6-K 1 d431913d6k.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 October, 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

Ángel Cano, BBVA´s President & Chief Operating Officer

Madrid, 31st October 2012

Third-quarter results 2012

2

Third-quarter results 2012 / 31st  October 2012

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

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.

Progress in restoring confidence

Banking Union project

Firm ECB backing

Restructuring of Spanish

financial system

Roadmap for Banking and Fiscal

Union (December Council)

Implementation of plans

stemming from restructuring

Milestones in the

quarter

Challenges until

year end

Greek situation

3

Third-quarter results 2012 / 31st  October 2012

•

Well capitalised, even

under most adverse

scenarios

•

Recurring revenues

growth

•

Risk indicators reined in

•

Spain’s performance in

line with forecast

•

Active issuance under

adverse scenarios

•

Strong liquidity

position

Strengthening

fundamentals

Highlights 3Q12

4

Third-quarter results 2012 / 31st  October 2012

•

Robust operating

income, key to face

the increasing

provisions

5

Third-quarter results 2012 / 31st  October 2012

Earnings:

sound net interest income ...

Net interest income

Quarter on quarter

€m

Sound quarterly growth in net interest income

underpinned by strong results in all geographical areas

+16.0 %

Net interest income

Year to date

€m

+18.1 %

9,676

11,220

9M11

9M12

3,286

3,485

3,597

3,744

3,880

3Q11

4Q11

1Q12

2Q12

3Q12

6

Third-quarter results 2012 / 31st  October 2012

... and recurring gross income ...

4,627

5,515

5,447

5,960

5,697

Gross

income

NTI +

Div.

Fee income: +7.8% (YoY change to date)

Recurring gross income

Quarter on quarter

€m

Recurring gross income

Year to date

€m

+15.7%

+14.0 %

13,656

15,564

9M11

9M12

Gross income : +13.6%

(YoY  change to date)

4,602

4,869

5,053

5,188

5,324

25

646

394

773

373

3Q11

4Q11

1Q12

2Q12

3Q12

7

Third-quarter results 2012 / 31st  October 2012

Spain

Rest of

Europe

USA

Mexico

South

America

Turkey

Asia

... underpinned by balanced diversification

between emerging and developed markets

USA

Note:

does

not

include

Corporate

Activities;

YoY

change

to

date

in

constant €

Gross income

Breakdown

Developed

43%

YoY change

to date

Weight

+0.1%

Emerging

57%

YoY change

to date

Weight

+16.6%

8

Third-quarter results 2012 / 31st  October 2012

Year on year change to date

€

(constant).%

Gross income vs costs

Year on year change to date .%

Developed

Emerging

Curtailing costs,  which are growing below income

Year on year change to date

€

(constant).%

19.1

15.3

Recurring

gross income

Costs

Still one of the most efficient banks

(C/I ratio 47.4%)

1.6

-0.1

Recurring gross

income

Costs

13.6

14.0

11.0

Gross income

Recurring gross

income

Costs

9

Third-quarter results 2012 / 31st  October 2012

High recurring operating income …

Operating

income

2,166

2,863

2,862

3,272

2,866

+16.5%

+17.3%

Recurring operating income

Quarter on quarter

€m

Recurring operating income

Year to date

€m

Operating income: +16.1%

(YoY  change to date)

2,141

2,217

2,468

2,499

2,493

25

646

394

773

373

3Q11

4Q11

1Q12

2Q12

3Q12

6,358

7,460

9M11

9M12

NTI +

Div.

10

Third-quarter results 2012 / 31st  October 2012

... key to face the increasing provisions

Loan-loss + Real-estate provisions

€m

2/3 of the Royal Decree perimeter provisions already covered,

with €1,568m pending for Q4

2,193

1,236

1,286

6,579

Operating income / loan-loss + RE provisions

Multiplier (times)

Including RD impacts (*)

1.4

RD impacts (*)

1,191

1,061

1,237

3,710

95

175

956

2,869

Quart. Avge.

2010

Quart. Avge.

2011

Quart. Avge.

9M12

9M12

2.3

2.2

2.4

Quart. Avge.

2010

Quart. Avge.

2011

Quart. Avge.

2012

Note:  2/3 of the RD perimeter provisions already covered, including €200m provisions allocated in 2011

(*)

RD

impacts

or

RD

petimeter

provisions

refer

to

the

provisions

related

to

the

real

estate

assets

identified

in

the

new

Spanish

regulation

in

2012

(Royal

Decree on February and May, hereinafter RD or RDL)

11

Third-quarter results 2012 / 31st  October 2012

All in all, a sound income statement

€m

Adjusted attributable profit

€3,345m     (-3.8%)

Note:  Adjusted attributable profit excludes Royal Decree perimeter provisions and positive impact of Unnim badwill (€320m)

Third-quarter results 2012 / 31st  October 2012

Risks:

indicators reined in

Ex UNNIM

NPA

€

Bn

NPA & coverage ratios

%

Performance in Spain in line with forecast

16.0

15.9

16.1

16.5

Sep.11

Dec.11

Mar.12

Jun.12

Sep.12

20.1

€3 Bn for Unnim

with 72.5%

coverage

NPA ratio

Coverage ratio

13

Third-quarter results 2012 / 31st  October 2012

10.8

10.8

-0.1

+0.1

Jun.12

Unnim

Rest of effects

Sep.12

Capital:

sound

position

and

capital-generation

capacity

Core capital ratio (Basel 2.5)

%

EBA > 9% Sep. 2012

Fully loaded Basel 3

> 9% Dec. 2013

And also...

Over €11 bn excess capital under adverse scenario

in latest stress test

14

Third-quarter results 2012 / 31st  October 2012

43%

38%

16%

Liquidity:

active market issuance and improved

liquidity position

Euro balance sheet

€2.5 bn senior debt

Non-euro

September-2012

Mexico

Peru

Others

€2.7 bn 

$2.0 bn senior debt

American market. Oct-2012

Garanti

3%

And

sharp

reduction

in

commercial

gap

on

€

balance

sheet:

€9.6 bn this quarter

Total wholesale issues : €6.7 bn

~

Note:

issues

are

calculated

with

year-

end

exchange

rates

15

Third-quarter results 2012 / 31st  October 2012

In short, sound fundamentals ...

Recurring gross

income

Robust earnings

Sound structure

Diversified

revenues

Recurring operating

income

Provisions

+14.0%

YoY

57%

Emerging

+17.3%

YoY

2/3 RDs

Capital

>9%

4.8%

69%

Liquidity

Total issuance: €6.7 bn

Commercial gap €

bal. sheet: -

€9.6 bn

Risks

EBA ratio

NPA ratio

Coverage ratio

10.8%

BIS 2.5

BIS III (e) 2013

>9%

16

Third-quarter results 2012 / 31st  October 2012

Business areas

Third-quarter results 2012 / 31st  October 2012

Proactive management, tailored to local conditions

•

Improvement in competitive

positioning

•

IT platform

•

Enhanced balance-sheet

structure

•

Strict cost control

Developed

•

Rising earnings

•

Risks reined in

•

Growing customer base

•

Buoyant business volumes

Emerging

Optimisation and

differentiation

Growing now, with more

upside ahead

•

Infrastructure investment

18

Third-quarter results 2012 / 31st  October 2012

1.83

2.02

9M11

9M12

Spain: price management and resilient net interest

income

Customer spread (ex Markets)

%

1,094

1,086

1,113

1,187

1,271

3Q11

4Q11

1Q12

2Q12

3Q12

Net interest income

€m

+16.1%

Gain in share of lending (+111 bp) and deposits (+195 bp)

+19 bp

Unnim:

€40m

Note:  private-sector business share: households and non-financial companies. Deposits include commercial paper.

19

Third-quarter results 2012 / 31st  October 2012

Spain:

Costs

€m

Recurring operating income

€m

... and stronger operating income

2,608

2,870

9M11

9M12

+10.1%

-6.7%

2,212

2,079

2,106

2,081

2,065

9M08

9M09

9M10

9M11

9M12

Unnim:

€46m

strict cost control …

20

Third-quarter results 2012 / 31st  October 2012

Spain:

NPA ratio 403 bp below industry average

NPA ratio

Breakdown

%

Ex

UNNIM

NPA & coverage ratios

%

NPA ratio

Coverage ratio

Ex

UNNIM

risk indicators perform in line with forecast,

incorporating Unnim

21

Third-quarter results 2012 / 31st  October 2012

Spain:

Developer

Exposure

SMEs

€

16,219

m (+8.8%)

€

24,085 m

(-7.6%)

Sep. 12

(Change since Dec. 11)

42.2%

(+14.1 p.p.)

8.2%

(+2.5 p.p.)

NPA

Coverage

47%

(+17 p.p.)

41%

(-3 p.p.)

NPA ratio on other portfolios remains stable

Note: includes UNNIM

Unnim contributes €2,652m to developers loanbook and €346m to SMEs, plus 390 bp and 10 bp additional NPAs, respectively

SME lending growing gradually

22

Third-quarter results 2012 / 31st  October 2012

Spain:

Breakdown  problematic real estate assets Spain

€

Bn

5.8

0.6

3.2

Foreclosures &

asset purchases

Substandard

NPL

6.8

1.9

11.7

Provisions

Balance (gross)

Note:

includes

Unnim

(€1.6

Bn

NPL,

€0.2

Bn

Substandar,

€

3.3

Bn

Foreclosures

&

asset

pruchases.

Coverage:

51%) 

Coverage: 47%

breakdown of problematic real estate assets

23

Third-quarter results 2012 / 31st  October 2012

Spain:

income statement

€m

24

Third-quarter results 2012 / 31st  October 2012

517

452

454

509

359

663

9M11

9M12

EurAsia: increasing contribution to Group earnings

EurAsia gross income

€m

Breakdown Eurasia gross income

%

Asia

Rest of  Europe

Turkey

1,329

1,624

YoY

+85%

+12%

-13%

Rest of

Europe

Asia

Turkey

25

Third-quarter results 2012 / 31st  October 2012

EurAsia:

income statement

€m

26

Third-quarter results 2012 / 31st  October 2012

28

23

72

77

Sep.11

Sep.12

Mexico: a best-in-class franchise with well-balanced

growth

And improvement in customer spread: + 19 bp (YoY)

Current +

savings

Term

Balance-sheet retail funding mix

%

Lending:

+11.0%

Lending

YoY change.  Average balances

12.5

10.2

0.6

Retail

SMEs &

Public

admin.

C&IB

Buoyant loanbook fuelled by retail

lending ...

... with better deposit mix and

strong growth in current accounts

Customer funds:

+7.5%

Note:  "Retail" includes SMEs

27

Third-quarter results 2012 / 31st  October 2012

2,838

3,079

9M11

9M12

Mexico: high revenues

Net interest income

€m (constant)

+8.5%

Fee income: +3.7%

Recurring gross income

€m (constant)

3,895

4,217

9M11

9M12

+8.3%

Gross income: +5.9%

28

Third-quarter results 2012 / 31st  October 2012

Mexico: contained risk indicators

NPA ratio

Coverage ratio

NPA & coverage ratios

%

Cost of risk 

Quarter on quarter

%

128

120

116

111

107

Sep. 11

Dec. 11

Mar. 12

Jun. 12

Sep. 12

Sep. 11

Dec. 11

Mar. 12

Jun. 12

Sep. 12

3.6

3.2

3.5

3.3

3.6

3.7

3.7

3.8

4.0

4.1

29

Third-quarter results 2012 / 31st  October 2012

Mexico: income statement

Mexico

Growth

9M12 / 9M11

9M12

Abs.

%

Accum.

Net interest income

3,079

+ 242

8.5

Gross income

4,418

+ 248

MA

2,750

Operating income

3.1

+ 97

3.7

5.9

Income before tax

RE

1,741

+ 52

+ 49

4.0

Net attributable profit

RE

1,300

€m (constant)

30

Third-quarter results 2012 / 31st  October 2012

South America: buoyant business volumes reflected

in revenues

Lending

+20.4%

+20.1%

Balance-

sheet funds

Business volumes

Yoy change, average balances

+19 bp

+5 bp

Gross income and net interest income

€m (constant)

+22.7%

Business share

YoY change. August-2012 data

Retail

lending

Total

deposits

+25.6%

31

Third-quarter results 2012 / 31st  October 2012

South America:

enhanced efficiency and excellent risk

indicators

NPA & coverage ratios

%

+29.0 %

Operating income

€m (constant)

Cost/income ratio improves 3 pp

1,910

2,463

9M11

9M12

1.3

1.3

1.0

1.1

1.3

Ytd cost

of risk

NPA ratio

Coverage ratio

140

146

141

139

142

Sep. 11

Dec. 11

Mar. 12

Jun. 12

Sep. 12

2.3

2.2

2.3

2.3

2.2

32

Third-quarter results 2012 / 31st  October 2012

South America: income statement

€m (constant)

33

Third-quarter results 2012 / 31st  October 2012

United States:  traction in lending and deposit mix

improvement

Note: BBVA Compass data

+13.6%

Year on year change to date

Customer funds

YoY change, average balances

New lending business

0.6

4.2

6.7

11.2

11.6

Sep.11

Dec.11

Mar.12

Jun.12

Sep.12

3.6%

9.9%

Term

Current + savings

Lending

YoY  change, average balances

%

34

Third-quarter results 2012 / 31st  October 2012

United States: earnings underpinned by local business

Net interest income

€m (constant)

Costs

€m (constant)

Operating income

€m (constant)

-1.1%

-10.0%

LB:   +5.7%

LB: +2.2%

LB: +14.8%

-3.6%

1,332

1,285

9M11

9M12

1,204

1,191

9M11

9M12

705

634

9M11

9M12

35

Third-quarter results 2012 / 31st  October 2012

United States: asset quality continues to improve

Loan-loss provisions

€m (constant)

-70.8%

NPA & coverage ratios

%

Coverage ratio

NPA ratio

Ytd cost

of risk

1.0

0.3

314

92

9M11

9M12

36

Third-quarter results 2012 / 31st  October 2012

11.3

9.8

BBVA Compass

Av. Peers

United States: franchise starting to outperform its peers

Total lending growth

Year-on-year change, %

Net Int Income/ATAs (NIM)

Ytd %

Tier-1 Common Capital Ratio

%

3.6

3.4

BBVA Compass

Av. Peers

11.7

6.7

BBVA Compass

Av. Peers

Note:

Local

info.

Peer

Group:

U.S.Banc.,

PNC,

SunTrust

B.,

BB&T,

Regions

Financial

C.,

Fifth

Third

B.,

KeyCorp,

M&T,

Comerica

I.,

I,Zions

B.,

Huntington

B,I.,

Synovus

F.C.,

First

Horizon

National

C.,

Associated

B-C.,

Cullen/Frost

Bankers.

37

Third-quarter results 2012 / 31st  October 2012

United States:

income statement

€m (constant)

BBVA Compass attributable profit growing 63% year on year

38

Third-quarter results 2012 / 31st  October 2012

CIB: wholesale business proving resilience in adverse

environment

Gross income

€m (constant)

1,949

2,067

9M11

9M12

+6.0%

Fee income: +6.6%

Gross income

Base 100: 2Q10

100

106

112

100

90

2Q10

2Q11

2Q12

BBVA

Peer Group

Lending

YoY change to date

%

Adapted to cycle

-15.8

14.4

Developed

Emerging

Superior resilience

Peer Group: BOA, Bar, BNP, CITI, COMM, SA, CS, DB, GS, HSBC, ISP, JPM, LLOY, MS, NOM, RBS, SAN, SG, UBS, UCI, WF

39

Third-quarter results 2012 / 31st  October 2012

CIB: income statement

€m (constant)

Third-quarter results 2012 / 31st  October 2012

3Q12: strong fundamentals

Recurring revenues growth in all geographical areas

and robust operating income

2/3 of the Royal Decrees perimeter provisions

already covered

Risks reined in and performing in line with forecast

Well capitalised in all ratios and absorbing Unnim

Active issuance and sound liquidity position

Ángel Cano, BBVA´s President & Chief Operating Officer

Madrid, 31st October 2012

Third-quarter results 2012

Annexes

43

Third-quarter results 2012 / 31st  October 2012

Annex 1:

Fully-loaded Basel 3 impact pro-forma

Core capital ratio (Basel 3 impact)

%

Note: estimated impacts as of sept.12

BIS 2.5 Core Capital

Ratio Sep 12

Basel 3 core capital

impact

Basel 3 RWA impact

Planned mitigants,

organic generation

and others

BIS III Core Capital

Ratio Dec13

44

Third-quarter results 2012 / 31st  October 2012

Annex 2:

Sovereign debt

€

Bn

Unnim +3.7€

bn

Rest of Europe

Spain

Italy

Note: EBA perimeter. Insurance companies are not included. No Greek or Irish debt holdings. Non material exposure to Portugal

exposure to European sovereign debt

45

Third-quarter results 2012 / 31st  October 2012

Annex 3:

Mid & long term debt redemptions

Euro balance sheet

€

Bn

Unnim

debt redemptions in euro balance sheet

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: November 2, 2012		By:		/s/ Eduardo Ávila Zaragoza
		Name:		Eduardo Ávila Zaragoza
		Title:		Chief Accounting Officer