Transcription
BBVA Investment CasePresentation1Q22
2DisclaimerThis 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, oran invitation for offers to buy securities issued by any of the aforementioned companies. Any decision to buy or invest in securities in relation to a specificissue must be made solely and exclusively on the basis of the information set out in the pertinent prospectus filed by the company in relation to such specificissue. No one who becomes aware of the information contained in this report should regard it as definitive, because it is subject to changes andmodifications.This document contains or may contain forward looking statements (in the usual meaning and within the meaning of the US Private Securities LitigationReform Act of 1995) regarding intentions, expectations or projections of BBVA or of its management on the date thereof, that refer to or incorporate variousassumptions and projections, including projections about the future earnings of the business. The statements contained herein are based on our currentprojections, but the actual results may be substantially modified in the future by various risks and other factors that may cause the results or final decisionsto differ from such intentions, projections or estimates. These factors include, without limitation, (1) the market situation, macroeconomic factors, regulatory,political or government guidelines, (2) domestic and international stock market movements, exchange rates and interest rates, (3) competitive pressures, (4)technological changes, (5) alterations in the financial situation, creditworthiness or solvency of our customers, debtors or counterparts. These factors couldcause or result in actual events differing from the information and intentions stated, projected or forecast in this document or in other past or futuredocuments. BBVA does not undertake to publicly revise the contents of this or any other document, either if the events are not as described herein, or ifsuch events lead to changes in the information contained in this document.This document may contain summarised information or information that has not been audited, and its recipients are invited to consult the documentationand public information filed by BBVA with stock market supervisory bodies, in particular, the prospectuses and periodical information filed with the SpanishSecurities Exchange Commission (CNMV) and the Annual Report on Form 20-F and information on Form 6-K that are filed with the US Securities andExchange Commission.Distribution of this document in other jurisdictions may be prohibited, and recipients into whose possession this document comes shall be solely responsiblefor informing themselves about, and observing any such restrictions. By accepting this document you agree to be bound by the foregoing restrictions.
3About BBVABBVA’s GLOBAL PRESENCEFINANCIAL HIGHLIGHTSMARCH 2022MARCH 2022Net attributable profit 1Q221,651 M OUR PURPOSETo bring the ageof opportunityto everyoneCountriesBranchesEmployeesCustomer 256,071111,402 82.9 MCET 1 FL12.70%Total assets675,842 M Loans and advances tocustomers - grossDeposits fromcustomers346,434 M 360,716 M DIGITAL CAPABILITIESMARCH 2022DIGITAL SALESCUSTOMERSDigitalcustomersMobilecustomers43.6 M41.5 MUnitsPRV177% 60%(1) Product Relative Value as a proxy of lifetime economic representation of units sold.SUSTAINABLE DEVELOPMENT ANDDIRECT CONTRIBUTION TO SOCIETYDoubling BBVA’s initialPledge 2025200 MM 97 MM Between 2018 and 2025Channeled until March 2022
1Q22 Fixed Income 4About BBVAOUR PURPOSETo bring the age of opportunityto everyoneSTRATEGIC PRIORITIESImproving our clients’financial healthReaching moreclientsThe best and mostengaged teamHelping our clients transitiontowards a sustainable futureDriving operationalexcellenceData and TechnologyOUR VALUESCustomerComes firstWe thinkbigWe areone team
51Leading franchises in veryattractive marketsSTRONG POSITIONLEADING PROFITABILITYMarket share1 (%)Ranking1ROE (%)vs. industry2 (bps)Spain13.3%#317.1% 870 bpsMexico23.7%#123.3% 1300 bpsTurkey17.6%#237.5% 239 bpsColombia10.7%#424.2% 109 bpsPeru21.0%#218.2% 60 bps(1) Latest available market shares, Ranking among peer group. Turkey among private banks.(2) According to local criteria. Industry ROE: Spain, Mexico, Turkey and Colombia as of 2021. Peru as of 1Q22.
621 Uniquely positioned to capture value fromdigitalizationSERVICINGDIGITAL TRANSACTIONSCUSTOMERACQUISITIONSALES1DIGITAL SALES2NEW CUSTOMER ACQUISITION(%, UNITS AND VALUE 3)(% OVER TOTAL)(MILLION, % ACQUISITION THROUGHDIGITAL CHANNELS 4)1073%UNITS85%82%56%VALUE25%100%8.7 MILLION990%880%770%660%53.4440% ACQUISITION50%40%330%216%120%4%10%0201820211Q22: 91%2016ADVICE20211Q22: 77 Units & 60% Value0%201620211Q22: 2.4M & 57% Acquisition(1) Includes monetary and non-monetary transactions related to servicing. It excludes product sales and information inquiries. Includes ATMs transactions. (2) Excludesunits sold in USA, Venezuela, Chile and Paraguay. (3) Product Relative Value as a proxy of lifetime economic representation of units sold. (4) Gross customeracquisition through own channels for retail segment. Excludes the US business sold to PNC.Digital transformation as a key lever for growth
721Trend setters in SustainabilitySUSTAINABLE FINANCING( BILLION)2025 PLEDGE11 Bn A CLEAR COMMITMENT IN PORTFOLIOALIGNMENT TOWARDS NET ZERO20502030 decarbonization goals set inselected CO2 intensive industries1200 BNCHANNELEDIN 1Q22Reduction in 2030Power-52% kg CO e/MWhAuto-46% g CO /kmSteel-23% kg CO /tnCement-17% kg CO /tnCoalPhase out2Total channeled97 BN201820192020202120222023202420252222(1) These sectors account for 60% of global CO2 Emissions worldwide (Source: “IEA and UNEP). (2) 2030 for developed countries and in 2040 for emerging countries. (3) According to the Dow Jones Sustainability Index2021. Sharing #1 position in ranking.BBVA, top-ranking bank worldwide3
831Proven track recordof solid financial returnsSTRONG PRE-PROVISION PROFIT ANDBEST-IN-CLASS EFFICIENCYOUTPERFORMING OUR PEERSON PROFITABILIYPRE-PROVISION PROFIT / RWAEFFICIENCY RATIOROTE2016-2021, %BBVA 2016-3M22, %PEERS 2016-2021, %BBVA 2016-3M22, %PEERS 2016-2021, %3.8%68EUROPEAN PEERGROUP AVERAGE13.0%6310.2%2.6%2.2%524.6%EUROPEAN PEERGROUP AVERAGE1412016 2017 2018 2019 2020 20212016(1) European Peer Group: BARC, BNPP, CASA, CMZ, CS, DB, HSBC, ISP, LBG, NWG, SAN, SG, UBS, UCG.1Q22European peergroup average1
941 Well diversifiedbusiness modelPROFITABLE BUSINESS MIXDIVERSIFICATION UNDER ADECENTRALIZED MODELTOTAL ASSETS 1LOANS AND ADVANCES TO CUSTOMERSMAR-227% Rest of BusinessSouth America 9%(PERFORMING)MAR-2258% Spain28% Mortgages21% CIBTurkey 8%45%Retail48%CommercialMexico 18%27% Other commercialPublic sector6%14% Consumer & Credit cards3% Others (mainly self-employed)GROSS INCOME 13M22South America 15%3% Rest of BusinessDEPOSITS FROM CUSTOMERSMAR-2216%Turkey17%28% SpainTime deposits84%Demand depositsMexico 37%(1) Figures exclude the Corporate Center.MPE: self-sufficient subsidiaries in terms of capitaland liquidity management. No liquidity transfers.
1041Solid fundamentalsSOUND ASSETQUALITY METRICSPROFITABILITYMETRICSSTRONG CAPITALAND LIQUIDITY POSITIONCET1 FULLY-LOADEDNPL Ratio(3M 22, %)(%)4.34.1(%)3.912.70%ROTECoverage : 2021 Excludes the US business sold to PNC for comparison purposes.135%LCR GroupMar-21 Dec-21 Mar-22Prudent and proactive riskmanagementNSFR GroupSREP Requirement8.60%ROECost of Risk(%)Target range11.5- 12.0%
1151Disciplinedcapital allocationCAPITAL ALLOCATION TOWARDS MARKETSWITH SCALE AND PROFITABLE FRANCHISESVALUE CREATIONTBV / SHARE DIVIDENDS( / SHARE) 12.6%6.936.660.14Profitability6.15FOCUS ON MARKETS WITHSCALE ANDPROFITABILITYSUCCESSFUL DIVESTMENTSMarket share0.3716.566.52Mar-21TBV / shareDec-211Mar-22Dividends distributed in 2021(1) April 2021 dividend per share (0.06 gross) and October 2021 dividend per share (0.08 gross)and April 2022 dividend per share (0.23 gross).Clear commitment to value creation
1261Strong ESG CredentialsSUSTAINABLE FINANCINGSustainable Finance OriginationIncreased target to200 bn2018-2025SOCIALCommunity Commitment 2021-2025550 mn investment2018-1Q22: 106 mninvestmentBBVA S.A -Sustainable Bond Issuances 2bnSocial% FemaleDirectors40%% IndependentDirectors67%44 mnbeneficiariesBBVA Microfinance Foundation 3bnGreenBoard of Directors as ofDec’2197bn channeledGOVERNANCEGoal:2º largest1stphilanthropicinitiative globallyin LatAm50%at leastRemuneration1stprivate organization contributing in thedevelopment assistance for gender equalityKPI linked to Sustainabilityfor Executive Directors andfor all BBVA employeesDiversity & InclusionFounding membersNet Zero AllianceDefined Portfolio AlignmentStrategy in the most intensiveCO2 sectorsWomenrepresent26.8%of seniormanagement36.1%of managementpositionsEqual gender paywage gap by homogeneousprofessional categories is0.6%as ofDec’21as ofDec’211.1%as ofDec’20Strong Sustainability GovernanceGlobal Head of Sustainability:direct report to the CEOand Chair for strategicsustainability matters
13On track to achieve our ambitiouslong-term goalsCOST-TO-INCOMEROTETBV/ SHARE DIVIDENDS(%)(%, ANNUALIZED)(YOY %)45.215.942.014.012.012.610.12021-24 CAGR:9.040.720211Q22. 202420211Q22. 202420211Q22NEW TARGET CUSTOMERS1SUSTAINABLE FINANCE(MILLION CUMULATIVE)( BILLION; CUMULATIVE SINCE 2018)10.020097861.020211Q22. 202420211Q22. 2025(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. 2024
About BBVA (1) Product Relative Value as a proxy of lifetime economic representation of units sold. BBVA's GLOBAL PRESENCE MARCH 2022 DIGITAL CAPABILITIES Digital customers 43.6 M Mobile customers 41.5 M Units 77% PRV1 60% CUSTOMERS DIGITAL SALES FINANCIAL HIGHLIGHTS 1,651 M Net attributable profit 1Q22 12.70 % CET 1 FL 675,842 M Total .
