6-K 1 d388913d6k.htm FORM 6-K Form 6-K

 

 

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 August, 2012

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)

 

 

Paseo de la Castellana, 81

28046 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

 

 

 

2Q12 Results  / July 31st 2012
Ángel Cano, BBVA's President & Chief Operating Officer
Madrid, July 31st 2012
Second quarter results 2012

2Q12 Results  / July 31st 2012
2
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 estimates.
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
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document
in
other
jurisdictions
may
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recipients
into
whose
possession
this
document
comes
shall
be
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responsible for informing themselves about, and observing any such restrictions. By accepting this document you agree to be bound by the foregoing
Restrictions.

2Q12 Results  / July 31st 2012
3
Quarter highlights
1
2
3
4
Recurring revenues are
growing
Strong operating income: a
major factor in absorbing
negative impacts
Organic generation of
capital and EBA
compliance
Risk indicators
are stable
Solid fundamentals that shine in the present
European banking context

2Q12 Results  / July 31st 2012
4
Strong net interest income ...
Net interest income
BBVA Group
€m
Net interest income
BBVA Group
1H12 by market type
Developed
Emerging
Net interest income
BBVA Group
Yr-on-yr change.  Constant €
Balanced diversification
Cycle management
Buoyant
Resilience
+16.4%
3,215
3,286
3,485
3,597
3,744
2Q11
3Q11
4Q11
1Q12
2Q12
1.0%
19.9%
Developed
Emerging
4
44%
56%

2Q12 Results  / July 31st 2012
5
... and strong recurring gross income ...
Recurring gross income
BBVA Group
€m
5,162
4,627
5,515
5,447
5,960
Gross
income
NTI + div.
+13.6%
4,566
4,602
4,869
5,053
5,188
595
25
646
394
773
2Q11
3Q11
4Q11
1Q12
2Q12

2Q12 Results  / July 31st 2012
6
13.1%
9.4%
9.0%
Recurring
gross income
Gross income
Costs
Yr-on-yr change
Constant €
-0.6%
-2.0%
Recurring gross
income
Costs
21.3%
16.0%
Recurring gross
income
Costs
Gross income vs costs
BBVA Group
Yr-on-yr change
Developed mkts
Emerging mkts
... growing faster than costs
•
Efficiency improves –
and  leadership
positions maintained vs. peer group
•
Capitalizing on the investment plans
of earlier quarters
Yr-on-yr change
Constant €

2Q12 Results  / July 31st 2012
7
Solid operating income, maintaining a higher level ...
Recurring operating income
BBVA Group
€m
NTI + Div.
Operating
income
2,683
2,166
2,863
2,862
3,272
2,088
2,141
2,217
2,468
2,499
595
25
646
394
773
2Q11
3Q11
4Q11
1Q12
2Q12
+19.7%

2Q12 Results  / July 31st 2012
8
... the key factor to face a greater provisioning
impact ...
Loan-loss and real-estate provisioning
BBVA Group
€m
Operating income / loan-loss and real-
estate provisioning
BBVA Group
no. of times
1,286
1,236
Risk
premium
1.3
1.2
1.2
2.4
2,395
RDL
related
2.5
2.5
Excl. RDL
related
1,191
1,061
1,123
1,335
95
175
174
1,060
Quart. Avge. Quart. Avge.
2010
2011
1Q12
2Q12
1,297
2.3
2.2
2.2
1.4
Quart. Avge. Quart. Avge.
2010
2011
1Q12
2Q12

2Q12 Results  / July 31st 2012
9
... mainly in regard to royal decrees
RDL 2/12
RDL 18/12
€2,869m
€1,768m
Impact
Note: figures before tax.
€1,434m
Provisioned
Difference
€3,203m
€4,637m
Total

2Q12 Results  / July 31st 2012
10
In summary: a solid income statement
€m
Impact in 2012 of provisioning required by royal
decrees is manageable
Net attributable profit excluding effect of RDLs
€2,374m  (-5.1%)
BBVA Group
Accum.
Growth
1H12 / 1H11
1H12
Abs.
%
Net nterest income
7,340
+ 951
14.9
Gross income
11,407
+ 982
9.4
Operating income
6,134
+ 547
9.8
Provisions RDL related
-1,234
-
1,003
433.5
Rest of provisions
-2,796
-
583
26.4
Income before tax
2,104
-
1,039
-
33.1
Net attributable profit
1,510
-
829
-
35.4

2Q12 Results  / July 31st 2012
11
Good risk performance
NPAs –
net balance
BBVA Group
€Bn
NPA & coverage ratios
BBVA Group
%
Coverage ratio
NPA ratio
61
60
61
60
66
4.0 
4.1 
4.0 
4.0 
4.0 
Jun.11
Sep.11
Dec.11
Mar.12
Jun.12
15.8
16.0
15.9
16.1
16.5
Jun.11
Sep.11
Dec.11
Mar.12
Jun.12

2Q12 Results  / July 31st 2012
12
Core capital ratio (EBA)
BBVA Group
%
Organic generation of capital and compliance with
EBA requirements
7.1
8.7
9.0
9.2
+0.1
+0.1
Sep.11
Dec.11
Mar.12
Organic gen.
Rest
Jun.12
Based on Basel 2.5 the core capital ratio is 10.8%
after a 50bp increase in the first half
Deficit /
surplus
-€6.3bn
+€0.6bn
Note: rest includes behavioural models

2Q12 Results  / July 31st 2012
13
Sound liquidity position
Euro balance
sheet
Non-euro regions
Debt redemptions in 2012/13
already covered
Ample collateral available to
absorb liquidity shocks
Financially independent sub-
sidiaries: no transfers of liquidity
No wholesale structural
finance needs
Market access
Internal liquidity ratios improve
1
2
3
1
2
3

2Q12 Results  / July 31st 2012
14
Summary: solid fundamentals ...
Recurring gross
income
Recurring gross
income
Resilient
earnings
Solid
foundations
Diversified
revenues
Diversified
revenues
Recurring operating
income
Recurring operating
income
Operating income /
provisioning
Operating income /
provisioning
+13.1
%
Year-on-
year
56%
Emerging
mkts
+17.8%
Year-on-year
1.4
Times (2Q12)
Capital
9.2%
Stable
+ 5 pts
Liquidity
Internal ratios improve
Risk (%)
EBA ratio
+50 bp
+€6.9bn
EBA since Sep.11
NPA ratio
Coverage ratio improves
Capital 1H12

2Q12 Results  / July 31st 2012
15

2Q12 Results  / July 31st 2012
16
Spain
•
Risk premium at record high
•
IBEX35 at 2003 levels
•
Rating review
•
Adjustment plans
•
Target deficit window widens
•
Structural reforms
•
Restructuring of financial system
Lack of confidence . . .
. . . but progress is made

2Q12 Results  / July 31st 2012
17
Household debt 
Residential construction sector
Balance of payments
-8.2 pts
Since Nov.09 peak
4.3%
of
GDP
At 1997 levels
From
-9.6%
in 2008 to
-3.5% in
2011
of GDP
Labour productivity
+12%
since the start of the crisis
It will take time for the market to recognize these improvements
Spain:  progressive correction of the imbalances
that led to the crisis

2Q12 Results  / July 31st 2012
18
Appropriate price management offsets business weakness
in an adverse environment
Net interest income
€m
2,211
2,300
1H11
1H12
+ 4.0%
Spain:  positive trend of net interest income
Customer spread (excluding markets)
%
1.76
2.07
1H11
1H12

2Q12 Results  / July 31st 2012
19
Spain: strict cost controls and strong operating income
Costs
€m
Recurring operating income
€m
1,782
1,864
1H11
1H12
1,391
1,353
1H11
1H12
-2.8%
+4.6%

2Q12 Results  / July 31st 2012
20
Spain: slight uptick in NPAs and NPA ratio ...
NPAs –
net balance
€Bn
Coverage ratio
NPA ratio
NPA & coverage ratios
%
11.2
11.3
11.2
11.3
11.8
Jun.11
Sep.11
Dec.11
Mar.12
Jun.12
Jun.11
Sep.11
Dec.11
Mar.12
Jun.12
43
42
44
43
50
4.7 
4.9 
4.8 
4.9 
5.1 

2Q12 Results  / July 31st 2012
21
Spain: ... with focus in developer and SMEs
Developer
Developer
SMEs
SMEs
NPA ratio of other headings is stable
Jun. 12
Change Jun.12  vs. Dec.11
Exposure
NPA ratio
Coverage ratio
13,874
(-7%)
34.2%
(+613 bp)
24,781
(-5%)
6.9%
(+123 bp)
46%
(+17 pp)
38%
(-6 pp)

2Q12 Results  / July 31st 2012
22
Spain:
income statement
€m
Net attributable profit ex provisions RDL related
RESULTADO ATRIBUIBLE AL GRUPO
567
-
382
-40.2
Net attributable profit includ. provisions RDL related
RESULTADOS ANTES DE IMPUESTOS
-221
-
1,116
n.s.
Income before tax ex provisions RDL related
RESULTADOS ANTES DE IMPUESTOS
809
-
539
-40.0
Operating income
MARGEN NETO
1,964
-
79
-3.9
Net nterest income
MARGEN DE INTERESES
2,300
+ 89
4.0
Gross income
MARGEN BRUTO
3,316
-
118
-3.4
Spain
Accum.
Growth
1H12 / 1H11
1H12
Abs.
%

2Q12 Results  / July 31st 2012
23
288
337
1H11
1H12
217
439
321
320
1H11
1H12
EurAsia: revenue is balanced and growing
Gross
income
–
rest
of
Europe
€m
Gross
income
-
Asia
€m
Turkey
Rest of
Europe
+17.1%
538
+41.0%
759
Breakdown
of
gross
income
-
EurAsia
%
31%
29%
40%
Asia
Rest of Europe
Turkey

2Q12 Results  / July 31st 2012
24
EurAsia:
income statement
€m
EurAsia
1H12 / 1H11
1H12
Abs.
%
Growth
Accum.
Net nterest income
382
+ 77
25.3
+ 270
32.7
727
+ 165
29.2
Gross income
Operating income
MA
1,096
Income before tax
RE
630
Net attributable profit
RE
576
+ 129
28.9
+ 116
22.6

2Q12 Results  / July 31st 2012
25
Mexico: buoyant activity with wider spreads
Cust. funds:
+8.8%
Current+
savings
Time
Balance sheet customer deposit mix
%
Lending:
+10.7%
Balanced
growth
of
lending
.
.
.
Year-on-year change
Average balances
31
27
69
73
Jun.11
Jun.12
. . . with improvements in
structure of retail deposits . . .
12.9
5.4
10.7
Retail
SMEs &
Govt
CIB
2 million new customers in the last year

2Q12 Results  / July 31st 2012
26
2,524
2,755
1H11
1H12
1,854
2,016
1H11
1H12
Mexico:
new record for quarterly revenue
Net interest income
Constant €m
+8.7%
Gross income: +4.3%
Recurring gross income
Constant €m
+9.1%
Net fee income: +5.1%

2Q12 Results  / July 31st 2012
27
Mexico: risk indicators are stable
Risk premium
Quarter-by-quarter
(%)
NPA ratio
(%)
3.5
3.6
3.2
3.5
3.3
Jun.11
Sep.11
Dec.11
Mar.12
Jun.12
134
128
120
116
111
3.6 
3.7 
3.7 
3.8 
4.0 
Jun.11
Sep.11
Dec.11
Mar.12
Jun.12
Coverage ratio
NPA ratio

2Q12 Results  / July 31st 2012
28
Mexico:
income statement
Constant €m
Net profit excluding NTI: +15.3%
Mexico
Growth
1H12 / 1H11
1H12
Abs.
%
Accum.
Net nterest income
2,016
+ 162
8.7
Gross income
2,877
+ 120
MA
1,786
Operating income
0.4
+ 24
1.4
4.3
Income before tax
RE
1,144
+ 5
+ 20
2.4
Net attributable profit
RE
865

2Q12 Results  / July 31st 2012
29
South America: buoyant business and excellent net
interest income ...
Net interest income
Quarter-by-quarter
Constant €m
Lending
+23.7%
+23.7%                                
Balance
sheet funds
Business activity
yr-on-yr growth of average balances
1 million new customers
in the last year
Market share
Year-on-year change
Loans to
individuals
+28 bp
+33 bp
Total
deposits
1,544
1,977
1H11
1H12
+28.0%

2Q12 Results  / July 31st 2012
30
South America:
... reflected in other items on the
income statement
Gross income
Constant €m
2,281
2,779
1H11
1H12
+21.9%
1,269
1,622
1H11
1H12
Operating income
Constant €m
New record for quarterly gross income
+27.8%

2Q12 Results  / July 31st 2012
31
South America:
improvement in efficiency and the best
risk indicators in the Group
NPA & coverage ratios
(%)
138
140
146
141
139
2.4
2.3
2.2
2.3
2.3
Jun.11
Sep.11
Dec.11
Mar.12
Jun.12
Coverage ratio
NPA ratio
Cost / Income
(%)
44.7
41.7
1H11
1H12
Cum. risk
premium
1.3
1.3
1.3
1.0
-3.0 pts
1.1

2Q12 Results  / July 31st 2012
32
South America:
income statement
Constant €m
South America
Growth
1H12 / 1H11
1H12
Abs.
%
Accum.
Net nterest income
1,977
+ 433
28.0
Gross income
2,779
+ 499
MA
1,622
Operating income
29.0
+ 353
27.8
21.9
Income before tax
RE
1,312
+ 295
+ 140
24.8
Net attributable profit
RE
703

2Q12 Results  / July 31st 2012
33
-1.0
0.6
4.2
6.7
11.2
Jun.11
Sep.11
Dec.11
Mar.12
Jun.12
United States: lending extends upward trend and
improvements in funding mix
24
21
76
79
Jun.11
Jun.12
+5.4%
-13.2%
Current +
savings
Time
Balance sheet customer deposit mix
(BBVA Compass)
%
CAGR
Lending (BBVA Compass)
Year-on-year change
% average balances

2Q12 Results  / July 31st 2012
34
United States: the retail sector is buoyant and
business, excluding one-offs, is strong ...
Net interest income
Constant €m
-3.4%
Costs
Constant €m
Operating income
Constant €m
800
783
1H11
1H12
-2.2%
489
443
1H11
1H12
-9.4%
* Excludes regulatory impact and Guaranty loan portfolio attrition
879
849
1H11
1H12
Cost control
Local business: +6.4%
Excluding one-offs*:
+8.7%

2Q12 Results  / July 31st 2012
35
United States: provisioning continues to fall
Loan-loss provisions
(Constant €m)
209
53
1H11
1H12
-74.7%
64
67
69
73
75
82
4.3
4.0
3.8
3.5
3.2
2.8
Mar.11
Jun.11
Sep.11
Dec.11
Mar.12
Jun.12
NPA & coverage ratios
(%)
Coverage ratio
NPA ratio
Cum. risk
premium
1.0
0.3

2Q12 Results  / July 31st 2012
36
United States:
income statement
Constant €m
U.S.A.
Growth
1H12 / 1H11
1H12
Abs.
%
Accum.
Net nterest income
849
- 30
-3.4
Gross income
1,226
- 63
MA
443
Operating income
31.2
- 46
-9.4
-4.9
Income before tax
RE
358
+ 85
+ 48
24.2
Net attributable profit
RE
245

2Q12 Results  / July 31st 2012
37
CIB: despite a highly complex quarter wholesale
banking displays great resilience ...
1,392
1,395
1H11
1H12
Gross income
Constant €m
Net attributable profit
Constant €m
644
553
1H11
1H12
+0.2%
-14.2%

2Q12 Results  / July 31st 2012
38
0%
0%
36%
14%
11%
17%
22%
0%
0%
0%
27%
27%
1%
27%
18%
0%
CIB: . . . by leveraging revenue diversification . . .
Gross income by region
1H12 , %
USA
EurAsia
Mexico
South America
Spain
Gross income by product
1H12 , %
Global
transactional
banking
Global lending
Corporate
finance
Rates
Other global
markets
85% of income is generated by our customer franchise
Note: other global markets include credit, FX and equities

2Q12 Results  / July 31st 2012
39
Quarter highlights
Recurring revenues are
growing
Strong operating income: a
major factor in absorbing
negative impacts
Organic generation of
capital and EBA
compliance
Risk indicators are stable
Solid fundamentals that shine in the present
European banking context
1
3
2
4

2Q12 Results  / July 31st 2012
Ángel Cano, BBVA's President & Chief Operating Officer
Madrid, July 31st 2012
Second quarter results 2012

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: August 1, 2012     By:  

/s/ Eduardo Ávila Zargoza

    Name:   Eduardo Ávila Zargoza
    Title:   Chief Accounting Officer