BBVA in 2017

A customer-oriented global financial services group

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Letter from the Group Executive Chairman

2017 has been a good year for BBVA. The Group's revenues have reached a historic level, our capital strength has been reinforced, and our transformation strategy has gathered pace as it enters the execution stage”


Francisco González. Group Executive Chairman

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The most relevant aspects

BBVA in figures

A summary of 2017

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Business areas

Banking activity in Spain

Highlights

  • Deleveraging and increase in more liquid and off-balance-sheet funds continue.
  • Good performance of net fees and commissions.
  • Reduction of operating expenses.
  • Solid asset-quality indicators.

Spain

Gross income. Year-on-year change.

€6,180m

Arrow Up Green

-3.7%

Activity

Year-on-year change, data as of 31-12-2017.

  • Performing loans under management

    -1.1%

  • Total customer funds
    under management

    +1.9%


Spain

Results

Year-on-year change.

  • Net interest income

    €3,738m

    Arrow Down Green

    -3.6%

  • Gross income

    €6,180m

    Arrow Down Green

    -3.7%

  • Operating income

    €2,802m

    Arrow Down Green

    -1.3%

  • Net attributable profit

    €1,381m

    Arrow Up Green

    +52.7%


Spain

Risks

NPL coverage ratio

53%


50%

NPL ratio

5.8%


5.2%

Cost of risk

0.32%


0.31%



DEC 16

DEC 17


Spain

Non Core Real Estate

Highlights

  • Positive trend in Spanish real-estate sector figures continues.
  • Further decline in net exposure, NPLs and losses.
  • Agreement with Cerberus for the transfer of real-estate assets to a new company and subsequent sale of 80% of this company to Cerberus.

Spain

Gross income. Year-on-year change.

€-17m

Arrow Down Green

+157.8%

Results

Year-on-year change.

  • Net interest income

    €71m

    Arrow Up Green

    +19.5%

  • Gross income

    €-17m

    Arrow Up Green

    +157.8%

  • Operating income

    €-132m

    Arrow Up Green

    +1.2%

  • Net attributable profit

    €-501m

    Arrow Down Green

    -15.8%


Spain

Net exposure

Million euros.

  • Real-estate developer loans

  • Foreclosed assets

  • Other real-estate assets

-37.2%

 

10,212

 
 

6,416

DEC 16

DEC 17


Spain

The United States

Highlights

  • Lending remained stable over the year.
  • Increase in deposits from customers.
  • Positive performance of the net interest income and net fees and commissions.
  • Higher income tax charge due to the tax reform approved at the end of 2017.
  • Solid risk indicators.

The United States

Gross income. Year-on-year change at constant exchange rate.

€2,919m

Arrow Up Green

+10.5%

Activity

Year-on-year change at constant exchange rate. Data as of 31-12-2017.

  • Performing loans under management

    -0.1%

  • Total customer funds
    under management

    +1.8%


The United States

Results

Year-on-year change at constant exchange rate.

  • Net interest income

    €2,158m

    Arrow Up Green

    +13.0%

  • Gross income

    €2,919m

    Arrow Up Green

    +10.5%

  • Operating income

    €1,061m

    Arrow Up Green

    +26.1%

  • Net attributable profit

    €511m

    Arrow Up Green

    +14.6%


The United States

Risks

NPL coverage ratio

94%


104%

NPL ratio

1.5%


1.2%

Cost of risk

0.37%


0.42%



DEC 16

DEC 17


The United States

Mexico

Highlights

  • Good performance in activity.
  • Positive trend in gross income.
  • Cost continue to increase below gross income, and double-digit year-on-year growth in net attributable profit.
  • Stable asset quality indicators.

Mexico

Gross income. Year-on-year change at constant exchange rate.

€7,080m

Arrow Up Green

+8.0%

Activity

Year-on-year change at constant exchange rate. Data as of 31-12-2017.

  • Performing loans under management

    +5.5%

  • Total customer funds
    under management

    +11.4%


Mexico

Results

Year-on-year change at constant exchange rate.

  • Net interest income

    €5,437m

    Arrow Up Green

    +9.5%

  • Gross income

    €7,080m

    Arrow Up Green

    +8.0%

  • Operating income

    €4,635m

    Arrow Up Green

    +9.5%

  • Net attributable profit

    €2,162m

    Arrow Up Green

    +12.7%


Mexico

Risks

NPL coverage ratio

127%


123%

NPL ratio

2.3%


2.3%

Cost of risk

3.40%


3.30%



DEC 16

DEC 17


Mexico

Turkey

Highlights

  • Solid growth in activity.
  • Very positive growth in more recurring revenue items.
  • Operating expenses increase below the level of inflation and the rate of increase in gross income.
  • Risk indicators affected by more additions to NPL from certain wholesale loans that are practically fully provisioned.

Turkey

Gross income. Year-on-year change at constant exchange rate.

€4,115m

Arrow Up Green

+19.2%

Activity

Year-on-year change at constant exchange rate. Data as of 31-12-2017.

  • Performing loans under management

    +13.9%

  • Total customer funds
    under management

    +15.8%


Turkey

Results

Year-on-year change at constant exchange rate.

  • Net interest income

    €3,331m

    Arrow Up Green

    +20.6%

  • Gross income

    €4,115m

    Arrow Up Green

    +19.2%

  • Operating income

    €2,612m

    Arrow Up Green

    +27.8%

  • Net attributable profit

    €826m

    Arrow Up Green

    +70.0%


Turkey

Risks

NPL coverage ratio

124%


85%

NPL ratio

2.7%


3.9%

Cost of risk

0.87%


0.82%



DEC 16

DEC 17


Turkey

South America

Highlights

  • Activity continues to grow at a good pace.
  • More recurring revenue items performing very well.
  • Expenses grow below gross income.
  • Macroeconomic environment evolution has impacted the performance of risk indicators.
  • Agreement to sell the franchise in Chile to Scotiabank.

South America

Gross income. Year-on-year change at constant exchange rates.

€4,451m

Arrow Up Green

+13.9%

Activity

Year-on-year change at constant exchange rates. Data as of 31-12-2017.

  • Performing loans under management

    +9.7%

  • Total customer funds
    under management

    +10.5%


South
America

Results

Year-on-year change at constant exchange rates.

  • Net interest income

    €3,200m

    Arrow Up Green

    +15.1%

  • Gross income

    €4,451m

    Arrow Up Green

    +13.9%

  • Operating income

    €2,444m

    Arrow Up Green

    +15.1%

  • Net attributable profit

    €861m

    Arrow Up Green

    +14.0%


South
America

Risks

NPL coverage ratio

103%


89%

NPL ratio

2.9%


3.4%

Cost of risk

1.15%


1.32%



DEC 16

DEC 17


South
America

Rest of Eurasia

Highlights

  • Positive trend in lending in Europe.
  • Trend in deposits strongly influenced by the negative interest-rate environment.
  • Earnings down due to lower revenues, despite the good performance of expenses and loan-loss provisions.
  • Good performance of asset quality indicators.

Rest of Eurasia

Gross income. Year-on-year change.

€468m

Arrow Down Green

-4.8%

Activity

Year-on-year change. Data as of 31-12-2017.

  • Performing loans under management

    -2.7%

  • Total customer funds
    under management

    -27.4%


Rest of Eurasia

Results

Year-on-year change.

  • Net interest income

    €180m

    Arrow Up Green

    +8.7%

  • Gross income

    €468m

    Arrow Down Green

    -4.8%

  • Operating income

    €160m

    Arrow Up Green

    +7.0%

  • Net attributable profit

    €125m

    Arrow Up Green

    +17.4%


Rest of Eurasia

Risks

NPL coverage ratio

84%


74%

NPL ratio

2.7%


2.4%

Cost of risk

-0.22%


-0.16%



DEC 16

DEC 17


Rest of Eurasia