6-K 1 d579322d6k.htm 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 July, 2018

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)

Calle Azul 4,

28050 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 ☒ 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 ☒

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 ☒

2Q18 ResultsJuly 27th 2018 / 12Q18 ResultsJuly 27th, 2018

2Q18 ResultsJuly 27th 2018 / 2DisclaimerThis document is only provided for information purposes and does not constitute, nor should it be interpreted as, an offer to sell or exchange or acquire, oran 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 specificissue 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 suchspecific issue. No one who becomes aware of the information contained in this report should regard it as definitive, because it is subject to changes andmodifications.This document contains or may contain forward looking statements (in the usual meaning and within the meaning of the US Private Securities LitigationReform Act of 1995) regarding intentions, expectations or projections of BBVA or of its management on the date thereof, that refer to or incorporatevarious assumptions and projections, including projections about the future earnings of the business. The statements contained herein are based on ourcurrent projections, but the actual results may be substantially modified in the future by various risks and other factors that may cause the results or finaldecisions to differ from such intentions, projections or estimates. These factors include, without limitation, (1) the market situation, macroeconomicfactors, 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 orcounterparts. These factors could cause or result in actual events differing from the information and intentions stated, projected or forecast in thisdocument or in other past or future documents. BBVA does not undertake to publicly revise the contents of this or any other document, either if theevents are not as described herein, or if such events lead to changes in the information contained in this document.This document may contain summarised information or information that has not been audited, and its recipients are invited to consult the documentationand public information filed by BBVA with stock market supervisory bodies, in particular, the prospectuses and periodical information filed with theSpanish Securities Exchange Commission (CNMV) and the Annual Report on Form 20-F and information on Form 6-K that are filed with the US Securitiesand Exchange Commission.Distribution of this document in other jurisdictions may be prohibited, and recipients into whose possession this document comes shall be solelyresponsible for informing themselves about, and observing any such restrictions. By accepting this document you agree to be bound by the foregoingrestrictions.

2Q18 ResultsJuly 27th 2018 / 31,107 1,143701,340 1,3091,1232Q17 3Q17 4Q17 1Q18 2Q18Quarterly evolution (%)CET1 fully-loaded BBVA GroupSolid Results in the QuarterQuarterly evolution ( m)Net Attributable Profit11.10% 11.20% 11.34% 11.47% 11.40%Jun-17 Sep-17 Dec-17 * Mar-18 * Jun-18*+30 bps(*) Data proforma Dec17 and Mar18 includes IFRS9 full impact (-31bps) and +57 bps from corporate transactions (sale of BBVA Chile (closed on July 6th) and RE Assets to Cerberus). Jun18 proforma includesupdated impact +55bps from corporate transactionsEx- TEFimpairmentProforma Proforma1,193Proforma

2Q18 ResultsJuly 27th 2018 / 45.58 5.630.150.155.555.735.781 Jan-18 Mar-18 Jun-182Q18 Highlights01 Strong core revenue growth02 Efficiency improvement04 Sound risk indicators05 Strong capital position,above target06 Focus on shareholder valueEfficiency49.2% -82 bps vs. 12M17 (constant)CoR0.82%-11 bps vs. 1H17NPL ratio4.4%CET 1 FL (Proforma)11.40% -7 bps vs. 1Q18NII + Fees ( constant)+10.4% vs. 2Q17TBV/Share + Shareholders remuneration(1) % of total sales YtD, # of transactionsMobile customers20.7m +43%Jun-18 vs. Jun-1703 Positive trend in digital salesand customersDigital Sales (units)39%Jun-18(1)Coverage ratio71%+19 bps vs. 2Q17ROE11.7% Jun-18ROTE14.3% Jun-18Dividends-47 bps vs. 2Q17+4.2 %

2Q18 ResultsJuly 27th 2018 / 52Q18 Profit & LossBBVA Group 2Q18 % % constantNet Interest Income 4,355 -2.8 9.6Net Fees and Commissions 1,256 1.8 13.1Net Trading Income 297 -21.3 -14.0Other Income & Expenses 69 -71.9 -68.6Gross Income 5,977 -5.7 5.8Operating Expenses -2,963 -6.7 2.7Operating Income 3,014 -4.7 9.0Impairment on Financial Assets -788 -20.9 -12.2Provisions and Other Gains and Losses -19 -90.2 -90.5Income Before Tax 2,207 12.1 31.5Income Tax -602 10.2 26.1Net Income 1,604 12.8 33.6Non-controlling Interest -295 -6.2 18.4Net Attributable Profit 1,309 18.2 37.7Change2Q18/2Q17

2Q18 ResultsJuly 27th 2018 / 61H18 Profit & LossBBVA Group 1H18 % % constantNet Interest Income 8,643 -1.8 9.4Net Fees and Commissions 2,492 1.5 11.3Net Trading Income 708 -33.8 -30.4Other Income & Expenses 231 -40.8 -36.0Gross Income 12,074 -5.1 4.8Operating Expenses -5,942 -5.8 2.9Operating Income 6,131 -4.3 6.8Impairment on Financial Assets -1,611 -17.0 -9.0Provisions and Other Gains and Losses -77 -82.2 -82.0Income Before Tax 4,443 10.2 25.5Income Tax -1,213 8.3 21.5Net Income 3,230 10.9 27.0Non-controlling Interest -581 -4.3 17.0Net Attributable Profit 2,649 14.9 29.51H18/1H17Change

2Q18 ResultsJuly 27th 2018 / 7Positive trend,growing vs.previousquarterStrong Core Revenue GrowthNet Interest Income( m constant)Net Fees and Commissions( m constant)Net Trading Income( m constant)Gross Income( m constant)4,010 4,0854,354 4,2474,3962Q17 3Q17 4Q17 1Q18 2Q181,120 1,171 1,175 1,2261,2662Q17 3Q17 4Q17 1Q18 2Q18+3.3%349 3315404083002Q17 3Q17 4Q17 1Q18 2Q185,705 5,769 6,101 6,040 6,0342Q17 3Q17 4Q17 1Q18 2Q18+9.6% +13.1%+5.8%Good trendmaintained,driven bySpain,Turkey andMexicoLower ALCOsales & GlobalMarketsresultsCore revenuegrowth offsetby SRFcontribution in2Q18-0.1%+3.5 %

2Q18 ResultsJuly 27th 2018 / 8Efficiency ImprovementPositive jaws & efficiency improvementGroup Operating Jaws(YtD (%); ( constant))OperatingExpensesEfficiency Ratio( constant)52.9%50.0%49.2%12M16 12M17 6M18-82bpsCoreRevenues9,36810,14011,1355,707 5,7765,9421H16 1H17 1H188.2%9.8%1.2% 2.9%

2Q18 ResultsJuly 27th 2018 / 9Positive jaws in all geographiesOperating Jaws Breakdown(YoY (%); (constant))Spain*-4.6%1.0%CoreRevenuesOperatingexpensesUSA9.1%5.6%CoreRevenuesOperatingexpensesMexico7.9%4.4%CoreRevenuesOperatingexpensesTurkey South Americaex-Vza20.6%11.0%Core Revenues Operatingexpenses15.1%10.1%Core Revenues Operatingexpenses(*) Spain includes banking and non-core real-estate activitiesINFLATION1.5%Average 12mINFLATION2.3%Average 12mINFLATION5.7%Average 12mINFLATION11.5%Average 12mINFLATION7.8%Average 12m

2Q18 ResultsJuly 27th 2018 / 1022.732.140.622.233.343.1Jun-16 Jun-17 Jun-1814.622.438.610.8 17.229.1Jun-16 Jun-17 Jun-18Outstanding trend of digital sales in all markets(% of total sales YtD, # of transactions and PRV*)SPAIN USA14.024.942.48.917.432.7Jun-16 Jun-17 Jun-18MEXICO10.3 14.420.214.522.951.0Jun-16 Jun-17 Jun-1818.7 17.921.711.614.723.0Jun-16 Jun-17 Jun-18TURKEY SOUTH AMERICAGROUPSolid growth across markets9.415.532.75.8 10.825.5Jun-16 Jun-17 Jun-18PRVUNITSPRVUNITSUNITSPRVPRVUNITSUNITSPRVUNITSPRVFigures have been restated due to the inclusion of some products(*) Product Relative Value as a proxy of a better economic representation of units sold

2Q18 ResultsJuly 27th 2018 / 11May-18 Jun-18Evolving our digital value proposition to promotedigital sales growth1H17 1H18Actively promoting DIY Growing in the Open MarketAdvice & Smart Interactions% of Total13% Digital Sales 22%Digital checking accounts openingMexico (# units)Digital credit cards sales increaseddriven by new online scoring toolPeru (# units)x 3x 2 24%using new online scoring toolBBVAOneviewSpainPayrolladvance toavoidoverdraftsGaranti AppvideocontentColombiaBBVAValoraViewSpain Turkey

2Q18 ResultsJuly 27th 2018 / 12Dec-16 Dec-17 May-18Transactions increasingly migrating to more efficientchannelsTransactions by channel(# transactions)+106%-8%BranchAppMay-16 May-17 May-18+110%Dec-16 Dec-17 May-18-12%+62%-16%BranchBranchApp AppSpain Turkey Colombia

2Q18 ResultsJuly 27th 2018 / 13Global solutions allow for a faster time to market andproductivity improvementsNew solutions for colleagues:Digital WorkplaceGlobal delivery of solutionsGlobal Mobile App75% -40%Development cost-50%Time-to-Market-30%FTEsCode reutilization 360Client View(*) Spain and MexicoDigitalsignatureSend digitalproposals+29%Leads*

2Q18 ResultsJuly 27th 2018 / 1416.519.925.1Jun-16 Jun-17 Jun-1810.314.520.7Jun-16 Jun-17 Jun-18+26%PENETRATION 33% 46%Growth in digital and mobile customersMobile Customers(Mn, % penetration)PENETRATIONDigital Customers(Mn, % penetration)Goal: 50% tippingpoint of digitalcustomers in 2018and mobilecustomers in 2019+21%39%+40%+43%21% 28% 38%

2Q18 ResultsJuly 27th 2018 / 15Leading customer satisfaction (NPS)BBVA NPS(Jun-18)SpainMexicoTurkeyPeruParaguayUruguayBest Mobile Banking AppColombiaVenezuela#1 #2Peer Group: Spain: Santander, CaixaBank, Bankia, Sabadell, Popular// Turkey: AKbank, Isbank , YKB, Deniz, Finanz / /Mexico: Banamex, Santander, Banorte , HSBC// Peru: BBVA Continental, Interbank, BCP, Scotiabank // Colombia: BBVA,Banco de Bogotá, Bancolombia, Davivienda // Venezuela: Banesco, Mercantil, Banco de Venezuela. // Uruguay: ITAU,Santander, Scotiabank // Paraguay: Continental, Itau, Regional.

2Q18 ResultsJuly 27th 2018 / 16Sound risk indicators1Strong asset qualityFinancial Asset Impairments2( m constant)NPLs( bn)907 911750 8157962Q17 3Q17 4Q17 1Q18 2Q18-12.2 %0.93% 0.94% 0.89% 0.85%0.82%2Q17 3Q17 4Q17 1Q18 2Q18Cost of riskYtD (%)NPL & Coverage ratios(%)- 2.8 bn71% 72% 65%73% 71%4.8% 4.6% 4.6% 4.4% 4.4%2Q17 3Q17 4Q17 1Q18 2Q18(1) Data as of 1H18 under IFRS9 standards, 2017 figures under IAS 39(2) Ex- Telefónica impairment in 4Q17Cost of riskNPLCoverage-2.3%22.420.9 20.519.5 19.72Q17 3Q17 4Q17 1Q18 2Q18+0.1bn

2Q18 ResultsJuly 27th 2018 / 17Strong capital positionCET1 fully-loaded—BBVA GroupEvolution (%, bps)High quality capitalLeverage ratio fully-loaded (%)6.4%5.0%European PeerGroup Average#1AT1 and Tier 2 bucketsalready coveredJun-18, Fully loaded (%)AT1 Tier 21.66% 2.67%European Peer Group: BARC, BNPP, CS, CMZ, DB, HSBC, ISP, LBG, RBS, SAN, SG, UBS, UCI, CASA. European Peer Group figuresas of March 2018. BBVA figures of June 201811.47% 11.40%+36 bps-18 bps -5 bps- 18 bps-2 bpsMar.18proforma *NetEarningsDividendaccrual and AT1CouponsRWAs(In constant )Others ** CorporateTransactionsUpdateJun.18proforma *(*) Data proforma Mar18 includes IFRS9 full impact (-31bps) and +57 bps from corporate transactions (sale of BBVA Chile (closed on July 6th) and RE Assets to Cerberus). Jun18 proforma includes the updated impact ofCorporate Transactions (+55 bps).(**) Others includes mainly market related impacts (mark to market of the AFS portfolios and FX impact).MREL Requirement receivedAlready complying with MREL(Binding from 2020)Funding Plan ensures fulfillment of MRELrequirement in 2020Inaugural green bond: 1 Bn SNP inMay.18- 5 bps

2Q18 ResultsJuly 27th 2018 / 18Impacts of BBVA Chile disposal (Closed July 6th)(1). The sale excludes the auto financing business Grupo Forum, the leading company in the countryTransaction Financials1 Main ImpactsPBV17 2.3xPE17 20.7xCapital Gain 640MnCET1 FL c.+50bps$2.2 Bn Total consideration

2Q18 ResultsJuly 27th 2018 / 19Focus on shareholder valueTBV per Share & ShareholderRemuneration( per Share)ROE and ROTE15.555.58 5.630.150.155.555.735.781 Jan-18 Mar-18 Jun-18Dividends(1) Ex- Telefónica impairment in 4Q17+4.2 %9.70 9.7011.7012.10 12.0014.30Jun-17 Dec-17 Jun-18ROTEROE

2Q18 ResultsJuly 27tH 2018 / 20Business Areas

2Q18 ResultsJuly 27th 2018 / 21Spain Banking ActivityLoans: Improving trend (+1.6% qoq) . Continuedgrowth in most profitable retail segments.Core revenue growth (+1.5% yoy in 1H18): soundgrowth in asset management and retail banking feesCosts continue to decreaseAsset quality: NPLs€241 Mn qoq, CoR better thanexpectations.(1) Data as of 1H18 under IFRS9 standards, 2017 figures under IAS 39.(1) Performing loans under management. (2) In 2Q18 , 1.5Bn have been reclassifiedto Corporates+CIB. (3) Includes mutual funds, pension funds and other off balancesheet funds. Note: Activity excludes repos63.938.6135.4Cust. FundsbnDemandDepositsTimeDepositsOff-BSFunds3YoYActivity(Jun-18)6.315.920.023.413.210.976.2LendingMortgagesVery small businessesPublic sectorOthercommercial2ConsumerCorporates + CIBbnYoY1YtDYtDRest-0.8% +0.4%165.9+8.6%-9.1%-3.7%-12.8%+42.2%-0.2%-1.5% 237.9+8.5%-36.6%+17.3%Profit & Loss2Q18 vs 2Q17 1H18 vs 1H17Net Interest Income 916 -1.4 1,836 -1.5Net Fees and Commissions 438 9.4 850 8.6Net Trading Income 115 23.9 282 -11.4Other Income & Expenses -15 n.s. 82 -65.1Gross Income 1,454 -4.6 3,050 -4.7Operating Expenses -822 -4.0 -1,644 -4.1Operating Income 632 -5.2 1,405 -5.3Impairment on FinancialAssets (net)-104 -24.0 -175 -42.2Provisions (net) and othergains (losses)-34 -71.5 -121 -51.1Income Before Tax 494 19.9 1,110 18.7Income Tax -138 16.3 -316 17.5Net Attributable Profit 356 21.5 793 19.2+9.2%+1.2%Key Ratios2.02 2.01 2.011.94 1.94 1.940.08 0.07 0.072Q17 1Q18 2Q18Asset Quality ratios1Customer spreadYield on loansCost of depositsCoverageNPLCoR(YtD)Customer Spread(%)5.9%5.4% 5.2%53%57% 57%0.35%0.17% 0.21%2Q17 1Q18 2Q18

2Q18 ResultsJuly 27th 2018 / 22Non Core Real EstateNet exposure( bn)3.31.3 1.15.54.8 4.88.86.1 5.9Jun-17 Mar-18 Jun-18-12.8%-67.2%Net attributable profit( m)Real Estateowned assetsRE developerloans2018e Net losses below 100 Mn-79-27 -92Q17 1Q18 2Q18-33.2%-88.5%

2Q18 ResultsJuly 27th 2018 / 235.321.48.72.47.911.0Lending5.715.639.5Cust. FundsUSA(1) Performing loans under management.Note: Activity excludes reposbnDemandDepositsTimeDepositsOthersYoYActivity (Jun-18)(constant )MortgagesConsumerSMEsPublic SectorbnYoY1YtDNII as the main P&L driver, growing at double digitLoan growth accelerating. Focus on consumerloans: +18% yoyCustomer spreads benefiting from a better loanmix and higher ratesPositive jaws and efficiency improvementCoR much better than expected thanks toprovision releasesStrengthening our retail franchiseOthercommercialYtDCIB-2.8%56.7 +4.1% 60.8+1.9%-0.9%+2.2%+17.8%-3.7%+3.4%+17.4%-2.6%Profit & Loss2Q18 vs 2Q17 1H18 vs 1H17Net Interest Income 549 9.2 1,082 12.0Net Fees and Commissions 152 2.3 302 -0.1Net Trading Income 24 11.4 49 -3.4Other Income & Expenses 2 n.s. 4 n.s.Gross Income 726 9.7 1,437 10.7Operating Expenses -449 4.0 -891 5.6Operating Income 277 20.4 546 20.2Impairment on FinancialAssets (net)-42 13.4 -63 -38.1Provisions (net) and othergains (losses)4 n.s. 12 n.s.Income Before Tax 238 24.2 495 42.1Income Tax -51 0.1 -108 16.9Net Attributable Profit 188 32.8 387 51.2+20.8%+5.9%+6.0%Key RatiosAsset Quality ratios1CoverageNPLCoR(YtD)104%98% 93%NOTE: BTS business has been reclassifiedfrom USA to Mexico(1) Data as of 1H18 under IFRS9 standards, 2017 figures under IAS 393.994.31 4.513.67 3.86 3.970.33 0.45 0.542Q17 1Q18 2Q18Customer spreadYield on loansCustomer Spread(%)Cost of deposits1.3%1.2% 1.2%0.39%0.16% 0.23%2Q17 1Q18 2Q18

2Q18 ResultsJuly 27th 2018 / 240.55.420.13.44.66.98.7Lending2.917.911.336.9Cust. FundsMexicobnDemandDepositsTimeDepositsOthersYoYActivity (Jun-18)(constant )MortgagesConsumerOthercommercialRestPublic SectorCredit cardsbnYoYn.s.1Off-BSFundsNII growth at high single digit, in line withexpectationsLoan growth accelerates yoy to +8.6%, especiallyin commercial segments.Sound growth in fees, thanks to CIB and assetmanagement.Positive operating jaws and efficiencyimprovementCoR significantly better than expectedBottom line growth above expectationsYtDYtDSMEs(1) Performing loans under management.Note: Activity excludes repos49.6 +8.6%+6.1%+7.1%+5.8%+4.9%+3.7%+14.6%-6%+3.3%+8.6%+15%+11.6%+1.4%Profit & Loss2Q18 vs 2Q17 1H18 vs 1H17Net Interest Income 1,333 7.4 2,648 7.8Net Fees and Commissions 308 10.0 589 8.2Net Trading Income 77 100.0 144 35.4Other Income & Expenses 39 -13.4 84 -23.5Gross Income 1,757 9.5 3,465 7.7Operating Expenses -578 4.1 -1,144 4.4Operating Income 1,179 12.3 2,321 9.4Impairment on FinancialAssets (net)-332 -12.4 -708 -6.5Provisions (net) and othergains (losses)33 n.s. 54 n.s.Income Before Tax 880 32.0 1,667 22.9Income Tax -242 36.5 -458 27.4Net Attributable Profit 638 30.3 1,208 21.269.0 +10.0%Key RatiosCoverageNPLCoR(YtD)NOTE: BTS business has been reclassifiedfrom USA to Mexico(1) Data as of 1H18 under IFRS9 standards, 2017 figures under IAS 393.29% 3.18%2.93%2Q17 1Q18 2Q1812.30 12.65 12.6610.86 10.88 10.731.45 1.77 1.932Q17 1Q18 2Q18Customer spreadYield on loansCustomer Spread(%)Cost of depositsAsset Quality ratios12.3%2.1% 2.0%126%153% 155%

2Q18 ResultsJuly 27th 2018 / 25Turkey3.428.613.7Cust. Funds0.60.132.54.06.34.4LendingbnDemandDepositsTimeDepositsYoYActivity (Jun-18)(constant )MortgagesConsumerBusinessBankingRestPublic SectorCredit cardsbnYoYn.s.1Off-BSFunds2YtDYtDLoans: TL loan portfolio growing at double digits(+15.5% yoy) and FC loan -8.4% yoyCustomer spread: excellent price managementin a higher funding costs environmentSolid Core revenue growth: +21% yoy in 1H18Opex growing below inflationAsset quality impacted by IFSR9 negative macroadjustment and large tickets in the commercialportfolio(1) Performing loans under management. (2) Includes mutual andpension funds.Note: Activity excludes repos47.8+20.3%+18.4%+9.2%+14.9%+13.9%-26.2%+5.4%45.7+10.9%+27.9%+17%+16.9%Profit & Loss2Q18 vs 2Q17 1H18 vs 1H17Net Interest Income 797 25.5 1,510 17.9Net Fees and Commissions 181 26.1 371 32.8Net Trading Income -15 n.s. 4 -42.7Other Income & Expenses 17 23.6 39 87.1Gross Income 981 20.8 1,924 21.2Operating Expenses -342 13.4 -677 11.0Operating Income 639 25.2 1,247 27.5Impairment on FinancialAssets (net)-173 84.5 -315 66.3Provisions (net) and othergains (losses)7 361.5 34 141.2Income Before Tax 474 13.1 966 20.4Income Tax -103 37.2 -210 32.1Net Attributable Profit 183 7.6 373 25.6+20.1%Key RatiosCoverageNPLCoR(YtD)135%86% 76%2.5%3.7% 4.5%(1) Data as of 1H18 under IFRS9 standards, 2017 figures under IAS 390.84%1.17% 1.23%2Q17 1Q18 2Q1810.6311.7312.115.79 5.88 6.144.855.85 5.972Q17 1Q18 2Q18Customer Spread(%)Cost of depositsCustomer spreadYield on loansAsset Quality ratios1

2Q18 ResultsJuly 27th 2018 / 26South AmericaNOTE: Venezuela 2Q18 figures in current(1) Data as of 1H18 under IFRS9 standards, 2017 figures under IAS 39Core revenues growing at mid-teens.Lending growth at double digits, with retailsegments as main driver.Customer spreads growing qoq across the boardPositive jaws and improving efficiencyCoR better than expected3.04.914.712.713.2Lending12.07.110.914.613.8Cust. FundsbnYoYActivity (Jun-18)(constant )bnYoY1ChileArgentinaColombiaPeruOthersChileArgentinaColombiaPeruOthersYtDYtD(1) Performing loans under management.Note: Activity excludes repos48.5 +11.2%+3.8% +3.4%+6.2%+6.6%+8.9%+77.5%+5.2%+5%+2.7%+10.1%+3%+53.6%58.3Profit & Loss2Q18 vs 2Q17 1H18 vs 1H17Net Interest Income 821 15.8 1,606 15.0Net Fees and Commissions 171 15.2 333 12.7Net Trading Income 122 6.0 231 9.5Other Income & Expenses 16 -24.5 27 34.8Gross Income 1,130 13.7 2,197 14.3Operating Expenses -469 8.8 -945 8.9Operating Income 661 17.5 1,252 18.7Impairment on FinancialAssets (net)-158 -9.6 -326 -4.0Provisions (net) and othergains (losses)-25 1.6 -35 -11.2Income Before Tax 478 31.6 891 31.8Income Tax -126 21.8 -252 29.2Net Attributable Profit 244 28.7 452 30.6+9.5%Key Ratios94% 93% 91%3.5% 3.6% 3.7%Customer Spread(%)14.7212.7013.294.16 4.01 4.096.52 6.72 6.796.91 6.75 6.752Q17 1Q18 2Q181.52%1.37% 1.30%2Q17 1Q18 2Q18CoverageNPLCoR(YtD)Asset Quality ratios1

Final Remarks01 High quality set of results, supported by core revenues and lower impairments 02 Impact of digital on revenue growth and efficiency improvement 03 Profitability and value creation despite market uncertainties Focus on shareholder value

2Q18 Results July 27tH 2018 / 28 Annex 01 Customer Spread by Country 06 Garanti: wholesale funding 02 Gross Income Breakdown 07 Capital and RWA 03 Net Attributable Profit Evolution 08 TBV per Share and Dividends evolution 04 P&L Accounts by Business Unit 09 Book Value of the Main Subsidiaries 05 ALCO Portfolio and Liquidity Coverage Ratios (LCRs)

2Q18 ResultsJuly 27th 2018 / 29Customer Spread by Country01Customer Spread by Country

2Q18 Results July 27th 2018 / 30 Customer Spreads: Quarterly Evolution Average 2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18Spain 1.94% 1.93% 1.93% 1.94% 1.94% Turkey FC1 3.74% 3.88% 4.04% 4.16% 4.44%Yield on Loans 2.02% 2.00% 2.00% 2.01% 2.01% Yield on Loans 5.76% 5.95% 6.14% 6.45% 6.79%Cost of Deposits -0.08% -0.08% -0.07% -0.07% -0.07% Cost of Deposits -2.02% -2.07% -2.10% -2.29% -2.35%USA 3.67% 3.76% 3.75% 3.86% 3.97% Argentina 14.72% 13.47% 13.11% 12.70% 13.29%Yield on Loans 3.99% 4.12% 4.16% 4.31% 4.51% Yield on Loans 19.97% 18.63% 18.77% 19.29% 20.72%Cost of Deposits -0.33% -0.36% -0.41% -0.45% -0.54% Cost of Deposits -5.24% -5.16% -5.65% -6.59% -7.43%Mexico MXN 12.02% 11.81% 12.05% 12.06% 11.89% Chile 4.16% 3.31% 3.93% 4.01% 4.09%Yield on Loans 13.78% 13.68% 14.02% 14.20% 14.20% Yield on Loans 6.71% 5.47% 6.27% 6.41% 6.49%Cost of Deposits -1.77% -1.87% -1.98% -2.14% -2.30% Cost of Deposits -2.55% -2.15% -2.34% -2.40% -2.40%Mexico FC1 3.62% 3.47% 3.68% 3.93% 4.06% Colombia 6.52% 6.78% 6.60% 6.72% 6.79%Yield on Loans 3.66% 3.53% 3.76% 4.02% 4.20% Yield on Loans 11.94% 11.62% 11.37% 11.31% 11.22%Cost of Deposits -0.05% -0.07% -0.08% -0.09% -0.14% Cost of Deposits -5.42% -4.84% -4.77% -4.60% -4.43%Turkey TL 5.24% 4.89% 4.90% 4.94% 5.18% Peru 6.91% 6.80% 6.57% 6.75% 6.75%Yield on Loans 13.48% 13.75% 14.06% 14.55% 15.14% Yield on Loans 8.32% 8.17% 7.90% 7.92% 7.84%Cost of Deposits -8.25% -8.86% -9.16% -9.62% -9.96% Cost of Deposits -1.41% -1.37% -1.33% -1.17% -1.09%(1) Foreign currency Note: USA ex NY Business Activity

2Q18 Results July 27th 2018 / 31 Customer Spreads: YTD Evolution YTD Average Customer Spreads (*)(Percentage)1H17 1H18 1H17 1H18Spain 1.93% 1.94% South America 6.30% 6.53%Yield on Loans 2.03% 2.01% Yield on Loans 9.66% 9.80% Cost of Deposits -0.10% -0.07% Cost of Deposits -3.36% -3.27%USA 3.59% 3.92% Argentina 15.21% 13.01%Yield on Loans 3.94% 4.41% Yield on Loans 20.56% 20.04% Cost of Deposits -0.35% -0.49% Cost of Deposits -5.35% -7.03%Mexico MXN 12.06% 11.97% Chile 3.96% 4.05%Yield on Loans 13.74% 14.20% Yield on Loans 6.57% 6.45% Cost of Deposits -1.68% -2.22% Cost of Deposits -2.61% -2.40%Mexico FC 1 3.53% 4.00% Colombia 6.42% 6.75%Yield on Loans 3.57% 4.11% Yield on Loans 12.01% 11.26% Cost of Deposits -0.04% -0.11% Cost of Deposits -5.59% -4.51%Turkey TL 5.37% 5.06% Peru 6.91% 6.77%Yield on Loans 13.33% 14.86% Yield on Loans 8.27% 7.90% Cost of Deposits -7.95% -9.80% Cost of Deposits -1.37% -1.13%Turkey FC 1 3.73% 4.31%Yield on Loans 5.70% 6.63% Cost of Deposits -1.96% -2.32%(1) Foreign currency Note: USA ex NY Business Activity

2Q18 ResultsJuly 27th 2018 / 32Gross Income Breakdown02Gross Income Breakdown

2Q18 Results July 27th 2018 / 33 Gross Income—Breakdown 6M18 Spain 3,031 m Rest of Eurasia 25% 216 m 2% USA 12% 1,437 m South America 18% 2,197 m 16% Turkey 1,924 m 28% Mexico 3,465 m Note: Spain includes Banking activity in Spain and Non Core Real Estate. Figures exclude Corporate Center

2Q18 Results July 27th 2018 / 34 03 Net Attributable Profit Evolution

2Q18 Results July 27th 2018 / 35 Group Net Attributable Profit ( m) BUSINESSES +343 m 106 2,649 76 212 131 -15 2,306 150 -185 127 -260 6M17 m FX Banking Non core RE USA Mexico Turkey Rest of South Corp. Center 6M18 m Effect activity Eurasia America SpainYoY (%) 19.2 -80.8 51.2 21.2 25.6 -20.5 30.6 45.9 (constant )

2Q18 Results July 27th 2018 / 36 04 P&L Accounts by Business Unit Total Spain: Banking Activity + Non Core Real Estate Non Core Real Estate Rest of Eurasia Corporate Center

2Q18 Results July 27th 2018 / 37 Total Spain Profit & Loss Change (%) Change (%)Total Spa 2Q18 2Q18 vs 2Q17 1H2018 1H18 vs 1H17Net Interest Income 929 -2.4 1,856 -2.1Net Fees and Commissions 439 9.3 851 8.4 Net Trading Income 115 24.1 282 -11.2 Other Income & Expenses -44 n.s. 42 -78.4Gross Income 1,439 -6.5 3,031 -5.1Operating Expenses -841 -4.4 -1,684 -4.6Operating Income 598 -9.2 1,347 -5.7Impairment on Financial Assets (net) -88 -60.3 -213 -45.5 Provisions (net) and other gains (losses) -25 -79.3 -65 -80.6Income Before Tax 485 53.3 1,069 52.2Income Tax -137 33.1 -310 39.7Net Attributable Profit 347 62.3 757 57.8

2Q18 Results July 27th 2018 / 38 Non Core Real Estate—Profit & Loss Change (%) Change (%)Non Core Real Estate 2Q18 2Q18 vs 2Q17 1H2018 1H18 vs 1H17Net Interest Income 13 -41.9 20 -37.7Net Fees and Commissions 0 -49.6 1 -67.6 Net Trading Income 0 2,362.0 1 12,029.0 Other Income & Expenses -28 292.3 -40 0.2Gross Income -15 n.s. -19 200.8Operating Expenses -19 -18.9 -39 -20.1Operating Income -34 309.7 -58 4.6Impairment on Financial Assets (net) 16 n.s. -39 -56.5 Provisions (net) and other gains (losses) 9 n.s. 56 n.s.Income Before Tax -10 -89.9 -41 -82.3Income Tax 1 -96.7 6 -88.0Net Attributable Profit -9 -88.5 -36 -80.8

2Q18 Results July 27th 2018 / 39 Rest of Eurasia—Profit & Loss Change (%) Change (%)Rest of Eurasia 2Q18 2Q18 vs 2Q17 1H2018 1H18 vs 1H17Net Interest Income 39 -20.2 82 -13.8Net Fees and Commissions 41 -1.6 79 -3.4 Net Trading Income 11 -64.2 55 -31.1 Other Income & Expenses -1 -28.9 0 -91.5Gross Income 90 -25.2 216 -15.8Operating Expenses -69 -6.7 -142 -7.9Operating Income 21 -55.0 74 -27.6Impairment on Financial Assets (net) -3 n.s. 14 52.5 Provisions (net) and other gains (losses) 3 n.s. 2 n.s.Income Before Tax 21 -54.3 90 -13.4Income Tax -10 -19.8 -32 2.5Net Attributable Profit 11 -67.5 58 -20.3

2Q18 Results July 27th 2018 / 40 Corporate Center—Profit & Loss Change (%) Change (%)Corporate Center 2Q18 2Q18 vs 2Q17 1H2018 1H18 vs 1H17Net Interest Income -72 -9.1 -140 -26.2Net Fees and Commissions -25 -41.2 -32 -31.7 Net Trading Income -34 n.s. -58 n.s. Other Income & Expenses 41 -35.5 35 -5.6Gross Income -90 233.5 -196 n.s.Operating Expenses -235 1.2 -460 4.1Operating Income -325 25.3 -655 64.5Impairment on Financial Assets (net) 0 n.s. 0 -89.9 Provisions (net) and other gains (losses) -15 -63.1 -79 62.3Income Before Tax -341 12.6 -734 64.0Income Tax 60 53.8 158 160.3Net Attributable Profit -291 4.0 -586 45.9

2Q18 Results July 27th 2018 / 41 05 ALCO Portfolio and Liquidity Coverage Ratios (LCRs)

2Q18 Results July 27th 2018 / 42 ALCO Portfolio & Liquidity Coverage Ratios (LCRs) ALCO Portfolio breakdown by region ( bn) 55.6 53.9 56.8 South America 3.3 South America 3.5 South America 3.5 Mexico 5.6 Mexico 4.6 Mexico 5.1 Turkey 10.3 Turkey 9.3 Turkey 8.6 USA USA 11.2 USA 10.6 10.9 Euro1 Euro1 Euro1 28.4 25.5 25.9 Jun-17 Mar-18 Jun-18(1) Figures excludes SAREB bonds ( 5.2bn as of Jun-17, 5bn as of Mar-18 and 4.8bn as of Jun-18). BBVA Group and Subsidiaries LCR Significantly above the 100% requirement Jun-18 BBVA Group Euroz.1 USA2 Mexico Turkey S. Amer. LCR 127% 153% 142% 136% 133% well >100% (1) Perimeter: Spain + Portugal + Rest of Eurasia (2) Compass LCR calculated according to local regulation (Fed Modified LCR)

2Q18 Results July 27th 2018 / 43 06 Garanti: wholesale funding

2Q18 Results July 27th 2018 / 44 Turkey Liquidity & Funding Sources LTD ratio of 112%, 3.2 pp improvement YTD, mainly due to Foreign Currency LTD, improving 2.3 pp YTD to 70%. Stable deposit base: 77% of TRY deposits in Retail and SMEs. Liquidity Coverage Ratio (EBA): 133% vs. 100% required for 2018 Foreign Currency loans c.USD17 Bn, -6% YTD, representing 22% of total assets Limited Foreign Currency wholesale funding needs: USD 13.1 Bn 1.1 Bn syndicated loan rolled: c.100% rollover ratio and 10% in new 2 yr tranche. In 1H18 USD75 Mn 6 yr Gender Bond (2) FC Liquidity Buffers FC Wholesale Funding Maturities (USD Bn) ïƒ¼ Short Term Swaps Covered Bond Subdebt Syndication Securitization Senior5.6 ïƒ¼ Unencumbered FC securities 3.3 FC Reserves under ROM (1) ïƒ¼ 1.5 0.5 ïƒ¼ Money Market Placements 2H18 2019 2020 >=2021 c.USD 10 Bn liquidity buffer USD 10.8 Bn including syndications Note: All figures are Bank-only, as of June 2018 (2) Not including USD 2.3 Bn, mainly bilateral loans and other ST funding (1) ROM: Reserve Option Mechanism Ample liquidity buffers and limited wholesale funding maturities, USD 1.5 Bn in 2H18, including syndications

2Q18 Results July 27th 2018 / 45 07 Capital and RWA Capital Base Risk-Weighted Assets by Business Area

2Q18 Results July 27th 2018 / 46 Capital Base Evolution of phased-in capital ratios Evolution of fully-loaded capital ratios (%) (%) Total capital Ratio 15.52 15.36 15.47 Total capital Ratio 15.27 15.05 15.17 2.53 2.55 2.66 2.46 Tier 2 Tier 2 2.50 2.67 Additional Tier 1 1.28 1.71 1.73 1.73 1.65 1.66 Additional Tier 1 CET1 CET1 11.08 11.71 10.90 10.85 11.10 11.08 11.4% pro-formaincluding corporate transactions*Dec-17 Mar-18 Jun-18 Dec-17 Mar-18 Jun-18(*) Sale of BBVA Chile and RE Assets to Cerberus.

2Q18 Results July 27th 2018 / 47 Risk-Weighted Assets by Business Area Fully-Loaded RWABreakdown by business area and main countries Dec-17 Mar-18 Jun-18 Banking activity in Spain 108,141 103,229 101,633 Non core Real Estate Activity 9,692 9,272 7,547 United States 58,688 57,262 61,473 Mexico 44,941 47,769 50,630 Turkey 62,768 60,936 58,770 South America 55,975 55,718 55,151Argentina 9,364 8,679 7,914 Chile 14,431 14,730 14,861 Colombia 12,299 12,921 12,983 Peru 14,879 14,634 15,360 Venezuela 1,516 1,436 572 Rest of South America 3,485 3,319 3,460Rest of Eurasia 15,150 14,907 15,002 Corporate Center 6,332 7,753 6,999BBVA Group 361,686 356,847 357,205

2Q18 Results July 27th 2018 / 48 Capital YtD Evolution CET1 fully-loaded BBVA Group YtD Evolution (%, bps) + 8 bps +73 bps -35 bps 11.40% 11.34%—30 bps -2 bps Dec.17 Net Dividend accrual & Others** Corporate Jun.18 proforma * Earnings AT1 Coupons Transactions proforma * Impact Update(*) Data proforma Dec17 includes IFRS9 full impact (-31bps) and +57 bps from corporate transactions (sale of BBVA Chile (closed on July 6th) and RE Assets to Cerberus). Jun18 proforma includes the updated impact of Corporate Transactions (+55 bps). (**) Includes mainly market related impacts (mark to market of the HTC&S portfolios and FX impact) and RWAs ex FX, among others.

2Q18 Results July 27th 2018 / 49 08 TBV per Share and Dividends Evolution

2Q18 Results July 27th 2018 / 50 TBV per Share & Shareholder Remuneration ( per Share) 5.82 5.88 5.96 6.01 5.78 0.14 0.09 0.14 0.09 0.24 0.24 5.82 5.79 5.69 5.58 5.63 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18TBV per share Cummulative dividend per share IFRS9 Impact per share

2Q18 Results July 27th 2018 / 51 09 Book Value of the Main Subsidiaries

2Q18 Results Book Value of the Main Subsidiaries1,2 July 27th 2018 / 52 Bn Jun18 Mexico 9.2 USA 6.8 Turkey 4.4 Colombia 1.2 Peru 0.9 Argentina 0.7 Venezuela 0.1 (1) Includes adjustments. The Goodwill associate to each subsidiary has been deducted from its Book Value. (2) Turkey includes the Garanti Group.

2Q18 Results July 27th, 2018

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: July 27, 2018 |  |  |  | By: |  | /s/ María Angeles Peláez Morón
|  |  |  | Name: |  | María Angeles Peláez Morón
|  |  |  | Title: |  | Authorized representative