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2016 EXECUTIVE REPORTRESPONSIBLE BANKING POLICYCreatingOpportunities2016 EXECUTIVE REPORTResponsiblebanking policyP.1
2016 EXECUTIVE REPORTRESPONSIBLE BANKING POLICYP.22016 Executive ReportBBVA's Purpose is "to bring the age of opportunity to everyone." Aligned with our vision of thefuture, our Purpose is our key driver and guides our strategy and decision-making. We want tohelp our customers achieve their goals in life. We want to go beyond being a bank and become avehicle of opportunities with a positive impact on the lives of people and companies.The Bank’s Corporate Social Responsibility policy, also knownas Responsible Banking policy, is approved by the Board ofDirectors. The Policy’s mission is to manage the responsibilityfor the Bank’s impact on people and society, which is key tothe delivery of BBVA’s Purpose.This policy supports a differential banking model we callResponsible Banking. It is based on the search for a returnadjusted to principles, strict legal compliance, best practicesand the creation of long-term value for all stakeholders.All the business units and support areas integrate this policyinto their operating models. The Responsible Business unitcoordinates the implementation and basically operates as asecond line to challenge as well as offer its support.In 2016 the governance of the responsible banking model hasbeen strengthened. It is supervised by the Board of Directorsand its different committees, as well as by the Bank's GlobalLeadership, chaired by the CEO.
2016 EXECUTIVE REPORTRESPONSIBLE BANKING POLICYCommitments and responsible practicesOur customersCommitmentsMain practices and initiativesCustomer-centric strategy (1st priority)Position our customers at thecenter of our activityPeople-focused framework to define and provide our customers withwhat they demandHuman centered design and big data as basic capacitiesData-driven marketingPromote transparency, clarity andfinancial skills to help customersTCR (transparency, clarity and responsibility) initiative to transformthe traditional bank and create a new bank: standards, training andintegration in agile methodologymake better decisionsFinancial skills in customer solutions (new action plan for 2017)TCR principles in brand positioningLocal retail banking initiatives (CRA, social housing, etc.)Develop products and serviceswith a high social impactSustainable finance in wholesale bankingSocially responsible investment (SRI) in asset managementNew social and environmental framework in 2017Customer-friendly solutions and low-cost digital channelsFoster financial inclusionBanking correspondentsBig data, capacity to boost financial inclusionBBVA Microfinance Foundation to assist the development of vulnerablemicro-entrepreneursP.3
2016 EXECUTIVE REPORTRESPONSIBLE BANKING POLICYP.4NET PROMOTER SCORE BY GEOGRAPHIC AREABBVAPeer average86%Position relative to peers68%64%36%42%47%44% 40%42%54%51%45%31%26% 26% 25% guayParaguay2º2º1º1º1º3ºPeer Group: Spain: BBVA, Bankia, Caixabank, Popular, Sabadell and Santander / United States: BBVA Compass, Bank of America, Bank of the West, Comerica, Frost, Chase,Regions, Suntrust, US Bank, Wells Fargo, PNC and BB&T / Turkey: BBVA Garanti, Ak, Iç, YKB, Deniz, Finans / Mexico: BBVA Bancomer, Banamex, Banorte, HSBC andSantander / Argentina: BBVA Francés, Galicia, HSBC and Santander Río / Chile: BBVA, BCI, Banco de Chile and Santander / Colombia: BBVA, Bancolombia, Banco Bogotáand Davivienda / Peru: BBVA Continental, BCP, Interbank and Scotiabank / Venezuela: BBVA, Banesco, Mercantil and Venezuela / Uruguay: BBVA, ITAU, Santander andScotiabank / Paraguay: BBVA, Continental, ITAU and RegionalNET TCR SCOREBBVAPeer averagePosition relative to peers91%54%60%56% 55%56%39% 39%47% 49%42% 41%38%60%50%42%27% biaPeruVenezuelaUruguayParaguayNTCRS: An indicator calculated according to the scores (from 0 to 10) awarded by each entity's customers (on the open market) in response to the question: "Is theinformation you receive clear and complete?" Peer Group: Spain: BBVA, Bankia, Caixabank, Popular, Sabadell and Santander / United States: BBVA Compass, Bank ofAmerica, Bank of the West, Comerica, Frost, Chase, Regions, Suntrust, US Bank, Wells Fargo, PNC and BB&T / Turkey: BBVA Garanti, Ak, Iç, YKB, Deniz, Finans / Mexico:BBVA Bancomer, Banamex, Banorte, HSBC and Santander / Argentina: BBVA Francés, Galicia, HSBC and Santander Río / Chile: BBVA, BCI, Banco de Chile and Santander/ Colombia: BBVA, Bancolombia, Banco Bogotá and Davivienda / Peru: BBVA Continental, BCP, Interbank and Scotiabank / Venezuela: BBVA, Banesco, Mercantil andVenezuela / Uruguay: BBVA, ITAU, Santander and Scotiabank / Paraguay: BBVA, Continental, ITAU and Regional
2016 EXECUTIVE REPORTRESPONSIBLE BANKING POLICYREPUTATION AMONG CUSTOMERS BY COUNTRYCountrySpainUnited StatesPosition relative topeer P.5VOLUME OF GREEN AND SOCIALBONDS PLACEDNUMBER OF BBVA MICROFINANCEFOUNDATION CUSTOMERS5,3501.8VOLUME OF RENEWABLE ENERGYPROJECT FINANCENUMBER OF SOCIAL RENTAL HOMESIN SPAIN4,4444,047AGGREGATE LOANS GRANTED BY THE BBVAMICROFINANCE FOUNDATIONNUMBER OF CUSTOMERS IN THE FINANCIALINCLUSION SEGMENT7,8239.8MILLION EUROSMILLION EUROSMILLION EUROSMILLIONHOMESMILLION CUSTOMERS
2016 EXECUTIVE REPORTRESPONSIBLE BANKING POLICYP.6Our employeesCommitmentsMain practices and initiativesSpecific local initiatives adapted to each country (gap analysis and new actionplan for 2017)Promote the work/life balanceSpecific local initiatives adapted to each countryGuarantee employee healthand safetyPublic commitments related to gender diversity: EU Diversity Charter, UNWomen's Empowerment PrinciplesRespect diversity and guaranteeequal opportunitySpecific local initiatives on disabilityGap analysis and new action plan for 2017Global policy and specific local initiatives adapted to each country (review of thevolunteering policy for 2017)Promote a culture of socialengagement% OF WOMEN IN THEMANAGEMENT TEAM20.8NUMBER OFVOLUNTEERSOVER8,000% OF SATISFIED OR VERY SATISFIEDEMPLOYEESHOURS OF TRAININGPER EMPLOYEE8339
2016 EXECUTIVE REPORTRESPONSIBLE BANKING POLICYP.7SocietyCommitmentsPromote the development ofMain practices and initiativesCommunity investment plan, with financial education and entrepreneurship asstrategic areas (new global programs in 2017)communities through socialprogramsBBVA Microfinance FoundationBBVA Foundation to expand the frontiers of knowledgeImplement an environmentalEnvironmental policy and rules covering specific issues (new social andenvironmental framework for 2017)policyEco-efficiency plans since 2008 (new 2020 Plan)Participate in initiatives topromote responsible practicesUN Global Compact, UNEP FI, CSR Europe, Responsible Investment Principles,Equator Principles, Thun Group, Banks & Civil Society, Green Bonds, IntegratedReportingINVESTMENT IN SOCIAL PROGRAMSNUMBER OF PEOPLE BENEFITING FROMTHE GLOBAL FINANCIAL EDUCATION PLAN% REDUCTION IN WATER CONSUMPTIONSINCE 2008OVER 942.432.2% REDUCTION IN PAPER CONSUMPTIONSINCE 2008% REDUCTION IN CO2 EMISSIONSSINCE 2008% OF PEOPLE WORKING IN BUILDINGSWITH ENVIRONMENTAL CERTIFICATIONS52.535.240MILLION EUROSMILLION
2016 EXECUTIVE REPORTRESPONSIBLE BANKING POLICYP.8Other stakeholders and issues of interestCommitmentsMain practices and initiativesInvestor and shareholder communication policyInvestors and shareholdersEngagement in responsible banking. Specific equity storyInvolvement of specialized analystsBBVA integrated annual report in 2015SuppliersResponsible Procurement Policy (integration of reputational scoring in theapproval processes in 2017)Tax strategyTax responsibilityCommitment to human rights (to be renewed in 2017)Human RightsDue diligence on human rights (gap analysis and action plan for 2017)In 2016 a new strategic plan has been approved for BBVA. It integrates the strategic initiatives linked to the responsible bankingmodel and their respective action plans. The main strategic responsible business initiatives for 2016-2018 are:Creation of lasting and more balanced relationships withour customers through transparent, clear and responsiblecommunication and financial education in the solutionsthat we offer.Promotion of responsible and sustainable growth throughfinancial inclusion, sustainable finance, support for SMEsand responsible and high-impact investment.Full integration of how we do business through responsiblebusiness policies, a reputational risk model, and a peoplecentric culture throughout the whole Organization.Investment in the community, with priority for financialliteracy initiatives for society, entrepreneurship, knowledgeand other social causes that are relevant from a local pointof view.
PER EMPLOYEE 39 % OF SATISFIED OR VERY SATISFIED EMPLOYEES 83 NUMBER OF VOLUNTEERS OVER 8,000 Specific local initiatives adapted to each country (gap analysis and new action Promote the work/life balance plan for 2017) Commitments Main practices and initiatives Specific local initiatives adapted to each country Guarantee employee health and safety
