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
October 27, 2011
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)
Plaza de San Nicolás, 4
48005 Bilbao
Spain
(Address of principal executive offices)
Eduardo Ávila Zaragoza
Paseo de la Castellana, 81
28046 Madrid
Spain
Telephone number +34 91 537 7000
Fax number +34 91 537 6766
(Name, Telephone, E-mail and/or Facsimile Number and Address of Company Contact Person)
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
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BBVA
Third quarter results 2011
Angel Cano, BBVA’s President & COO
October 26th 2011
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BBVA
3Q11 Results / October 26th 2011
Disclaimer
This document is only provided for information purposes and does not constitute, nor must 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. Nobody who becomes aware of the information contained in this report must 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 Act of 1995) regarding intentions, expectations or projections of BBVA or of its management on the date thereof, that refer to miscellaneous aspects, including projections about the future earnings of the business. The statements contained herein are based on our current projections, although the said earnings may be substantially modified in the future by certain risks, uncertainty and others factors relevant 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 condition and result in actual events differing from the information and intentions stated, projected or forecast in this document and 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 exactly as described herein, or if such events lead to changes in the stated strategies and intentions.
The contents of this statement must be taken into account by any persons or entities that may have to make decisions or prepare or disseminate opinions about securities issued by BBVA and, in particular, by the analysts who handle 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 disclosed to 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.
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BBVA
3Q11 Results / October 26th 2011
A quarter in which volatility and uncertainty have further increased
Eurostoxx 50 vs Eurostoxx 50 Banks
Eurostoxx 50
Eurostoxx 50 Banks
1600
1400
1200
1000
800
600
400
200
0
Jan-10
Mar-10
May-10
Jul-10
Sep-10
Nov-10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
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BBVA
3Q11 Results / October 26th 2011
In the present environment attention centres on three aspects …
1 Capital adequacy
2 Funding
3 Ability to generate earnings
4
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BBVA
3Q11 Results / October 26th 2011
BBVA highlights
1 Capital adequacy
Capital
A) Substantial ability to generate capital organically B) Lower leverage than our peers C) A track record of prudent and anticipatory management
Risks
Stability despite deteriorating context of sector’s asset quality
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BBVA
3Q11 Results / October 26th 2011
A) Substantial ability to generate capital organically
Core capital
BBVA Group (%)
Quarterly organic generation of core capital
BBVA Group (Basis points)
5.8
3.2
2.3
-1.6
-0.6
9.1
+15bp in the quarter
Dec. 07 Organic generation Capital increase* M&A transactions**
Other Sep. 11
50.00
40.00
30.00
20.00
10.00
0.00
1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11
Organic generation with simultaneous increase in RWAs (+€53bn during the crisis)
Highly resilient operating income that could absorb sharp increases in provisions
*Includes conversion of convertible bonds
** Acquisition of Fórum, Garanti y Credit Uruguay
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BBVA
3Q11 Results / October 26th 2011
B) Lower leverage than our peers
RWAs / Total assets
BBVA Group vs Peer Group (Dec.10, %)
EBA capital* / total tangible assets
BBVA Group vs Peer Group (Dec.10, %)
Capital needed to match BBVA’s ratio
BBVA Group vs Peer Group (Dec.10, €bn)
BBVA Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14
57 50 50 49 45 41 35 32 30 30 27 23 21 18 15
Peer 1 BBVA Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12
4.8 4.6
4.2 4.1
3.9 3.6
3.5 3.5
2.8 2.7
2.5 2.0
1.6
Peer 12 Peer 11 Peer 10 Peer 9 Peer 8 Peer 7 Peer 6 Peer 5 Peer 4 Peer 3 Peer 2 BBVA
Peer 1
56 41 35 33 24 18 12 8 6 5 3 0 -4
Peer Group: BARCL, BNPP, CASA, CMZ, CS, DB, HSBC, ISP, LBG, RBS , SAN, SG, UBS, UCI . * CASA: core capital published in december 2010
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BBVA
3Q11 Results / October 26th 2011
C) A track record of prudent and anticipatory management
2008 2009 2010 2011
€1bn Preferred shares issuance
€0.8bn sale & leaseback retail network
€2bn Convertible bond issuance
Dividend pay-out reduced to 30%
€5bn Capital increase (Garanti)
Retention of additional sources of capital
Script dividend option
Early conversion of convertible bonds
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BBVA
3Q11 Results / October 26th 2011
Risk: stable NPAs despite deteriorating context of sector’s asset quality …
Gross additions to NPA status
BBVA Group (€m)
Recoveries / additions
BBVA Group (%)
3,051 3,852 2,804 3,713 2,918
3Q10 4Q10 1Q11 2Q11 3Q11
69 64 67 67 64
3Q10 4Q10 1Q11 2Q11 3Q11
Balance of NPAs
BBVA Group (€m)
15,563 15,686 15,528 15,791 15,972
3Q10 4Q10 1Q11 2Q11 3Q11
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BBVA
3Q11 Results / October 26th 2011
... whilst our main risk indicators are also stable
NPA & coverage ratios
BBVA Group (%)
Cumulative risk premium
BBVA Group (%)
Coverage ratio
62 62 61 61 60
4.1 4.1 4.1 4.0 4.1
NPA ratio
Sep.10 Dec.10 Mar.11 Jun.11 Sep.11
1.5
1.3
1.1
2009 2010 2011
10
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BBVA
3Q11 Results / October 26th 2011
BBVA highlights
2 Funding
Solid position to face 2012:
The highest ratio of deposits / assets in the peer group with reduced liquidity gap
Low wholesale redemptions compared to peer group
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BBVA
3Q11 Results / October 26th 2011
Solid Group funding position…
Customer deposits / total assets BBVA Group vs Peer Group
(1H11, %)
Lending / deposits BBVA Group
(%)
BBVA Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14
49 49 46 44 41 38 36 33 31 30 29 29 29 26 25
130
122
Sep.10 Sep.11
Peer Group: BARCL, BNPP, CASA, CMZ, CS, DB, HSBC, ISP, LBG, RBS , SAN, SG, UBS, UCI .
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BBVA
3Q11 Results / October 26th 2011
… and performance and outlook for the euro balance sheet are good
Positive trends in 2011
2011 funding needs already covered
Reduction in liquidity gap:
-€20bn (Sep.11 vs May.10)
Customer funds on balance sheet improve
+€37bn (Sep.11 vs May.10)
Good outlook for 2012
Wholesale redemptions BBVA Group vs Peer Group (€bn)
Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 BBVA
51 256 308
91 174 265
56 198 254
63 153 217
41 166 208
43 148 191
37 134 170
30 131 161
34 126 160
27 127 154
28 123 151
22 124 146
23 93 116
26 88 114
11 58 69
2012
>2012
Peer Group: BARCL, BNPP, CASA, CMZ, CS, DB, HSBC, ISP, LBG, RBS , SAN, SG, UBS, UCI . BBVA data from in-house sources.
Source: Bloomberg July 20th prior to change in calculation method.
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BBVA
3Q11 Results / October 26th 2011
BBVA highlights
3 Ability to generate earnings
Resilience and quality of net interest income
Net trading income affected by market volatility
Loan loss provisioning in line with recent quarters and stability in risk indicators
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BBVA
3Q11 Results / October 26th 2011
Positive performance of recurrent revenue
Gross income
BBVA Group (€m)
Gross income excluding dividends and NTI
BBVA Group (€m)
-5.7%
15,964
15,052
9M10 9M11
+1.8%
+0.8%
4,520 4,467 4,488 4,566 4,602
564 479 775 595 25
3Q10 4Q10 1Q11 2Q11 3Q11
Gross income excluding NTI and dividends NTI + div.
Highlights
Resilience and quality of net interest income
Net trading income affected by market volatility
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BBVA
3Q11 Results / October 26th 2011
Resilience and quality of net interest income
Net interest income
BBVA Group (€m)
+1.3%
+2.2%
3,245 3,286 3,175 3,215 3,138
3Q10 4Q10 1Q11 2Q11 3Q11
YoY change: 9M11/9M10
Emerging mkts
+17.0%
Developed mkts
-11.3%
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BBVA
3Q11 Results / October 26th 2011
Net trading income affected by market volatility
Net trading income (NTI)
BBVA Group
Quarterly average and quarter-on-quarter (€m)
386
474
752
336
-25
2009 2010 1Q11 2Q11 3Q11
Highlights
Business focused on customers in a context of declining activity
Significant falls in asset prices impact on mark to market portfolios
No extraordinary contributions
Absence of NTI in a context of weakening markets
Negative impact mainly affects euro balance sheet and is less marked in Mexico and South America
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BBVA
3Q11 Results / October 26th 2011
Costs in line with previous quarters
Costs
BBVA Group (€m)
+8.8%
-0.7%
+5.1% excl. Garanti
2,325 2,479 2,461 2,262 2,359
3Q10 4Q10 1Q11 2Q11 3Q11
Contained in developed economies and matching the growth cycle in emerging ones
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BBVA
3Q11 Results / October 26th 2011
Provisioning in line with recent quarters
Impairment losses
BBVA Group (€m)
-23.9%
-6.0%
1,187 1,112 1,023
962 904
3Q10 4Q10 1Q11 2Q11 3Q11
Decline is the result of lower provisioning in the USA and unchanged in Spain
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BBVA
3Q11 Results / October 26th 2011
Resilience and solid fundamentals in difficult times
(€m)
BBVA Group
Net Interest Income Gross Income Operating Income Income Before Tax Net Attributable Profit
Accum. Growth 9M11 / 9M10 9M11 Abs. %
9,676 -506 -5.0% 15,052 -912 -5.7% 7,753 -1,569 -16.8% 4,145 -1,115 -21.2% 3,143 -525 -14.3%
ROE: 11.3% RORWA:1.5% ROA: 0.8%
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BBVA
3Q11 Results / October 26th 2011
Geographic areas: highlights
Spain Improved spreads, stable net interest income and risk contained one
more quarter
EurAsia Dynamism in Asia and Turkey and resilience in WB&AM Europe in
line with previous quarters
Mexico Dynamism in business and earnings, especially in the retail
segment. The risk premium is stable.
South America Strong growth of business and revenue, supported by diversification,
with the Group’s best risk indicators.
United States Selective growth of business, good performance of retail net
interest income and provisioning is declining
Wholesale banking Diversification and resilience of revenue from customers in an especially complicated quarter in the markets
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BBVA
3Q11 Results / October 26th 2011
Spain: stabilisation of net interest income
Customer spread*
Quarter-on-quarter (%)
Net interest income
Quarter-on-quarter (€m)
+15 bp
2.2%
1.8%
1.6%
1.7%
1.8%
1.8%
2Q10 3Q10 4Q10 1Q11 2Q11 3Q11
1,178
1,143
1,109
1,102
1,096
3Q10 4Q10 1Q11 2Q11 3Q11
With market share gains in lending and deposits
* Excl. markets
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BBVA
3Q11 Results / October 26th 2011
Spain: risk indicators under control
Balance of NPAs
BBVA Spain (€m)
NPA & coverage ratios
(%)
11,273 11,289 11,030 11,240 11,322
Sep.10 Dec.10 Mar.11 Jun.11 Sep.11
Coverage ratio
47 44 43 43 42
4.8 4.8 4.8 4.7 4.9
NPA ratio
Sep.10 Dec.10 Mar.11 Jun.11 Sep.11
Cum. Spec. risk premium
0.9 1.0 0.7 0.7 0.7
Risks stable while system keeps deteriorating
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BBVA
3Q11 Results / October 26th 2011
Spain: income statement
(€m)
Spain
Net Interest Income Gross Income Operating Income Income Before Tax Net Attributable Profit
Accum. Growth 9M11 / 9M10 9M11 Abs. %
3,308 - 426 -11.4%
4,900 -561 -10.3%
2,806 -583 -17.2%
1,633 -1,019 -38.4%
1,162 -719 -38.2%
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BBVA
3Q11 Results / October 26th 2011
EurAsia: growing contribution to the group
Gross income - Rest of Europe
(€m)
+82.7%
478
872
9M10 9M11
Gross income - Asia
(€m)
+68.5%
265 447
9M10 9M11
Breakdown of gross income - EurAsia
(%)
34%
66%
Asia
Rest of Europe
Dynamism in Asia and Turkey and resilience in wholesale banking in Europe, in line with previous quarters
Note: Rest of Europe includes Turkey
25
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BBVA
3Q11 Results / October 26th 2011
EurAsia: income statement
(€m)
EurAsia
Net Interest Income Gross Income Operating Income Income Before Tax Net Attributable Profit
Accum. Growth 9M11 / 9M10 9M11 Abs. %
516 +269 n.s.
1,319 +576 77.6%
887 +359 67.9%
837 +342 69.1%
705 +287 68.6%
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BBVA
3Q11 Results / October 26th 2011
Mexico: growth in all main items
Lending
YoY growth
(Average balances, %)
+8.9%*
6.4%
23.7%
17.9%
Mortgages*
Cards + Consumer
SMEs
Customer funds
YoY growth
(Average balances, %)
+9.6%
10.3%
11.5%
Transact.+Time deposits
Mutual Funds
* Excluding old residential portfolio
27
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BBVA
3Q11 Results / October 26th 2011
Mexico: income growing at good pace
Net interest income
(Constant €m)
+6.0%
2,712
9M10
2,874
9M11
Retail net interest income
(Constant €m)
+12.9%
2,129
9M10
2,404
9M11
Wholesale Bkg. net interest income
(Constant €m)
+1.5%
183
9M10
186
9M11
The highest ratio of net interest income to ATAs in its peer group
Peer Group: Banamex, Banorte, HSBC, Santander y Scotiabank. Local accountability. August 2011. Source CNBV
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BBVA
3Q11 Results / October 26th 2011
Mexico: improvement in provisioning
Loan-loss provisions
(Constant €m)
-3.2%
945
9M10
914
9M11
Cumulative risk premium
(%)
3.9 3.6 3.4 3.4 3.4
Sep.10 Dec.10 Mar.11 Jun.11 Sep.11
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BBVA
3Q11 Results / October 26th 2011
Mexico: income statement
(Constant €m)
Mexico
Net Interest Income
Gross Income
Operating Income
Income Before Tax
Net Attributable Profit
Accum. Growth 9M11 / 9M10 9M11 Abs. %
2,874 +162 6.0%
4,208 +136 3.3%
2,686 +4 0.1%
1,722 +28 1.7%
1,275 +37 2.9%
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BBVA
3Q11 Results / October 26th 2011
South America: revenues are growing faster
Lending and customer funds
Change: Sep.11 / Sep.10 (Average balances, %)
30.8
Lending
26.2
Cust. funds on balance sheet
Net interest income
(Constant €m)
+28.4%
1,757
9M10
2,255
9M11
Gross income
(Constant €m)
+19.0%
2,700
9M10
3,214
9M11
Record net interest income in quarter
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BBVA
3Q11 Results / October 26th 2011
South America: best risk indicators in the BBVA Group
NPA & coverage ratios
(%)
Coverage ratio
139 130 134 138 140
2.4 2.5 2.5 2.4 2.3
NPA ratio
Sep.10 Dec.10 Mar.11 Jun.11 Sep.11
Loan-loss provisions
(Constant €m)
+10.3%
290
9M10
320
9M11
Cum. Risk premium
1.5% 1.3%
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BBVA
3Q11 Results / October 26th 2011
South America: income statement
(Constant €m)
South America
Net Interest Income
Gross Income
Operating Income
Income Before Tax
Net Attributable Profit
Accum. Growth 9M11 / 9M10 9M11 Abs. %
2,255 + 498 28.4%
3,214 + 514 19.0%
1,751 + 211 13.7%
1,385 + 155 12.6%
754 + 76 11.2%
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BBVA
3Q11 Results / October 26th 2011
United States: selective growth of business
Lending
Individuals and companies*
Re Constr.
-Resid+Commer.
+7% -37%
YoY change. Average balances
Customer funds
Unremunerated Remunerated
+6% -21%
YoY change. Average balances
Mkt share of lending
YoY change (Basis points)
6 14 -16
Lending ex CRE
Residential
Commercial RE
Market share gains in lending
Cost of customer deposits
(%)
0.62%
0.58% 0.54%
0.51%
0.42%
3Q10 4Q10 1Q11 2Q11 3Q11
Lower cost of deposits
Information on this slide related to Compass BG. * Excluding RE Constr. – Resid + Commer
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United States: improvement in customer spread
BBVA
3Q11 Results / October 26th 2011
Customer spread*
(%)
3.86 3.90 3.92 3.92 3.94
3Q10 4Q11 1Q11 2Q11 3Q11
Retail net interest income
(Constant €m)
+2.7%
1,018
9M10
1,045
9M11
Wholesale Bkg. net interest income
(Constant €m)
-23.7%
150
9M10
114
9M11
* Compass BG
35
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BBVA
3Q11 Results / October 26th 2011
United States: risk levels continue to improve
Loan-loss provisions
(Constant €m)
- 39.4 %
471
9M10
286
9M11
Cum. risk premium
1.6% 1.0%
NPA & coverage ratios
(%)
Coverage ratio
59 61 64 67 69
4.6 4.4 4.5 4.2 3.9
NPA ratio
Sep.10 Dec.10 Mar.11 Jun.11 Sep.11
In the quarter
Gross additions: -40%
Recoveries / additions: 93%
36
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BBVA
3Q11 Results / October 26th 2011
United States: income statement
(Constant €m)
USA
Net Interest Income
Gross Income
Operating Income
Income Before Tax
Net Attributable Profit
Accum. Growth 9M11 / 9M10 9M11 Abs. %
1,182 - 118 -9.1%
1,711 - 136 -7.3%
613 - 168 -21.5%
305 + 9 3.2%
218 + 3 1.5%
Attributable net profit excluding New York: +39.4%
37
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BBVA
3Q11 Results / October 26th 2011
Wholesale banking: recurrence and diversification of revenue
Gross income by geographic area
9M11 (%)
Asia
Europe
USA
Mexico
South America
4%
51%
11%
16%
18%
Gross income by products
9M11 (%)
Global transactional banking
Global lending
Corporate finance
Asset Management
Credit
FX
Equity
Interest rates
21%
30%
1%
6%
7%
5%
8%
22%
38
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BBVA
3Q11 Results / October 26th 2011
Wholesale banking: C&IB and GM
Corporate & Investment Banking
Lending, net interest income and fee income (Year-on-year change, %)
0.2% 3.4% 5.9%
Lending NII Fee income
Dynamic revenue
Global Markets
Source of income (%)
Trading income
Customer franchise
37
63
YOY change
24
76
-36%
+17%
9M10 9M11
GM, gross income, Sep.11/Sep.10: -5.3%
Strengthening the customer franchise
39
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BBVA
3Q11 Results / October 26th 2011
Wholesale banking: income statement
(Constant €m)
Wholesale Banking
Gross Income
Operating Income
Income Before Tax
Net Attributable Profit
Accum. Growth 9M11 / 9M10 9M11 Abs. %
2,077 - 44 -2.1%
1,372 - 139 -9.2%
1,304 - 155 -10.6%
862 - 116 -11.8%
40
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BBVA
3Q11 Results / October 26th 2011
3Q11 highlights
Capital adequacy
Funding
Ability to generate earnings
A) Capital:
Substantial ability to generate capital organically
Much lower leverage than our competitors
A track record of prudent and anticipatory management of capital B) Risks:
Stability in a scenario of further deterioration of asset quality
Solid foundations to face 2012
Resilience and quality of net interest income
Net trading income affected by market volatility
Provisioning and risk indicators under control
41
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BBVA
Third quarter results 2011
Angel Cano, BBVA’s President & COO
October 26th 2011
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 27, 2011 |
By: |
/s/ Eduardo Ávila Zaragoza | ||||
| Name: | Eduardo Ávila Zaragoza | |||||
| Title: | Chief Accounting Officer | |||||