2018 Results February 1 st , 2019 2018 Results February 1 st 2019 / - PowerPoint PPT Presentation

2018 Results February 1 st 2019 / 1 2018 Results February 1 st , 2019

2018 Results February 1 st 2019 / 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.

2018 Results February 1 st 2019 / 3 Strong Results and Value Creation in a Challenging Environment Net Attributable Profit TBV/Share + Shareholders Leading profitability remuneration metrics ( € m) ( € /sh.) (%) +10.1% ROTE 12.5 % 14.1% Inc. capital 5,324 gains from Chile 6.11 +51.3% 5.55 0.25 3,519 Dividends ROE 5.86 10.2 % 11.6% Inc. capital gains from Chile 12M17 12M18 Jan-18 Dec-18

2018 Results February 1 st 2019 / 4 2018 Highlights NII + Fees ( € constant) 01 Strong core revenue growth +10.4% vs. 12M17 02 Efficiency improvement Efficiency -89 bps vs. 12M17 (constant) 49.3% 03 Outstanding trend in digital Digital Sales (units) Digital customers Mobile customers 23.0 m +29% 40.7% 27.2 m +20% sales and customers Dec-18 YtD Dec-18 vs. Dec-17 Dec-18 vs. Dec-17 Coverage ratio CoR NPL ratio 04 Sound risk indicators 73% 1.01% 3.94% +13 bps vs. 2017 +812 bps vs. 2017 -61 bps vs. 2017 CET 1 FL 05 Resilient capital position 11.34% +26 bps vs. 2017 06 Focus on shareholder value ROTE (ex. Corp. Ops) TBV/Share + dividends 12.5% Dec-18 6.11 +10.1% vs Jan-18

2018 Results February 1 st 2019 / 5 2018 Profit & Loss Change 12M18/12M17 BBVA Group (€m) 12M18 12M17 % % constant Net Interest Income 17,591 17,758 -0.9 10.8 Net Fees and Commissions 4,879 4,921 -0.8 8.9 Net Trading Income 1,223 1,968 -37.8 -33.9 Other Income & Expenses 54 622 -91.4 -90.2 Gross Income 23,747 25,270 -6.0 4.3 Operating Expenses -11,702 -12,500 -6.4 2.5 Operating Income 12,045 12,770 -5.7 6.2 Impairment on Financial Assets -3,981 -4,803 -17.1 -12.0 Provisions and Other Gains and Losses -483 -1,036 -53.3 -51.8 Income Before Tax 7,580 6,931 9.4 30.4 Income Tax -2,062 -2,169 -4.9 9.2 Corporate Operations Income 633 0 n.s. n.s. Non-controlling Interest -827 -1,243 -33.5 -11.7 Net Attributable Profit 5,324 3,519 51.3 78.2 BBVA Chile impact (capital gains in 2018 and recurrent 697 127 n.s. n.s. operations in 2017 and 2018) Telefónica impairment and capital gains from CNCB sale 0 -931 n.s. n.s. Net Attributable Profit 4,627 4,324 7.0 21.9 (ex-BBVA Chile impact & ex-Telefónica imp. and CNCB sale in 2017)

2018 Results February 1 st 2019 / 6 2018 Net Attributable Profit Breakdown Change 12M18/12M17 Business Areas 12M18 12M17 % % constant Spain 1,445 884 63.4 63.4 Banking Activity 1,522 1,374 10.8 10.8 Non Core Real Estate -78 -490 -84.2 -84.2 USA 735 486 51.3 56.9 Mexico 2,384 2,187 9.0 16.1 Turkey 569 826 -31.0 -4.5 South America 527 734 -28.1 -10.0 (ex-BBVA Chile) Rest of Eurasia 93 125 -25.2 -25.0 Corporate Center -1,127 -917 22.9 22.9 (ex- Corp. Ops. in 2018 & Telefónica imp. and CNCB sale in 2017) Net Attributable Profit 4,627 4,324 7.0 21.9 (ex-BBVA Chile impact & ex-Telefónica imp. and CNCB sale in 2017)

2018 Results February 1 st 2019 / 7 4Q18 Profit & Loss Change 4Q18/4Q17 BBVA Group (€m) 4Q18 4Q17 % % constant Net Interest Income 4,692 4,557 3.0 12.3 Net Fees and Commissions 1,226 1,215 0.8 7.4 Net Trading Income 316 552 -42.8 -41.2 Other Income & Expenses -83 37 n.s. n.s. Gross Income 6,151 6,362 -3.3 4.7 Operating Expenses -2,981 -3,114 -4.3 1.7 Operating Income 3,170 3,248 -2.4 7.6 Impairment on Financial Assets -1,353 -1,885 -28.3 -26.6 Provisions and Other Gains and Losses -249 -447 -44.1 -42.9 Income Before Tax 1,568 916 71.2 133.9 Income Tax -421 -499 -15.7 -2.4 Non-controlling Interest -145 -347 -58.1 -41.6 Net Attributable Profit 1,001 70 1,332.1 n.s. BBVA Chile impact (recurrent operations) 0 36 n.s. n.s. Telefónica impairment 0 -1,123 n.s. n.s. Net Attributable Profit 1,001 1,156 -13.4 -4.9 (ex-BBVA Chile impact & ex-Telefónica imp. in 2017)

2018 Results February 1 st 2019 / 8 Strong Core Revenue Growth Net Interest Income Net Fees and Commissions ( € m constant) ( € m constant) +12.3% +7.4% 4,731 Outstanding Solid growth 4,499 1,233 1,234 1,220 1,192 1,148 4,213 4,243 4,118 quarter across the board +1.1 % +5.2 % High contribution from CPI linkers 4Q17 1Q18 2Q18 3Q18 4Q18 4Q17 1Q18 2Q18 3Q18 4Q18 Net Trading Income Gross Income ( € m constant) ( € m constant) +4.7% Lower ALCO Supported by 6,194 sales & Global core revenues 5,916 5,874 530 5,854 5,825 Markets 392 312 286 + 5.4 % Negatively results in the 233 impacted by year hyperinflation in Argentina 4Q17 1Q18 2Q18 3Q18 4Q18 4Q17 1Q18 2Q18 3Q18 4Q18

2018 Results February 1 st 2019 / 9 Efficiency improvement Group Operating Jaws Efficiency Ratio (YoY (%); ( € constant)) ( € constant) 22,470 10.4 % 20,362 8.8 % Core 18,714 53.1% Revenues 50.2% 49.3% -89 2.5 % Operating 11,702 11,418 0.9 % bps 11,320 Expenses 12M16 12M17 12M18 12M16 12M17 12M18 Widening operating jaws

2018 Results February 1 st 2019 / 10 Positive jaws in all geographies Operating Jaws Breakdown in 2018 (YoY (%); ( € constant)) Spain * USA Mexico INFLATION INFLATION INFLATION 1.7% 2.4% 4.9% Average 12m Average 12m Average 12m 0.2% 7.7% 8.4% 4.9% 2.8% -4.6% Core Operating Core Operating Core Operating Revenues expenses Revenues expenses Revenues expenses Turkey Peru Colombia Argentina INFLATION INFLATION INFLATION INFLATION 3.2% 1.5% 47.6% 16.2% Average 12m Average 12m YoY Average 12m 93.4% 31.1% 68.2% 10.0% 8.6% 14.5% 6.3% 6.2% Core Operating Core Operating Core Operating Core Operating Revenues expenses Revenues expenses Revenues expenses Revenues expenses (*) Spain includes banking and non-core real-estate activities

2018 Results February 1 st 2019 / 11 Outstanding trend in digital sales across the board (% of total sales YtD, # of transactions and PRV*) GROUP SPAIN USA GROUP 44.8 40.7 UNITS UNITS 24.9 22.9 UNITS 28.6 27.5 19.8 PRV PRV PRV 24.7 32.0 17.1 16.0 35.0 20.9 20.3 17.6 11.2 12.0 10.6 Dec-16 Dec-17 Dec-18 Dec-16 Dec-17 Dec-18 Dec-16 Dec-17 Dec-18 MEXICO TURKEY SOUTH AMERICA 36.5 45.0 53.8 UNITS PRV 20.6 36.0 UNITS 36.1 UNITS PRV 10.9 43.0 29.6 11.8 25.2 34.2 PRV 15.4 6.4 18.9 16.3 25.2 9.9 Dec-16 Dec-17 Dec-18 Dec-16 Dec-17 Dec-18 Dec-16 Dec-17 Dec-18 Figures have been restated due to the inclusion of additional products. Group and South America figures exclude Venezuela and Chile. (*) Product Relative Value as a proxy of a better economic representation of units sold