General Shareholders Meeting. Bilbao, March 17, 2017 Francisco González Group Executive Chairman

Transcription

1 General Shareholders Meeting Bilbao, March 17, 2017 Francisco González Group Executive Chairman

2 Index An uncertain global environment 2016 Results Setting milestones in our transformation GSM / 2

3 2016: a complex environment % GDP Growth World Eurozone Spain GSM / 3 with major political uncertainties

4 2017 macro outlook: BBVA s footprint USA +2.3% Mexico +1.0% South America Footprint* +2.6% Spain +2.7% Turkey +2.5% 2017 growth (2.1%), similar to that of 2016 (*) Ex-Venezuela (**) Weighting based on the countries contribution to our business GSM / 4

5 High geopolitic risk Global structural problems Technological unemployment (transition) Inequalities Migrations Demography Fake and unilateral short- term solutions Negative impacts on growth in the short and long term Increasing conflicts GSM / 5 Structural reforms and global agreements are needed

6 Results GSM / 6

7 2016: A very strong set of results Attributable Profit ( m) +31.5% 3,475 2, % in constant Key points Revenue growth Cost control Drop in loan-loss provisions GSM / 7

8 Revenue growth and cost management Gross Income ( m) +4.1% 23,680 24,653 Total Op. Exp. ( m) -1.4% 12,975 12,791 Efficiency ratio (%) -51 bps 52.4% 51.9% GSM / M15 lead to an improvement in efficiency 12M16

9 Improved risk indicators, and. Main risk indicators (%) CET1 Fully-Loaded (YoY trend, %) Coverage Ratio NPL Ratio % +58 pbs 10.90% Cost of Risk dec-15 dec-16 Note: 2015 includes the additional participation of Garanti consolidated by the global integration method since 01/01/2015 vs. acquisition closing date 07/01/15 (Garanti homogeneous). GSM / 9. Strong capital base

10 Shareholder remuneration policy The last scrip dividend in April 2017 Going forward, 100% of the dividend in cash Pay-out in cash: between 35% and 40% of the results Two dividend payments per year GSM / 10 A clear, sustainable and predictable dividend policy, in line with best market practices

11 03 Setting milestones in our transformation GSM / 11

12 Reshaping the financial industry Exponential Technologies GSM / 12 Cloud Computing Mobile Open Innovation Big Data Biometry Distributed ledgers Artificial Intelligence New entrants Payments Wealth management Loans

13 Banking of the future Technological excellence Transparency Zero conflicts of interest Customer experience Trust GSM / 13

14 BBVA s digital journey STEP (Turkey) Strategic Plan Degree of progress Organization simplif. Purpose Strategic Priorities New organization DC. Lago Esmeralda Selfie online onboarding 63 % NPS mobile app Spain 18.4 m digital clients 90 m transac./day Vision 1 st Gen. platform Innovation Center 2 nd Gen. platform SFO Office DC. Tres Cantos Digital Banking (ampl.) 1 billion transac./day 1,550 people in scrums Dallas Creation Center SFO Office extension La Vela Torre Bancomer GSM /

15 BBVA s transformation milestones Vision Construction Execution Deployment Degree of progress Organization simplif. Strategic Priorities Purpose Strategic plan New organization Vision 1 st Gen. platform 2 nd Gen. platform Digital Banking GSM /

16 A new culture Vision Construction Execution Deployment Degree of progress (ampl.) DC. Lago Esmeralda 1,550 people in scrums Innovation Center SFO Office DC. Tres Cantos Dallas Creation Center SFO Office extension La Vela Torre Bancomer GSM /

17 New products, businesses and results Vision Construction Execution Deployment Degree of progress One Click Loans 18.4 m digital customers 12.4 m mobile customers 1 billion transac./day 90 Mll transac./day 1 st Mobile App 12.5 m digital customers 5.9 m mobile customers STEP (Turkey) 63 % NPS mobile App Spain Selfie online onboarding 225 m transac./day GSM /

18 BBVA: the best customer experience 1 Entity / Channel BBVA s position 2 NPS 3 Change vs Entity 1º 13% +10 pp Online Banking 1º 43% +2 pp Mobile App 1º 63% +20 pp ATM 1º 39% +10 pp Branch 1º 32% +14 pp (1) Ranking between peer group entities in Spain: BKIA, CABK, POP, SAB and SAN. (2) According to a survey conducted by Accenture on individual commercial banking customers in Spain, excluding CX. (3) Net Promoter Score (NPS) of individual customers (for Entity and Online Banking), individual digital customers (for Mobile app) and hybrid individual customers (for the rest). GSM / 18

19 BBVA s digital journey: the deployment STEP (Turkey) Strategic Plan Organization simplif. Vision Construction Execution Deployment Purpose Degree of progress Strategic priorities New organization DC. Lago Esmeralda Selfie online onboarding 63 % NPS mobile App Spain 18.4 m digital customers 90 m transac./day Vision 1 st Gen. Platform Innovation Center 2 nd Gen. Platform SFO Office DC. Tres Cantos Digital Banking (ampl.) 1 billion transac./day 1,550 people in scrums Dallas Creation Center SFO Office extension La Vela Torre Bancomer GSM /

20 BBVA, building the best reputation Improving our customers experience Principles based strategy Corporate Responsibility Supporting knowledge GSM / 20

21 2016: a very good year for BBVA Strong results growth Transformation advances: execution phase Qualitative leap in our strategy The most relevant project in the industry JGA / 21

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