, _ = 25 rei, a 2 4. Per _—, 10 come Presentation 2019 ZAM FULLY-LOADED LEVERAGE RATIO EUROPEAN
Slide 22: Risk-Weighted Asset Distribution
Risk-Weighted Asset Distribution TOTAL RWAS FULLY- LOADED JUN.19 360,563 €Mn 33% IRB Models 5% 7 ‘ VAM) 0.4% oo~ 5% a FX Risk 0.7% Trading Act. Risk Operational Risk Credit Risk ASF 85.2% ™@ Spain 107,486 67% playderdized m USA 62,383 m™ Mexico 55,919 m Turkey 57,551 mi South America 43,995 m Rest o
Slide 23: 2019 SREP Requirement
T2: 2.0% 0.01% AT1: 1.5% 0.75% 2.50% 1.50% 4.50% 2019 CET1 SREP 2019 Total Capital Requirement SREP Requirement BBVA Group Total capital ratio phased-in Jun.19
Slide 24: Lowest SREP requirement among peers
Fixed Income Presentation 2019 gal Lowest SREP requirement among peers CET1 SREP REQUIREMENT - FL DISTANCE TO MDA VS FULLY-LOADED SREP REQUIREMENT (BASED ON 2019 REQUIREMENT) EUROPEAN PEERS MAR.19 / BBVA JUN.19 11.82% 10.61% 10 o7og 10.07% 9.85% 9.83% 9.70% 9.53% 9.33% 926% 397 296 226 218 on 2 Pe 5
Slide 25: High level of Available Distributable Items (ADIs)
Fixed Income Presentation 2019 ail High level of Available Distributable Items (ADIs) BBVA, S.A. (PARENT COMPANY) DEC.18, € Bn a Significant €9.1Bn payment capacity from distributable items BBVA, S.A. despite conservative ADIs: calculation (Share Premium not included) a Supported by sustainable prof
Slide 26: FX Hedging policy
Fixed Income Presentation 2019 ail FX Hedging policy CAPITAL P&L POLICY BBVAhedgesc.70% of the excess capital poticy BBVAhedges on average between 30%-50% (what is not naturally hedged by the ratio) of foreign subsidiaries expected net attributable profit GOAL Reduce consolidated CET] ratio GOAL —_
Slide 27: ALCO & Equity HTC&S Portfolio
Fixed Income Presentation 2019 ZA ALCO & Equity HTC&S Portfolio Amort Cost Fair Value Fair Value ALCO PORTFOLIO BREAKDOWN BY REGION ome ao) (HTC) (HTC&S)_duration een) 56.8 52.4 50.8 (€ bn) (€ bn) South America South m 29 . 0.1 2.9 1.5 Mexico i 39 —ic4 a 58 America years Turkey | 86 | 82 i 3.1 Mexic
Slide 28: Strong Liquidity & Funding Structure
Creating Opportunities Strong Liquidity & Funding Structure
Slide 29: BBVA guidelines for managing Liquidity & Funding
Fixed Income Presentation 2019 Jl BBVA guidelines for managing Liquidity & Funding a Self-sufficient subsidiaries from a liquidity point of view, with robust supervision and control by parent company a Retail profile of BBVA Group balance sheet with limited dependence on wholesale funding
Slide 30: Principles of BBVA Group's self-sufficient business model
Fixed Income Presentation 2019 AKIO] Principles of BBVA Group's self-sufficient business model: Multiple Point of Entry @ Advantages .B) Subsidiaries P—-@ . a Medium term orientation / ‘ Self-sufficient balance-sheet eh ch consistent with retail banking management °% “Improves risk assessment: impos
Slide 31: Financial soundness based on the funding of lending activity
Fixed Income Presentation 2019 AAI Financial soundness based on the funding of lending activity BBVA GROUP LIQUIDITY BALANCE SHEET “ (JUN.19) 639% 62% = Deposits 0) = Net Loans to =ECB Customers = Fixed Assets & . Mee Others mg 4% 7% | ka m Equity & = Financial Assets Others 30% Bis = Funding S/T Bs
Slide 32: Leading Transformation Strategy
Leading Transformation Strategy
Slide 33: Growth in digital and mobile customers leading to outstanding trend in digital sales
Fixed Income Presentation 2019 AEM Growth in digital and mobile customers leading to outstanding trend in digital sales DIGITAL CUSTOMERS MILLION, % YOY GROWTH +28% +17% UW a7 25.4 19.9 Jun-17 Jun-18 Jun-19 PENETRATION RATE, % son) > 54% MOBILE CUSTOMERS MILLION, % YOY GROWTH +45% +25% Woe 20.8 144
Slide 34: Funding Plan
Creating Opportunities QO3 Funding Plan
Slide 35: Strategy focus on maintaining both buckets fulfilled
● Strategy focus • on maintaining • ● both buckets • fulfilled • • • ● ● ● ●
Slide 36: Ability to access funding markets in all our main subsidiaries
Ability to access funding markets in all our main subsidiaries using a diversified set of debt instruments
Slide 37: Ratings
O4 Ratings Creating Opportunities
Slide 38: BBVA, S.A. Ratings
Fixed Income Presentation2Q19 AEH BBVA, S.A. Ratings” BBVA LONG TERM BBVA RATINGS BY TYPE OF INSTRUMENT SENIOR UNSECURED RATINGS Moody's S&P Fitch Investment grade Senior Non Investment Grade ole outlook 21st, 2019) Note: CB = Covered Bonds, SNP = Senior Non Preferred (1) Arating is not arecommendat
Slide 39: Annex
BBVA Creating Opportunities Annex « BBVA Group 2Q19 Profit & Loss a Risk Indicators by business areas « Book Value of the main subsidiaries a Capital Base: BBVA Group & BBVA, S.A. é BBVA, S.A.: 2019 SREP Requirement and distance to MDA « Called notes — 2017/2019YTD a Debt Issuances — 2018/2019YTD a
Slide 40: BBVA Group 2019 Profit & Loss
Fixed Income Presentation 2019 #ZZ0]l BBVA Group 2019 Profit & Loss Change 1H19/1H18 BBVA Group . . Net Attributable Profit breakdown Net Interest Income 8,987 74 9.9 %, 1H19) Net Fees and Commissions 2,470 1.0 28 (% ’ Net Trading Income 542 77 -16.6 Other Income & Expenses -10 ns. ns. Gross Income
Slide 41: Risk Indicators by business areas
Fixed Income Presentation 2019 I Risk Indicators by business areas coverage ratio (%) (%) 3 Mar. 19 Jun. 19 Mar. 19 Jun. 19 BBVA Group 3,9 3,9 3,8 BBVA Group 74,1 74,6 Spain 5,1 49 46 Spain 57.8 58,0 The United States 13 14 13 The United States 85 91 Mexico 21 2,0 22 Mexico 159 148 Turkey 5,3 5,7 63
Slide 42: Book Value of the main subsidiaries
Fixed Income Presentation 2019 Za Book Value of the main subsidiaries 1:2 JUN 19 (€ BN) Mexico -ZZELELLLELLLLL EEE |), A. USA ZZ ELE LLL, ‘7G Turkey EEE, AQ) Colombia ma 13 Peru mz 1.0 Argentina mz 0.9 Chile #03 Venezuela 10.1 (1) _ Includes the initial investment + undistributed results + FX impact
Slide 43: Capital Base: BBVA Group & BBVA, S.A.
Capital Base: BBVA Group & BBVA, S.A. PHASED-IN CAPITAL RATIOS JUN.19 (%) Btier2 Bi Additional Tier 1 Mcem CET1 AT] T2 Total Capital Base RWA BBVA Group € 42 328m €6,669m €7,944m €56,941m € 360,069 m 20.90 Mm 1.58 2.95 16.37 BBVA, S.A. €33,416m €6,020m €3,235m €42,671m € 204,152m FULLY-LOADED CAPITA
Slide 44: BBVA, S.A. 2019 SREP Requirement and distance to MDA
T2: 2.0% 0.03% AT1: 1.5% 0.00% 2.50% 1.50% 4.50% 2019 CET1 SREP 2019 Total Capital BBVA, S.A. Total Requirement SREP Requirement capital ratio phased-in Jun.19
Slide 45: Called notes 2017/2019YTD
Issue Outstanding Product Redemption Coupon ISIN Date currency (M) Tier 2 Jun-09 May-19 € 4.88 3ME + 5.25% ES0214973077 Tier 2 Apr-14 Apr-19 € 1,500 3.50% XS1055241373 AT1 Feb-14 Feb-19 € 1,500 7.00% XS1033661866 AT1 May-13 May-18 $ 1,500 9.00% XS0926832907 Tier 2 Feb-07 Feb-18 € 257 3ME+0.80% ES021
Slide 46: Debt Issuances 2018/2019YTD
Nominal Product Issue Date Call Date Maturity Coupon ISIN currency SNP Jun-19 - Jun-26 € 1,000 M 1.000% XS2013745703 AT1 Mar-19 Mar-24 Perp € 1,000 M 6.000% ES0813211010 SNP Feb-19 - Feb-24 € 1,000 M 1.125% XS1956973967 Tier 2 Feb-19 Feb-24 Feb-29 € 750 M 2.575% XS1954087695 AT1 Sep-18 Sep-23 Perp €
Slide 47: 1H19 Issuances
1H19 Issuances Key Features BBVA Green SNP EUR 1 bn 1% Second Green SNP, after the first one issued in May- 18, framed within the Sustainable Development Goals Bond Framework No new issue premium BBVA AT1 EUR 1bn PNC5 6% BBVA Tier 2 10ONC5 EUR750M 2.5 BBVA SNP EUR 1 bn 1.125% Fixed Income Presentati
Slide 48: Turkey - Liquidity & Funding Sources
Fixed Income Presentation 2019 Ail Turkey — Liquidity & Funding Sources 4 Solid liquidity position: + Improved LTD ratio to 98%, decreasing by 1.5 p.p. in 2Q19, driven by TRY Currency LTD improvement by c.6 p.p. to 142.5% + Foreign currency loans decreased slightly (-2%) to c. USD 14 Bn in 2Q19 + Li
Slide 49: Main Subsidiaries Ratings
Main Subsidiaries Ratings “) LONG TERM SENIOR UNSECURED RATINGS BBVA Mexico BBVA USA Investment J AAA/Aza AAA/Aza Brade AA+/Aal AA+/Aal AA/Aa2 AA/Aa2 AA-/Aa3 AA/Aa3 AS/Al A+/Al A/A2 A/A2 A/A3 moopy's #f4/A3 FITCH sap [BBB+/Baal SSP BBB/Baa2_ | FITCH (BBB7B2a2" = moopy's BBB-/Baa3 BBB-/Baa3 Non ‘fy B
Slide 50: Sovereign Exposure by geography
Sovereign Exposure by geography “’) € bn as of June 2019 Amortized Cost Fair Value oA ann Trading debt securities debt securities Loans securities Spain 13.0 15.7 16.1 Italy 31 18 0.0 47 Portugal - - 0.2 0.6 Mexico 1.5 49 6.0 12.2 USA 3.9 8.2 5.4 0.1 Turkey 4] 3.6 0.1 0.1 All Others (1) Risk balance
Slide 51: Fixed Income Presentation 2Q19
Creating Opportunities Fixed Income Presentation 2Q19 y