1Q 2017 Results April 27 th 2017 / 1 1Q17 Results April, 27 th 2017 Carlos Torres Vila Chief Executive Officer
1Q 2017 Results April 27 th 2017 / 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 or invest in securities in relation to a specific issue 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 specific issue. No one who becomes aware of the information contained in this report should regard it as definitive, because it is subject to changes and modifications. This document contains or may contain forward looking statements (in the usual meaning and within the meaning of the US Private Securities Litigation Reform Act of 1995) regarding intentions, expectations or projections of BBVA or of its management on the date thereof, that refer to or incorporate various assumptions and projections, including projections about the future earnings of the business. The statements contained herein are based on our current projections, but the actual results may be substantially modified in the future by various risks and other factors that may cause the results or final decisions to 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 could cause or result in actual events differing from the information and intentions stated, projected or forecast in this document or in other past or future documents. 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 if such 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 documentation and public information filed by BBVA with stock market supervisory bodies, in particular, the prospectuses and periodical information filed with the Spanish Securities Exchange Commission (CNMV) and the Annual Report on Form 20-F and information on Form 6-K that are filed with the US Securities and Exchange Commission. Distribution of this document in other jurisdictions may be prohibited, and recipients into whose possession this document comes shall be solely responsible for informing themselves about, and observing any such restrictions. By accepting this document you agree to be bound by the foregoing restrictions.
1Q 2017 Results April 27 th 2017 / 3 Excellent Results in the Quarter Net Attributable Profit CET1 fully-loaded – BBVA Group Quarterly evolution ( € m) Quarterly evolution (%) 1,199 1,123 +48 bps 965 10.53% 10.72% 11.00% 10.90% 11.01% 709 678 +11 bps Mar.16 Jun.16 Sep.16 Dec.16 Mar.17 1Q16 2Q16 3Q16 4Q16 1Q17
1Q 2017 Results April 27 th 2017 / 4 1Q17 Highlights Core revenues growth Cost control Net interest income and fees Gross income vs. Op. Expenses ( € m constant) (YtD, %, € m constant) 5,546 5,077 15.0 +9.2% Gross Income 7.2 6.4 Operating 1.8 Expenses 1Q16 1Q17 12M16 3M17 Strong Sound asset quality Relevant transactions capital & liquidity ratios Core Capital CRD IV Leverage ratio Additional 9.95% stake in Garanti (*) Cost of risk (Fully-loaded) (Quarterly, %, € m) (Fully-loaded) 11.01 % 6.6 % Net Attributable impact: 11 € m 0.92 0.90 CET1 FL impact: -17 b.p. LCR > 100% CNCB disposal Net Attributable impact: 174 € m (BBVA Group and all subsidiaries) 1Q16 1Q17 CET1 FL impact: +4 b.p . (*) Included since March, 1 st
1Q 2017 Results April 27 th 2017 / 5 Profit & Loss Change 1Q17/1Q16 BBVA Group ( €m) 1Q17 % % constant Net Interest Income 4,322 4.1 9.2 Net Fees and Commissions 1,223 5.4 9.4 Net Trading Income 691 93.5 n.s. Other Income & Expenses 146 23.6 -0.1 Gross Income 6,383 10.3 15.0 Operating Expenses -3,137 -1.2 1.8 Operating Income 3,246 24.2 31.5 Impairment on Financial Assets -945 -8.6 -5.1 Provisions and Other Gains and Losses -236 -2.7 -1.8 Income Before Tax 2,065 54.3 67.6 Income Tax -573 58.2 77.7 NI ex Corporate Operations 1,492 52.9 64.0 Non-controlling Interest -293 9.8 21.5 Net Attributable Profit 1,199 69.0 79.2
1Q 2017 Results April 27 th 2017 / 6 Earnings - Gross Income Net Interest Income Net Fees and Commissions ( € m constant) ( € m constant) +9.4% +9.2 % 4,318 4,322 3,959 4,059 4,161 1,223 1,181 1,154 1,151 1,118 +6.3 % +0.1 % Good trend in Significant all areas 1Q16 2Q16 3Q16 4Q16 1Q17 growth rate 1Q16 2Q16 3Q16 4Q16 1Q17 Net Trading Income Gross Income ( € m constant) ( € m constant) VISA CNCB impact: CNCB disposal: +15.0% +225 € m disposal: +204 € m 780 +75 € m 691 Strong CIB (*) Supported 5,551 6,229 6,035 6,162 6,383 572 457 results and by core 329 CNCB revenues and +51.1 % +3.6 % disposal NTI 1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17 (*) Corporate and Investment Banking.
1Q 2017 Results April 27 th 2017 / 7 Operating Expenses Group Operating Jaws 1Q17 vs. 1Q16 YTD (%); ( € m constant) ( € m constant) Ex-CNCB: 11.3% Inflation 15.0% Developed 12.1% Gross Income 8.8% 2.3% -4.0% 7.2% SPAIN * 7.1% 6.4% 6.4% -0.9% 2.7% USA Operating Expenses 3.8% 1.4% 1.8% 3M16 6M16 9M16 12M16 3M17 (*) Spain includes banking and non core real-estate activities. Emerging Efficiency Ratio ( € m constant) Ex-CNCB: +4.2% 5.4% MEXICO 68.2% 50.5% 55.5% 52.3% 49.1% +11.5% 11.3% TURKEY +11.0% 13.3% SOUTH AMERICA -317 b.p 3M16 12M16 3M17 Av. Peer European Peer Group: BARC, BNPP, CASA, CS, CMZ, DB, HSBC, ISP, LBG, RBS, SAN, SG, UBS, UCI. European Peer Group figures as of December 2016. BBVA figures as of March 2017. Group Efficiency, a key strategic priority
1Q 2017 Results April 27 th 2017 / 8 Earnings - Operating Income 1Q17 vs. 1Q16 1Q17 vs. 1Q16 ( € m constant) ( € m constant) +31.5 % +22.6% SPAIN BANKING ACTIVITY +20.8% USA 3,246 3,133 2,954 2,878 2,469 +16.9% MEXICO +28.7% +9.9 % TURKEY +3.5% SOUTH AMERICA 1Q16 2Q16 3Q16 4Q16 1Q17 Growth in all areas
1Q 2017 Results April 27 th 2017 / 9 Risk Indicators Total Impairments (Financial Assets and RE) NPLs ( € m constant) ( € bn) -6.1 % - 2.3 € bn 1,043 1,113 1,067 972 1,002 25.5 24.8 24.3 -+3.1 % 23.6 23.2 - 0.4 € bn 1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17 Cost of risk NPL & Coverage ratios YTD (%) (%) 74% 74% 72% 71% 70% 1.0% 1.0% 1.0% 0.9% 0.9% Cost of risk & RE Coverage assets impairments 0.9% 0.9% 0.9% 0.9% NPL 5.3% Cost of risk 0.8% 5.1% 5.1% 4.8% 4.9% 1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17 Sound asset quality
1Q 2017 Results April 27 th 2017 / 10 Capital Ratios CET1 fully-loaded – BBVA Group High quality capital QoQ Evolution (%, bps) (%) RWAs/ Total Assets +11 bps #1 54% CET1 31% 30 bps 6 bps phased-in 11.01% 11.64% 10.90% - 12 bps - 13 bps Leverage ratio fully-loaded #1 6.6% % CET1 FL Net Earnings Dividends Others Garanti & % CET1 FL 4.6% (Dec.16) CNCB (Mar.17) Transactions European Peer Group Average European Peer Group: BARC, BNPP, CASA, CS, CMZ, DB, HSBC, ISP, LBG, RBS, SAN, SG, UBS, UCI. European Peer Group figures as of December 2016. BBVA figures as of March 2017 Others mainly includes positive market related impacts (FX and mark to market of AFS portfolio). In line with our 11% CET1 FL target
1Q 2017 Results April 27 th 2017 / 11 Transformation Focused on our Customers Above the Glass Customer Experience Revenue Digital Sales streams Advisory Relationship Model Below the Glass Operations Technology and Platforms Efficiencies Agile Organization
1Q 2017 Results April 27 th 2017 / 12 Digital Customers Digital Customers – BBVA Group Mobile Customers – BBVA Group (Million, % penetration) (Million, % penetration) +20% +41% 19.3 18.4 16.0 13.5 12.4 9.6 Mar-16 Dec-16 Mar-17 Mar-16 Dec-16 Mar-17 Penetration Penetration 34% 38% 39% 20% 25% 28% Paraguay and Uruguay as of December 2016. Continuous growth
1Q 2017 Results April 27 th 2017 / 13 Digital Sales (% of total sales YtD, # of transactions) SPAIN MEXICO SOUTH AMERICA 24.0 22.3 13.6 17.1 11.9 15.4 Dec-16 Mar-17 Dec-16 Mar-17 Dec-16 Mar-17 USA TURKEY 30.1 21.7 19.4 25.2 Dec-16 Mar-17 Dec-16 Mar-17 Figures have been restated due to changes in the inclusion of some products Growing weight in all franchises
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