Report of Foreign Issuer (6-k)
July 31 2019 - 6:52AM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
6-K
REPORT OF
FOREIGN ISSUER
PURSUANT TO RULE
13a-16
OR
15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of July, 2019
Commission file number:
1-10110
BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
(Exact name of Registrant as specified in its charter)
BANK BILBAO VIZCAYA ARGENTARIA, S.A.
(Translation of Registrants name into English)
Calle Azul 4,
28050 Madrid
Spain
(Address of
principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form
20-F
or Form
40-F:
Form
20-F ☒ Form
40-F ☐
Indicate by check mark if the registrant is submitting the Form
6-K
in paper as permitted by
Regulation
S-T
Rule 101(b)(1):
Yes ☐ No ☒
Indicate by check mark if the registrant is submitting the Form
6-K
in paper as permitted by
Regulation
S-T
Rule 101(b)(7):
Yes ☐ No ☒
2Q19 Results July 31st, 2019
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DisclaimerThis 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.
Outstanding value creation and strong capital
position 2Q19 Results July 31st 2019 NET ATTRIBUTABLE PROFIT TBV/SHARE + DIVIDENDS CET1 FULLY-LOADED (€M) (€/SH.) (%) +12.6% Absorbing -24 bps from vs Jun18 TRIM + IFRS16 +18bps +6.9% 1,787 BBVA 11.52% Chile sale 633 6.26 1,245 1,164 1,278
0.16 1,001 11.34% 11.35% 5.86 Dividends 6.10 2Q18 3Q18 4Q18 1Q19 2Q19
Dec-18
Jun-19
Dec-18
Mar-19
Jun-19
Note: The hyperinflation impact in Argentina recorded in 3Q18 has been allocated on a monthly basis in the first nine 9 months of 2018 impacting 1Q18, 2Q18
and 3Q18 P&L and balance sheet figures. 2Q18 figures include BBVA Chile recurrent operations (sale closed on July 6th)
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2Q19 Highlights 01 Robust core revenue growth NII +
FEES (€ constant) +8.7% vs. 2Q18 02 Further improvement in COST TO INCOME
best-in-class
efficiency 49.0% -41 bps vs. 12M18 (€ constant) 03 Sound risk
indicators NPL RATIO COVERAGE RATIO CoR 3.84% 75% 0.91% -57 bps vs. 2Q18 +330 bps vs. 2Q18 +9 bps vs. 1H18 04 Strong capital position CET 1 FL ALREADY WITHIN 11.52% +17 bps vs.
Mar-19
THE TARGET RANGE 05
Outstanding delivery on ROTE TBV/SHARE + DIVIDENDS shareholder value creation 12.4%
Jun-19
+12.6% vs.
Jun-18 6.26
€/sh. 06 Ahead of the curve in DIGITAL SALES (units) DIGITAL CUSTOMERS MOBILE CUSTOMERS digital
transformation 58.1% 29.7 m +17% 26.1 m +25%
Jun-19
Jun-19
vs.
Jun-18
Jun-19
vs.
Jun-18
Note: For a better understanding of the financial performance of BBVA Group, in the whole 2Q19 results presentation: 1) BBVA Chile recurrent operations have been excluded in 1Q18 and 2Q18 (sale closed on July
6th); 2) The hyperinflation impact in Argentina recorded in 3Q18 has been allocated on a monthly basis in the first nine 9 months of 2018.
2Q19 Profit & Loss Change 2Q19/2Q18 %
% constant BBVA Group(€m) 2Q19 Net Interest Income 4,566 9.0 10.4 Net Fees and Commissions 1,256 2.5 3.0 Net Trading Income 116
-56.5
-58.2
Other Income &
Expenses
-18
n.s. n.s. Gross Income 5,920 4.2 5.1 Operating Expenses
-2,952
3.9 4.1 Operating Income 2,968 4.5 6.1 Impairment on Financial Assets
-753
-2.1
0.0 Provisions and Other Gains and Losses
-120
n.s. n.s. Income Before Tax 2,095 2.1 3.4 Income Tax
-577
-3.1
-2.2
Non-controlling
Interest
-241
-2.9
13.1 Net Attributable Profit 1,278 5.7 4.4 [Graphic Appears Here]
2Q19 Results July 31st 2019 1H19 Profit &
Loss Change 1H19/1H18 % % constant BBVA Group(€m) 1H19 Net Interest Income 8,987 7.4 9.9 Net Fees and Commissions 2,470 1.0 2.8 Net Trading Income 542
-17.7
-16.6
Other Income & Expenses
-10
n.s. n.s. Gross Income 11,989 3.7 6.0 Operating Expenses
-5,874
2.3 3.9 Operating
Income 6,115 5.2 8.2 Impairment on Financial Assets
-1,777
13.4 15.7 Provisions and Other Gains and Losses
-286
n.s. n.s. Income Before Tax 4,052
-2.8
0.3 Income Tax
-1,136
-5.4
-3.0
Non-controlling
Interest
-475
-4.7
17.2 Net Attributable Profit 2,442
-1.2
-0.8
Robust core revenue growth NET INTEREST INCOME NET
FEES AND COMMISSIONS (€M CONSTANT) (€M CONSTANT) +10.4% +3.0% +4.2% +4.0% Very strong 1,261 Robust fee 4,704 1,224 1,215 1,231 1,209 4,151 4,470 4,406 4,581 growth in generation CPI most of in the Linkers geographies quarter 2Q18 3Q18 4Q18
1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 NET TRADING INCOME GROSS INCOME (€M CONSTANT) (€M CONSTANT) +5.1%
-58.2%
-1.9% Annual Impacted by 2Q19 impacted Prisma sale by muted Global 5,960 6,167 6,051 5,938
Single 5,650 428 Markets activity Resolution 274 314 and lower Fund (SRF) 226 portfolio sales contribution 115 in the quarter 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 (144€m)
Further improvement in
best-in-class
efficiency GROUP OPERATING JAWS GROUP OPERATING INCOME EFFICIENCY RATIO (1H YOY (%); (€ CONSTANT)) (YOY (%); (€M CONSTANT)) (%;
€ CONSTANT) 64.7% INFLATION +8.2% 6.3% Average 12m 6,115 -41 bps 5,652 50.2% 49.4% 8.3% 49.0% 3.9% Core Operating 1H18 1H19 12M17 12M18 6M19
European Revenues expenses Peer Group Average European Peer Group: BARC, BNPP, CASA, CS, CMZ, DB, HSBC, ISP, LBG, RBS, SAN, SG, UBS, UCG. European Peer Group figures as of
Mar-19.
BBVA figures as of
Jun-19.
2Q19 Results July 31st 2019
Sound risk indicators FINANCIAL ASSETS IMPAIRMENTS
NPLs (€M CONSTANT) (€BN) Flat2.6 -0.6
-25.6 %
1,333 19.3 17.7 17.1 17.3 1,022 1,018 16.7 759 758 2Q18 3Q18 4Q18 1Q19 2Q19
Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
COST OF RISK NPL & COVERAGE RATIOS (%) (%) 1.36% 71% 73%
73% 74% 75% 1.06% 1.06% COVERAGE 0.91% 0.83% YTD 1.02% 1.06% 4.4% NPL QTD 4.1% 3.9% 3.9% 0.80% 0.91% 3.8% 0.77% 2Q18 3Q18 4Q18 1Q19 2Q19
Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Better than expectations
Strong capital position CET1 FULLY-LOADEDBBVA
GROUP QUARTERLY EVOLUTION (%, BPS) +17 bps 35 bps 5 bps 6 bps 11.52% 11.35% -16 bps
-13
bps
Mar-19
Net Dividends & AT1 TRIMs Reg.Equivalence Others*
Jun-19
Earnings coupons Argentina (*) Others includes RWAs evolution and market related impacts such as FX impact, mark to market of the Held To Collect and Sell portfolios, among others items. HIGH QUALITY CAPITAL
AT1 AND TIER 2 BUCKETS ALREADY COVERED LEVERAGE RATIO FULLY-LOADED (%)
JUN-19,
FULLY-LOADED (%) 6.6% 1.81% 2.08% 4.9% 2.0% 1.5% #1 REQUIREMENTS BBVA European European Peer Group: BARC, BNPP, CASA, CS, CMZ, DB,
HSBC, Peer Group AT1 Tier 2 ISP, LBG, RBS, SAN, SG, UBS, UCG. European Peer Group Average figures as of
Mar-19.
BBVA figures as of
Jun-19.
CET1 FL already within the
target range earlier than expected 2Q19 Results July 31st 2019
2Q19 Results July 31st 2019 Outstanding delivery on
shareholder value creation TBV PER SHARE & DIVIDENDS LEADING PROFITABILITY METRICS (€ PER SHARE) (%) +12.6% ROTE 12.4% +2.7% 8.0% 6.20 6.36 5.80 5.96 0.26 DIVIDENDS 5.65 0.26 0.10 0.10 BBVA European 6.10 Peer Group Average 5.94
5.86 ROE 5.70 10.2% 6.8%
Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
BBVA European Peer Group Average European Peer Group: BARC, BNPP, CASA, CS, CMZ, DB, HSBC, ISP, LBG, 2018 Figures include BBVA Chile recurrent operations (sale closed on July 6th). RBS, SAN, SG, UBS,
UCG. European Peer Group figures as of
Mar-19.
BBVA figures as of
Jun-19.
2Q19 Results July 31st 2019 Growing in digital and
mobile customers, leading to an outstanding trend in digital sales DIGITAL CUSTOMERS MOBILE CUSTOMERS DIGITAL SALES (% OF TOTAL SALES YTD, MILLION, % YOY GROWTH MILLION, % YOY GROWTH 1 # OF TRANSACTIONS AND PRV ) 58.1 49.8 Units +28% +17% +45% +25%
29.7 26.1 PRV 30.5 43.8 25.4 20.8 33.0 19.9 14.4 18.7
Jun-17
Jun-18
Jun-19
Jun-17
Jun-18
Jun-19
Jun-17
Jun-18
Jun-19
CUSTOMER PENETRATION
RATE, % 40% 48% 54% 29% 40% 48% Note: figures have been restated in order to include credit card related financing solutions and FX. (1) Product Relative Value as a proxy of a better economic representation of units sold.
Digital transformation: a competitive advantage for
BBVA CUSTOMER GROWTH CUSTOMER ENGAGEMENT AND ADVICE OPEN BANKING: PARTNERSHIP WITH UBER SELF-DRIVEN ACCOUNT Self-configuration of rules help clients manage their finances Paycheck savings Minimum and maximum balance Ubers first
financial product outside USA Rounding off in purchases First BBVA product created through our Open Banking Budget savings capabilities in a partnership with a Bigtech company End of month savings
Co-branded
account and debit card for 500k Uber drivers in Mexico
The impact of transformation: Spain Two years change
(Jun17 vs Jun19) BBVA Spain has grown its customer base. It has also increased client satisfaction and retention by using a more efficient relationship model, which has lowered operating expenses GROWTH ENGAGEMENT EFFICIENCY Acquiring
more engaged Resulting in higher client Lowering cost to sell and and profitable clients satisfaction and retention serve our clients Leading since 2017 -8% +33% NPS (2) Operating Expenses Digitally acquired clients -18% Attrition rate -14%
+11% Branches Net fees & commissions(1) App European Leader +79% in Mobile Banking 2017 | 2018 | 2019 (3) Remote serviced clients Notes: (1) Fees excluding CIB business. (2) NPS: Net promoter score. Peer Group: four largest
Spanish Banks (3) The Forrester Banking WaveTM: European Mobile Apps, Q2 2019
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2Q19 Results 16 July 31st 2019 Spain YtD YtD
Activity
(Jun-19)
+0.7%
-0.3%
Profit & Loss Ä (%) Ä (%) YoY (€m) 2Q19 vs 2Q18 1H19 vs 1H18 Net Interest Income 927 0.1 1,808
-2.4
€Bn €Bn YoY 167.5 +0.8% +2.2% Net Fees and Commissions 432
-1.5
846
-0.6
244.8 Net Trading Income
-16
n.s. 92
-67.4
Other Income & Expenses
-22
-51.6
72 91.7 Gross Income 1,321
-8.0
2,818
-6.8
Mortgages 73.4 -3.3% Operating Expenses
-814
-3.5
-1,628
-3.5
Demand +9.2% 148.0 Deposits Operating Income 507
-14.4
1,190
-10.9
Consumer +
Credit Impairment on Financial Assets 102 n.s. 25 n.s. 12.8+18.2% Cards Provisions & other gains (losses)
-65
160.2
-188
181.9 Very small businesses 13.6 +4.3%
Income Before Tax 545 13.7 1,027
-2.8
Other Commercial 16.5 +7.5% Time 32.4 -19.4% Income Tax
-155
13.8
-292
-5.5
22.7 +4.7% Deposits Corporates + CIB Net Attributable Profit 389 13.7 734
-1.7
Public sector 18.8 -3.8%
Off-BS
+0.8% 64.4 9.7
-1.7% Funds Others Lending1 Cust. Funds Note: Activity excludes repos. (1) Performing loans under management. Key Ratios Loans: continued growth in most profitable retail segments and commercial portfolios Customer Spread
(%) Asset Quality ratios (%) Customer spread continued improvement due to Yield on loans 58.2 57.8 58.0 higher loan yields 2.04 2.06 Coverage 2.01 NII: significant recovery QoQ (+5%) thanks to 6.32 good commercial activity, higher contribution from
1.94 1.96 1.99 4.95 4.60 NPL Customer spread ratio ALCO and lower cost of excess liquidity Cost of deposits 0.25 Costs continue to go down 0.18 0.07 0.07 0.06
-0.03
CoR (YtD) Asset quality positively impacted
by mortgage 2Q18 1Q19 2Q19 2Q18 1Q19 2Q19 portfolio sales. Excluding this, CoR < 20 bps
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USA Activity
(Jun-19)
YtD YtD -1.6%
-1.8%
(constant €) Profit & Loss Ä Constant Ä Constant Ä Current YoY (€m constant) 2Q19 vs 2Q18 (%) 1H19 vs 1H18
(%) vs 1H18 (%) €Bn YoY Net Interest Income 599 2.0 1,217 5.2 12.6 €Bn 63.1 +1.3% Net Fees and Commissions 168 3.7 320
-1.0
5.8 60.2 +3.7% Net Trading Income 38 50.8 79 52.5 61.8 Other
Income & Expenses 1
-17.8
-1
n.s. n.s. 14.0 +0.9% Gross Income 807 3.9 1,615 5.1 12.4 Mortgages 6.0 Demand Operating Expenses
-484
0.3
-959
0.4 7.5 Consumer + CreditCards +11.2% Deposits 47.2 +0.4% Operating Income 323 9.9 655 12.7 20.5 Impairment on Financial Assets
-124
174.1
-286
325.6 355.8 Provisions & other gains (losses) 4 4.4
-6
n.s. n.s. Other Commercial 24.4 +3.7% Income Before Tax
203
-19.6
363
-31.0
-26.3
Income Tax
-34
-37.0
-67
-42.3
-38.4
Net Attributable Profit 169
-14.9
297
-27.8
-22.9
C&IB 9.0 +1.2% Time 16.0 +4.0% Public Sector 5.4 -0.2% Deposits Others 1.3 +51.4% Lending1 Cust. Funds Note: Activity excludes repos. (1) Performing
loans under management. Key Ratios Loan growth rate decelerating to c. 4% YoY, explained by consumer and commercial loans, but Customer Spread (%) Asset Quality ratios (%) with consumer still growing at double digit Yield on loans 93.3 5.04 91.2
5.04 NII growth at mid single-digit YoY in 1H19, supported 84.9 Coverage 4.51 by loan growth and higher customer spread 1.40 1.31 3.97 4.19 4.08 NPL Positive jaws, with flat operating expenses 1.20 Customer spread ratio Cost of deposits Asset
quality indicators improving QoQ. 82 bps in 1.06 0.84 0.96 2Q19 CoR vs. 106 bps in 1Q19 0.54 0.23 CoR 0.94 (YtD) 2Q18 1Q19 2Q19 2Q18 1Q19 2Q19
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July 31st 2019 Mexico Activity
(Jun-19)
YtD YtD +2.6% +6.2% (constant €) Profit & Loss ÄConstant Ä Constant Ä Current (€m constant) 2Q19 vs 2Q18 (%) 1H19 vs 1H18 (%) vs 1H18 (%) YoY YoY €Bn Net Interest
Income 1,532 7.8 3,042 7.8 14.9 €Bn 75.4 +5.8% Net Fees and Commissions 319
-3.0
621
-1.0
5.5 54.1 +4.9% Net Trading Income 72
-11.4
135
-11.8
-6.0
Other Income & Expenses 62 48.2 102 14.0 21.6 10.1 +9.8% Mortgages Gross Income 1,985 5.9 3,901 5.6
12.6 Demand +2.9% 40.4 Operating Expenses
-651
4.5
-1,290
4.7 11.6 8.3 +12.4% Deposits Operating Income 1,333 6.6 2,611 6.1 13.1 Consumer Impairment on Financial Assets
-420
18.8
-818
8.4 15.5 Credit Cards 4.8 +2.9% SMEs 3.6 +1.1% Provisions & other gains (losses)
-13
n.s.
-10
n.s. n.s. Time 11.5 +13.6% Income Before Tax 900
-3.4
1,783 1.1 7.8 Income Tax
-245
-4.6
-496
2.5 9.2 Deposits Other Commercial 23.6 +1.5% Net Attributable Profit 655
-3.0
1,287 0.6 7.2
Off-BS
Funds 23.5 +7.3% Public sector
3.6 +4.7% Lending1 Cust. Funds1 (1) Performing loans and Cust. Funds under management, excluding repos, according to local GAAP . Key Ratios NII as the main P&L driver Loan growth supported by retail (+8% YoY), Customer Spread (%) Asset Quality
ratios (%) gaining share in consumer (+130 bps YoY). Yield on loans 13.08 154.6 158.7 13.04 147.7 Coverage Positive Jaws: Core revenues (+6.2%) above Opex 12.66 growth (+3.7% excl. increased contribution to BBVA 2.19 Foundation) 10.73 10.74 10.70
1.96 2.04 NPL Customer spread ratio Strong asset quality metrics. CoR at 298 bps, in line Cost of deposits 2.93 2.93 2.98 with expectations 2.31 2.38 1.93 CoR (YtD) 2Q18 1Q19 2Q19 2Q18 1Q19 2Q19
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Turkey Activity
(Jun-19)
Profit & Loss Ä Constant Ä Constant Ä Current (constant €; Bank only) (€m constant) 2Q19 vs 2Q18 (%) 1H19 vs 1H18 (%) vs 1H18 (%) YoY1 YoY1 Net Interest Income 686
10.3 1,353 15.0
-10.4
YtD YtD FC -2.6% Net Fees and Commissions 174 23.1 360 24.5
-2.9
-8.4% Net Trading Income
-55
381.3
-65
n.s. n.s. 6.4% Other Income & Expenses 24 78.5 30
-2.6
-24.1
FC 12.3 Time 13.3 -8.6% -20.5% Gross Income 828 8.3 1,677
11.9
-12.8
YtD Operating Expenses
-293
9.8
-594
12.2
-12.5
2.0% TL -3.5% Operating Income
535 7.5 1,084 11.7
-13.0
-1.8% Demand Impairment on Financial Assets
-143
6.2
-337
37.1 6.8 6.1 13.4% Commercial 9.4 2.8%
Provisions & other gains (losses)
-20
n.s.
-21
n.s. n.s. YtD TL 4.0% Income Before Tax 372 0.9 726
-3.5
-24.7
-1.8% Income Tax
-76
-4.4
-153
-6.6
-27.2
Time 11.8 5.1%
Non-controlling
Interest
-150
2.4
-291
-2.4
-23.9
Retail 12.3 Net Attributable Profit 146 2.4 282
-2.8
-24.2
-7.9% Demand 3.5
0.7% Lending2 Cust. Funds2 (1) FC evolution excluding FX impact. (2) Performing loans and Cust. Funds under management, excluding repos, according to local GAAP. Key Ratios Resilience in a more challenging environment vs.
1H18 Customer Spread (%) Asset Quality ratios (%) Loans: TL loans
(-3.5%
YoY) impacted by slowdown in FC commercial and negative growth in retail. FC loans 75.6 77.6 75.5 Coverage 5.18 4.95 5.17 continue
decreasing 6.33 Customer spread: Continued recovery on TL and FC 5.75 NPL 4.44 4.47 spreads QoQ thanks to successful price management ratio 2.50 2.72 1.82 1.57 Strong fee growth TL 1.23 CoR Asset quality: CoR at 157 bps, so far better than (YtD)
expectations (<300 bps) 2Q18 1Q19 2Q19 2Q18 1Q19 2Q19
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South America Activity
(Jun-19)
YtD YtD +2.3% +4.2% (constant €) YoY Attributable Profit Ä Constant1 Ä Constant1 €Bn YoY Net Ä Current €Bn 49.5 +11.5% (€m constant) 2Q19 vs 2Q18 (%) 1H19 vs 1H18 (%) vs
1H18 (%) 35.4 +6.3% Colombia 73 33.2 130 13.1 8.2 Peru 55 10.7 98 12.6 17.9 +2.0% Colombia 14.2 +2.9% 12.3 Argentina 50 n.s. 110 n.s. n.s. Colombia Other2 34
-2.5
66 5.5 1.1 Peru 15.5 +10.4% South America 211
60.6 404 72.4 51.8 Peru 14.3 +6.3% Argentina 6.9 +45.1% (1) Venezuela in current €m Argentina 3.9 +20.1% (2) Other includes BBVA Forum, Venezuela, Paraguay, Uruguay and Bolivia +9.5% South America comparison at constant perimeter (excl. BBVA
Chile) 5.0 Other 13.0 Other +8.2% Lending1 Cust. Funds Note: Activity excludes repos. Excluding BBVA Chile. (1) Performing loans under management. Key Ratios Colombia. Double digit bottom line growth driven Customer Spread (%) Cost of Risk YTD
(%) by revenues (+5%) and flat expenses and provisions 6.79 6.79 1.96 2.30 6.76 1.87 Peru. NII growing at double digits and positive jaws 6.75 6.62 1.29 1.60 1.64 Argentina. Bottom line improvement driven by 6.45 16.25 higher contribution from the
securities portfolio 15.98 2.13 3.00 and the sale of Prisma stake in 1Q19 1.14 13.29 2Q18 1Q19 2Q19 2Q18 1Q19 2Q19
Excellent 2Q Results driven by our unique and
diversified footprint and business model Robust core revenues with double-digit growth in Net Interest Income
Best-in-class
efficiency with continuous improvement in our
operating jaws Sound risk indicators with very positive evolution in the year Strong capital position with CET1 FL already within the target range, earlier than expected Outstanding delivery on shareholder value creation with double-digit
profitability, leading our European peer group Ahead of the curve in digital transformation, positively impacting growth, customer engagement and
efficiency
Annex 01 Customer spread by 06 ALCO Portfolio, NII
Sensitivity country and LCRs & NSFRs 02 Gross Income breakdown 07 Garanti: wholesale funding 03 Net Attributable Profit 08 Capital and APRs by business evolution area 04 P&L Accounts by 09 Book Value of the main business unit
subsidiaries 05 Argentina: hyperinflation 10 Digital sales breakdown adjustment
01 Customer spread by country
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Customer spreads: Quarterly evolution 2Q19 Results
July 31st 2019 AVERAGE 2Q18 3Q18 4Q18 1Q19 2Q19 Spain 1.94% 1.93% 1.95% 1.96% 1.99% Yield on Loans 2.01% 2.01% 2.03% 2.04% 2.06% Cost of Deposits
-0.07%
-0.08%
-0.08%
-0.07%
-0.06%
USA 3.97% 3.99% 4.09% 4.19% 4.08% Yield on Loans 4.51% 4.65% 4.83% 5.04% 5.04% Cost of Deposits
-0.54%
-0.66%
-0.74%
-0.84%
-0.96%
Mexico MXN 11.89%
11.80% 11.76% 11.81% 11.81% Yield on Loans 14.20% 14.29% 14.38% 14.50% 14.56% Cost of Deposits
-2.30%
-2.49%
-2.62%
-2.69%
-2.75%
Mexico FC1 4.06% 4.10% 4.27% 4.42% 4.31% Yield on Loans 4.20% 4.26% 4.46% 4.66% 4.61% Cost of Deposits
-0.14%
-0.15%
-0.19%
-0.24%
-0.31%
2Q18 3Q18 4Q18 1Q19 2Q19 Turkey TL 5.18% 4.02% 1.12% 2.50% 2.72%
Yield on Loans 15.14% 17.19% 18.98% 19.02% 19.09% Cost of Deposits
-9.96%
-13.17%
-17.86%
-16.52%
-16.37%
Turkey FC1 4.44% 4.47% 4.35% 4.95% 5.17% Yield on Loans 6.79% 7.09% 7.48% 7.47% 7.30% Cost of Deposits
-2.35%
-2.62%
-3.13%
-2.52%
-2.13%
Argentina 13.29% 14.15% 14.72% 15.98% 16.25% Yield on Loans 20.72%
24.00% 29.09% 28.50% 29.27% Cost of Deposits
-7.43%
-9.85%
-14.37%
-12.53%
-13.02%
Colombia 6.79% 6.78% 6.91% 6.76% 6.79% Yield on Loans 11.22% 10.99% 11.07% 10.90% 10.88% Cost of Deposits
-4.43%
-4.21%
-4.16%
-4.13%
-4.09%
Peru 6.75% 6.70% 6.69% 6.62% 6.45% Yield on Loans 7.84% 7.84% 7.89% 7.89% 7.85% Cost of Deposits
-1.09%
-1.14%
-1.20%
-1.27%
-1.40%
(1) Foreign currency
Note: USA ex NY Business Activity.
Customer spreads: YTD evolution 2Q19 Results July
31st 2019 YTD AVERAGE 1H18 1H19 1H18 1H19 Spain 1.94% 1.98% Turkey TL 5.06% 2.61% Yield on Loans 2.01% 2.05% Yield on Loans 14.86% 19.05% Cost of Deposits
-0.07%
-0.07%
Cost of Deposits
-9.80%
-16.44%
USA 3.92% 4.13% Turkey FC1 4.31% 5.07% Yield on Loans 4.41% 5.04% Yield on Loans 6.63% 7.38% Cost of Deposits
-0.49%
-0.90%
Cost of Deposits
-2.32%
-2.31%
Mexico MXN 11.97% 11.81% Argentina 13.01% 16.11%
Yield on Loans 14.20% 14.53% Yield on Loans 20.04% 28.89% Cost of Deposits
-2.22%
-2.72%
Cost of Deposits
-7.03%
-12.79%
Mexico FC1 4.00% 4.36% Colombia 6.75% 6.77% Yield on Loans 4.11% 4.64% Yield on Loans 11.26% 10.89% Cost of Deposits
-0.11%
-0.27%
Cost of Deposits
-4.51%
-4.11%
Peru 6.77% 6.53% Yield on Loans 7.90% 7.87% Cost of Deposits
-1.13%
-1.34%
(1) Foreign currency Note: USA ex NY Business Activity.
02 Gross Income breakdown
2Q19 Results 28 July 31st 2019 Gross Income
breakdown 1H19 (CONSTANT €) Spain 2,818 €m Rest of Eurasia 23% 220 €m 2% 13% USA 1,615 €m South America 1,994 €m 16% 14% Turkey 1,677 €m 32% Mexico 3,901 €m Note: Figures exclude Corporate Center.
03 Net Attributable Profit evolution
Group Net Attributable Profit
(€M) BUSINESSES +38 €m 2,536 170 2,442 8
-65
-8
-58
-12
-8
-114
-5
1H18 BBVA Chile FX Spain USA Mexico Turkey Rest of South Corp. Center 1H19 Effect Eurasia America (w/o BBVA Chile) YoY (%)
-1.7
-27.8
0.6
-2.8
-8.1
72.4 (constant €)
04 P&L accounts by business unit Rest of Eurasia
Corporate Center Colombia Peru
2Q19 Results July 31st 2019 Rest of
EurasiaProfit & Loss Profit & Loss Ä (%) Ä (%) (€m) 2Q19 vs 2Q18 1H19 vs 1H18 Net Interest Income 45 13.2 84 2.2 Net Fees and Commissions 33
-17.7
69
-12.7
Net Trading Income 34 201.7 60 10.2 Other Income & Expenses 4 n.s. 6 n.s. Gross Income 116 28.0 220 1.4 Operating Expenses
-72
5.3
-142
1.3 Operating Income 44 97.3 78 1.5 Impairment on Financial Assets 0
-85.9
-11
n.s Provisions & other gains (losses) 2
-31.9
1
-41.4
Income Before Tax 46 106.2 69
-26.1
Income Tax
-7
-38.3
-13
-59.3
Net Attributable Profit 39 237.5 55
-8.0
Corporate Center- Profit & Loss
Profit & Loss Ä (%) Ä (%) (€m) 2Q19 vs 2Q18 1H19 vs 1H18 Net Interest Income
-61
-12.8
-132
-4.1
Net Fees and Commissions
-29
16.3
-44
36.6 Net Trading Income
-67
96.2
-74
27.8 Other Income & Expenses 28
-35.0
13
-65.7
Gross Income
-129
49.3
-236
25.4 Operating Expenses
-243
10.0
-482
11.3 Operating Income
-372
21.1
-718
15.6 Impairment on Financial Assets 0 1,233.2 0 355.2 Provisions & other gains (losses)
-21
36.3
-44
-43.3
Income Before Tax
-392
21.7
-762
9.1 Income Tax 72 29.5 156 3.9 Net Attributable Profit
-330
19.5
-616
10.4
ColombiaProfit & Loss
Profit & Loss Ä (%) Ä (%) (constant €m) 2Q19 vs 2Q18 1H19 vs 1H18 Net Interest Income 209 5.1 418 3.8 Net Fees and Commissions 24 2.0 46
-0.9
Net Trading Income 18 29.2 38 37.3 Other
Income & Expenses 2
-55.8
10
-3.3
Gross Income 252 5.2 512 5.2 Operating Expenses
-88
0.4
-181
0.5 Operating Income 164 8.0 331 7.9 Impairment on Financial Assets
-47
-27.4
-119
0.3 Provisions & other gains (losses)
-6
-34.2
-8
-38.3
Income Before Tax 110
43.2 204 16.2 Income Tax
-35
70.1
-69
22.8
Non-controlling
interest
-3
41.9
-5
15.4 Net Attributable Profit 73 33.2 130 13.1
PeruProfit & Loss Profit &
Loss Ä (%) Ä (%) (constant €m) 2Q19 vs 2Q18 1H19 vs 1H18 Net Interest Income 228 12.5 448 13.7 Net Fees and Commissions 59 2.2 114 3.9 Net Trading Income 43 16.4 83 11.4 Other Income & Expenses
-5
-12.3
-11
31.2 Gross Income 326 11.4 633 11.3 Operating Expenses
-111
6.6
-224
7.3 Operating Income 215 14.1 409 13.6 Impairment on Financial Assets
-62
83.2
-119
34.4 Provisions & other gains
(losses) 12 n.s 8 n.s Income Before Tax 164 8.2 298 10.8 Income Tax
-47
7.5
-86
9.9
Non-controlling
interest
-63
6.7
-114
9.9 Net Attributable Profit 55 10.7 98 12.6
05 Argentina: hyperinflation adjustment
2Q19 Results July 31st 2019 Argentina hyperinflation
adjustment Profit & Loss 1H19 Hyperinflation 1H19 (€m) (reported) adjustment Ex. Hyperinflation Net Interest Income 526 35 492 Net Fees and Commissions 86 5 81 Net Trading Income 178 17 161 Other Income & Expenses
-215
-179
-35
Gross Income 575
-123
699 Operating Expenses
-240
-25
-215
Operating Income 335
-148
484 Impairment on Financial Assets (net)
-65
-4
-61
Provisions (net) and other gains (losses)
-16
-1
-15
Income Before Tax 254
-153
407 Income Tax
-95
15
-110
Non Controlling Interest
-49
44
-93
Net Attributable Profit 110
-94
204
06 ALCO portfolio, NII Sensitivity, LCRs &
NSFRs
2Q19 Results 39 July 31st 2019 ALCO portfolio ALCO
Portfolio breakdown by region (€ BN) Amort Cost Fair Value Fair Value 56.8 52.4 50.8 June 2019 (HTC) (HTC&S) duration 3.5 2.9 3.0 (€ bn) (€ bn) South America 5.1 6.4 5.0 South years Mexico 8.6 0.1 2.9 1.5 8.2 8.1
America Turkey Mexico 0.8 4.2 1.6 years 11.2 11.9 11.7 USA Turkey 4.2 3.9 3.4 years USA 3.8 7.9 2.4 years 1 28.4 23.0 23.0 Euro Euro 12.6 10.4 3.1 years Spain 9.4 6.0
Jun-18
Mar-19
Jun-19
Italy 3.0 1.6 Rest 0.3 2.8 (1) Figures excludes SAREB senior bonds (€4.8bn as of
Jun-18
and €4.6bn as of
Mar-19
and
Jun-19)
and High Quality Liquid Assets portfolios (€2.4bn as of
Jun-18,
€8.7bn as of
Mar-19
and €11.2bn as of
Jun-19)
. EURO ALCO Portfolio Maturity Profile EURO ALCO Yield (€ BN)
(JUN-19,
%) 17.1 1.2% 3.4
0.6 1.7 0.3 2H2019 2020 2021 2022 >=2023
2Q19 Results 40 July 31st 2019 NII sensitivity to
interest rate movements Estimated impact on NII in the next 12 months to parallel interest rate movements (%) NII sensitivity to +100bps NII sensitivity to -100bps 15% 0% 10%
-5%
5%
-10%
0%
-15%
Euro USA Mexico Euro USA Mexico Note: NII sensitivities calculated using our dynamic internal model with balance sheets as of May 2019. Euro NII sensitivity to
upward rates includes management levers regarding deposit cost and movements from demand deposits to time deposits. Euro NII sensitivity to downward rates according to the EBAs parallel-down shock scenario.
Liquidity and Funding Ratios BBVA Group and
Subsidiaries LCRs & NSFRs Both significantly above the 100% requirements at a Group level and in all banking subsidiaries
Jun-19
BBVA Group Euro USA Mexico Turkey S. Amer. LCR 132% (163%1) 155% 144% 2
147% 187% well >100% NSFR 121% 116% 111% 131% 151% well >100% (1) LCR of 132% does not consider the excess liquidity of the subsidiaries outside the Eurozone. If these liquid assets are considered the ratio would reach 163% (2) BBVA USA LCR
calculated according to local regulation (Fed Modified LCR).
07 Garanti wholesale funding
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S2Q19 Results 43 July 31st 2019 Turkey
Liquidity & Funding Sources Solid liquidity position: Improved Total LTD ratio to 98%, decreasing by 1.5 p.p. in 2Q19, driven by TRY Currency LTD improvement by c. 6 p.p. to 142.5% Foreign currency loans decreased slightly
(-2%)
to c. USD 14 Bn in 2Q19 Liquidity ratios above requirements: Liquidity Coverage Ratio (EBA) of 187% vs
³
100% required in 2019 Limited external wholesale
funding needs: USD 11.7 Bn FC Liquidity Buffers External Wholesale Funding Maturities2 (USD Bn) Short Term Swaps Total 12M: USD 5.0bn 6.7 Unencumbered FC securities 1.6 2.0 FC Reserves under ROM1 1.1 0.3 Money Market Placements 3Q 19 4Q19 1Q 20 2Q
20 >=3Q20 Covered Bond Subdebt Syndicated loans Securitization Senior Other 3 c. USD 11.4 Bn liquidity buffer USD 11.7 Bn total maturities (2) Includes TRY covered bonds and excludes on balance sheet IRS transactions Note: All figures are
Bank-only, as of June 2019 (3) Other includes mainly bilateral loans, secured finance and other ST funding (1) ROM: Reserve Option Mechanism Ample liquidity buffers and limited wholesale funding maturities in 2019
08 Capital and RWAs Capital YTD RWAs by Business
Area
Capital YtD Evolution CET1 FULLY-LOADED BBVA
GROUP YTD EVOLUTION (%, BPS) +18 bps +69 bps + 5 bps24 bps 11.52% 11.34% - 32 bps1 bps
Dec-18
Net Dividend accrual Regulatory Argentina Others**
Jun-19
Earnings & AT1 Coupons impacts* Regulatory Equivalence (*) Regulatory impacts includes
IFRS-16
Impact
(-11
bps) & TRIMs
(-13
bps) (**) Others includes mainly market related impacts (FX impact and mark to market of HTC&S portfolios) and RWAs evolution, among others 2Q19 Results July 31st 2019
Risk-Weighted Assets by business area Fully-Loaded
RWAs Breakdown by business area and main countries
(€m) jun-19
mar-19
jun-18
Spain 107,486 107,581 108,070 USA 62,383
65,217 61,454 Turkey 57,551 58,526 58,770 Mexico 55,919 54,831 50,648 South America 43,995 44,970 55,155 Argentina 6,435 7,963 7,914 Chile 2,268 2,361 14,819 Colombia 13,778 13,671 12,983 Peru 17,715 17,135 15,368 Others 3,799 3,840 4,071 Rest of
Eurasia 16,405 16,070 14,696 Corporate Center 16,825 13,978 8,314 BBVA Group 360,563 361,173 357,107
Book Value of the main subsidiaries
Book Value of the main subsidiaries1,2 JUN 19
(€ BN) Mexico 10.4 USA 7.6 Turkey 4.0 Colombia 1.3 Peru 1.0 Argentina 0.9 Chile 0.3 Venezuela 0.1 (1) Includes the initial investment + undistributed results + FX impact + other valuation adjustments. The Goodwill associate to each
subsidiary has been deducted from its Book Value. (2) Turkey includes Garanti subsidiaries
10 Digital sales breakdown
Digital sales: outstanding trend across the board (%
of total sales YtD, # of transactions and PRV1) UNITS PRV GROUP SPAIN USA2 28.0 49.4 22.9 58.1 42.6 49.8 17.8 25.6 UNITS 30.5 24.9 43.8 21.3 43.8 33.0 PRV 33.0 13.6 18.2 18.7
Jun-17
Jun-18
Jun-19
Jun-17
Jun-18
Jun-19
Jun-17
Jun-18
Jun-19
MEXICO TURKEY SOUTH AMERICA 54.7 84.6 81.1 61.3 40.8 56.6 53.0 23.4 43.0 32.8 65.4 58.8 26.7 38.3 24.9 12.7 21.8
13.2
Jun-17
Jun-18
Jun-19
Jun-17
Jun-18
Jun-19
Jun-17
Jun-18
Jun-19
Figures have been restated in order to include credit card related
financing solutions and FX. Group and South America figures exclude Venezuela and Chile. Product Relative Value as a proxy of a better economic representation of units sold. (2) Excludes ClearSpend Debit cards.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
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Banco Bilbao Vizcaya Argentaria, S.A.
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Date: July 31, 2019
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By:
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/s/ María Ángeles Peláez Morón
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Name:
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María Ángeles Peláez Morón
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Title:
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Authorized representative
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