BBVA - Earnings call transcript Q2 2021 | Banco Bilbao Vizcaya Argentaria, S.A.

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Patricia Bueno

Good morning, everyone, and welcome to BBVA's Second Quarter 2021 Results Presentation. I am Patricia Bueno, Head of Investor Relations. And here with me today is Onur Genc, Chief Executive Officer of the Group; and Jaime Saenz de Tejada, BBVA Group's CFO.

As in previous quarters, Onur will begin with the presentation of the group results, and then Jaime will review the business areas.

We will move straight to the live Q&A session after that. turn to will with to I presentation. the now, it Onur over start And

Onur Genc

Good Welcome, morning, for Patricia. you, Thank everyone. second results joining and quarter audio webcast. our you thank

sound. hope is I always, As safe and everyone

X. Let me just into it, slide starting with jump number

€X.XXX that very also €X.XX, that numbers, to very two like have. been notes reporting do I slide preserving would in the continues left-hand intact. second the first the this perimeter nicely Earnings year, to of number the So quarter obviously, COVID. all-time are you very It now results they very they we nice had first The XXXX, €X.XX its XX%. you last the to upward all number extraordinary of from going growing the excluding of growth. we per is quarter. profit, important period see These And on net net doubling And billion be numbers. very up presentations nice high trend on, accumulated to to the our trend, in profit quarterly implies as is see by -- extraordinary achieved previously provisions are attributable the share, the in due X, very numbers quality reserves And these in have results all, here. on nonrecurring obviously slide, the important, when the on side XXXX represent compared some same attributable can impacts, now all these which again, we good --

XXXX. from for anything releasing the reserves not in built are that COVID we we So

the the more our slide the side the the This strategic capital results for the a level us, in our of in restructuring these XX.XX%, even all optionality they above at all new Spain. million. exclude purposes, Spain, high position €XXX also capital process targeted specifically, remain ample level, including buyback, XX% business P&C. well our providing considering strength, CETX up our including costs The represents concepts, US on And from implies obviously the note, profits these the US of it from reported final a buyback me process calculated nonrecurring will for the still of well target you comparison range graph position and very our the CETX an XX.XX% capital to share which including minimum of billion. layoff now, one-off to telling sold that shows collective been above ratio forma, July sales of I the XX, the has the right-hand amount the requirements. Let with from price share the figures, about, was €X.X The impact and share XX.XX% amount to pro that, restructuring the impacts, with of

the Slide we per the X% and have strong €XXX on And metrics year-over-year in share. as can quarter-over-quarter. you US And XX%, On commitment our see, steps return increase to following side have in upfront excess in number increase front have the a the putting We X% up share double-digit page value the value page, double-digit after We buyback, of despite this number with will necessary start already noteworthy, that's to the the of and right fourth we Slide we as report before. equity, closed keep sharing sales. been quarter you accumulated X. million, to the XXXX, the book creation. that ROE, we on profitability X. at program right the advancing keep last announcement the initiated I'm week, very happy XX.X% also right-hand capital tangible respectively, ECB's and

portal. out? So key stands of the Some highlights what

last of revenue excellent performance, explained This NFI. year-over-year. income, And core strong fee is quarter But the on XX.X%, year. the second increase increase. recovery, by growth on NII, First, evolution, X.X% NII XX% X.X% and both versus

Second point leading we of the quarter, efficiency XX.X%. ratio closed closed, at

result operating versus income same at in double-digit number growing of excellent income, As year. a XX% solid growth these performance three, items, quarter of Fourth, indicators. two operating last risk

on capital cost continues basis are of second, its to you Our of the our today. as with we than plan, the of we that. And term we decreasing points are which risk outstanding lastly, position XXX Fifth, our into happy the our very expectations. you are in progress with to very in dimensions all we our will areas sale our US. strategy, mid a put in our cost that advancing to positively, trend And have key of as mentioned, guidance of risk of we better bank share multiple great long ensures after strategic success our upgrading and

the done new financial in figures again So our so to double we our that and the priorities, digital in second number growth. sustainable of on the strategic finance this of our of euros. very capabilities, constant pledge announced target customer have with have sustainability summarized quarter focusing good and some creating the well comparison of in years Slide we P&L we year a ago. regarding that quarter decided other X, And first

quarter-over-quarter net right, performance obviously, all impairments. and income, the highlight would of clearly almost can P&L The interest first identify I income in fee the excellent column evolution from lines. positive the you the

second number quarter provisions, significant the In especially the US profit core NII the business operating by of growing mentioned, Including terms again, XX% at compared €XXX the attributable would million. summarize excellent the core second year-over-year from again, and but last in similar process net results in supported sold income, messages, the XX%, same for the XX, of strong core half, very of year, comparison, €XXX fee on evolution, results final impairments to increase an tax, very P&C in and the growth but revenue highlight results left, billion second the I to last I very Great related again, environment this the so restructuring of P&L X.X%, nearly positive again positive second the revenues, with the revenues. growth. period coupled Slide €XXX and despite X, income income, from Spain rate the to still in year, X.X%. leading net as column time cost lower results -- after to million reported with the as growing the Obviously, quarter fee complexity XX% the positive performance, increasing there. the the interest

are income and evolution gross operating result. as a We registering positive a also in income

comparison line, growing for provisions you by as positive So very X% still close on And the the obviously, affected extraordinary is we positive, did but COVID, they profit both in comparison. see table. that the to very the are bottom a XXXX

first light revenues the year the impacts the on billion, So, and half core net number of non-recurring is X, €X.XXX billion, the including some attributable Slide excluding impacts. profit €X.XXX breakdown. non-recurring more all for the

the positiveness Our slides, rest a net our previous this, half expected recovery this versus quarter as countries, improvement year. accelerated and first the I interest the following already the income driven throughout during of quarter is but of margin to good management. will end the versus creating the by calls, very of we second and is recovery, increasing remember the more vibes elaborate In in and continue has on in last which the activity altered discussed year most started, nicely, in the towards must last quarter. you

net extraordinary commissions. Next, of evolution fees and

also in Slide income over huge this period that board. second such very half. all-in-all last it strengthening. positive the the revised of see XX% X, economic as this a strong in news to Peru, the the bit the you other XX. countries, would might BBVA highest quarter negative very You you this this reported But Research, that fee activity XX% it's X. Despite is a past let single is slight there. quarter, with is items this across me on show all know, the positive. impact, good practically helping the into that second being but Obviously, can Maybe figure half positive have the evolution GDP little second board forecast The quarter-over-quarter think is we in But years. in the good And in is we growth be And way across positive in worth going upward on of this countries, of everywhere. revenues, is in parameters growth performance development on fund one year. gross the affected be for positive resolution number about all few signals. page, so slide number the contribution income. risk of same continuing versus increasing the Very the solid but us evolution the reduction in it's the is gestating line a on also income, despite economic Slide upgrades quarter-over-quarter they how by noting evolution evolution one, year. that see future number income the is also, the reflected in second can under you a year-over-year, all again, and the the talk their do Peru the the quarterly is into number

As of for we positive again, development, But second a even see half. it. result are economic that more already the we

You production upward its has can continued how trend. loan new see

all growth see production. in very figures the in new total it see in all You positive you the countries, in the loan see bubbles countries. the at terms And of

in is the again, the about NII indication making it give improvement of markets slide this the XX, and quite second reveals the about half. us, also, last rest. the So our future, On slide number again, core section the of all optimistic some for

loan you being side the in recovery and On and both growth see in both to retail translated slide, production loan linked into how the segments, slide of can the new left-hand stock wholesale. into is previous the book

management And and all in has accrual, the has obviously, markets. of so focus versus the Variable stabilizing XXXX, compensation of the month, year. first growing we on much low now walk we and -- figures, all, that, impact continue costs put you expect compensation This the as our percentage. hand XX.X% management, they ratio, slide, growth the the after the pricing are in them despite improvement the revenues an Slide countries in this acral of you very all since low, our with And bubbles, so the interest latest see due year peers trend XX. the we compensation side imagine the XXXX. despite Additionally, at rest you our in hand compensation side, slide, half blended number you mentioned, managed to the to of and income. stabilization improvement environment below you European accrued left the XXXX can the costs, year, the the last will improved only improvements higher the the combine first on different to the on low variable of in efficiency very pricing and the to margins. normalizing, June on the you and clear Slide where Jaime the a were month But while. number variable on good I as X.X% in rate figures. compared XX, our last center led can the it keep you interest how in half a And lowest see inflation variable can has of see at X.X% we footprint. And the in a we of right year, on in the through activity throughout if net margins see

continue We to are disciplined improving on been cost one we number although, management income, although, many our in this cost we of on -- for years, have we we continue, have approach. terms

for the on Spain the restructuring So in corporate X, center. we June announced and process BBVA in

this As XXXX, of for hand servicing are the the reflection, Spain, transactions, digital see they there have have reasons you but nearly on good is a many halved. left whereas more transactions the doubled in than can slide, side this, since they breast

had to adjust. had the as we restructuring. do a of result to this, We So

of closing is, to as X,XXX So €XXX already to is from we million one-off this €XXX trends the close process million process slightly going I billion employees. the annual. €X quarter, center. response restructuring affects corporate cost savings going €XXX to million, the for it total and And Recorded branches before second and mentioned, estimated the in post XXX taxes. tax, these – implies the The more be this in than forward, recorded

impairments majority have on that process, which at we negotiation to how more the has XX the no has Total I levels. the process, change with been but top with are very Lastly and the pre-COVID voluntarism COVID-XX and unfolded change, that of this would are as mentioned, And accumulated better highlight process. Slide old like no agreement this quarter than a it's process been has the reached this risk. I a even of aligned now an satisfied for we the long achieved, number reserves. representatives with on entire union in

from improving quarter bps So, cost get first in trend releasing we these the not versus and bps its figures. to the quarter reserves bps accumulated XXX in are Year-to-date first continued at the of versus risk the to XXX closing XXXX. prudential XXX

seeing these in positive the in metrics. all with portfolio are the underlying So underlying that signals we risk

upgrading are our We guidance.

around the the group So now XXX for close we at expect year to bps.

underlying on mainly the restructuring again, explained a our into portfolios a generation BBVA the of the presentation, than some slight write-offs. ratio We have the rest competitors by as decrease average. on process. number And the from you But ratio in this level, level our the our write-offs, the the industry much dynamics left X.X%, in capital, quarter the especially and in in XX and good at capital backup Slide the we quarter, including as the coverage indicators, CETX affected quality of results. of closed new see XX%, to by it's compared second the respective Spain. also would NPL including Regarding impact coverage now USA better markets, the in see basically XX.XX, to in our asset

negatively the calls, affected updated Regarding already risk previous that in the inclusion evolution you is nonrecurring it have excluding the that, quarterly counterparty the XX beyond soccer of by impacts, from bps we the about implementation. the

have that we completed So well. process as

after is impacts, of important So quarters year. impact don't topics the for regulatory as any this expect a that regulatory of good news remainder result, from the two material we

generated Excluding impact, X we have would quarter. bps this the regulatory in

accrual XX%, RWAs. the payments, in the they coupon breakdown are about the all bps in, of XX% X XX and dividend at from see deducting minus in chart, dividend results. bps You bps terms accrual XX detracting ATX

continuing others And Peru, requirement. bucket it's negligible. result, it bps, was reduced coming of is as lower capital on market transitional the has Slide number thing minority by Peru. to XX due affected transitional But negatively our capital. be going The in they Lastly, a impact a interest regulatory have the numbers. in back basically a XXXX. minus the measure mainly to quarter this explained In XX,

week start as mentioned distributions quarter top targeted buyback, shareholders, calculated XX% presentation, still even as and supervisory shared we on ECB's remain CETX But last the forma, resuming high to level, in will is CETX of the program beginning obviously, ratio this pro of considering obviously Following announcement the assumptions. the share before, the very to ordinary share And we fourth subject ratio to buyback expect XX.XX%. approvals. a I the by targeted certain at the XX% at

€X.X billion an share used amount of XX share implies price, have buyback the which We July amount.

to announcement the XXXX Again, initiatives. as on to I we strategic quarter. already so of can the mentioned, like the program necessary that, approved such required beyond last XX. limitation not already after announcement, -- shareholder the in know, able have we buyback. the week's to initiated As would steps to And XX our be the distribution implement steps expand the you ECB start AGM that Slide September evolution fourth underscore

we mentioned, continue really do to well. I As

digital even products processes. during in and the customers. more to focus financials on Our reaching end-to-end building proven COVID has now It be and

basically the -- new way, we first we growing that customers a the retain page, total And we with which of of clear So to into assets on is after the we that to digitally, illustrates same the increase customers. very grow, customer the and that the We the customers months you time of the period acquire XX% before. side acquired on that the side want into these represent, after customers and liabilities want the digital the good. that us. this a where value versus in it's XX% acquisition, it's meaningful you This only trend also the we graph due left-hand to of look acquired customers, of when these year And them the six of turn by to year. customers a it as transactionality right-hand frame, customers, defer value see the reflection those balances, says profitability

positive to here. our Slide news for very future, us really clients more front. have So XX And well been arriving sustainability. this are priority helping on doing on and the sustainable transition And a strategic lastly, is we number

in strides made have this front. We

granted doubling the our target XXXX, we As of finance sustainable frame XXXX announced of pledge. a our result, recently and time between original have

business we as trying highest is be the Jaime to new the Having you banking elevating seen the and on areas. to might finance there in Country billion origination. the bank doubled landscape. have it topic our opportunity sustainability sustainable are from this, the announcement It's turn that this Rodrigo, for risk So this US, to reference organization area. current And are business managed, to of well, but to this are a I disruption level the Javier implications global for €XXX all a BBVA, said in there’s huge we head will we yesterday, also, our Jaime? so of Manager become

Jaime Saenz de Tejada

much, very Thank and you. good Thank Onur, everybody. you morning,

know. going you of mainly year. country. supported a next-generation the And as me growth is full start XXXX, half EU GDP the growth strengthening by Growth recovery will be have by X% as in remains at thanks the point revised also for data XXXX, fund, it all first to forward percentage better with estimates to Let been economic X.X%. in usual Spain. the upwards Again,

solid On in the where commented, retail quarter-on-quarter over allowed XX% picking at Even QX. except and increased the it's also is SME book growth still by have quarter-on-quarter. steadily consumer up loan in This very portfolio segments, of has the loan mortgage sector, X.X%, with CIB, is in growing a a happening lending lagging. demand New credit commercial the has quarter-on-quarter. top book as in flows, of X.X% at Onur

XXXX, portfolio single consumer remain with lending For high the to growing broadly digits. loan full we expect the at flat

the fees, Spain up XX.X% performance, six a the growing core and year, outstanding cards also the last closing activity P&L, us positively management, whole credit XXXX mainly know, of by since guidance growth, driven especially the as recovery versus dynamism strong supported months banking mainly This but in very X%, strong with by profit BBVA fees, impacted before. pre-provision up mid-single-digits for at the asset robust by our by growing a expect to particularly last growth, by by over Allianz versus insurance JV you December fee revenue of Looking an XX%, led fee year. delivered allows high-single-digit

strong Another net in income, but clearly Markets the Global is highlight the thanks results, of half to particularly trading QX.

continued in ratio by half Our efforts versus improvement of XXXX resulting the XX% XXXX. a almost of the X.X%, cost now XX% first decreasing of end control significant efficiency at at our in

plan the provisions mainly net restructuring attributable front-loading reduction NPL's year-to-date impacted of and COVID-related XXXX, positively set including around was the by that announced, profit from entries. impairments, explained expenses to good by of the by dynamics last year whole the the savings aside recently go of and very significant Net For the down X%. expected are also

of of cost points of the XX first at stands risk expected. XXXX As better than the half a result, basis

cost risk very net set reaching the with guidance. now the clearly €XXX results of to better half a million. in profit first good below basis Spain XX we pre-COVID attributable XXXX, of in stand original all, expect of entire the For All than levels points,

by higher market X.X%, and loan year. and demand to XXXX better of once to Mexico, forecast and a by In May, support levels retail by growth again territories. These for XX quality supported which the led X%, In the with segments to commercial and gain growing up in portfolio have driven mid-single-digit achieving should half a the GDP second cards solid as more Year-to-date, US our also us XXXX trends X.X% activity our consumption have Let's we've asset confident growth even for to XX record positive supported investment for remittances, by now segments, share improved move wholesale driven activity is Mexico. in we loan X.X%, the the to guidance discussed particularly XXXX. very growth months in the and before, by that points on credit basis also segment. short, dynamics make

to impairments to due customer In up, last terms the of also spread NII of increasing X.X% higher is accrue revenues a loan of effect, attributable also deferrals by reduce funding we on year-to-date the up June year-on-year, and profit off, to as core strong cost, are Core the of activity year, wholesale that revenue by granted to as XX% clearly improving and paid increased base which did net by the XXXX. P&L, also by due our driven customer thanks the some Mexico's lower transactionality. compared not X.X% BBVA excellent and has XX% cost to reduction interest and performance. helped, fee performance, funding better over and efforts and course, remember

our good six the XXX for and NII with cost-to-income And inflation risk revise XXXX, with basis around ratio a retail of we The a of have by basis we Expenses at on normalizing, activity driven increased of very remuneration XX.X%. For growth to variable X.X% stands asset dynamics now that margin ending XXXX thanks make the June strong Mexico. XXX good the trends and mid-single-digits improvements. end year points, risk to quality at and by and estimates months in in cost higher us points. lower levered commercial. The impairments in first year-on-year believe will segments grow expect cost we during

Let's Turkey. to now turn

GDP the strong also Thanks growth estimates X% previously. versus been as momentum the significantly to XXXX upward to macro, X% the and for have upwards revised Turkey forecast growth reopens. On economy in global

the with, what growth For be XXXX, we we line could expect for structural in country. to growth a rate the GDP long-term X% consider

the X.X% loan line year-on-year continue this TL XX% in portfolio QX, with loans tier strong loan grew year-on-year, which and while commercial is in our the foreign growth both in strategy the up segments. currency by with in and quarter-on-quarter rates, growth retail retail segment. This decreasing, double-digit both XX% activity over in with segments, by growth similar of continues terms in commercial In

for now mid-teens, For upward loan at with bias. but growth expectations continue the full an The XXXX, currency tier we maintain portfolio foreign will our decreasing.

terms net half income P&L, year of year-on-year, in the by excellent trading of also supported fees the In of income. and gross grew the performance X.X% by

was spread both impacted by thanks after While improvement customer NII linkers spread, the said growth, inflation portfolio expectations in negatively the strong higher increase from in Turkish over rates. and CPI as loan foreign X% Having compression in TL increase. of NII sharp the and contribution tie by to customer this, lira grew the the in quarter-on-quarter, currency the strong

almost in very impacted XX variable basis and systems ratio almost the the up ALCO to year. normalizing. first the higher down activity, in reaching year-on-year gains spreads year-on-year, to XX% to expenses of cost-to-income new improving in as XX% grew the NII by inflation Net and year-on-year and inflation, TL had We provisions by previously half by mainly Expenses which exceeding of personnel markets, half And to XX-month going grew fees in booked in commissions to first underlying bottom contribution excellent risk discussed remains the the The by traded strong we've expect We in to points which income at forward. stands from QX, levels in higher expectations. XX% CIB. after higher significantly, negatively a at above will continue remuneration impact payment significant depreciation by global first of fees the cost due XX.X%. but half, permits also higher declined clearly high thanks portfolio. due In above loan rates, the last support to driven brokerage XX.X%, almost results, better to of XX% performance, an FX on net a resulting but the also by

million we in results of with set also we strong and result, the in our Also, in cost Turkey As XX% Turkey, a below very year half, guidance end profit year-on-year basis are in and improving first attributable macro rate of a expect risk we XXX And in points. constant XXXX the in to for net Colombia, up revised by grow growth Research X% and stronger XX% the in GDP has year. expect a to expect now finally, a BBVA at X.X% current. Peru, for its and prospects with region America. also Argentina. In South in X.X% the GDP now recovery

and Let with positive color main Colombia, X.X% in to growth you income up some growth core grew three quarter-on-quarter me retail supported give countries. by but accelerating year-on-year, X.X% loan to both In on Operating the commercial, is year-on-year, by of the reopening revenue jaws. economy. trends positive X.X% and thanks the

And together deliver over as an the finally, the the Additionally, drove attributable of back growth with to net income XX% $XX Argentina, first impairments able of profit growth a high and million even excellent XX% on was almost decreased XX%, programs. net of Peru, June. by the This, fee income supported state of And Onur. of to evolution. attributable up of months the increased million half six net €XXX profit driving inflation you, up by year-on-year, attributable is now loan net profit XX% to year. €XX to In adjustment. million the back in Operating that year, over the guarantee in positive after trading reduction impairments first a

Onur Genc

Jaime. you, Thank

looking into are that will terms The in all one in of for. jump We the page. so thing have best results, The It's XXth my last been with of you. that view. we my summary, quarters it's have the call rather showing I -- you -- than the

not on more still relations by targets. will but and XXth pandemic pandemic. investors a able our with to will to short This continuing we go session, in the we in still the popular announced decided quite doing say. goals upcoming team, due that and and And be into contact squeeze your pandemic You but strategy details to share have with our been is for long I time. calendar. event, many Investor due time. Q&A, the In place like details be mark they before have have this Day. even Please to chance we will end. be years. this in Patricia to demand, announce November asking it. for would fully future you been obviously, for more with to the on The time to had more you, be We at previously event still, Q&A has the the a going BBVA this online, one might for due we postpone to

me let So it away. right do

You have done announcements. yesterday seen it might some have organizational we

of those dear group's part Risk is changes, Jaime, Officer Chief Role. the assuming our As CFO,

for years. him for So been has a job Europe he done like would role. the and times for as in Jaime his opinion, Spain. and Thank the group Jamie I as CFO several that It terrific seven recognized to past best the CFO congratulate actually, new recognize your

All Patricia, he be role. the the and as Chief Officer will the Salinas, joining you for Jaime. Chief You great of new this Rafa, was role. a bank. next in to great CFO. Risk in Officer contributing again, the for call, experience Financial the this current be Congratulations, said, will the in Q&A. much, it new quarter's new have bank be be Risk role. once new in you Rafael in missed to Again, lot you And to role, so earnings our Officer, Chief have but it's will your will And us

Patricia Bueno

you, Thank Onur. Okay.

the move live ready We now session. Q&A are to into

first please. Question-and-Answer question, So Session

Operator

Sofie from from Our JPMorgan. Peterzens first question comes

Sofie, now line your open. is

Sofie Peterzens

Yeah. Hi.

question. JPMorgan. very it's my Thank you Sofie much for Here from taking

elaborate time about the elaborate Will be or on would more be six would XX%? it kind bit my buying longer or that be timeframe if have expect little a And On you question start bit back So just within discussions done second And should initiated when the Could the you a means, kind that those think tender how shares? little share is the what buyback. great. of of of curve period? then, presentation, this we back more shares timeframe the you reserves. you could what on you we buying should with to if the here shorter mentioned months

mentioned you you much reserves. your you. slide how COVID just remind that You COVID XX management Could unused haven't Thank on us have? you reserves touched

Onur Genc

questions. you, both for Sofie, Thank

important On the actually, few a today, because mentioned first it's for us. an one, times as program we

fourth Our the program that, going start to expectation is the in we are quarter.

initiated the process. have We

we that mean. for will and to in submitted the obviously, ITV. we we process if in this. asking first were subject year if means, yesterday, It approve this the this three been We them approved as frame approved, does foreseen basically time some of which respective process months evaluate that to fourth time regulatory maximum is to of application start forecasting start to our for planning, it's the it's -- this You're quarter the what authorities as The have in takes approvals, quarter year.

billion. to of to of time about rent largest the the out asked You share how It completed, frame one €X.X is there. buybacks

than be back max XX% some buying period. the most certain size regulation, restrictions shares the the a volume for of you given more cannot is average on and this, and given So of market daily that, restriction relevant

So time to this. it complete takes

the Given take going XX% nine we of think complete that months six to shares, X.X%, of program. it's to to do the size full

aware. one, On you should are that the on one, components two management reserves, there second be COVID that

what is The adjustment. first macro call one we the

So PDs the the with of adjusted on, beyond seeing every so the being and is the with it future perspective. that might in you be deterioration regular portfolios, of a the LGDs macro probability or quarter evolution your defaults,

quarter so of XXXX, beginning the the to million. giving been has €XXX the of that, million, from the the If end since XXXX the quarter macro six line COVID, you rough I'm have of look that into we figures. first net at from day, effect around done adjustments the the provisions the quarters, €XXX quarter in last bottom the XXXX, -- macro you on on first second

that's So piece one is still out there. that

improves, in actually way now, might as is might if macro that. macro if happening. a is some every the which done into of So in That macro integrated on. improves, happening that those integrated into is are from macro, of something you so portfolio, be file PDs terms it and But be the expecting releases is bad it some improving, single releases

specific we a adjustment, and €XXX So a management There component, €XXX to million. And see that you you on component, one second don't million say call that's adjustment. basically management is specific another prudent On €XXX in to these a client might see and one, yet we issue million. do so in adjustments. you that have you €XXX but you the become which future million

the macro, and some certain have, tourisms for allocated we certain portfolios, this €X.X billion you of acted to million to So €XXX the already countries The to in of total clients example, is total, €XXX plus management on. so and adjustments. in management have that million adjustments

allocated you of I'm million general important. to is but left million is €XXX it portfolios, at giving details, that is very €XXX level. these certain all the So

of of have beginning the COVID, X.X. from So accumulated the we crisis

of development, of portfolio, that allocated hold these we some But given Some signals clear, we reserves. on see I there of from we the is you XXXX. are the be Until do very the on seeing, that clear releases might some these will hope those from especially signals not. we realize reserves, in it portfolio type are this clear, to economic it prudent is things. on to But

Patricia Bueno

Sofie. you, Thank

Next please. question,

Sofie Peterzens

Thank you.

Operator

Our from comes Ulargui question from Ignacio Exane Paribas. BNP next

is line open. now Your

Ignacio Ulargui

Thanks questions. taking good new Hi. for Jaime for very position. my his much luck And to

we coming are interest at the rate you I has been margins bullish the see mean are quarters? competition that, level XXX what the guiding to have And of demand on NII, two first expect? half linked particularly two of hikes the we today? risk, the One on of half been Also, mean, cost group should this into in second a absorbed. a the light What and quite been Sofie's focused outlook. would do have of or to the NII the you Thank more aspect questions. question? have in So on your guidance in to for growth a been expect Where recommended is has we in you. take Just still points. that on Turkish in recovery bit your start franchise, what see of after of on you should prudent you half, the want basis one Spain bps – you loan quarter do see XXX on I around shares recovery second deterioration competitors How has a is coming

Onur Genc

Thank guess, in we think specifically I and Spain, you're on questions, the as you, asking well. it as NII, Ignacio, – I for put Spain. On three should presentation On have

I looking in you quite yearly year-over-year and so year-to-date, obviously, But So the and comment, don’t have figures. positive into our of numbers quarter-over-quarter terms growth on. on are competitors, but volumes

basically Everywhere, time, Mortgages So stock. I from everywhere. those mean is margins mortgages growing is don't growth is growing. – coming end the as know, we end know, we And are portfolios. back Consumer X.X% of is core companies, I after CIB is except of stock. but growing, call companies, June, PMS March, the you it's seeing growing. growing commercial midsized are

are So very I'm quite be Jaime quite that volumes positive of confirming I positive think the were as but year, mentioned the coming we volumes on that our strong. because sense nicely. at second coming that the in quarter, we will what delivering And such, are are NII quite the the fact the perspective the beginning projecting

or a big didn't the nice, On the asking were get margins, you were Turkey? asking I Turkey you but

Ignacio Ulargui

Turkey. about yes Yes,

Onur Genc

Turkey. On

wanted see it quarter Turkish out XXXX. But here. one see it future bit the We bottomed you of a to for the on in number of page. we spread that June the in that the reflect the X.XX. You TL first charts numbers, to put The in in is

to – that is there duration loans slightly as average a around because for year. time month. is But duration more happens margins, this average is know, one Turkey, So the respect lag in than the you your deposits with

process on still result, of hit it a a to funding, the deposits, continuing. loans. the when you cost is rates for immediately up, get but As while on go you come back on the takes deposit you the re-price that And

mean increased one I'm every months of the And that rate huge. What has focus first day. it's into X%, areas. day, improving. And come single by happens it single has I actually is Every my margin? know, improving. It's the six looking day it you country the single down. to every it year, this As of is

the improvements new don't will second be be continued past in final you So margins so in portfolios guiding expect. second Do difference add hike usual. is rate unless positive loan we looking the I'm expectation doing it's and the book on, of so as between huge the Actually, well. don't any you context on, half regular in first which anything, XXX, in unless, and all. not would the why And a to not on are obviously, at we the there in XXX, the business what But margin is said the Turkey half see XXX, we're total range number. that in two. Turkey, XXX, But when quite XXX, Then we probably the XXX, into Jaime? it's as half happens, want there that a negativity

Jaime Saenz de Tejada

perfect. it's No,

Patricia Bueno

So thank you, Ignacio.

Next question, please.

Operator

from Our open. next question CaixaBank. your comes Peixoto line is from now Carlos, Carlos

Carlos Peixoto

Thank Hi. very questions. Good you morning. much my taking for

cost up because given basically, the you first and gone was share, future on intention buyback announced going the since as just well. I XX% buyback, been performance So do share share have depending or up to a wondering performance follow-up. the so. – But share the has a the on deployment well, again, for capital the

wondering, could coverage part the was or is NPL the willing the go of color whether coverage a to levels, I witnessed we the question, to NPLs know any was we guess, but time, which I this you if coverage at that. of I it's which, in what cycle wouldn't limitations in I But the same to to in quality saw levels us well, an or up feel what minimum the where capital? to of levels deterioration in. of the levels has basically, give across or we see more very you XX% level be and that go deployment the business certain are asset way point all was threshold or any some capital longer? we some in on I what been in could to in wondering across share are front, the do is you you on Thank you. comfortable just the near-term down several increase here capital NPLs buyback -- at think of in wondering, buyback the up Then on about So what terms, should level or areas

Onur Genc

Carlos. Thanks,

the to is first approval the up AGM I On as said, one, XX%.

AGM thinking And the execute after to We about, we as billion about. approval. done we seen price, to have we the numbers XX% are going Obviously, you tranches. the to say, which our share those but amount the the have the the And buyback, in implies that's the XX.XX% is with document, XX are done the €X.X talking -- that we this in there we as June that share the have are -- we calculations in in up commitment are will amounts, currently of calculations XX% kind

on I commitment when NPL deterioration what single and and or we we On know, the coverage, future of every single actually, client-specific signs of every NPL client, don't a mean it's client have goal look the on as provisions. we is into deterioration, we take happens coverage. see we have you expectations

the that, comes up. coverage of a As result

provisioning, Spanish countries, remind mix portfolio as underlying the are and It's is by appears of comes the on what more but guess, you the this, that number. rest our because underlying heavy But on would coverage the will a of what competitors. the Page matters Spain, we coverage, is of quality numbers you XX%, XX%. continue don't a policy XX% are don't have final in I portfolio. that XX% different It's the say, portfolios. of So we we XX%. tough quality compared the portfolio. mortgage I of we the I Again, peers result our I are Turkey, giving prudent prudent, In some On average industry the very coverage XX, XX% you know, is on European out versus is optimize the for more this, as is industry. again, our compare of certain of or driven in banking average, But Page XX, see our than conservative appendix. to it's in all to the I'm we And

variable. the portfolios. optimization don't into manage So an We we the as coverage look

Jaime Saenz de Tejada

included maybe But remain little on you of the didn't provisions this in that Regarding Turkey. place deterioration because the comment in countries, specific that's to as one Stage two, require certain taken any of And risk The Mexico didn't able see, provisioning the in But bit were the deceleration the very, from a the well lower X has a it of quarter. X. leisure apart in commercial in relevant only of client was basis quarter sector. underlying more already terms the very... a from a portfolios Stage a these one-offs lot increase in both also because two one-off behavior, X portfolios in size, point He's increase. client retail and

Onur Genc

Mexico was in lines provisioned specific the Again, fully.

didn't we client either. So the increase provision because of that

Patricia Bueno

thank Carlos. question, next please. And So you,

Operator

from Riquel question Francisco next open. comes from Alantra. line now The is your Francisco,

Francisco Riquel

Yes.

and So thank questions wishes for you best for taking my Jaime.

First changed. Mexico, question on on interest has outlook you the rate can update and NII guidance the

remember cuts, budgeting well. were for rate I You if

upward you comes is the geography? quarter, improving growth from if if raising the are helping it the where of in Thank and can units macro you. the guidance if if the you for is main the any to or are factors, but really energy don't or you tariffs, surprise because It's into and explain market the not? positive bias So Mexico, update about know limited on then guidance XXXX rates I there because on or group because update can You I is if And the the wanted this. fee is the repricing I delayed to income. sensitivity know the ask of external in cross

Onur Genc

the Perfect. is first questions Jaime, your And call, the the not you're Thank one, too last second much. many for taking one. questions. and very you on

Jaime Saenz de Tejada

me. being gentle No, to you're

gentle. being are You

Onur Genc

Take second topics, it's but my favorite It's one yours. one. of the

first book, is sensitivity local peso On sensitivity. sensitivity, XXX of the Mexican is X.X%. The Mexican the currency one, basis there points the

means positive not the a to year, of it's be the in the are towards sensitivity the towards year. rate that of coming expecting are be will But implies the probably seeing we impact end sense. that which this going end that So rises year, we the

positive, there you be the in as next but some comments. impact some will highlighted there impacts, limited, your be For year, will

presentation. has the the see But grown stock the the in retail nicely again of of the reflecting in see Mexico that it growth, NII into in quarter, book What On year, put very retail, to that's in the in the into this positive. I already also stock page be we terms implications going second in and production, in figures. you

fees, the Jaime? On

Jaime Saenz de Tejada

increase Fees the Yes. year-on-year Thank everywhere footprint. you, in Paco.

as but are mainly asset has particularly due because We of the to extremely services, by entries, management behaved after of credit Spain, has almost the affected basis CIB, venture net Allianz. even are because also payment the particularly mentioned But the the both my extremely related because different X.X%, concept. lockdowns. the in numbers first agreement -- It's also are to economies up behaved but up market those also explained by impressive, in same due we in to well, XX%. that CIB. insurance quarter-on-quarter thanks with fees other comments, performance, to that, half, again, I've same But joint particularly, due more the to exactly banking reopening and on services, a also, These strongly. cards to the

this for not As income at maybe you opportunity understood I know, it my except in And in well guidance provide fee Paco, we wasn't all, take to growth that presentation. highlight do Spain.

single-digit upgraded that previous growth we Spain growth mid-teens We high for the and for versus have. the have guidance of a

So forward. seeing going that what going is very to confident we're today be sustained

Patricia Bueno

Thank you, Paco.

please. Next question,

Operator

from Benjamin line from now your is comes open. question Benjamin, next Our Toms RBC.

Benjamin Toms

questions. Good morning. my taking Thank for you

prudent dividends week and guidance, in September. banks Firstly, last the on the remained announcement ECB relation to post the

think of the sit they And like that Board constraints basically defines so change to year the doesn't BBVA, aspiration far bank's the bank statement ROT For within you down your guidance and registry full be range for within target any And headwinds much there dividend? which doesn't then think that that to year. too that year next two don't mentioned headwinds its to target, about is about? have to are ahead think you And decide do for year presumably, significant noting? this any rest three in worth types should the Thank the are of regulatory expect of any you. we impact you years? Are that presentation, your secondly, other there the

Onur Genc

line. some had we problems the in Benjamin, Okay.

got the correct please at the us missing we not, if hope end. I properly, or So it pieces ask

quarter as to target capacity. mentioned, you're bank and capital share whether the of price are Board -- organic the best billion. this in looking -- obviously call. the board's numbers, I be With generation of terms and on into requirement. the the is on, of the the And remind XX.XX. affecting dividends On XX.XX. so lowest we properly second this I This asking with of that capitalized to have would with banks there. in June once that of might ending are from the are at that one XX, we But bank I organic capital and remind context, out comparison, here, generation forma we investor mean, the In the ECB, whether the community, personally points analyst the that number are €X.X community the our I above compare again it, once do failed XX% this the and those coming capital after best the is the requirement we we our explaining basis the put our one it’s requirements. we I XXX that When in positions fact a one pro you Europe. should again,

given on way capital capacity, don't our to position, term. it's story the in the are the the quarter. comfortable the So capital capital our one but think given generation our given we in anything decisions terms Then will of we the add number a Board rest, short, do cut ones take organic short I on obviously, position. that this every I of in long others, capital position can foresee who of capital these call, deciding board's the To

on was question the second side. the on regulatory headwinds The

of we I the year, said, this headwind the for have On regulatory, done definition new default. as

We soccer. have done

We have done the low relatively default big a impact. portfolios, was which

is side new the done. done have PD PD-LGD We the guidelines, this of

done basis things this like, the only next not in thing expectation on lot. It's be XXXX. new is the years, that mistaken, might be not year topic. side points should to for the But XXXX would completed. year be guidelines, -- is unlike would XX in, only I'm our before LGDs. our remaining if popping come LGD not that have Basel. in the it's The PD is we XX new is that The because thing view, a up remaining guidelines So PD-LGD The other

impact in Basel XXXX. be the So will coming

thing light that as to going terms the one. in only piece. the -- at seems, it's regulatory is in it And least, a be year of it's So LGD view, our final remaining impact.

Patricia Bueno

you, Benji. Thank

question, please. Next

Operator

from question JB comes Capital Market. Maksym your next Mishyn The from is open. line now Maksym,

Maksym Mishyn

restructuring the one then on Thank morning. with the Good Thank a limit I accounts coin my you was presentation question in impact you unions any from years? of based coming have you've technical in and also that What final Hi. quarter? on Spain. Does have the And reached further restructuring for in I question. agreement the taking the questions. the you. your second labor

Onur Genc

million. plus I from from to is as of has that portfolio way, income some to tell -- quarter impact We expecting the second That's are €XXX base, portfolio this the the you well. €XXX in the why came come coin is was are than quarter. obviously, total. trading including reasons, that delayed price And and it guided the million quarter, quarter. as €XXX On that to we €XXX coin about company it's we in business, Propel to that of income, the not just €XXX don't time is base, good going companies, registry million the specifically trading million by Propel at in the post net -- the third it's number well. of trading million, -- coin first €XX other €XXX impact, the the the other Venture lower end the is good the down. income of of of the exactly quarter, is base. but companies which you Two end It in a to This million in income, good third coinbase million this one share slightly came I talked of

venture a we investment that very it's be So that's bank. arm to -- for proving good a capital vehicle have is the

restructuring, we obviously. years, is bottlenecked further the by That's not answer area our -- still any Obviously, no. we you're existing no. restructuring other And can. do mean, can the -- plan future can are process is The to in and asking The ongoing. moment, obviously, has but the you complete area? be I this the programs, done. you On whether at

you you legally not question, bound. are by You're asking that's it. If are no, legally the bound whether

others. do can You

Maksym Mishyn

very Thank much. Exactly. you

Patricia Bueno

Maksym. you, Thank

Next question, please.

Operator

Jefferies. is Benjie from Our next question Creelan-Sandford your line now from comes Benjie, open.

Benjie Creelan-Sandford

questions morning, on Good Yes. me, please. growth, for everyone. And just lending two

First as little terms year, full of of quarter all, for flattish perhaps in a this in guiding Spain, performance guide the bit after the trends we I guess, strong cautious it's still.

is just the what Mexico. on European business? the of you're pockets the second half year impact in do I'm was specific there's that EU thinking funds the whether on forward, growth next-generation loan I second of part So could expecting? that wondering in weakness you any in slightly have growth Spain just think further the And in loan

on talk ex-cars if rest look of that of is through you in at Mexico. Mexico how on the going more year touched about and already, Thank still a little growth volume we Can shrinking basis You've you. the in consumer the lending but developing this you perhaps a see bit mix forward? year-on-year

Jaime Saenz de Tejada

increased highlighted X%, that and grew card particularly the respectively. credit Okay. at SME except the the news book. for X% midsized I'll good. as the mortgage during remaining I is And the the half the On as It quite consumer relevant all was been up, that X.X%. Spain, behavior QX take said the segment the It's CIB actually, and portfolio presentation, question. best my first What was quarter. portfolios portfolio, probably the in the I also and has during in

half year. the to And will second mark the that's be trends consumer There's the only of those this probably CIB we've be year. guidance also the think why -- the sustained for I able gave in of portfolio on full evolution. book evolution question

underlined Spain. also a you of amount the space during pretty across in at Because in that number we the effect end start massively clients As disappear. very last of drew you know, QX base to that year, a still and will is negative, and large QX portfolio, creates significant and footprint, QX but QX, of but during remember, a of as all this the particularly QX received paydowns much effect

much guidance flat. But of even we So our are that be this confidence guidance a with beat. can maintaining stronger potentially broadly clearly,

Benjie Creelan-Sandford

Okay.

Onur Genc

Benji, that is in growing Okay. XX guess growing. as On you is, side. is this is balance is But see, I one card mortgages consumer. X.X%. as for growing on same was a general, of And reason negative short growing, is, Mexico, The know, book. you're is one in you is what the to page consumer balances. referring the very presentation. actually year-over-year The say growing. The only would credit in The that stock Credit I as that one, not retail the only card the that's SME duration is the growth

such, COVID, COVID a prudent of but during terms we wanted production. also bit be fully slowed customer – to As in demand new there, obviously and we not in the was have down production our

lack production, quarter last year that of As year, to second in production last in second the a it -- up. the ramp takes half the of it time of result,

after reflection the -- So balances -- balanced while. the to the comes because a product

the As credit it said quarter-over-quarter the stock, Credit of cards, don't versus what seeing reduction numbers June. cards. year-over-year. In March in cards me. quarter-over-quarter growth growth. X.X% But is have again, in we Credit you actually the front such, the consumer, is is X.X% are have X.X% there. SMEs, growth X.X% in I you quarter-over-quarter.

product quarter generated, total growth cards, in new important cards, first seeing the quarter XX%. We very you second which that there's the are credit customer, credit board the new margins is the the with Mexico. limits, versus the linked terms is across and a we us mentioned, cards production, again, of In in for up

see implications is the the and the you coming coming, balances production So quarters. will in of the in this

very in see positive in short So we signals production. the

Patricia Bueno

Thank you, Benjie.

please. question Next

Operator

is Romero comes line question now Marta, from from America. Marta your Bank open. of next The

Marta Romero

follow-ups Thank on a I you very of much. couple have in NII Spain.

that update similar previous is running than driven the you appetite than you've better and guidance consumer guided to portfolio competitors? Your ALCO X% X%, provide say wondering year, whether lending at NII activity but an assuming much be strong so in improvement would growth or you lending. minus and your some very you're you what's please Can quarter; whether And for risk this in X% Spain well, have was more that on additions levels there in the plus competitors. QX? TLTRO I'm in on. done the could related your minus You've as

I'm wondering that capital cleaner stronger So increase whether in sheet your and appetite? risk position your you. balance Thank driving is

Jaime Saenz de Tejada

in NII Marta. Spain, as Thank could question. one-off really a the first nothing I On take that you, qualify QX. there's in I'll

of whole that that Euribor done. We is points is that news First loans in impact probably this XX-month is happened almost portfolio this Consumer volume by over. has also, clearly have mark-to-market forward, Onur in positive SME would lows QX also have There's mentioned results and quarter. presentation, one, done. books I of that two basis more mix have feel negative X.X% now all, we going growth. of the profitable. the we has re-pricing increased The could that's QX. the at very what been Euribor improvement Honor highlight quite in a Average clearly historically highlighted the are the which already been relevant. fact as and

Of the the from were QX benefited we half were requirement. the guided first able, during we We as course, meet that the have able volume year, of we in TLTRO. to

And to do contribution it's this ALCO, TLTRO expect still We NPL end fine, marginal. we June June nothing QX, in so a also positive more XXXX the at were but particularly also was to X%. minus recoveries but to of of versus slightly the QX true relevant. it from had year XXXX benefit that

clearly as highlighted we more the guidance. are is or year QX did behaving we that significant one-off last what is them. expecting. things less That's are that why of in very a reiterating Spain So highlight to had that are It saying we important were we

will feel the achieve producing. we able be we guidance that So very confident that to we are

Onur Genc

Marta, country page pages. are in I numbers these look so ones into. don't on there many which on the Spain, you know,

that very businesses bit good to very would good companies question, say, to areas quarter-over-quarter. on. seeing high give the is That is high-margin one, us, important the growing is that which a X.X%. are growing figures. the asking. these growing margin, nicely were purposeful is to commercial Very numbers, are Spain But for X.X%. X.X%. In companies, why for are Midsized Consumer selecting which one, small stock so quarter-over-quarter the are quarter very All cards, Linking reason X.X%. like is growing quarter-over-quarter, you have very you growing we credit second these quickly I to very could first saying put. you is Mortgages to that in and which So put, we you question quarter the growth.

So you at on. are high consumer growing like is in risk and areas so certain

speak I think the should here. numbers

I you cost you consumer, years reason or us profile remind and if employed, they're their reasons. appetite. that conservative whatever these On are and income or on. profile to payroll they they how prudent If the of risk would you we a nicely flow growing of past so see will that of percentage have you versus take Number with tell the us a BBVA do years, risk one, the of autonomous if have you either they're like customers, very of of to our so not cost many take that for the risk is in high this two and competitors, we

So, flow. we that into looking are income

have We perils. the

We are a franchise in Spain.

it looking also get than given. getting these XX% to why so there. are are customer, are relationship they into if we are payroll of mean, now that is for easy from us? So, more Because digitally a going they from But and loans it it. them I

portfolio convenience go click is app very, here. remind very And that X%. just default relationship money, is and we lending is of the and the is of and the little. I consumer on they The the you, that and have the So, yield the cost probability different risk what to get for around

So, we have to for optimize return. that

Patricia Bueno

Marta. you, Thank

please. question Next

Operator

Bestinver. your comes Ropero The open. next from from question Mario now is Mario, line

Mario Ropero

fee A Hi, guidance good Spain. in follow-up on question, please, everybody.

You mentioned XXXX. mid-teens in

second did first what If half, in to XX%. you were you the repeat the half, to get in

you these Is capital wanted any I processes at would one-off we same or what fee any want to in you capital, can I just So, ask follow-up. a completed, additional to the if the with buyback time? give to should yourself you. that just independent do until leeway? excess number make or decision in are will thank to the the second quarter, some like ask then be on consider to And completely delayed is

Jaime Saenz de Tejada

nothing Okay. On that as except in take I'll relevant, the first you fee remember. Spain, question, Onur.

slightly During the first. January arm and versus rest second fees the we extra asset management The did in remained trends the of some lower much get probably underlying February, And explains that's success of the in Spain. the some contribution fees, same. under the half what pretty extra

Onur Genc

you're on second I is, your question, saying, don't M&A? know other the referred to you to thing, for other Mario, that wait going you I what are thing guess,

Mario Ropero

Yes.

Sorry, mean it I that or capital, could remaining the whatever M&A it whether excess with be? can any additional decision make is you

Onur Genc

We If value for before do can another mean, independent to finish all wait we an it. there these and driven don't means opportunity, we decisions I are if we No, creation. to have by Okay. the is do something do it, thing. it's

relation in fact might we things want no has have excess was M&A, we do on all can for wait M&A. things. we other the for M&A, view, But to is don't that we do So, clear to I happen before to my in what very which capital

as so well, naive. As not I is said it the There or not. whether an capital But from having decision on. before M&A should we some convenience and sense have are you capital benefits make

finance to you ways a can sure deal, that If find deal. I'm great you have

then six been do as So, not project to alternatives have that to does have program each to make the capital doesn't And with have is share compete an deployment that And the other. no, buyback programs. the the that deployment, is find deal. if we money that's one. to mean, M&A. make to opportunity don't future, the I we it. we opportunity, use is is before, single If every competition sense. this another other the we'll find might make we for motivation somehow saying have fact we in in sense, Otherwise, months capital nine there capital sure reasonable we mentioned with for this that now in cannot it. if What you look us project the we to The the spend then They into best has I'm create way finance excess

Mario Ropero

you. Thank

Patricia Bueno

you, Mario. Thank

please. question Next

Operator

Our from your line next question now Stefan open. is Citigroup. comes Nedialkov from Stefan,

Stefan Nedialkov

all here. welcome way, for best little your you the questions, Jaime, the couple I my and dropped of new a as may role Head bit. By Thank guys. morning the of if and to good Finance. in well A line

tell number question one question. So, like. if me ask check that having a later repeating I'm to not can Mexico. said you I that, with But on

of It Mexico. plays You seem year. that seems the NIM of for overall to in volumes rest implicitly in like affects the be stable and loan card guiding consumer the lending; how mix a to margins credit part terms

spreads, early of for say. upside is was really what sensitivity see a It the saying bit XXXX? isn't Mexican stable to your to to to So, remaining that XXXX what with be you be may seem there curious and little XXXX. just for until limited outlook is I NII rate period much

The how full NII it our to competition, going to However, underlying to year? next will cards, of understanding heading consumer for competition give is into some lending, color when if really is going develop you how Mexican SMEs be so say, credit the forward. can just on It evolving. comes

question second The on is digital.

here. may, to digital How overall are your payments, when quick actually you ROT to numbers digital, mostly target? penetration raised if with penetration, fees? are it give to terms XX, fees channels. measure question Thank going talking you us digital but to At market guys a value-added XX%. are I we mobile digital, contribution good very what tradition of XX% as fees any and much can keep about and on are how that comes is digital actual You the metrics for you only obviously I'm going other currently an the digital give your Day posting metrics Investor the not can well? And in of via November And you. bonus which break Wondering the on

Jaime Saenz de Tejada

you, Thank Stefan.

first quarter grown mainly mix Retail go nicely. because are because in in in On portfolios. about customer we to are pick talking production And actually of the very seeing in products. has the we very that the margins those actually, I the expecting half. up the high-margin second growing nice Mexico, second you slightly up more one, I'm to was

the to margin. fact expect high come So that pickup XXXX, effect, I given due slight for for with in the positioning But don't doing extremely some that said, they you're I a better. margins as mix but would And guidance On with I'm we and provide from in competitive asking have one we what about on. perspective. so happy yet, been Mexico, competitive XXXX, even

XX but lending Our lending grown total year, even after share market has year, the market in is basis year-over-year year points number last share.

We credit are share growing market card. in

We is are gaining and overall you in gaining Mexico. said, points. here XX in portfolio, which credit market market well. lending now product And share increase gain Commercial, market I XX.X% general, by as share up, public XXX market share, mean, which in to important we basis share a doing Year-over-year basis as are has points. is know, we wanted cards, sector I gone really share. very market

wonderful have We bank a in Mexico.

other some the As BBVA. in I did covering would you, are I in times, previous mention encourage calls you

meet a teams time, the If go you go and our wonderful It's have that. you to Mexico, if there. please bank,

talent. best the have We

we We have clearly have share And single best NPS the year. by NPS, best the gaining far. been every market

we doing well. extremely So are

as So I positive well. for made a XXXX

Let me dive deep more. now

digital generating wherever. the I fee. it's tell of The activity accounting up what the the in up going The in we channels. entry the daily at don't that entry the digital of can do daily customer. the the transactions. day, because customer and the share it been transactions, transaction, all is account thing When We look customer contribution generating call has of the transaction the you only accounting into can On you tag end the

accounting me six entry. the up. XXXX, balance an checking example, But of, accounting transactions create the for been has other let entry have share number just going generating That total it's your like it transaction, XX%. transactions, So the and the share me, was of that branches, front XXXX In because so it's in of XX%. digital, become digital in months center call I has in It on, generating XXX channels, first All doesn't not an XX% accounting if entry was ATMs, XX% channels, digital. it. it

entries, So going it been as dramatically. up tying they specifically And accounting of those fees, also has generate generate transactions, not again, fees. to I'm some it they but

as very, sharing with in you can competitively you percentages see, far these And the from sales the best have Day, finalized on time put banking time, give digital of to obviously presentation. tangible a in we think there equity digital we clearly So backup one business. the yes, do banks table our that for evolution. to our in target going of But positive as will sure. out at in using can terms them very of return are the penetration find something Investor you the are we Digital it. I not Are of we view, they on that

Patricia Bueno

Stefan. you, Thank

Next?

Stefan Nedialkov

Thanks. Great.

Operator

comes open. from is your Credit Our next Pamela, Pamela question Suisse. from Zuluaga now line

Pamela Zuluaga

my for and you thank questions. Hello, A morning questions. of good couple taking

pricing new that So basis that XXX were mentioning you its on guidance, imply points. customers further you gave the What provisions to of there the Is earlier? of that does in any talked terms guidance we've overlay of release you -- may, that potential upside sorry, is, And us the about you maybe last. release differentiation actually one then one the Another Could the achieved? price? I action an if market margins. please of on example give versus market

saying done were can us almost Thank the you. Basel you that from impact but some You maybe on Basel guidance you're IV? with III, give

Onur Genc

last Pamela, that, question. get please? couldn't we the you repeat Can

Pamela Zuluaga

Yes.

Sorry, can hear me? you

Onur Genc

Yes.

yes. Now

Pamela Zuluaga

with mentioned I done Basel that saying you you're III. was Yes, almost Yes.

was So some you IV? impact you expect guidance from give that the Basel us wondering I on maybe can if

Onur Genc

Okay.

On basis the limited that to are very is giving that using to we going the be none overlay points, are first to guidance we one, in XXX that you.

There if that, but from some XXXX. have is improve probably on. we Our be in releases continue that so things again, to might and would that expectation

releases in from that. the any portfolios see, to especially we have Spain, until the development of We do

generate please what mid-corporate alert exactly than return. a to the question, has asking market thing if deployed for is, so on. has the that doing doing you me. the call On especially and the a the were what different you All to capital that that's If were we pricing, be not we above to are SMEs. The client

regulatory we new on it, had of loans. So a we which but system, upgraded it, is looking we have basically client the into every capital return now single

the So if client. returns a create you're giving the have you loan to for it for

away. choose might right to the invest able might return create a you be You client to into because not

exception to the create after yes, manage take pool industry. a so we on client exception at that than profitable it. have these have that to the we how but still this the do think return is from in pools, levels. call certain that I what in we time, we diligence rest you have process That's then pools, that those So you better while, invest, and the you of exception that And it's capital have the

is Basel are because, a of and there. pays as best the On every we the the the one know, we bank the going saying ones Nobody but presentation. keep little you good there it's out quarter, bubble IV, this answer Again, to density much attention are too out be risk in we probably,

output from IV, have affected BBVA. floor. be key Output no the is of which to floor will impact going impact Basel not are we So on

that As lowest output the are be -- are no from we affected Basel one because our estimations staff initial coming a IV, the the of there result, of from impact going to floor.

Unidentified Analyst

you. Thank

Patricia Bueno

Next please. question

Operator

open. from is from Andrea, your next Andrea comes question Mediobanca. The line Filtri now

Andrea Filtri

quality, Thank better to if bit usage it, management the point overlay is there indicated but come you you. signs of as parts. Two clearly could you the helpful. of I you asset either in ask do provisions, no would quality of One mechanics deterioration release a XXXX, provisions to just allocate explain understand have the one At or very on what it envisage of constraints auditors terms so On to and wanted far. in the and macro you on be and questions. capital. both the

kind translated was into get. is just next are X% will start more beyond or this the would negative of X% your guidance, visibility buyback the to you're after shareholders before finally, growth today's you side, didn't if giving reaction you. or as capital some the organic for in question the QX kind to of what this What juice on if that And the confirming growth? On got in that understand NII to actually to actually the of coming be Martha steps to year? I the is Thank expecting if saying NII market inorganic start Spain Spanish price I there

Onur Genc

The Martha’s question, confirming. Andrea. Yes, we are

you the and that money the the if all our audit On have spent other under the is us regulation life driven. good overlay. what or of our two as an is to we of release questions, part overlay, the including with you it. uncertainty of signs daily a for, tells overlay that of stakeholders, management is quality, obviously, we have. is analyze asset obviously for have usage full the everything, that then well. obviously, regulation not the the future, will auditors control we what And see when realized, being That's And this The

On it's I mean coming? you or by capital the there the are to buyback if of shareholders. asking, juice return know but capital, back is juice, you more what share don't

are after organic one our of before, mentioned we XX.XX the capacity. buyback, we generation the capital now possible, As XX.XX, share the

have excess operate and We capital, like will don't to we capital. structurally with excess

capital target. clear to a subject have Anything be we We that deployment will decisions. above

future. sure If have Will M&A, call keep we the M&A. and again, might coming and were But capital be There future reserved fourth you that ECB. hopefully, The the the to short, the to process. M&A, whole cut so you're in for project quarter. future in the it in that the the certainty something again, the yesterday, share thing. Actually, the -- once buyback, the we view project make about on can sense. we make XX% in we on. documentation now there for I'm hoping the are will give question. We my were long as story On expecting, previous we even raise targeted program, don't were the always full the with application waiting the back we sense, the don't sent as more good, initiated the the if the capital start asking on has XX%, this and not project we first money if doesn't is capital the To that the

market we So six initiated market to the to the have because That to market, view. great regulation, message months in that, complete depends one each price, has have, the great, the which a beats share buyback It alternative, and as capital alternatives if else nothing each share compete whole do might will will -- deployment more buyback we After abuse what even capital take of thing, the the more. alternatives. we we is other. are even my to a nine regulation. deployment, Depending do on share we on with alternative

to the I past deliver make few and we with We sold compete value years they disciplined are this So the that to hope each USA. the have obviously, that sure have very best we we all value-based shareholders. approach. shown on we in other capital

don't we was, for how that know I asset. that difficult many from camp. same to natural see perspective, banks was, better a that that You value there other was and decision that but have in it do owner

delivers and this that to on will be be. disciplined very best Whatever approach, we'll are using capital. continue we return, We the

Patricia Bueno

Thank afraid are running I'm of time. we Well, you, Andrea. out

one last please. just question, So,

Onur Genc

going it's is, question you, you. be question, the it's the That's Whatever Jaime. to so last

Operator

from Britta, line comes Research. Our Schmidt question open. from is your final now Autonomous Britta

Britta Schmidt

Thanks. actually Hi, for answered. have you. there. easy questions it I make My been

Onur Genc

answer. Already

maybe one take more. So,

Jaime Saenz de Tejada

very no, was no, nice very no, no. Don't take Brita, me. -- to nice that So Brita to way. that was me.

Now asked I've Turkey, during we speech. issues that it guidance some I that to for the seems repeat have been because the microphone, my audio had

XXXX. So, about I talked PL loan growth for

an growth expect currency and results, expect we then now portfolio, points. bias loan at You reiterated XXX year continue that decreasing. we on now to upward PL of should But with And the foreign below basis the cost then the end mid-teens.

Onur Genc

could didn't final front of in about to this And talking we get XXX, for previous quarter the asset but maybe net have guidance but change have are which this the group high-single-digit improvement In thing hope which me we the add, improving because to one growth. that quality Spain, previous XXX is, from into it's I page, to wonderful And we mid-teens put in attract quarter fees I it, from version. presentation as our guidance improving XXX. and to well, everywhere is commissions versus

are We our expenses X%. minus to improving guidance

improving quality Spain, We less XX than guidance are bps. our asset in

are our improving Mexico, there. positive are We asset NII in quality guidance numbers confirming biased we and with

more overall, tags green. risk is of are South have And all in red them I green of We track guidance But Turkey. are America or these versions into and the cost flat. less improving and

And else guidance we of No? providing So, your anything year. the rest good We close? the Patricia. on for side, are

Patricia Bueno

call. participating of Yes. Thank you for you very this in much all

of Let answer team that, available you to may be any course, me have. remind the you questions IR entire will

want to So if you Onur, close?

Onur Genc

call. And the want He I ones everyone have Jaime. a again, want dearly. And summer. not you yet, thanking great I by vacations be for have thank to Stay to your on missed close taken will once if the safe.

so you thank So much.

Banco Bilbao Vizcaya Argentaria (BBVA) 30 Jul 212021 Q2 Earnings call transcript