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 October, 2022

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 Registrant’s 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            X                          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             X

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             X

 

 

 


LOGO

BBVA Creating Opportunities 3Q22 Results October 28, 2022


LOGO

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.


LOGO

3Q22 Results 3
BBVA once again reports a very strong quarter
RECURRENT NET ATTRIBUTABLE PROFIT1
(CURRENT €M) +31% -1.9%1,877 1,841 1,400
MERLIN TRANSACTION 1,675 REPORTED €1,193 M LAST 5 YEARS AVERAGE 3Q21 2Q22 3Q22 EPS (€)1 0.20 0.30 0.29
CET1 FULLY LOADED (%) 12.45%
Target Range
11.5%-12.0%
SREP Requirement
8.60% Sep-22
NOTE: In the presentation, 2022 figures are under hyperinflation accounting in Turkey. (1) Net attributable profit and Earnings per Share (EPS) excluding non-recurring results (negative impact of € 201 M due to the agreement
reached with Merlin for the purchase of 662 branches in Spain in 2Q22).EPS calculated considering the average number of shares, excluding the treasury shares and shares cancelled under the SBB program. 2Q22 EPS figure
has been adjusted excluding from the calculation the shares corresponding to the share buyback program.


LOGO

3Q22 Results 4
At the operating income level, passing the €4Bn
threshold for the first time
OPERATING INCOME
(CURRENT €M)
3Q21 2Q22 3Q22 +16.6% +37% 2,953 3,464 4,038


LOGO

3Q22 Results 5
Exceptional shareholder value creation and profitability metrics
TBV + DIVIDENDS PROFITABILITY METRICS3
(€/SHARE) (%) TBV / share Dividends / share
ROTE
+20%
+3.2%
7.66
7.42
0.352
0.231
6.41
ROE
7.19 7.31
9M21 12M21 9M22
Sep-21 Jun-22 Sep-22
(1) April 2022 dividend per share 0.23 € (gross). (2) April 2022 dividend per share 0.23 € (gross) and October 2022 dividend per share 0.12 € (gross). (3) Profitability metrics excluding discontinued operations and non-recurring results.
11.7 12.0 15.7 11.1 11.4 15.0


LOGO

3Q22 Results 6
3Q22 key messages
1
OUTSTANDING CORE REVENUES AND CORE REVENUES (NII+FEES) TOTAL LOAN GROWTH1
ACTIVITY GROWTH +38.4% vs. 3Q21 +15.0% vs. SEP 2021
2
EFFICIENCY RATIO
LEADING AND IMPROVING
EFFICIENCY WITH POSITIVE JAWS 42.9% 9M22 -249 BPS. vs. 9M21
3
OPERATING INCOME
HIGHEST QUARTERLY OPERATING
INCOME EVER +44.9% vs. 3Q21
4
COST OF RISK (YTD)
SOLID ASSET QUALITY TRENDS
0.86% 0.93% IN 20212 1.04% IN 20192
5
CET1 FL
STRONG CAPITAL POSITION
ABOVE OUR TARGET 12.45%
6
NEW RECORDS IN STRATEGIC NEW CUSTOMERS ACQUIRED SUSTAINABLE BUSINESS
METRICS 8.6 MILLION IN 9M22 €124 BILLION SINCE 2018
NOTE: Variations in Constant €.
(1) Performing loans under management excluding repos. (2) CoR excludes the US business sold to PNC for comparison purposes.
We are on track to achieve our ambitious long-term goals


LOGO

3Q22 Results 7
3Q22 Profit & Loss
Change Change 3Q22/3Q21 3Q22/2Q22
BBVA Group (€M) 3Q22 % constant % % constant %
Net Interest Income 5,261 45.1 40.2 15.3 14.3
Net Fees and Commissions 1,380 17.4 14.7 -1.8 -2.0
Net Trading Income 573 54.5 48.0 14.2 11.2
Other Income & Expenses -358 n.s. n.s. -22.9 -17.2
Gross Income 6,857 33.6 28.6 13.9 12.5
Operating Expenses -2,818 20.0 18.5 7.6 7.2
Operating Income 4,038 44.9 36.8 18.7 16.6
Impairment on Financial Assets -940 46.0 51.0 32.6 33.6 Provisions and Other Gains and Losses -110 197.4 253.5 71.0 65.2
Income Before Tax 2,988 41.9 30.0 13.8 10.9
Income Tax -1,004 70.9 57.0 46.9 44.1
Non-controlling Interest -143 5.1 -44.8 41.5 19.2
Net Attributable Profit (ex non-recurring impacts) 1,841 33.9 31.4 -0.5 -1.9
Discontinued operations and non-recurring results1 - n.s. n.s. n.s. n.s.
Net Attributable Profit (reported) 1,841 34.1 31.4 11.6 9.9
(1) Discontinued operations and non-recurring results include the negative impact of € 201 M due to the agreement reached with Merlin for the purchase of 662 branches in Spain in 2Q22.


LOGO

3Q22 Results 8
9M22 Profit & Loss
Change
9M22/9M21
BBVA Group (€M) 9M22 % constant %
Net Interest Income 13,811 32.6 29.0
Net Fees and Commissions 4,030 17.4 14.6
Net Trading Income 1,669 17.4 13.4
Other Income & Expenses -1,145 n.s. n.s.
Gross Income 18,366 21.2 17.8
Operating Expenses -7,872 14.5 12.8
Operating Income 10,494 26.7 21.8
Impairment on Financial Assets -2,380 6.4 8.1
Provisions and Other Gains and Losses -204 -20.7 -10.9
Income Before Tax 7,909 36.6 27.9
Income Tax -2,605 57.3 51.5
Non-controlling Interest -260 -42.7 -64.6
Net Attributable Profit (ex non-recurring impacts) 5,044 37.1 35.3
Discontinued operations and non-recurring results1 -201 -47.7 -51.6
Net Attributable Profit (reported) 4,842 47.0 46.2
(1) Discontinued operations and non-recurring results include US business sold to PNC and net cost related to the restructuring process in 9M21, and the negative impact of € 201 M due to the agreement reached with
Merlin for the purchase of 662 branches in Spain in 9M22.


LOGO

3Q22 Results 9
Excellent revenue growth following a remarkable trend
NET INTEREST INCOME1
(CONSTANT €M)
NET FEES AND COMMISSIONS
(CONSTANT €M)
Outstanding NII growth driven by strong activity and customer spread improvement
Sound fee income levered on Payments and Transactional business
NTI growth driven by the positive evolution of Global Markets
Strong quarterly and year-over-year performance thanks to core revenues growth
(1) CPI linkers accrual in Turkey is registered in “Net Interest Income” heading in 2021, and from 2022 is reclassified in “Other Income and Expenses” heading.


LOGO

3Q22 Results 10
NII growth levered on activity and improving customer spreads
LOAN GROWTH
(YOY, CONSTANT €)
CUSTOMER SPREAD
(%)
NET INTEREST INCOME
(YOY, CONSTANT €)
SPAIN
MEXICO
Note: Loan growth according to local GAAP. Performing loans under management excluding repos.


LOGO

3Q22 Results 11
Positive jaws and continue leading efficiency
POSITIVE JAWS AND COSTS GROWING
BELOW INFLATION
(9M22 YOY, CONSTANT €)
EFFICIENCY RATIO
(COST-TO-INCOME, % CONSTANT €)
FOOTPRINT INFLATION1 16.5% 12M AVERAGE
#1 RANKING EUROPEAN PEER GROUP2
Gross Income
Operating Expenses
9M21
9M22
+21.2%
+14.5%
(1) Weighted by operating expenses and excluding Venezuela. (2) European Peer Group: BARC, BNPP, CASA, CMZ, CS, DB, HSBC, ISP, LBG, NWG, SAN, SG, UBS, UCG. Peers data as of 6M22.


LOGO

3Q22 Results 12
Solid asset quality trends with improving NPL and
coverage ratios
FINANCIAL ASSETS IMPAIRMENTS
(CONSTANT €M)
NPL
(€BN)
COST OF RISK
(% YTD)
NPL & COVERAGE RATIOS
(%)
Sep-21 Dec-21 Mar-22 Jun-22 Sep-22
Sep-21 Dec-21 Mar-22 Jun-22 Sep-22
NOTE: 2021 excludes the US business sold to PNC for comparison purposes.
CoR aligned with 2022 guidance (below 100 bps, in line with 2021)
COVERAGE
NPL
Sep-21 Dec-21 Mar-22 Jun-22 Sep-22


LOGO

3Q22 Results 13
Strong capital position above our target
CET1 FULLY-LOADED
(%, BPS)
Target Range
11.5%-12.0%
SREP Requirement
8.60%
Jun-22
Results
Dividend accrual & AT1 coupons
RWAs (constant €)
Others1
Sep-22
(1) Includes, among others, market related impacts, minority interests, final adjustment related to the SBB program, and a positive impact in OCI equivalent to the Net Monetary Position value loss in hyperinflationary economies
registered in results.
12.45% +56 bps -16 bps -10bps 12.45%


LOGO

3Q22 Results 14
Customer acquisition showing all-time highs driven by digital
NEW CUSTOMER ACQUISITION1
(BBVA GROUP, MILLION; % ACQUISITION THROUGH DIGITAL CHANNELS)
DIGITAL
54%
7%
9M17 9M18 9M19 9M20 9M21 9M22
(1) Gross customer acquisition through own channels for retail segment. Excludes the US business sold to PNC for comparison purposes.


LOGO

3Q22 Results 15
Customer journey: new customer acquisition leads to cross-selling and more engagement
SPAIN CASE: CUSTOMER’S ENGAGEMENT JOURNEY1
CUSTOMERS PRODUCT MIX
(% OF TOTAL PRODUCTS ACQUIRED)
71%
New
Customers
After 6
Months
PAYROLL AND DIRECT DEBIT PRODUCTS INCREASES ENGAGEMENT
AND PROFITABILITY
(1) Figures calculated using numbers of products and clients acquired from Jan-22 to Mar-22. (2) Credit Cards, loans and mortgages. Includes also Mutual Funds. (3) Target customers refers to those customers in which the
bank wants to grow and retain, as they are considered valuable due to their assets, liabilities and/or transactionality with BBVA.
OF NEW CUSTOMERS CONVERTED TO TARGET CUSTOMERS3 IN 6 MONTHS
other products
Account &
Debit Card
New
Customers
Total number
of products
6%
Lending2
26%
Payroll &
Direct Debit
68%
Account &
Debit Card
After 6
months


LOGO

3Q22 Results 16
We increase our Sustainable Business goal to €300Bn
SUSTAINABLE BUSINESS
(€ Bn)
COMMITMENT IN
PORTFOLIO ALIGNMENT
2030 decarbonization goals set in
selected CO2 intensive industries
REDUCTION IN 2030
Power
Auto
Steel
Cement
Coal
Oil & Gas
-52% kg CO2e/MWh
-46% g CO2/km
-23% kg CO2/tn
-17% kg CO2/tn
Phase out1
-30% Mn tCO2e2
GOAL: NET ZERO 2050
2030 for developed countries and in 2040 for emerging countries (2) For upstream related financing
Advancing in our commitment in portfolio alignment
by setting a new target for the Oil&Gas sector


LOGO

3Q22 Results 17
We are on the right path to achieve our ambitious long-term goals
COST-TO-INCOME
(%)
ROTE
(%, ANNUALIZED)
TBV/SHARE + DIVIDENDS
(YOY %)
NEW TARGET CUSTOMERS1
(MILLION CUMULATIVE)
SUSTAINABLE BUSINESS
(€ BILLION, CUMULATIVE SINCE 2018)
(1) Target customers refers to those customers in which the bank wants to grow and retain, as they are considered valuable due to their assets, liabilities and/or transactionality with BBVA.


LOGO

Business Areas


LOGO

3Q22 Results 19
Spain
PROFIT & LOSS (€M)
(%) (%)
3Q22 vs 3Q21 vs 2Q22 9M22 vs 9M21
Net Interest Income 931 6.8 3.0 2,695 2.3
Net Fees and Commissions 526 -1.8 -8.4 1,635 2.4
Net Trading Income 41 n.s. -58.4 329 24.0
Other Income & Expenses 80 22.6 n.s. -13 n.s.
Gross Income 1,578 6.7 12.3 4,646 2.9
Operating Expenses -723 -3.4 0.4 -2,157 -4.3
Operating Income 855 17.0 24.8 2,489 10.2
Impairment on Financial Assets -139 136.4 34.3 -332 -17.3
Provisions and Other Gains and Losses -10 -75.0 30.5 -37 -84.7
Income Before Tax 705 11.8 23.0 2,120 31.2
Income Tax -201 21.5 23.0 -604 42.6
Net Attributable Profit (ex non-recurring impacts) 504 8.3 23.1 1,514 27.1
Discontinued operations and non-recurring results - - n.s. -201 n.s
Net Attributable Profit (reported) 504 8.3 142.4 1,312 10.2
ACTIVITY (SEP-22)
Lending1
Cust.Funds1
(1) Performing loans and Cust.Funds under management, excluding repos
KEY RATIOS
Customer Spread (%)
Asset Quality Ratios (%)
3Q21 2Q22 3Q22
3Q21 2Q22 3Q22
Loan growth (+4.6% YoY) focused on most profitable segments:
consumer, SMEs and very small businesses. Sound activity trends in
the quarter despite seasonality.
Positive dynamics on the NII (+3.0% QoQ) levered on loan growth
and an improving customer spread (+14 bps).
Strong pre-provision profit growth (+10.2% YoY), driven by higher
core revenues (+2.4% YoY) and lower operating costs (-4.3% YoY).
Efficiency improving to 46.4% 9M22 (-3.5pp YoY)
Sound Asset Quality metrics. Improvement of the NPL and
Coverage ratios in the quarter.


LOGO

3Q22 Results 20 Mexico PROFIT & LOSS (Constant €M) Constant (%)
Current (%) Constant (%) 3Q22 vs 3Q21 vs 2Q22 9M22 vs 9M21 vs 9M21
Net Interest Income 2,134 29.0 10.8 5,921 38.3 23.9
Net Fees and Commissions 409 17.8 2.6 1,174 30.7 17.0
Net Trading Income 90 -6.8 -33.7 324 27.9 14.5
Other Income & Expenses 97 126.6 -43.1 336 165.2 137.4
Gross Income 2,730 27.5 3.8 7,754 39.5 24.9
Operating Expenses -855 13.6 5.7 -2,470 25.7 12.5
Operating Income 1,875 35.1 2.9 5,284 47.1 31.7
Impairment on Financial Assets -449 23.0 17.7 -1,277 18.7 6.3
Provisions and Other Gains and
Losses -36 n.s. n.s. -45 n.s. n.s.
Income Before Tax 1,390 34.6 -3.0 3,962 56.4 40.0
Income Tax -298 4.4 -23.5 -998 35.8 21.6
ACTIVITY (SEP-22)
(Constant €) Lending1
Cust.Funds1 Mortgages Consumer
Credit Cards
SMEsOther Commercial
Public sector
Demand Deposits
Time Deposits Off-BS Funds (1) Performing loans and Cust.Funds under management, excluding repos, according to local GAAP. KEY RATIOS Customer Spread (%) Asset Quality Ratios (%)
Continued sound activity dynamics both in retail (+3.9% QoQ) and
commercial portfolios (+2.1% QoQ), leading to a strong and balanced
loan growth across segments.
Excellent performance of core revenues (+22.7% YoY), supported
by activity dynamism and higher customer spread (+57 bps).
Very positive jaws. Significant improvement in the efficiency ratio to
31.9% in 9M22 (-3.5pp YoY).
Maintained positive trends in risk indicators. Improved NPL ratio
(-28 bps) and coverage level (+14 pp) in the quarter, while the cost of
risk remains flat at 257 bps 9M22.
3Q21 2Q22 3Q22 3Q21 2Q22 3Q22
Net Attributable Profit 1,092 46.1 4.7 2,964 64.7 47.5
(1)


LOGO

PROFIT & LOSS (Constant €M) Constant (%) Current (%) 3Q22 vs 2Q22 vs 2Q22 9M22 Net Interest Income 857 27.7 21.9 1,976 Net Fees and Commissions 169 3.0 -2.7 452 Net Trading Income 211 -5.1 -10.9 591 Other Income & Expenses -102 -49.4 -27.9 -662 Of which: Net Monetary Position (NMP) loss -384 -52.4 -52.4 -2,070 CPI linkers revenues 267 -53.6 -61.4 1,351 Gross Income 1,135 32.5 21.0 2,357 Operating Expenses -309 16.4 11.5 -790 Operating Income 826 39.8 25.3 1,567 Impairment on Financial Assets -120 52.3 50.4 -285 Provisions and Other Gains and Losses -38 67.0 60.0 -71 Income Before Tax 668 36.5 19.7 1,211 Income Tax -278 -16.4 -21.9 -891 Non-controlling Interest -72 182.4 179.7 17 KEY RATIOS Customer Spread (%) Asset Quality Ratios (%) 3Q21 2Q22 3Q22 3Q21 2Q22 3Q22 ACTIVITY (SEP-22) (Constant €; Bank Only) (1) FC evolution excluding FX impact. (2) Performing loans and deposits under management, excluding repos, according to local GAAP. TL loans YoY growth below the annual inflation rate. Continued deleverage on FC loans (-12.8% QoQ). NII growth in the quarter driven by TL loan growth and higher customer spread. Other Income & Expenses: lower hyperinflation adjustment, as the quarterly inflation rate has been trending down3. Sound asset quality: improving NPL ratio, thanks to strong recoveries, and coverage level due to higher provisioning for the most FX sensitive portfolio. NAP supported by positive business trends, decelerating inflation and limited FX depreciation in the quarter. (3) Quarterly inflation rate: 7.1% in 3Q22 vs 15.9% in 2Q22 and 22.8% in 1Q22.
Net Attributable Profit 318 142.1 100.7 336


LOGO

South America NET ATTRIBUTABLE PROFIT (Constant €M) Constant (%) Current (%) Constant (%) 3Q22 vs 3Q21 vs 2Q22 9M22 vs 9M21 vs 9M21 Colombia 59 8.3 -22.9 207 32.9 29.9 Peru 49 79.9 -25.8 168 122.3 96.5 Argentina 73 n.s. n.s. 156 n.s. n.s. Other ¹ 36 121.5 33.3 83 44.4 40.3 Note: Venezuela in current €m. (1) Other includes BBVA Forum, Venezuela, Uruguay and Bolivia. KEY RATIOS Customer Spread (%) Cost of risk (YTD, %) 3Q21 2Q22 3Q22 3Q21 2Q22 3Q22 ACTIVITY (SEP-22) (Constant €) €Bn 41.0 Colombia Peru Argentina Other 14.7 18.0 4.1 4.3 YoY +14.7% +23.7% -0.5% +73.3% +22.5% €Bn 63.6 Colombia Peru Argentina Other 16.8 19.7 9.7 17.3 YoY +15.0% +23.6% +0.4% +70.1% +6.2% Lending1 Cust.Funds1 Colombia: activity remains strong both in retail and commercial segments. Customer spread affected in the short term by the negative sensitivity to sharp rate hikes. Solid NAP supported by higher revenues (+17.1% YoY), and lower impairments. Positive jaws, efficiency improving to 36.6% 9M22. Peru: loan growth affected by maturities of government support program loans. Very positive commercial dynamics in retail segments (+11.9% YoY). Strong NAP driven by sound core revenues growth (+20% YoY) supported by a better activity mix and higher customer spread (+58 bps YoY). Efficiency improves to 36.9% 9M22. Solid risk metrics. Argentina: sound NAP (€156M 9M22) driven by revenues growth levered on positive activity trends and higher customer spread (+76bps YoY). Efficiency improves and asset quality metrics remain sound.
South America 217 91.0 -11.4 614 87.4 98.3
(1) Performing loans and Cust.Funds under management, excluding repos
3Q22 Results 22


LOGO

Takeaways BBVA delivered another strong quarter 1 Core Revenue growth driven by activity and spreads 2 Advancing in our strategy: Digital, sustainability and innovation 3 On track to achieve our ambitious long-term goals 4


LOGO

BBVA Creating opportunities Annex 01 Net Attributable Profit Evolution 02 Gross Income breakdown 03 P&L Accounts by business Unit 04 Customer spread by country 05 Stages breakdown by business area 06 Sound portfolios in main geographies 07 Covid-related loans backed by 08 ALCO portfolio, NII sensitivity and LCRs & NSFRs 09 CET1 Sensitivity to market impacts 10 CET1 YTD evolution & RWAs by business area 11 Book Value of the main subsidiaries 12 TBV per share & dividends evolution 13 Garanti BBVA: wholesale funding 14 Digital metrics State guarantees


LOGO

BBVA
Creating Opportunities
01 Net Attributable Profile evolution


LOGO

3Q22 Results 26
Improvement especially in Mexico, South America and Turkey
RECURRENT NET ATTRIBUTABLE PROFIT1
(BUSINESS AREAS CONTRIBUTION TO 3Q22 YOY GROWTH; CURRENT €M)
+31%
1,400
39
463
76
83
-15
-205
1,841
3Q21
Spain
Mexico
Turkey
South America
Rest of Business
Corporate Center
3Q22

 

NAP 3Q22 (€M)1      504

 

    1,143

 

    275

 

    200

 

    55

 

    -336

 

NAP growth (YoY)1      +8

    +68

    +38

    +71

    -21

    n.s.

 

(1) Net attributable profit excluding discontinued operations and non-recurring results: net impact arisen from the purchase of offices in Spain in 2Q22.


LOGO

3Q22 Results    27
Improvement in Spain, Mexico and South America
RECURRENT NET ATTRIBUTABLE PROFIT1
(BUSINESS AREAS CONTRIBUTION TO 9M22 GROWTH; CURRENT €M)
+35%
3,727
323
1,165
-247
286
-46
-165
5,044
9M21
Spain
Mexico
Turkey
South America
Rest of Business
Corporate Center
9M22

NAP 9M22 (€M)1      1,514

 

    2,964

 

    336

 

    614

 

    183

 

    -566

 

NAP growth (YoY)1      +27

    +65

    -42

    +87

    -20

    n.s.

 

(1) Net attributable profit excluding discontinued operations and non-recurring results: (I) the net impact arisen from the purchase of offices in Spain in 2022; (II) the net costs related to the restructuring process in 2021 and (III) the profit (loss) generated by BBVA USA and the rest of the companies in the United States sold to PNC on June 1, 2021.


LOGO

BBVA
Creating Opportunities
02 Gross Income breakdown


LOGO

3Q22 Results    29
Gross Income breakdown
9M22
Rest of business 585 €M
Spain 4,646€M
Mexico 7,754 €M
Turkey 2,357 €M
South America 3,167 €M
3%
25%
42%
13%
17%
Note: Figures exclude Corporate Center.


LOGO

BBVA
Creating Opportunities
03 P&L Accounts by business unit
Rest of Business
Corporate Center
Turkey (hyperinflation adjustment)
Argentina (hyperinflation adjustment)
Colombia
Peru


LOGO
3Q22 Results 31
Rest of Business Profit & Loss
€M (%) (%)
3Q22 vs 3Q21 vs 2Q22 9M22 vs 9M21
Net Interest Income 89 26.6 10.9 244 15.6 Net Fees and Commissions 64 23.0 -2.2 186 0.8 Net Trading Income 47 -25.0 33.9 151 -23.1 Other Income & Expenses 1 n.s. 3.1 5 -64.1
Gross Income 201 10.2 10.6 585 -3.3
Operating Expenses -134 35.0 12.4 -367 12.3
Operating Income 67 -19.1 7.1 217 -21.7
Impairment on Financial Assets -4 n.s. -51.3 -4 n.s. Provisions and Other Gains and Losses 3 n.s. 22.7 15 n.s.
Income Before Tax 67 -24.4 15.4 229 -22.0
Income Tax -12 -36.4 7.5 -46 -28.2
Net Attributable Profit 55 -21.2 17.2 183 -20.2


LOGO
3Q22 Results 32
Corporate Center Profit & Loss
€M
(%) (%)
3Q22 vs 3Q21 vs 2Q22 9M22 vs 9M21
Net Interest Income -33 -27.8 26.5 -97 -24.1 Net Fees and Commissions -5 -18.0 -67.4 -25 -13.7 Net Trading Income 41 -59.2 n.s. -80 n.s. Other Income & Expenses 0 -97.8 -99.6 59 -38.1
Gross Income 3 -95.5 -103.9 -144 n.s.
Operating Expenses -201 -4.4 -1.6 -593 -1.7
Operating Income -199 31.1 -27.0 -737 85.2
Impairment on Financial Assets -2 8.5 n.s. -1 -38.4 Provisions and Other Gains and Losses -8 n.s. 47.8 -3 -78.5
Income Before Tax -209 41.2 -24.8 -741 79.4
Income Tax -126 n.s. n.s. 168 n.s Non-controlling Interest 0 -96.0 n.s. 7 n.s
Net Attributable Profit (ex non-recurring impacts) -336 156.7 n.s. -566 41.0
Corporate operations (1) - — - n.s.
Net Attributable Profit (reported) -336 156.7 n.s. -566 -30.7
(1) Includes the results from US business sold to PNC in 2021 and the net cost related to the restructuring process.


LOGO
3Q22 Results 33
Turkey hyperinflation adjustment
PROFIT & LOSS 1 €M
9M22 9M22
Hyperinflation
(reported) adjustment (2) Ex.Hyperinflation
Net Interest Income 1,976 197 1,778 Net Fees and Commissions 452 50 403 Net Trading Income 591 65 526 Other Income & Expenses -662 -2,060 1,398
Gross Income 2,357 -1,748 4,105
Operating Expenses -790 -119 -672
Operating Income 1,567 -1,867 3,434
Impairment on Financial Assets -285 -32 -253 Provisions and Other Gains and Losses -71 -21 -50
Income Before Tax 1,211 -1,920 3,131
Income Tax -891 -134 -758 Non-controlling Interest 17 785 -768
Net Attributable Profit 336 -1,269 1,605
(1) All figures calculated according to end of period FX.
(2) Includes (i) the Net Monetary Position (NMP) loss in the Other Income heading (ii) re-expression of all P&L headings according to the inflation rate until end of period, (iii) amortization expenses after the non monetary assets revaluation.


LOGO
3Q22 Results 34
Argentina hyperinflation adjustment
PROFIT & LOSS 1 €M
9M22 9M22
Hyperinflation
(reported) adjustment (2) Ex.Hyperinflation
Net Interest Income 1,394 251 1,143 Net Fees and Commissions 222 38 184 Net Trading Income 125 28 98 Other Income & Expenses -813 -669 -145
Gross Income 927 -352 1,280
Operating Expenses -607 -147 -460
Operating Income 321 -499 820
Impairment on Financial Assets -117 -24 -93 Provisions and Other Gains and Losses -21 -4 -17
Income Before Tax 183 -527 710
Income Tax 42 283 -241 Non-controlling Interest -69 82 -151
Net Attributable Profit 156 -163 319
(1) All figures calculated according to end of period FX.
(2) Includes (i) the NMP position loss in the Other Income heading (ii) re-expression of all P&L headings according to the inflation rate until end of period, (iii) amortization expenses after the non monetary assets revaluation.


LOGO
3Q22 Results 35
Colombia Profit & Loss
€M CONSTANT
(%) (%)
3Q22 vs 3Q21 vs 2Q22 9M22 vs 9M21
Net Interest Income 214 9.7 -3.4 652 10.9 Net Fees and Commissions 27 29.9 3.5 78 21.6 Net Trading Income 29 48.6 8.9 80 64.6 Other Income & Expenses -9 -9.0 109.8 -17 -27.5
Gross Income 261 15.7 -3.4 793 17.1
Operating Expenses -104 20.8 9.4 -290 16.1
Operating Income 156 12.5 -10.4 503 17.7
Impairment on Financial Assets -57 7.7 7.0 -166 -12.3 Provisions and Other Gains and Losses -6 n.s. 67.5 -10 n.s. Income Before Tax 94 6.0 -20.3 326 37.8 Income Tax -33 3.6 -15.1 -113 58.1 Non-controlling Interest -2 -15.1 -23.7 -7 8.1 Net Attributable Profit 59 8.3 -22.9 207 29.9


LOGO
3Q22 Results 36
Peru Profit & Loss
€M CONSTANT
(%) (%)
3Q22 vs 3Q21 vs 2Q22 9M22 vs 9M21
Net Interest Income 284 25.6 9.4 773 23.7 Net Fees and Commissions 69 0.8 -6.9 211 8.0 Net Trading Income 44 58.8 7.0 120 -5.5 Other Income & Expenses -8 -20.2 -7.8 -26 -16.8
Gross Income 389 24.5 6.2 1,078 17.7
Operating Expenses -144 20.8 11.2 -398 15.0
Operating Income 245 26.8 3.5 680 19.3
Impairment on Financial Assets -87 1.6 n.s. -162 -34.8 Provisions and Other Gains and Losses -11 -33.6 37.3 -29 -23.2
Income Before Tax 147 62.0 -20.7 488 72.6
Income Tax -38 25.8 -24.5 -127 37.1 Non-controlling Interest -60 80.2 -13.2 -192 84.5
Net Attributable Profit 49 79.9 -25.8 168 96.5


LOGO
04 Customer Spread by country
BBVA
Creating Opportunities


LOGO
3Q22 Results 38
Customer spreads: quarterly evolution
AVERAGE
3Q21 4Q21 1Q22 2Q22 3Q22 3Q21 4Q21 1Q22 2Q22 3Q22 Spain 1.75% 1.73% 1.71% 1.72% 1.85% Turkey TL 3.43% 4.89% 5.22% 6.65% 9.00%
Yield on Loans 1.74% 1.73% 1.71% 1.74% 1.93% Yield on Loans 16.26% 16.48% 17.75% 18.60% 20.92% Cost of Deposits 0.01% 0.00% 0.00% -0.03% -0.08% Cost of Deposits -12.83% -11.59% -12.53% -11.95% -11.92%
Mexico MXN 11.17% 11.23% 11.37% 11.63% 11.92% Turkey FC1 4.66% 4.65% 4.99% 5.71% 6.51%
Yield on Loans 12.31% 12.49% 12.79% 13.31% 13.94% Yield on Loans 4.89% 4.87% 5.19% 6.02% 7.10% Cost of Deposits -1.15% -1.26% -1.42% -1.67% -2.03% Cost of Deposits -0.24% -0.21% -0.20% -0.30% -0.59%
Mexico FC1 2.93% 2.88% 2.94% 3.34% 4.20% Argentina 12.73% 14.67% 14.75% 13.67% 13.70%
Yield on Loans 2.95% 2.90% 2.96% 3.38% 4.32% Yield on Loans 26.46% 27.44% 29.74% 33.13% 38.98% Cost of Deposits -0.02% -0.02% -0.02% -0.05% -0.12% Cost of Deposits -13.73% -12.77% -14.99% -19.46% -25.28%
Colombia 6.21% 6.12% 6.13% 5.76% 5.24% Yield on Loans 8.63% 8.57% 8.90% 9.63% 10.61% Cost of Deposits -2.41% -2.45% -2.77% -3.87% -5.37% Peru 5.22% 5.41% 5.33% 5.72% 5.89% Yield on Loans 5.46% 5.66% 5.71% 6.48% 7.12% Cost of Deposits -0.24% -0.26% -0.38% -0.76% -1.23%
(1) FC: Foreign Currency.


LOGO
3Q22 Results 39
Customer spreads: YoY evolution
AVERAGE
9M21 9M22 9M21 9M22 Spain 1.76% 1.76% Turkey TL 2.96% 7.16%
Yield on Loans 1.75% 1.80% Yield on Loans 15.42% 19.26% Cost of Deposits 0.00% -0.04% Cost of Deposits -12.46% -12.09%
Mexico MXN 11.06% 11.65% Turkey FC1 4.66% 5.77%
Yield on Loans 12.21% 13.37% Yield on Loans 4.98% 6.15% Cost of Deposits -1.15% -1.71% Cost of Deposits -0.32% -0.38%
Mexico FC1 2.96% 3.52% Argentina 13.36% 14.12%
Yield on Loans 2.98% 3.59% Yield on Loans 26.38% 34.53% Cost of Deposits -0.02% -0.06% Cost of Deposits -13.02% -20.41%
Colombia 6.34% 5.68% Yield on Loans 8.80% 9.74% Cost of Deposits -2.46% -4.06%
Peru 5.06% 5.64% Yield on Loans 5.33% 6.44% Cost of Deposits -0.27% -0.80%
(1) FC: Foreign Currency.


LOGO
05 Stages breakdown by business areas
BBVA
Creating Opportunities


LOGO
3Q22 Results 41
Stages breakdown by business areas
CREDIT RISK BUSINESS BREAKDOWN BY AREA
(SEP-22, € M)
Gross Accumulated Gross Accumulated Gross Accumulated BBVA GROUP Exposure impairments SPAIN Exposure impairments MEXICO Exposure impairments
Stage 1 375,164 2,203 Stage 1 180,094 519 Stage 1 72,170 1,059 Stage 2 38,394 2,247 Stage 2 20,302 807 Stage 2 5,591 523 Stage 3 15,162 8,120 Stage 3 8,146 3,889 Stage 3 2,017 1,107
Gross Accumulated SOUTH Gross Accumulated TURKEY Exposure impairments AMERICA Exposure impairments
Stage 1 42,976 249 Stage 1 41,141 350 Stage 2 4,587 432 Stage 2 4,974 380 Stage 3 2,822 1,748 Stage 3 1,981 1,244
Gross Accumulated Gross Accumulated Gross Accumulated COLOMBIA Exposure impairments PERU Exposure impairments ARGENTINA Exposure impairments
Stage 1 14,143 98 Stage 1 19,117 188 Stage 1 3,824 33 Stage 2 1,424 128 Stage 2 2,705 192 Stage 2 400 26 Stage 3 679 501 Stage 3 1,135 633 Stage 3 65 49


LOGO
06 Sound portfolios in main geographies
BBVA
Creating Opportunities


LOGO
3Q22 Results 43
Sound portfolios in main geographies
SPAIN MEXICO TURKEY
RETAIL BANKING CONSUMER FC LOANS
85% of consumer loans 70% of consumer loans -60% Deleverage strategy since origination given to origination given to 2015 “payroll” clients “payroll” clients
70% of Project Finance loans have FC revenues (no FX risk) of floating rate mortgages
75% 1.5x times higher average originated before 2012 payroll at BBVA vs
(76% of stock at floating of the exposure to the most system’s 81% rate) FX sensitive clients in Stage
2 / 3 VERY SMALL BUSINESSES VERY SMALL BUSINESSES TL LOANS
Enterprises deleveraging
62% of loan volumes with Mainly fixed rate and short term since 2008 guarantee from development to manage transactionality. banks1 Asset
41% of loan volumes with quality metrics favoured by state guarantees Average guarantee: 55% salary and income growth.
Average guarantee: 75%
(1) NAFIN and Bancomext Note: Data as of Sep’22


LOGO
07 Covid-related loans backed by State guarantees
BBVA
Creating Opportunities


LOGO

3Q22 Results 45
Covid-related loans backed by State guarantees
€ bn; SEP-22
GROUP SPAIN(2) MEXICO TURKEY(3) ARGENTINA COLOMBIA PERU
Loans Weight Loans Weight Loans Weight Loans Weight Loans Weight Loans Weight Loans Weight
Households 1.4 0.9% 1.3 1.3% 0.0 0.0% 0.0 0.0% 0.0 1.1% 0.0 0.3% 0.1 1.4%
Corporates & SMEs 13.9 8.0% 11.9 12.3% 0.0 0.0% 0.0 0.1% 0.0 0.0% 0.1 2.5% 1.8 16.2%
Other 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.1% 0.0 0.0%
Note: data according to EBA criteria as of September 30, 2022.
(1) Excludes undrawn commitments.
(2) Includes mainly Spain, Rest of business and the NY branch. If we also consider undrawn credit lines, BBVA Spain has granted a total of 23.8 billion € ICO loans as of September 30, 2022 (of which 13.2 billion € is the
outstanding drawn amount).
(3) Garanti bank-only.
Total Outstanding 15.3(1) 3.9% 13.2 5.8% 0 0.0% 0 0.1% 0 0.5% 0.1 0.9% 1.9 9.8%
% guaranteed by the State 77.7% 75.7% - 80.0% 100.0% 77.0% 90.9%


LOGO

BBVA
Creating Opportunities
08 ALCO Portfolio, NII Sensitivity and LCRs & NSFRs


LOGO

3Q22 Results 47
ALCO Portfolio
ALCO PORTFOLIO BREAKDOWN BY REGION
(€ BN)
Amort Cost
(HTC)
Fair Value
(HTC&S)
Sep-22 (€BN) (€BN) (duration)
South America 0.3 6.8 0.7 years
Turkey 5.2 3.2 4.3 years
Mexico 3.7 8.6 2.7 years
Euro 15.7 14.3 4.5 years
Spain 12.2 6.0
Italy 3.2 4.5
Rest 0.3 3.8
South America
Turkey
Mexico
Euro(1)
Sep-21 jun-22 sep-22
(1) Figures exclude SAREB senior bonds (€4.5bn as of Sep-21, and €4.3bn as of Jun-22 and Sep-22) and High Quality Liquid Assets portfolios (€19.1bn as of Sep-21, €10.1bn as of Jun-22 and €10.0bn as of Sep-22).
EURO ALCO PORTFOLIO MATURITY PROFILE
(€ BN)
EURO ALCO YIELD
(SEP-22, %)
HQLA(2) PORTFOLIO
(SEP-22, €)
(2) Note: HQLA - High Quality Liquid Assets
10.0 bn


LOGO

3Q22 Results 48
NII sensitivity to interest rates movements
ESTIMATED IMPACT ON NII IN THE NEXT 12 MONTHS TO PARALLEL INTEREST
RATE MOVEMENTS
(TO +100 BPS INTEREST RATES INCREASE, %)
MEXICO
+c.15%
EURO BALANCE
SHEET
+3.8%
Note: NII sensitivities to parallel interest rates movements calculated as moving averages of the last 12 months’ balance sheets as of Ago-22, using our dynamic internal model. Mexico NII sensitivity for +100 bps
breakdown: MXN sensitivity c.+2.6%; USD sensitivity +1.2%.


LOGO

3Q22 Results 49
Liquidity and funding ratios
BBVA GROUP AND SUBSIDIARIES LCR & NSFR
(SEP-22)
Total Group 166% (215%)1
LCR NSFR
134%
Euro 2
Mexico
Turkey
S. America
198% 125%
190% 140%
274% 168%
(1) All countries >100% >100%
LCR of 166% does not consider the excess liquidity of the subsidiaries outside the Eurozone. If these liquid assets are considered the ratio would reach 215%.
(2) BBVA, S.A. liquidity management perimeter: Spain + foreign branches.
Both LCR and NSFR significantly above the 100% requirements
at a Group level and in all banking subsidiaries


LOGO

BBVA
Creating opportunities
09 CET1 Sensitivity to market impacts


LOGO

3Q22 Results 51
CET1 Sensitivity to Market Impacts1
TO A 10% CURRENCY DEPRECIATION
(SEP-22)
MXN -4bps
TRY -5bps
USD +19bps
TO A 10% DECLINE IN TELEFONICA’S
SHARE PRICE
(SEP-22)
-2 bps
TO +100 BPS MOVEMENT IN THE
SPANISH SOVEREIGN BOND
(SEP-22)
-12 bps
(1) CET1 sensitivity considering the FL capital ratio as of Sep 30th,2022.


LOGO

BBVA
Creating opportunities
10 CET1 YTD evolution & RWAs by business area


LOGO

3Q22 Results 53
Capital YTD evolution
CET1 FULLY-LOADED - BBVA GROUP
YTD EVOLUTION (%, BPS)
(1) Includes, among others, minority interests, market related impacts, the fnal adjustment related to the SBB program and the credit in OCIs that offsets the debit in P&L due to the hyperinflation accounting.


LOGO

3Q22 Results 54
Risk-weighted assets by business area
Fully-Loaded RWAs
Breakdown by business area (€m) Sep-21 Jun-22 Sep-22
Spain 108,750 108,913 108,733
Mexico 61,240 73,869 80,491
Turkey 55,233 51,055 53,435
South America 40,870 49,641 51,484
Argentina 6,181 7,344 7,574
Chile 1,603 1,939 2,164
Colombia 13,376 16,834 17,134
Peru 17,336 20,344 21,316
Others 2,375 3,180 3,296
Rest of business 27,042 34,389 35,559
Corporate Center 9,406 12,775 11,753
BBVA Group 302,542 330,642 341,455


LOGO

BBVA
Creating opportunities
11 Book Value of the main subsidiaries


LOGO

3Q22 Results 56 Book Value of the main subsidiaries(1,2) € BN; SEP-22 Mexico 16.9 Turkey 6.9 Colombia 1.5 Argentina 1.5 Peru 1.3 Chile 0.3 Venezuela 0.1 (1) Includes the initial investment + BBVA’s undistributed results + FX impact + other valuation adjustments. The Goodwill associated to each subsidiary has been deducted from its Book Value (2) Turkey includes Garanti BBVA subsidiaries


LOGO

BBVA Creating Opportunities 12 TBV per share & dividends evolution


LOGO

3Q22 Results 58 Shareholders’ return: TBV per share & dividends evolution TBV PER SHARE & DIVIDENDS (€ PER SHARE) TBV Dividends +19.5% 6.41 Sep-21 6.52 Dec-21 6.84 0.23 (1) 6.61 Mar-22 7.42 0.23 (1) 7.19 Jun-22 7.66 0.35 7.31 Sep-22 (after implementation of IAS29 in Turkey) (1) April 2022 dividend per share (0.23€) and October 2022 dividend per share (0.12)


LOGO

BBVA Creating Opportunities 13 Garanti BBVA: wholesale funding


LOGO

3Q22 Results 60 Turkey - Liquidity & funding sources SOLID LIQUIDITY POSITION: Total LTD ratio is at 77.5%, decreasing by -3.8 p.p in 3Q22. Foreign currency performing loans decreased by USD 1.3 Bn (on a quarterly basis) to c. USD 9.2 Bn in 3Q22. Liquidity ratios above requirements: Liquidity Coverage Ratio (EBA) of 274% vs >100% required in 3Q22. LIMITED EXTERNAL WHOLESALE FUNDING NEEDS: USD 5.6 Bn FC LIQUIDITY BUFFERS Short Term Swaps Unencumbered FC securities FC Reserves under ROM1 Money Market Placements c. USD 10.2 Bn FC liquidity buffer Note 1: All figures are Bank-only, as of Sep. 2022 Note 2: Total Liquidity Buffer is at c. USD 7.4 Bn (1) ROM: Reserve Option Mechanism EXTERNAL WHOLESALE FUNDING MATURITIES2 (USD BN) TOTAL 12M USD 2.4 bn 1.0 4Q22 0.7 1Q23 0.7 2Q23 0.0 3Q23 3.1 > 3Q23 Other3 Eurobond Securitisation Syndication Subdebt Covered Bond USD 5.6 Bn total maturities (2) Includes TRY covered bonds and excludes on balance sheet IRS transactions (3) Other includes mainly bilateral loans, secured finance and other ST funding Ample liquidity buffers and limited wholesale funding maturities


LOGO

BBVA Creating Opportunities 14 Digital metrics Digital & mobile customers Digital sales


LOGO

3Q22 Results 62 Outstanding trends in digital and mobile clients DIGITAL CUSTOMERS (MILLION CUSTOMERS, %) +39% 34.3 40.1 47.8 Sep-20 Sep-21 Sep-22 MOBILE CUSTOMERS (MILLION CUSTOMERS, %) +44% 31.9 38.1 45.9 Sep-20 Sep-21 Sep-22 CUSTOMER PENETRATION RATE 62.0% 67.0% 72.6% CUSTOMER PENETRATION RATE 57.7% 63.7% 69.6% Note: data excludes USA, Paraguay and Chile.


LOGO

3Q22 Results 63 Leveraging digital capabilities to grow sales through digital channels (% OF TOTAL SALES YTD, # OF TRANSACTIONS AND PRV1) Group UNITS PRV 67.1 72.3 77.3 46.3 52.5 61.0 Sep-20 Sep-21 Sep-22 SPAIN 57.7 67.0 75.2 43.0 51.1 57.0 Sep-20 Sep-21 Sep-22 MEXICO 62.7 69.0 74.6 47.5 58.9 67.4 Sep-20 Sep-21 Sep-22 TURKEY 81.2 83.2 85.9 52.2 50.6 56.7 Sep-20 Sep-21 Sep-22 COLOMBIA 89.9 86.9 86.3 37.7 36.0 55.1 Sep-20 Sep-21 Sep-22 PERU 58.2 58.8 66.8 33.4 37.1 54.6 Sep-20 Sep-21 Sep-22 Note: Group excludes USA, Venezuela, Chile, Paraguay. (1) Product Relative Value as a proxy of lifetime economic representation of units sold.


LOGO

BBVA


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.

 

    Banco Bilbao Vizcaya Argentaria, S.A.
    Date: October 28, 2022      
     

By: /s/ María Ángeles Peláez Morón

      Name: María Ángeles Peláez Morón
      Title: Authorized representative
BBVA Bilbao Vizcaya Arge... (NYSE:BBVA)
Historical Stock Chart
Von Dez 2022 bis Jan 2023 Click Here for more BBVA Bilbao Vizcaya Arge... Charts.
BBVA Bilbao Vizcaya Arge... (NYSE:BBVA)
Historical Stock Chart
Von Jan 2022 bis Jan 2023 Click Here for more BBVA Bilbao Vizcaya Arge... Charts.