Banco Bilbao Vizcaya Argentaria, S.a. · BME:BBVA
Banco Bilbao Vizcaya Argentaria — Debt Investor Presentation (November 2022)
50 slides from Banco Bilbao Vizcaya Argentaria's debt investor presentation, Nov 1, 2022
Slide 1: Fixed Income Investors Presentation 3Q22
Creating Opportunities Fixed Income Investors Presentation 3Q22
Slide 2: Disclaimer
3Q22 Fixed Income 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 decision to buy o
Slide 3: BBVA Investment case
Creating Opportunities Ol BBVA Investment case
Slide 4: About BBVA
3022 Fixed Income 4_ About BBVA ~& iI? BBVA's GLOBAL PRESENCE FINANCIAL HIGHLIGHTS SEPTEMBER 2022 SEPTEMBER 2022 Net attributable profit September 2022. CET1FL 4,842 me 12 45» . OUR PURPOSE Total assets - cs t 9g is fy bring the age 738,680 Me , i : - V2 of opportunity Loans and advances to Deposits
Slide 5: To bring the age of opportunity to everyone
3Q22 Fixed Income 5 To bring the age of opportunity to everyone STRATEGIC PRIORITIES = Improving our clients’ Fo Helping our clients transition financial health towards a sustainable future i Driving operational Reaching more clients ." excellence w id ip aaa = Data and Technology engaged team
Slide 6: Leading franchises in very attractive markets
3Q22 Fixed Income 6_ 1) Leading franchises in very attractive markets BBVA | STRONG POSITION LEADING PROFITABILITY Market share! (%) Ranking! ROE (%) vs. industry? (bps) fsSpain 13.4% #3 14.1% +480 bps By Mexico 24.4% #] 264% +1130 bps fa Turkey 175% HO 49.0% +1080 bps Colombia 10.9% #4. 21.0% +620
Slide 7: Well diversified business model
2) Well diversified business model DIVERSIFICATION UNDER A DECENTRALIZED MODEL TOTAL ASSETS ! SEP-22 6% Rest of Business South America 9% Turkey “f Mexico aC GROSS INCOME! 9M22 56% Spain 3%Rest of Business South America a Turkey 13% \ 259% Soain Mexico a, (1) Figures exclude the Corporate Center MPE
Slide 8: Capturing value from digitalization
3Q22 Fixed Income 8 | 3) Capturing value from digitalization NEW CUSTOMER ACQUISITION! GROUP: SALES THROUGH DIGITAL CHANNELS (BBVA GROUP, MILLION; % ACQUISITION THROUGH DIGITAL (BBVA GROUP, % GROWTH OF TOTAL SALES YTD, % OF DIGITAL CHANNELS) TRANSACTIONS AND PRV! OVER TOTAL SALES YTD) 8.6 e 6.5 773
Slide 9: Proven track record of solid financial returns
4) Leading to a proving track record of solid financial returns STRONG PRE-PROVISION PROFIT AND BEST-IN-CLASS EFFICIENCY EFFICIENCY RATIO BBVA 2016-9M22, % PEERS 2016-6M22, % PRE-PROVISION PROFIT / RWA BBVA 2016-922 ANNUALIZED PEERS 2016-6M22 EUROPEAN PEER 64.8% GROUP AVERAGE! ———*—*———* 62.6% Ley (
Slide 10: NPL Ratio, Coverage ratio, Cost of Risk
NPL Ratio Coverage ratio Cost of Risk
Slide 11: Strong ESG Credentials
6) Strong ESG Credentials SUSTAINABLE BUSINESS Sustainable Business Increased target to 3 OO €bn 2018-2025 2018-3022: ] 24 €bn channeled BBVA S.A -Sustainable Bond Issuances % 2€bn BE Social 4.6¢bn Green Founding members Net Zero Alliance Defined Portfolio Alignment Strategy SOCIAL Community Commitm
Slide 12: Advancing in portfolio alignment with new Oil&Gas target
3Q22 Results 12 Power Auto Steel Cement Coal Oil & Gas 2018 2019 2020 2021 2022 2023 2024 2025 Advancing in our commitment in portfolio alignment by setting a new target for the Oil&Gas sector
Slide 13: We are on the right path to achieve our long-term goals
3Q22 Fixed Income 13. 7) We are on the right path to achieve our ambitious long-term goals COST-TO-INCOME (vy) ROTE (vy) TBV/ SHARE + DIVIDENDS (v) (%) (%, ANNUALIZED) (YOY %) 45,2 19.5 15.7 14.0 120-7 10.1 2021-24CAGR g g 42.9 42.0 1 2021 9M22 1.2024 2021 9M22 +2024 2021 9M22 +2024 NEW TARGET CUSTO
Slide 14: 3Q22 Results
Creating Opportunities O2 3Q22 Results
Slide 15: BBVA reports another very strong quarter
BBVA reports another very strong quarter RECURRENT NET ATTRIBUTABLE PROFIT! (CURRENT €M) OUTSTANDING CORE REVENUES AND ACTIVITY GROWTH LEADING AND IMPROVING EFFICIENCY WITH POSITIVE JAW. HIGHEST QUARTERLY OPERATING INCOME oS a — | 1877 «1,841 MERLIN = 1 A400 TRANSACTION 1.675 : SOLID ASSET QUALITY T
Slide 16: BBVA Group 3Q22 Profit & Loss
BBVA Group 3Q22 Profit & Loss BBVA Group (€M) Net Interest Income Net Fees and Commissions Net Trading Income Other Income & Expenses Gross Income Operating Expenses Operating Income Impairment on Financial Assets Provisions and Other Gains and Losses Income Before Tax Income Tax Non-controlling Int
Slide 17: Results: lending and deposits trends
3Q22 Results 17 +6.8% +4.6% +1.1% Sep-21 Sep-22 3Q21 4Q21 1Q22 2Q22 3Q22 3Q21 4Q21 1Q22 2Q22 3Q22 +29% +15.1% +0.1% 3Q21 4Q21 1Q22 2Q22 3Q22 3Q21 4Q21 1Q22 2Q22 3Q22 Sep-21 Sep-22
Slide 18: Results: Spain
3Q22 Results 18 €Bn YoY Δ (%) Δ (%) YoY +2.7% 3Q22 vs 3Q21 vs 2Q22 9M22 vs 9M21 €Bn Net Interest Income 931 6.8 3.0 2,695 2.3 +4.6% Net Fees and Commissions 526 -1.8 -8.4 1,635 2.4 Net Trading Income 41 n.s. -58.4 329 24.0 Other Income & Expenses 80 22.6 n.s. -13 n.s. Mortgages -2.8% Demand Deposits
Slide 19: Results: Mexico
3Q22 Results 19 (Constant €) €Bn Δ Constant (%) Δ Current (%) Δ Constant (%) €Bn YoY +7.9% 3Q22 vs 3Q21 vs 2Q22 9M22 vs 9M21 vs 9M21 +15.1% Net Interest Income 2,134 29.0 10.8 5,921 38.3 23.9 Mortgages +12.3% Net Fees and Commissions 409 17.8 2.6 1,174 30.7 17.0 Net Trading Income 90 -6.8 -33.7 324
Slide 20: Results: Turkey
3Q22 Results 20 €Bn Δ Constant (%) Δ Current (%) (Constant €; Bank Only) YoY1 FC €Bn -4.4% 3Q22 vs 2Q22 vs 2Q22 9M22 YoY1 Net Interest Income 857 27.7 21.9 1,976 Time Net Fees and Commissions 169 3.0 -2.7 452 -18.5% Net Trading Income 211 -5.1 -10.9 591 Other Income & Expenses -102 -49.4 -27.9 -662
Slide 21: Results: South America
3Q22 Results 21 €Bn YoY (Constant €) +15.0% €Bn YoY Colombia +23.6% Δ Constant (%) Δ Current (%) Δ Constant (%) +14.7% 3Q22 vs 3Q21 vs 2Q22 9M22 vs 9M21 vs 9M21 Colombia 59 8.3 -22.9 207 32.9 29.9 Colombia +23.7% Peru +0.4% Peru 49 79.9 -25.8 168 122.3 96.5 Argentina 73 n.s. n.s. 156 n.s. n.s. Other
Slide 22: Capital, Liquidity & Balance Sheet management
Creating Opportunities O3 Capital, Liquidity & Balance Sheet management
Slide 23: A high quality and resilient capital
A high quality and resilient capital STRONG CAPITAL POSITION CET1 FULLY-LOADED (%) 12.45% Target range 11.5- 12.0% ___ SREP Requirement 8.60% Sep-22 HIGH RWAS DENSITY, WITHA LIMITED USE OF INTERNAL MODELS! RWA/TOTALASSETS LEVERAGE RATIO FL BBVA SEP-22 / PEERS JUN-22 BBVASEP-22/ PEERS JUN-22 BBVA PEE
Slide 24: Strong capital position with CET1 FL above target
Strong capital position with CET1 FL above our target CET1 FULLY-LOADED ATI AND TIER 2 FL BUCKETS (%, BPS) SEP-22 (%) 2.38% +56bps 30. ps 5 1.94% | | -l6 bps 1.78% 12.45% = “i0bps = =12.45% 1.58% = 11.5-12.0% TARGET RANGE. 8.60% CETI SREP REQUIREMENT Requirement Sep-22 Requirement Sep-22 ATl TIER 2
Slide 25: CET1 Requirement, Total Requirement, Phased-in ratios
2.38% 0.01% 1.78% 0.75% 2.50% 0.84% 4.50% CET1 Requirement Total Requirement Phased-in ratios Sep.22
Slide 26: Hedging policy to limit P&L and CET1 volatility
Hedging policy to limit P&L and CET1 ratio volatility TO CURRENCY DEPRECIATION CAPITAL — poucy GOAL BBVA hedgesc.70% Reduce consolidated of the excess capital CET1 ratio volatility (what is not naturally as aresult of FX hedged by the ratio) movements P&L POLICY GOAL BBVA hedges on average Reduce Ne
Slide 27: CET1 Requirement, Total Requirement, Phased-in ratios
0.01% 2.50% 0.84% 4.50% CET1 Requirement Total Requirement Phased-in ratios Sep.22
Slide 28: Sound MREL position
3Q22 Fixed Income 28 Sound MREL position C.85% OF MREL ELIGIBLE WITH SUBORDINATION > OR = TO SNP POSITION AS OF SEP-22 % RWA! MREL REQUIREMENT + CBR SUBORDINATION REQUIREMENT + CBR M-MDA Buffer 146 bps (3.0€bn) Subordination Buffer 519 bps (10.5€bn) 24.72% 26.18% CBR: 3.26% 21.95% 16.76% MREL CBR: 3
Slide 29: Liquidity ratios well above 100% minimum
Liquidity ratios well above 100% minimum Ample quality collateral BBVA GROUP LIQUIDITY BALANCE SHEET! SEP-22 59% F63% = Deposits =e ECB = M&L/T Funding = Net Loans to Customers = Fixed Assets & Others 5% i Equity & Oth = Financial Assets Box eequity ers 9 86 . 17% 8 S/T Funding Ha 5% Assets Liabilit
Slide 30: Limited wholesale funding maturities in all geographies
3Q22 Fixed Income 30 Limited wholesale funding maturities in all geographies DEBT OUTSTANDING BY PRODUCT MEDIUM & LONG-TERM WHOLESALE SEPT-22,€BN FUNDING MATURITIES SEPT-22,€BN 166 Others! Senior 9.3 9.4 10 Preferred GM EURO 59 = 16 3.3 Va > €445pn 3S ee Subordinated 8 16% ® 3.5 | 9% 7% Senior 26 Pr
Slide 31: Updated funding plan 2023
3Q22 Fixed Income 31, We have updated our funding plan 2023 in a context of higher activity and liquidity needs BBVA,S.A. 2022 2023 Strategy! €BN Executed (subject to market conditions) ATl New issuances subject to market conditions. Dynamic management of the capital stack structure. Tier 2 SNP €2.8
Slide 32: All rating agencies assign BBVA a single A rating
3Q22 Fixed Income 32 All Ratings Agencies assign BBVA a rating’ on the single A space, with stable outlook BBVA LONG TERM BBVA RATINGS BY TYPE SENIOR UNSECURED RATINGS OF INSTRUMENT Moody's S&P Fitch DBRS Investment | Aaa AAA AAA AN cB , Stable outlook grade | qai CB AN cB AAS AA(H) Moody's oun 19-2
Slide 33: ALCO Portfolio
ALCO Portfolio ALCO PORTFOLIO BREAKDOWN BY REGION (€ BN) 54.3 57.8 Sep-22 —————- South America 47.7 ———s Turkey ® South America ————— Mexico © Turkey a Euro @ Mexico Spain Italy (1) @ Euro Rest Sep-21 Jun-22 Sep-22 Amort Cost (HTC) (€BN) 03 5.2 3.7 15.7 12.2 3.2 03 3Q22 Fixed Income 33 Fair Value HT
Slide 34: NII sensitivity to interest rates movements
3Q22 Fixed Income 34 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) i | | + C.1 5y, +3.8% EURO BALANCE MEXICO SHEET Note: NIl sensitivities to parallel interest rates movements calcul
Slide 35: Takeaways
Takeaways BBVA is uniquely positioned for profitable growth Leading franchises in very attractive markets with a well diversified business model. Capturing value from digitalization and trend-setters in sustainability. Proven track record of solid financial results. Disciplined capital allocation. S
Slide 36: Annex
BBVA Creating Opportunities Annex « BBVA Group 9M22 Profit & Loss a Improvement in Mexico, South America & Turkey « Stages breakdown by business area 4 Sound portfolios in main geographies « Covid-related loans backed by State guarantees « Capital Base: BBVA Group & BBVA, S.A. « Group RWA breakdown
Slide 37: BBVA Group 9M22 Profit & Loss
3Q22 Fixed Income 37 BBVA Group 9M22 Profit & Loss Change 9M22/9M21 BBVA Group (€M) 9M22 % constant % Net Interest Income 13,811 32.6 29.0 Net Fees and Commissions 4,030 174 14.6 Net Trading Income 1,669 174 13.4 Other Income & Expenses -1,145 ns. ns. Gross Income 18,366 21.2 17.8 Operating Expenses
Slide 38: Improvement especially in Mexico, South America and Turkey
3Q22 Fixed Income 38 Improvement especially in Mexico, South America and Turkey RECURRENT NET ATTRIBUTABLE PROFIT! (BUSINESS AREAS CONTRIBUTION TO 3022 YOY GROWTH; CURRENT €M) +83 +463 ve 1841 “15 7 1,400 39 -205 3Q21 Spain Mexico Turkey South Rest of Corporate 3Q22 America business Center NAP 3Q22!
Slide 39: Stages breakdown by business area
Stages breakdown by business area CREDIT RISK BREAKDOWN BY BUSINESS AREA (SEP-22, €M) BBVA GROUP Stage 1 Stage 2 Stage 3 TURKEY Stage 1 Stage 2 Stage 3 COLOMBIA Stage 1 Stage 2 Stage 3 Gross Accumulated Exposure impairments 375,164 2,203 38,394 2,247 15,162 8,120 Gross Accumulated Exposure impairmen
Slide 40: Sound portfolios in main geographies
3Q22 Results 40 Sound portfolios in main geographies SPAIN MEXICO +} TURKEY ¢& RETAIL BANKING CONSUMER FC LOANS 85% of consumer loans 70% of consumer loans -60% Deleverage strategy since origination given to origination given to 2015 “payroll” clients “payroll” clients oy, Of Project Finance loans 7
Slide 41: Covid-related loans backed by State guarantees
3Q22 Results 41 Covid-related loans backed by State guarantees € bn; SEP-22 GROUP SPAIN@) MEXICO TURKEYS) ARGENTINA COLOMBIA PERU Loans Weight Loans Weight Loans Weight Loans Weight Loans Weight Loans Weight Loans Weight Households 14. 09% 13 13% 0.0 0.0% 0.0 0.0% 0.0 1.1% 0.0 03% 0.1 14% Corporates
Slide 42: Capital Base: BBVA Group & BBVA, S.A.
Capital Base BBVA Group & BBVA, S.A. PHASED-IN CAPITAL RATIOS SEP-22 (%) 16.07 16.51 _ Tier? wn 794 mH 2.10 Additional Tier] im 1.58 Moa CET 12.58 11.94 BBVA Group BBVA, S.A. CET1 €42,895m €24,418m ATI €5,405m €5,052m T2 €6,614m €4,288m Total Capital Base €54,914m € 33,/58m RWA €341,685m €204,507m N
Slide 43: Group RWA breakdown
Group RWA breakdown TOTAL RWA BREAKDOWN PHASED-IN CVA! FX Risk Trading Act. Risk Operational Risk Credit Risk 84.7% 53% Standardized Models Note 1: Credit Valuation Adjustment. Note: Distribution of RWAs by type of risk and Model based on 2Q22 Pilar Ill report. 47% _\RB Models 3Q22 Fixed Income 43 a
Slide 44: Turkey - Liquidity & funding sources
3022 Fixed Income 44 Turkey- Liquidity & funding sources SOLID LIQUIDITY POSITION: Total LTD ratio is at 77.5%, decreasing by -3.8p.pin 3Q22. Foreign currency performing loans decreased by USD 1.3 Bn (on a quarterly basis) toc. USD 9.2 Bn in 3Q22. FC LIQUIDITY BUFFERS @ Short Term Swaps @ Unencumber
Slide 45: Debt Issuances 2020-2022 YTD
3Q22 Fixed Income 45 Debt Issuances 2020 —- 2022 YTD = PRODUCT ISSUE DATE CALL DATE MATURITY NOMINAL CURRENCY COUPON BBVA S.A. SP Nov-22 - Nov-28 CHF 210M 2.77% SP Nov-22 - Nov-25 CHF 215M 2.4075% Y) sP Oct-22 - Oct-29 €1,250M 4.375% & SP Oct-22 = Oct-34 €100M 4.25% sP Sept22 - Sept-27 €1,250M 3.375
Slide 46: Called notes 2018-2022 YTD
3Q22 Fixed Income 46 Called notes 2018 — 2022YTD economic call policy OUTSTANDING PRODUCT ISSUE DATE REDEMPTION CURRENCY (M) COUPON BBVA, S.A. AT May-17 May-22* €500 5.875% BBVA, S.A. ATI Apr-16 Apr-21 € 1,000 8.875% Caixa Terrassa SPP Preferred Ago-05 Jan-21 €75 10yCMS+0.10% BBVA Intl. Preferred Un
Slide 47: Main Subsidiaries ratings
Main Subsidiaries ratings! BBVA LONG TERM SENIOR UNSECURED RATINGS Investment grade Non Investment Grade BBVA Mexico AAA/Aaa AA+/Aal AA/Aa2 AA-/Aa3 A+/Al ASAZ A-/AS aS oY BBB-/Baa3 BB+/Bal BB/Ba2 BB-/Ba3 B+/B1 B/B2 B-/B3 ccc cc .) Garanti BBVA AAA/Aaa AA+/Aal AA/Aa2 AA-/Aad A+/Al A/A2 A-/AZ BBB+/Baa
Slide 48: Sovereign Exposure by geography
Sovereign Exposure by geography! € bn; SEP-22 Amortized Cost debt securities (HTC) Spain 18.5 Italy 3.3 Mexico 3.8 USA 1.0 Turkey 5.6 All Others 0.9 Fair Value debt securities (HTC&S) 10.6 48 9.4 33 41 72 Sovereign Non-trading financial secures, 7st mandatory ot 5.7 0.0 45 0.0 11.5 0.0 0.2 0.0 0.1 0
Slide 49: Book Value of the main subsidiaries
3Q22 Fixed Income 49 Book Value of the main subsidiaries(:2) € BN; SEP-22 Mexico By a 16 Oo Turkey a 6.9 Colombia @& W115 Argentina = Peru a) 01.3 Chile wy 103 Venezuela zm | 0.1 (1) Includes the initial investment + BBVA’s undistributed results + FX impact + other valuation adjustments, The Goodwil
Slide 50: BBVA
BBVA
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