Group SECOND QUARTER 2018
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.
OUR PURPOSE 3 To bring the age of opportunity to everyone BBVA’S GLOBAL PRESENCE FINANCIAL HIGHLIGHTS JUNE 2018 JUNE 2018 Deposits Loans and advances from customers Total assets to customers - gross 689,632 390,661 367 ,312 Net attributable profit NPL ratio Coverage ratio 1,309 4.4 % 71 % TBV per share CET 1 FL + Shareholders (Proforma**) ROE ROTE countries branches employees remuneration >30 8,141 131,784 11.40 % 5.78 11.7 % 14.3 % 46 % 54 % (**) Proforma includes the updated impact of Corporate Transactions (+55 bps) SUSTAINABLE DEVELOPMENT AND DIRECT CUSTOMERS & DIGITAL SALES CONTRIBUTION TO SOCIETY JUNE 2018 DIGITAL SALES BBVA ´ s Pledge 2025 CUSTOMERS Allocated to social programs 75 million PRV * 103 €m 29.1 % Digital Mobile customers customers Units €100 billion 25.1 m 20.7 m 38.6 % MOBILIZED between 2018 and 2025 (*) PRV: Product Relative Value as a proxy of a better economic representation of units sold
4 BBVA Purpose
BBVA PURPOSE 5 We are BBVA. We create opportunities OUR PURPOSE SIX STRATEGIC PRIORITIES New standard in customer To bring the age experience of opportunity Digital sales to everyone New business models Optimize capital allocation Unrivaled efficiency A first class workforce
BBVA PURPOSE 6 New value proposition Based on our customers’ real needs Helping our customers Providing the best Through an easy and to make the best financial solutions convenient experience decisions offering relevant that generate trust for our DIY through digital advice customers, being clear, channels or human transparent and based interaction on integrity Our aspiration is to strengthen the relationship with the customer
BBVA PURPOSE 7 Our Values Customer comes first We think big We are one team We are empathetic We are ambitious I am committed We have integrity We break the mold I trust others We meet their needs We amaze our customers I am BBVA
Quarterly Update
QUARTERLY UPDATE 9 Solid Results in the Quarter Net Attributable Profit Strong core revenue growth QUARTERLY EVOLUTION (€m) Efficiency improvement 1,340 1,309 1,193 Positive trend in digital sales 1,143 1,107 Ex- TEF and customers impairment Sound risk indicators 1,123 Strong capital position 70 Focus on shareholder value 2Q17 3Q17 4Q17 1Q18 2Q18
QUARTERLY UPDATE 10 1H18 Profit & Loss Change 1H18/1H17 BBVA Group (€m) 1H18 % % constant Net Interest Income 8,643 -1.8 9.4 Net Fees and Commissions 2,492 1.5 11.3 Net Trading Income 708 -33.8 -30.4 Other Income & Expenses 231 -40.8 -36.0 Gross Income 12,074 -5.1 4.8 Operating Expenses -5,942 -5.8 2.9 Operating Income 6,131 -4.3 6.8 Impairment on Financial Assets -1,611 -17.0 -9.0 Provisions and Other Gains and Losses -77 -82.2 -82.0 Income Before Tax 4,443 10.2 25.5 Income Tax -1,213 8.3 21.5 Net Income 3,230 10.9 27.0 Non-controlling Interest -581 -4.3 17.0 Net Attributable Profit 2,649 14.9 29.5
QUARTERLY UPDATE 11 Efficiency Improvement Group Operating Jaws Efficiency Ratio (YtD (%); (€ constant)) (€ constant) 52.9 % 11,135 9.8 % 10,140 8.2 % 9,368 Core Revenues* 50.0 % 49.2 % -82 bps Operating 5,942 2.9 % 5,776 5,707 1.2 % Expenses 1H16 1H17 1H18 12M16 12M17 6M18 (*) Core Revenues: Net Interest Income + Net Fees and Commissions
QUARTERLY UPDATE 12 Outstanding trend of digital sales in all markets (% of total sales YtD, # of transactions and PRV * ) GROUP SPAIN USA 42.4 23.0 UNITS PRV 38.6 UNITS 18.7 17.9 22.4 24.9 21.7 UNITS 14.6 PRV 32.7 PRV 14.0 29.1 14.7 10.8 17.2 11.6 17.4 8.9 Jun-16 Jun-17 Jun-18 Jun-16 Jun-17 Jun-18 Jun-16 Jun-17 Jun-18 MEXICO SOUTH AMERICA TURKEY 32.7 43.1 51.0 UNITS PRV UNITS UNITS 33.3 40.6 15.5 PRV 22.9 25.5 9.4 32.1 14.5 22.7 PRV 10.8 20.2 5.8 14.4 22.2 10.3 Jun-16 Jun-17 Jun-18 Jun-16 Jun-17 Jun-18 Jun-16 Jun-17 Jun-18 Figures have been restated due to the inclusion of some products. (*) PRV: Product Relative Value as a proxy of a better economic representation of units sold
QUARTERLY UPDATE 13 Growth in digital and mobile customers Mobile Customers (Mn, % penetration) Digital Customers (Mn, % penetration) +43 % 20.7 25.1 +26 % +40 % 14.5 19.9 +21 % 10.3 16.5 Jun-16 Jun-17 Jun-18 Jun-16 Jun-17 Jun-18 21% 28% 38% 33% 39% 46% PENETRATION PENETRATION GOAL 50% tipping point of digital customers in 2018 and mobile customers in 2019
QUARTERLY UPDATE 14 Leading customer satisfaction (NPS) Best Mobile Banking App BBVA NPS (Jun-18) # 1 # 2 SPAIN COLOMBIA MEXICO VENEZUELA TURKEY PERU PARAGUAY URUGUAY Peer Group: Spain: Santander, CaixaBank, Bankia, Sabadell, Popular// Turkey: AKbank, Isbank , YKB, Deniz, Finanz / / Mexico: Banamex, Santander, Banorte , HSBC// Peru: BBVA Continental, Interbank, BCP, Scotiabank // Colombia: BBVA, Banco de Bogotá, Bancolombia, Davivienda // Venezuela: Banesco, Mercantil, Banco de Venezuela. // Uruguay: ITAU, Santander, Scotiabank // Paraguay: Continental, Itau, Regional
QUARTERLY UPDATE 15 Global solutions allow for a faster time to market and productivity improvements Global delivery of solutions New solutions for colleagues: GLOBAL MOBILE APP DIGITAL WORKPLACE Leads * +29 % -50 % Time-to-Market -30 % FTEs 75 % -40 % Code reutilization 360 Send digital Digital Development cost Client View proposals signature (*) Leads: originated on a digital channel but closed on any other channel. Spain and Mexico
QUARTERLY UPDATE 16 New business models Leveraging the FinTech ecosystem to develop our value proposition ACQUISITIONS/ INVESTMENTS INTERNAL VENTURES Minority stake 39% stake VENTURE CAPITAL INVESTMENTS
Business Areas
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