BBVA - Earnings call transcript Q3 2021 | Banco Bilbao Vizcaya Argentaria, S.A.

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Patricia Bueno

Good morning, everyone. Welcome to the BBVA Third Quarter ’21 Results presentation.

Here with me today is Onur Genc, Chief Executive Officer of the group; and Rafael Salinas BBVA’s Chief Financial Officer.

As in previous quarters, Onur will start with the presentation of group results, and then Rafa will review the business areas. Then we will move straightforward to the live Q&A session. turn to will with to I presentation. the now it Onur over begin And

Onur Genc

Welcome, you and third everyone. morning, Good thank audio quarter for webcast. results BBVA's joining

here glad As have also said, his very Patricia Rafa earnings I'm Salinas today presentation. in first to

gentle be first his It's new as today. group's CFO. please So the

formerly Chief in the Officer, know, more with you As our than Rafa group. was Risk XX experience years

to meetings. Rafa these welcome So

me Let jump it. into

number Slide me with Let X. start

our net the curve see same of implies On the X.X period versus side the upward the its figure slide, of here, in XX% quarter. third EUR the profit. can you attributable last trend. left-hand the to billion like year. continues now increase a This It performance I up

attributable one X.X%. numbers, EUR BBVA, share As compared to X.XX. the the of bringing per second ever net also they also These profit quarter reported represent to quarterly year, of results highest earnings by our grows this

all Let Spain, me previous exclude or affect on that as this restructuring nonrecurring the page note baseline, which comparison the here which quarters, sale a in the the impact program powerful capital basis our quarter. this no or U.S. graph side very the these quarter, the The in the impacts PNC business shows figures to impacts, the of affect points obviously, purposes, the again, of figure. generation CETX slide capital on XX.XX%, by in reinforced XX for strength right-hand strong of the bringing

to shares. clearly of all, buyback the EUR and XX our date. level will forma, plans XX share it of Bank Lastly, high a size plan authorized billion, requirements. you buyback The of buyback still at -- it of deduct to CETX up minimum our with share above target very happy report XX.XX%, pro that in the of has X.X one change at remain XX% European This Central I'm bottom largest very the our billion, page, maximum Europe is a if EUR this considering to well of X.X share

shareholder Going and number creation to X, returns. Slide value

value tangible X per at closed a book increase dividends XX.X% Our strong share year-over-year. of plus XX,

determined per Tangible very is strong view. it XX.X% all put a we presentations. value double-digit figure continuous ROTE. book of metrics, in are Also on figure our share, in improvement right very We the this ROE noteworthy, in profitability that and our upfront

figures XX.X% and excess see, can top number capital the ROTE. after X, Slide well. quarter, you the quickly. over accumulated messages As strong that very Despite here XX.X% U.S. sale, we as very the

explained revenue in highlight strong of fee the evolution. the performance of of across outstanding quarter, This clear my First, acceleration core the the and income is view, by NII board. the the

our efficiency Second, our wide peers well. improving on as margin European income ratio cost with a leading versus

trend. cost its risk Third, continued decreasing of

Fourth, with. a obsessed buyback, it capital as just in are the areas we positive about after generation second, very progress will in growth, mentioned. ratio. We excellent trends lastly, figures have key strategic buffer, and outstanding in And the in customer that quarter something talk strong the we there. very do CETX share of new the Even strong our a strategy, ample we

Slide another pillars We in again one focusing the P&L third will second, our of over customers, I number on a quarter third year. digital, and are profitably BBVA, summarize in comparison finance outperforming the sustainable last our core by growing quarter, of X, new helped of year-over-year explain which commitments, in differentiator the with terms with clear strategy. for

main of impairments, Also the in you comparison excellent very the strong right, the into which to all, results, Again, reported that increase I Spain, attributable evolution even would X.X%, mentioned, the profit considering breakdown the out with again, number and one left, above first income revenues, period income the lines, All affects even P&L the light quarter of the previous in with the items, figures profit of EUR of solid an leading is, with identify in profit in coupled X excluding quarter-over-quarter in net compared in quarter, EUR first seasonality clear, XX%. improving of the months year, X the X supported some quarter. quarterly from including from X.X X.X core months number but last third the nonrecurring is operating highlight third X, as of column evolution, Slide revenues of quarter billion. attributable the gross clear growth the evolution second positive and column solid very especially very again, EUR X.X% by income can billion, also for respectively. billion, lower all. the previous effect, the again and The clearly more X.X% the strong I and the view, significantly terms to Slide Net regarding X.X same versus XXXX stands operating quarter. my year. what highlights

activity throughout deep driven income the increase which improvements. of net increased because last been trying have you I will next previous this recovery the on Again, the year versus versus explain last a year, quarter. interest Our The quarter. which very to very calls, has recovery, page to important. more a it it's margin by accelerated X.X% quarterly and and with in think this nicely dive quarter, bit the already previous I in I started significant

evolution We same page, the our commissions. fees evolution positive extraordinary net Next, across board on the of and this in all see of geographies.

last a this. decline quarter. to period is you number the year. figure reported know, very fee this Net of income quarterly is happy with highest So same in is increased third number in over years. diverse I'm all On of gross quarter is past X.X% it this the solid Page income saving versus strong I again, the different page as continues all, everywhere here, year-over-year, very showing to that XX% before. All some -- slight but because and of versions in seasonality. the X, you seasonality a in the This is contributing growth income performance this was There

wanted the quarter, we -- NII maybe quarters. So in shed also to here, coming some light for reveal acceleration the the the in

the business retail loan as especially on activity when especially is, in loan new it is wholesale, can It's growing In X.X% again, see but go again, especially into the discuss good you and that in we can we portfolios, Activity segments, production the Mexico both recovery, The the growth news the retail and in translated higher-margin continues. page, again page. increase being So is the profitable towards a aggregate, through and strong in year on in Spain, positive, evolution in biased. the bias Turkey, retail in portfolios. year-to-date countries. on mix more higher-margin

first Additionally, have you with to year-over-year year, in slide, of the aligned XX, is are to the been again in months you Spain Costs stabilization largely Slide see number beginning guiding year. is evolution net versus the important X the improvements All clearly since guidance of of growing clear in in costs. we in can significant you and on and side been led last also we which in the have that spreads nonexistent, providing you XXXX compensation, which Mexico, remember, very the roles certain the back to variable of the was due the as the especially to in us, and we normalization low the might quarters. the by curve. page, combined, quarter-over-quarter. our interest improvements important, COVID, right-hand and of very Turkey, in has are as for normalizing It in in affected NII so to in Spain this previous even income good Turkey, Mexico going in management. X.X% center pricing

so than the the increase in in is the total expenses blended of slightly the Excluding base variable have all, -- average the increased inflation. XXXX, said, That first XX same would past baseline, X some if X cost effect, our footprint XXXX despite effect inflation costs time obviously, a you inflation X.X% above in much and mentioned aggregating years inflation compensation months above X.X%, considering normalized lower months referring increased the a the period. X.X% rate total above But X I versus more months the over since as take then X years, as frame XX.X% of in the slightly was to.

quarter, the slide, of the side pre-COVID the parameters, are our closing levels. explained points. basis XXXX and year. lowest for This underlying in you even again, in very With strong. of European more the of basis points and more can but the than the compared mainly we peers, now versus importantly, to points Total the performance, basis that comparing risk of very and positively the cost risk XXXX improve, the levels decrease, points XX the first X Slide see XXX our number months positive now risk strong quarter the upgrading efficiency with quarter, continues aligned underlying down continue is XX, positive we improving all the underlying better even seeing, of are XXXX, risk, today. evolution in we points Year-to-date, now very XXX ratio the as, XX basis our actually by are are in second coming XXX given On it guidance the signals right-hand XX.X% and indicators. basis parameters impairments to with to

year basis the We expect close group below the XXX for to points.

Turkey. in to in entries, segment, decrease in especially indicators quality by explained ratio reduced at the the coverage closed of less the X%, positive Slide on and portfolio significant see Regarding our this the on the XX NPL due And capital. loan to you but the behavior, number in Spain ratio asset balance. also quarter wholesale XX%, NPL recoveries rest so page, a again, aforementioned lastly, the

a again XX generation, highlight above of CETX requirement SREP September. of basis ratio is well the generation me leading of to XX X points XX. This in the Let quarter, capital our as ratio in XX strong

the we requirements of our know, As all the you have one In waterfall, out see can peer development. among you there group. SREP the lowest

dividend that impact lastly, a and basis points. growth. from credit update, basis the bucket basis of everything positive else. XX interest the minority ATX accrual market-related by impacts, generation, points, of XX And results parameters explained basis Our minus coming X risk minus RWA's X coupon, points others points, includes and

initiatives. for do on Slide year. on regulatory Lastly, the XX let strategic remainder number our of me expect of this note anything evolution the that we not impacts material

We continue to exceptionally do well.

very total reaching the same trend but period of versus And products it a digital in traditional of page, which on high-level digitally, it's acquisition the graph building side the this customer increase more end-to-end. processes. be to name, of on to the represents a customers. new very XX% XX% customers. new is ago. focus acquired like proven in and getting already and illustrates important It growing the differential left-hand year new End-to-end, has The Our customers, customers

quarter customer best proposition this with in growth for in might once again marks, So in digital reward an bank mindset, now. we week, a in a as record being value based Spain. last our high years view as continue we Spain, of to acquisition. launched rewarded a it's customer digital it, Italy, seen in this all-time the With beat distinctive experience meeting you our being on app in differential know, app in fully you row our And Europe X have our

as So very on there helping developments of digital sales. capabilities right-hand that well. And side very, see you on are the the also our page, good us

the is sales of digital in first of our year, sales. sales close in unit of to X terms that see the months XX% You now

units we -- trendsetters of are we want the of this of terms to want more is XX% value, in done close pioneer disruptive Slide a in we actually in as have is digitalization, it's to to trend. number This sales. pioneer the relative world. sustainability. huge In also the explosive XX, sold, We representation development -- it's total which than economic

at the view, sustainable forefront commitments. industry, We in the in are finance our of

well. doubled made by We achieve the that target of with XXXX. financing recently EUR have great strides sustainable We as XXX billion one goal our to on outpaced

that risk for but big channeled we in And all of our On think the to tapping September, are we into continue the that we banks. of launch world, it's opportunity be one, quarter. already for solutions. the potential by transition X As XX future. you that to also billion, we numbers I'm giving a EUR clients a volume because to managed that is EUR more billion opportunity innovation this helping a sustainable have these an incremental do

side right-hand we recently have On the calculators. extended the footprint carbon the of page,

we application XXXX, the the BBVA developed to already of to it first All for in bank individuals. companies mobile offer included solution the app. now this through extended in was an

you March, Last our zero phaseout XXXX. In remember. addition, might our commitment plan, we coal continue to advancing we net announced in

We selected COX XXXX are decarbonization now advancing that by goals industries. setting in intensive

our COPXX. week on those sharing next market in be commitments will We the with

Finally, on number XX. Page

we ready during share the in to up happy an be of you Europe XX As XX% EUR to mentioned one proceed are that months. before, for very billion buybacks with max, largest with of tranches of maximum to shares X.X I'm several of executed period share to the already in amount

We execution the and will That Day. due a will the and for time. conditions the turn X Rafa. terms EUR executing the the it of program effective before we X.X will Investor amount said, business I first estimate start start to be an We announced months, billion. areas, Rafa? by tranche after will in for to And specific now take start X of

Rafael Salinas

as increased rate, growth production, well X.X% X.X%, A has a of portfolios. very mortgages Good on strong strong while lower strong performance Thank and Starting in a consumer, the much, leverage corporate seeing thanks segments. on X.X%, profitable by Loans a where share XX. the we the on Spain Onur. we everyone. morning, driven year-on-year, continue bit devaluated CIB the market you are most with in offsetting new by to Slide SMEs at gaining loan that

significantly first and performance, X.X%, of the insurance versus EUR significant credit XX.X% an by strong global XX%, despite months of figures the supported XXXX by significant net months to fee X activity banking asset 'XX. and expenses the growth income, cards, the X.X% the and mainly revenue robust increase efficiency by in of in low strong unit decreasing the in versus on the Spain the by recovery market delivered P&L XXXX. XX.X% management comparing fees thanks a back billion, in performance of our continued services, at group and of in year-on-year, core outstanding And control up COVID, growing ratio exceptional a our led resulting trading year, profit a improvement by an to driven to X.X% impacted in with first 'XX in X Moving growth, last pre-provision efforts X.X December in cost

For the of same X the have in foresee expenses XXXX, at that year. decrease we rate first we the seen to months the whole

attributable in to lead the cost the cost provision for underlying the points net at X.X the months profit is of basis performance XX at make also Additionally, by that This X to good and believe of attributable net the group billion. risk. all, around mainly that year, COVID-related profit points risk that reduction good impacted and we of front-loading significant with the of of by portfolio positively months of did XXXX. to explained first basis All us we year better-than-expected impairments, stand of trends the X very in will XX EUR end a results

XX. Moving Slide Mexico, to

credit X.X% while BBVA commercial territory. Thanks especially segments of in mortgages, growth activity, a into also year-to-date, retail and and cards portfolio quarter-on-quarter, segments, loan rates. up Looking stand Mexico, denomination X.X% positive year-to-date in terms to grew shown by the the X.X% achieving SME,

a to mid-single-digit continue expect loan growth. we XXXX, For

deposits and on reduce by spreads, new loans thanks also with customer Mexico costs, of last a net XX% are in production as to in BBVA and by funding mainly an both costs NII year-to-date X.X% year, increased growth, the customer reduction impairments. to by improving wholesale of both better improving to buyers segments. solid driven to NII of profit our revenues improvement terms In increased excellent funding of X.X%, to loan loan attributable and revenues effort due by significant Core P&L, and driven September retail mix favored lower fees. yield core compared

a [indiscernible]. X.X% on feel expenses digits. mainly mid-single to due certain strong NII environment activity at and increasing the inflation year-to-date, higher continued performance, of increased Fees activity showing XX.X% have back of XXXX, recovery. For higher to we Expenses by and the on to grow confident a normalization due

mentioned now side, points before, our of months points. cost lead risk, very retail at to September, of which year. XXX improvement as to X stand segments of levels below As expect the Good at wholesale a we end further XX.X%. We of risk XXX asset cost the remained the quality the first in on basis at basis the cost-to-income dynamics XXXX both and on in strong

on Turning XX. Slide

to our in this above loan terms currency retail with with to growth both the In we close this strategy X.X% grew line while loans quarter-on-quarter. strong, the expect remained portfolio in in by XX% loan double-digit TL continued activity, than of In foreign segment. full more TL the And and segments, loan in third TL quarter, commercial XX% growth grow decreasing in sense, year-on-year, year. XX%

in from improvement the of in growth, X excellent the NII supported P&L, grew the year performance portfolio trend of trading TL income. improve a to in and net the of by grew by to -- increase. terms gross as thanks the linkers X.X%, XX.X%, in strong fees customer months and TL by income and In spread expectation significantly continues the inflation contribution higher CPI Net

trend a We grew fourth to fees X growth across board. XX% the with commission single-digit with in improving nearly first and continue in the by ending year-on-year Net the the months NII the year of XXXX expect quarter, increase. high

Impairment X significantly exceeding better of resulting portfolio, in first inflation and remains personnel expectation. year-on-year, months of by in grew efficiency cost expenses. by the expenses ratio XX-month The is and TL by depreciation higher of points due XX.X% XX.X, negatively declined a the to While trends singular underlying in of basis XX above risk the strong average impacted at year wholesale XX.X%. anyhow recoveries the the

thanks XX.X% a America, basis XXX of X.X% first attributable a the in of up And profit [euros]. of in As to X X.X% now growth segment. In X.X% EUR XX% million up commercial reduction favored Argentina the to current and the year-on-year with results attributable first the high year-on-year the impairments. profit the XX% impairments, year, is expect net with XX.X% finally, delivered by risk And growth segment, and now And and all, in strong This our a months cost Colombia, core profit by in year by growth in Net a for increased XX are million and and profit set Slide increased inflation of in we XX%, points. to quarter X.X% constant is end retail first both attributable we growth the euros. year-on-year XX. lower All Onur, million terms retail guidance, income Pre-provision a positive XXX up EUR after months the months. remarks. of year, year, to, the In around profit improving first added Peru, in XX positive the strong X attributable in EUR X X performance revenues, of net South and months both to up conditions. loan drove strong result, in commercial to a at in economic after high loan adjustment. of even final improving positive finally, net back by minus to thanks

Onur Genc

Thank you, Rafa.

in quarterly driven risk solid let's conclusion revenues quick, underlying results excellent jump all-time the results, high into by strong So view, our performance. questions, core in but very conclusion, in and

in continue point, our strategy. to advance second The we

increasing more this are also an clients. all-time capabilities one XX% ago. on reported quarter, acquire have leading in acquisition, We our to digital our time and customer levering In year-over-year serve new record customers, better digital we but

we continue transition to future. sustainable commitment more our towards with sustainability, clients helping a Third, our

grow the generation finally, the We our very XXXX if solid recently have remember, capital basis already the increase points, distributions, XX in the strength the to programs a a capital share of you including reaching doubled shareholder And largest we EUR of level allows to seen and outpacing have buyback pledge billion XX in quarter, topic. on launch of us that one Europe. profitably channeled new

you also join all November would remind Finally, us. to Investor we expecting are Day I on XX, of you the

the about you Patricia? for Investor Relations. if out the Patricia share details But to back on please moderating the and day, strategy, goals. any are future to this, our We help Q&A. about Patricia more going planning to need our In reach

Patricia Bueno

you, Thank Yes. Onur.

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

So first question, please.

Operator

comes [Operator Instructions] question from Our first Riquel Francisco from Alantra.

Francisco Riquel

start with quarter-on-quarter loan me flattish book. X% in NII, with a growth Mexico, Let

today. on see the loan it going question you these wonder is still of appetite you loan growth in I growth NII what despite year. cost the problems, guidance please and is comment days, currency update macro I the on is the forward. And and on the and So on loan CETX trends, there your if can the ALCO driving negligible. for growth. hikes freight this second sensitivity, portfolio, risk that can a please Also, focus the of mid-single-digit mix, the I also all the -- is the country is Turkey, if these markets elaborate the which and on growth few And if fast provisions risk the see the and currency impact the

So on fully it the you're you please hedged, risk. can currency elaborate seems that if

Onur Genc

Francisco. improvement. In and very Thank also both growth you, Mexico, It's activity quickly. margin

the page. it growth quarter-over-quarter grown that loan retail in is of And the segments have on here balances, have quarter-over-quarter. you X.X% you figures We consumer catching year-over-year all see the to But up. in our shown terms

number see you much presentation, would the negative. was quarter's If into quarterly last that, look you that

because COVID, back during Now coming we stopped producing. are we

result, immediately credit have growing you you into X%. Overall stock activity, the started we we quarter-over-quarter in back see is balances, up. shown spread gets it X.X%. that And going production retail producing, customer Now balances, the as into and loan a retail growth the loan stock cards and

was second X quarter The XX%.

improving Now that in the [XX.XX%], peso, Mexican obviously and spread helps. is

improvement. the both the spread and So growth activity

have we But Turkey, have fast, planning growth our is before. we yes. said growing in loan in conservative it general, you book as we all -- actually are Regarding know, especially very

more side. to on our FX We balances risks FX concentrated planning the do are in the that are book. the reduce We think

loan X come this we years, have The FX the trend is continued. over -- continues been last book continuously actually, but down. a year So to this

documentation the You well. see in it as

XX% is September FX. decline FX year-over-year on Our year-over-year, book

very TL, see on we as on we So behavior, of as FX, risk behaving trend we normally, observing. conservative be client are we see are the of the that good portfolios that's to but cost going

We also. TL will book grow in the

We On That's P&L hedged the were why prudent sensitivity XX% Turkey, you our is XXX% X% in capital lira. decision. devaluation to -- question the one, be the to it the sensitivity. turned further that and of of and see always hedged. our out hedging on of Turkish devaluation is right

turned So prudent we to proper that were we on be and out decision.

Operator

next from from question comes Our Toms Benjamin RBC.

Benjamin Toms

quarter in risk, know The first cost be place? will something on And I operate us said risk geographies in of market but you one I year secondly, could also please. much cost And your X.X presumably of bps a some X.X say you think how lower-than-expected to color us risk. on like it longer-term Italy of be XXX It's in the of of cost another through EUR you overlay you Can you remains leader billion. this remind just what that impairment you was in. previously, your to And billion can cycle. be next below are? significantly the like give year, just that below aspirations EUR

digital country? this existing leader Is in aspirations potentially in be in do to strategy general? be does concept in So your banks have you terms Or you that a the with market how to Italy? own fit the acquire to of

Onur Genc

you, Okay. Thank Benjamin.

for COVID, numbers T.he seeing about about talked because you provision and we a of release that are because that we -- beginning reserved of topic a want of we first touching to this of buffer the is previous before of we that kind Spain, see good of that calls buffer part since any built not those. are those the in part or today XXXX big the buffer On

that than risk guidance XX we with that cost is the quarter now. of And Our The XXX basis robust. third is profile you, annualized, which that risk I the is underlying of see quite less year-to-date risk. obviously, reason cost the for is shared points

it's underlying that. even better than If look you into the parameters,

know, again, underline our all positions So that less I see. are that's we once -- than that not are it's releasing see provision buffers underlying want quite and we you to Spain. conservative mostly position. as COVID to But reserved management, would the had that we built why We XXX, maintain We we would the and for that in we bank. we from are upgrading to evolution during Spain, risk the guidance like given in prudent

our different the structure. We business, Italy, that we saying market a is you the share in one Regarding we We traditional and are is a that. leaders, this do. cost a that our are position? do good traditional position, typically in banking being do. core But important scale very large, business leaders digital different that important. are is leading why having business market What think in having That's market like we structure. that a we cost It's pure model, is

this You're that asking our goals in first the have on one. We don't and that. a goal of becoming

the long in I And structure value are best years cost having an the value term we proposition, country think are we have we much versus amazing mobile a the the into that, you, lower the of it that So goal another structure incumbents. app X with mentioned creating in Europe. that an create will to with with in value a are again, banking do capability amazing row, by than we We much great cost digital lower, traditional we take itself. developed Why -- that wouldn't model?

are great is the satisfaction. less only project this qualified very working goal view. in customer that we the in X one, one there's for the And the first terms Their is sure number team a that project. really I'm goal year very year, on this on scale serious of relevant, and this first for on our make So our to of

scale. to the sake to And to of certain in of time terms up the have build destroy We value for are going customer numbers. just a figure we not

on whatever coming have is we goal If else. see curve that the launched that only year for we terms that, then only a we of customer is their that first sure to our So in numbers on that better clearly and can expectations. achieve the anyone and in And acceleration than we make new so the it's push years. we week is acquisition can the beating

Operator

next Our JPMorgan. Peterzens from from comes question Sofie

Sofie Peterzens

Sofie from JPMorgan.

So one. related previous my first to question would be the

kind chose So why bank key just What expanding in would should excess if further that's potentially second Europe And case, on capital. which about kind then not digital can we how discuss Italy be Italy? on And you you of for the elsewhere why my considerations your choosing were countries of in you and question digital European the And the penetration would consider? another country? think side?

more buybacks XX% we FX XX.X% buyback, growth? well. as a strong. utilized? the target previous more share it final the my How the organic capital we And about of then And Even on question, your core off? FX follow-up question share deployment hedging? is excess think kind Tier should think much M&A, How about the than on you How do X, it? Will position after XX%. fully be equity once spend roll do hedges you Your favorite extremely just XX% annually which question of a above Turkey when have of is should capital share is well a

Onur Genc

of further how selection the criteria X growth; of Italy the payment but of So quickly key growth. transactions; transaction We and take one country. a three, transaction a Italian these Plus, looked growth them, digitalization digit digits going double growth, card electronic clearly number into in are Italy even that ones high double even the clearly that banking X number showing parameters, did the e-commerce this continue reducing a the several all conviction there's but cash more, in clear all numbers double acceleration -- was two, government that momentum mobile way. the are double-digit metrics. in large rate economy, which the to metrics, from growing basically top on it and is the digit on policymakers In and notion we see gave of European is us our or these country,

key we rush. on? in value but clearly before criteria. countries So are that not and What next? was show Italy can and we create about the we a that need We consider other Possible so in Other countries. to

that that, sure only in Italy But When not whole the in we country, a year, country. for the test Italy. we the consider. in The bank first are we Italy. for focus achieve on If making the focused are a we are Italian will we we team, are consumers. can in then is it's a digital best So

and we the one there for experience. we term. based the Italian done But we next the results long going to from be are get the that clearly committed So are be will on

On more will Day. Investor the the this in excess capital, on we discuss

we capital nothing don't a So mean, to few is we We Investor doing. the we new, capital. I more excess be On I correlate. multiple the to to excess Day, we said things, growth invest discussion which before, and profitable as what the mentioned distributions, don't to but times going shareholder are on fair. let's M&A, link are reserve M&A

sense, of a makes that mindset the it. we this sense. not think That's so We a about you If lot project. do are is the capital make has a great even capital in is have to that project one. can to excess can from we M&A. an M&A get not market I we if you it have It assure how

or So into excess pressured doing something squeezed we just capital. we not feel are have because

look The to to as continue obviously, but clear project it out come has We value-creating project. make a sense. has to into opportunities,

Rafa, On that want do comment to you the FX on hedges, one?

Rafael Salinas

first on the of to And of months of And clearly, we capital on hedge at profit, FX using capital the XX the the different of the terms hedging. example, million. of cost I in day, is the the the in curve we XX% of only we the rule for those hedges, at situation In end the to the have excess in for the of of tend of is currencies. that in forward the and XX% position. EUR for we hedging, year, of X the point in as are currency, terms FX hedging between the depends remind the On and FX And market terms hedge excess the year mean net on X point evolution tend terms P&L, was maybe this -- reference the terms to different cost policy, the attributable just the for I XX%.

end currency. the of the So on view percentage both the day, cost hedging the the the depends effective evolution have of of at and on we that the

Onur Genc

obviously is million XX the EUR hedging the that And of result program.

that. carrying, If you're than cost nothing asking the the more cost, it's of

we than purpose currency hedge; money the minimal. if the curve the the if whole pure not, the better us, behaves what of the of forward So is tells that's cost on but make hedge. obviously The hedging

Operator

from comes Barclays. from question next Our Fernando Gil

Fernando Gil

to meetings. of Welcome, this set Rafa,

Just questions, X please.

QX. regulatory of view, us This question. please to is what Can a expect anything the guide you for on expect? first I mentioned you from think you XXXX, don't point that

Second question would on Spain. be

if is branches If you that cancellation -- of make on them can costs, can out can remind go? the agreement how of are me and how there there's these the with or cancel you one anything if policies Merlin on comment you

Onur Genc

the process what you I about one, Fernando, missed said? or second that. cancellation Sorry

Fernando Gil

Yes.

yes. Sorry,

agreement them? or on are that the reducing canceling for, amount branches Sorry, mean, have what I the margin this branches, of that the faster with terms you have you

Onur Genc

Okay.

capital on expectations. So first one, the

As mentioned, I from expect for the anything side. don't we the regulatory quarter, fourth

previous XXXX, discussed we accounted in the is the are it the part. fully except LGD now call, For we expecting PD-LGD

facing So that's also be few thing we XX XXXX. It's only is points, have in Basel going in of years. done been it's things XXXX be the going [EBIT-light] among is the that be remaining around that's to that the the that to The fact coming. past basis on and many reason to the going

your BBVA points thinking least of the about that I there's one on as specific times and is from be basis transformation. to to But because have XX question, around for again guess XXXX, multiple transition the going mentioned we massive be of I before. side LGD. So affected that Basel,

swap swap we branch, and leaseback the about contracts. can Regarding it's in option, obviously, process. process flexibility we a branches counterparty, us that do can locations. constraint branch the to with merger still and we buyback importantly, The the costs, and close we well. more lease sale is if as understand sale a -- in enough sublease and the those even that sale I can decisions can but because to But can it's We and leaseback not the of those try we talking have making the branch

like. is however that it optimizing we us basically of giving the So flexibility possibility

that's closures area branch remember, process. here. constraint We had XXX And the the announced, you not in so in if Spain,

September. end are have the happening closed October. in already We XXX more There of at closures

the mentioning. you be of the closures most the year. process done the by end will will were closures So of without done Most be any consideration of the that of

Operator

from question Cerezo Ignacio UBS. comes Our next from

Ignacio Cerezo

got X I've questions.

the in around Spain, TLTRO. one, first The

the the in bit of meeting eligible book? versus of how quarter the book. How us you is the one comfortable basically benchmark? in And And second on performing give the If can on also year? maths are little color a third Mexico, the it is lending last of you

the basically you little If see from the step-up acceleration lending some can retail do a built and up and being bit corporate split to you a the expect portfolio and starting there? we're a can of when momentum growth retail, of the portfolio here. actually progression see degree of further incorporates we In

Onur Genc

Very good.

On the first one, very straightforward.

the meeting comfortable are We with benchmark. very

I'm which is growth should again, the again especially in looking On see better accelerating. the into growth, you going us evolution and very don't we coming issues. stock, Mexico, stock retail, productions, the which for any expect more in in coming book, is it's the in the of In So quarters. quarter the forward. consumer portfolio high-margin indication the

So positive very dynamics in retail.

But also wholesale. many of production in of is of growth, is period, they in in be the the there geographies, is -- like other the quarter actually, not crisis production more and The quite the they for one growth the terms that And clearly the and -- enterprise and that going has little so within the the also this the You led year, the cash of to able is, are Mexican the coming corporate that that, otherwise. asked in bad. and we highlight. seeing, are obviously, think numbers enterprises, clear COVID wholesale than and leveraged is highlights I deleveraging that evolution stock deleveraging more decline do growth the stock positive to to well, sure, about in so be But with again, a There happening, has been of confront liquidity a bit. as core revenue growth positive. portfolio in to

Operator

question next Carlos from Generale. comes from Our Societe Cobo

Carlos Cobo

Most answered, follow-ups is of Loan them the have complete liquidity of Spain. buffers. couple a been board with on demand consumer kind maybe weakening across but of

back consensus well on before a measures And the What's is of the be was any linking that Or with that case. or Because bank compensation driving I has are budget Is was cost the have expecting very of historically. please in banks with to bit to viable growth a that with sort base catch-up? terms the Going is you that and X% case growth to that more you forward, deleveraging evolve? little discipline for in pandemic? there And mid-XXXX assuming how the costs? costs in Could that flattish Some base, that underlying environment? compensation quarterly will [this -- rolled do factors. you expect go your actually putting TLTX. expect? delivered in consensus, total elaborate the we something rate sorry, lending should that, on we base replaced that also of low alternative one]? the in over the like you're the What's Or growth cost a what from on wondering mode

a So if touch you on bit could would that helpful. little be

Onur Genc

Okay.

the a our clearly, our XXXX. we On the in team, Spain, and growth for team team, growth expect research still do operational Spanish

We 'XX will continue. do in providing any are not that, growth certain portfolios, yet. for think guidance we But especially the

grow. it feel We terms comfortable very higher have in growth risk The it's if will into the the in growth as customers, portfolio with production, has the of shared portfolio you metrics year-over-year. so in The coming profile. reference our look on feel well. of was risk like figures it's the with salary comfortable we our third that much mortgage this in quarter 'XX the view, you, I -- pages third continue portfolio, see in quarter, in to the third It's XX% consumer production XXXX, good the better of in because suppressed. obviously very production. Again, grown -- very new the very X.X% with we 'XX XXXX mainly a You mean year quarter there. to versus Mortgages, Spain

the homes mistaken. we Spain, XX%, see there. are So if sold dynamics going some again, still I'm as XXXX of total double-digit not to to those is growth, be in And compared

because it's see So we portfolio, see do decline the might consumer, view, of expect liquidity. you Production just dynamics portfolio, accumulated because mortgage in that they obviously, terms a we our some very see dynamics. very of, XXXX, the now seen are portfolio and portfolios mortgage also and that COVID, liquidity in next-generation positive in in of with deleveraging in long-dated we in the that all. positive production they as the enterprises, But deleveraging, even our the have said, portfolio well relatively that perform you during is the portfolio But of stock in the releasing we because some dynamics of very EU. In dynamics. do help to

be study get well some that of will if plus fund, Quite as some do projects the program they implications get that seen story the up you EU, will Next-generation Research. have on because there there will might long they short. financing. that that We lending positive think BBVA of be some speed, picks will

We are guidance not XXXX providing for yet.

growth think do For be balances. We that XXXX. will are the There be quite the the in fourth some quarter, to not deleveraging. we going positive loan it's for

the the were normal. X.X% I X.X% The come if compare. And XXXX, a asking costs The it's a reference compensation costs importantly, X.X%. baseline variable because costs compensation. versus give XXXX for have XXXX It's cost, year. about was be into for more to was Spain, more very minus the again, better look number variable group, going whole you Spain because guess isolate same down. to in you if reduces in not thing -- Regarding to you mentioned Spain, I I you growth whole If costs. the for for the

down. Let be X% me just It's check the to sure. number

going So be in in X generating out more costs that XXXX. the the have quarter, we it's Spanish area to years, savings down And the most we cost more that and done in of arriving quarter XXXX the X%. by second be fourth importantly, have will in come of in

are happening. closures So just it's -- the

it's actually much incentives selling a as variable in are that terms tailwind the obviously And from also then we up. get sales well because my compensation -- more. purely really are that Spain cost done still the sell to if And there in has Overall, you program. So will we more of COVID year, view. the compared catch much was incentives sales positive

those If for good. numbers are all the effects, actually you normalize quite

Operator

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

Ignacio Ulargui

I Do credit consumer there second question been mean And bit, lending like sensitivity particularly? you activity could in a the going is normalized interest to in Mexico. sensitivity in rates risk just and have you're lending on Or very out regarding off. your what that challenge in at And to Mexico? there segment will to the heating mean it from consumer on me very growth already rates. Spain, get if is see on done Mexico, additional I see has economies quick rates paying I in do looks you update a you're has the on inflation have if X regarding questions, be one the cost mean have back look coming And costs. a whether contain just that you given that I economies you below growth not, view. I if contain additional inflation of mean, year, this a comfort bit emerging going just cost, you the get to slightly X-year that insight forward, more a something a bit running bit mean things in about just there above to I the be good experience cost inflation. to is I In Turkey, any question of that developed lot segment? so outlook? of could competition do to based we out we a growth. up there can focus

Onur Genc

Perfect.

even inflation, blended growing year, are do that the we cost that think guidance On we you, containment we the be the less than is and the provided inflation. going to original to versus of growth which cost this

growth in So negative. costs be will real

end before sticking the of with are that We the year.

that's plan. For the the coming years, still

a the of transformation lot business. investing are our We in

spent most the it much we to while has us is mean, so the last We journey, engaged pioneers that this. have digitalization business. helping target is We declined customers, our X the grown this same call in and them, in by Mexico, X% as transform we it number I in our years, XX% been which branches the customers of period. have. In in effort has

are less with We serving infrastructure more lot costs. infrastructure, a customers

always that than income. you can try keep will to improving the we on tell cost cost less I will clearly tell we can So inflation. growth, to be I our that And the you

terms improving with either we the been that smaller optimize We infrastructure. Europe in and And more the because are a serve the have best income, that or we of keep we cost executing. bank the of on transformation will in infrastructure will or infrastructure same will process with customers we

On the an consumer important for portfolio portfolio us. Mexico, in

relationship customer close we customer. that share. that area, the course, the The is, of big deducted loans, there competition, look of are us. The this directly piece previous cash core what again, reason -- call of you and from Of I transactional is in of that consumer is payroll XX%. XX% through flow we you did is payroll have the if mention we so calls, good number that one, which everywhere. loans, breakdown so chunk that because Ignacio, market But segment have with in to into see goes on our that the consumer book on. payroll of a that, would In we

you advantage to long on. payroll that, from have much more going long convenient As to be it's natural and have any so your as as because that it against that newcomer as you deduct

As satisfaction, NPS long the far in X Mexico. as by are in you we have great customer number

the have very a delivered but there, simple. are will capabilities, mobile being you they I the to going through chunk app. that now, of to loans competition as the long do grow, are our think be digital As continue good consumer we

months Step and to the XX rates, Mexico peso in On increase is the sensitivity function both XXX is X%. dollar increase. points. basis This Mexican

overall Mexican X.X%. by by go up you will increasing the peso NII XXX If only basis take curve the points,

X.X%. is total The X%. dollar X.X%. The is currency So local sensitivity is the

Operator

Benjie Our comes from next question Creelan-Sandford Jefferies. from

Benjie Creelan-Sandford

Yes.

follow-up most have on a been answered. that quick questions think in just rate the of sensitivity Perhaps my you Mexico. interest mentioned I

environment that seeing You rising you comment Mexico. anything context of X trends second wondering do continued reduce the in Spain gearing? notice on continue costs is ticked perhaps add I did the mean more that balances might start going Spain little to benign, the a there's slightly just I whether asset that Stage rate believe quarter-on-quarter. there in say and follow-up to look the if might or interest to the funding that quality. go just but to in was you provisions forward. would up efforts rate the that fairly you're to in you're Can quick lead if discuss specific that And making anything up I just to bit

Onur Genc

So risk Rafa, Spain. the maybe you for cost of take

On the -- first one -- around question the first was sorry?

Patricia Bueno

and sensitivity in Mexico. was question first costs The funding

Onur Genc

you in it see Benjie. Mexico, page actually, In the

deposits you the growing year-over-year demand shows that it X.X%, Mexican minus by XX.X%. page, and reduced If growing is by deposits is you look -- the into time is

when latest the the industry to numbers in are are into optimize out, customer, by of of mean numbers cost the changing otherwise. our going cheaper mix funding is of which I much flow in of I than the the Mexico. funding In mistaken. So is not have if X.X. which cost we average is Mexico, trying the is profile, cash transactional the The is X.X I'm August that number total funding seen

half figure. in the higher cost the of are demand much our that we things industry I So is previous funding of the mean mentioned mix I because because of the question. that deposit percentage

We have share payroll. XX% market in

again, client. in a The of sure that making -- grow franchise is is have the in we that of the transactionality All wonderful effort we Mexico.

such, As blended of cost reduced funding. the we

in risk it? Rafa, of cost the do Regarding to take Spain, you want

Rafael Salinas

the X, overall. have points good exposure I Stage increase just, terms to in of just improved mean of you wholesale the the is the just X the Stage because X for on basis Stage seen is have in fact, the exposure to that reason of mentioned a become the we some is portfolio. And that guidance been XX

that in that names good had we on the are -- So to singular that fact, and geography. also recoveries related clearly in have improve

Onur Genc

what in On for government call is us will the summer asset possibility one eco as Spain, point. reduction you to was or the loan. to notice, cost a add good period loan of the granted might test holders a in ask a of The risk, was call I which it because for Spanish, basically we there [quita], principle participative by a we

whether customer whether wondering we or They lot there these. on were that than apply we because the will side So facing it's they're have going in received of can And interest asset through XXX depending problems these on no we they mean -- problems. a the more facilities. I be really basically the of the best XXX,XXX are context from around test

that feel financials. applications. on was the the It portfolio their have all have a good fact does not on the that We nothing was which at good received test, doing on is and companies that reflection that a we eco on squeeze asset actually

Operator

from Bank next America. comes Marta question from Our Romero of

Marta Romero

follow-ups on couple of I've Mexico. got a

are, a cost-to-income the You pandemic. do specific reverse? wasn't are whether outlook You're costs Mexico going your costs. year. expect this into this on trend targeting the at are Mexico, this specific running really just ratio? and center Mexico transferring you more bit follow-up with and so on you Related you now commercial a to running for a if the Turkey Are Could to growing in do you negative from LatAm (inaudible) costs little book be is corporate loans, And When and more? XX%. before Mexico to you

still risk appetite in think an So what Do you is you that? policy corporate Mexico? on impact do think is risk driving

Onur Genc

didn't Marta, the... the question? some Can with third I There's question. the get third repeat please you problem

Marta Romero

in They moved on risk loans Yes, corporates before still has Do think to pick commercial you the after impact weren't policy It's nicely year. commercial for next sorry. risk expect summer, Mexico. elections and appetite demand sorry. an Yes, not? the growing up or on We've the on you in loan pandemic.

Onur Genc

Perfect.

with C&I, the the and and plans, Day are asking share future Investor for for on us allow be them. I commercial metric because years please on, investments. outlook we you the will cost to do sharing On perspectives to -- this, expect But is yes, you on on income the so The you the the -- The that the these go all Marta, to improve, simple third best Are one. very me the let loans. one. coming corporate private for

past lack investments. numbers years the we was even very the in seen the for private Mexico, few endemic problems have before Lately, on One economy. COVID, that of in we of good seeing the overall numbers one, are very good

growth side in -- broader are be on the i.e., Mexico. again, everyone that see side. more fact next it numbers year. think I'm investment quite in positive. also again, COVID, this help it baseline growth up This thing will positive the are I year of was are was there new in because the in And to happening on on that, a investments do on catching and the during baseline Given figures, leverage We Mexico. we enterprise on numbers. the supply shortening, up, they I'm it about in we going kind built chain share releasing private the the different the will the see situation. the the We commercial we enterprise

On What get the hearing. the I was second I because couldn't second -- in question, having was trouble one?

Marta Romero

you're if division. corporate into So transferring the center cost from the

Onur Genc

mean driving the that's all I at here. force not kind of No.

in intergroup is that in pieces specific It's terms in changes have countries. expenses that X not number for decline you reflected. Obviously, a in center see things is the not the the a quite seen those increase significant the The that transferring all not changes of view. it's in my of last at different which or billing or country. happens. driver are the But is We years, corporate you are the developed the the numbers all

If you is we center to become remember, corporate because were going X that is years ago, are reducing we happening profile. the That the discussing smaller.

are on. We charging are we not center. reducing It's because corporate the more in the number FTEs and so of

that's are the not a core more, bit We charging but driver.

Operator

comes question next Citi. Our from Nedialkov Stefan from

Stefan Nedialkov

questions. I of a have just to follow On here. Italy, couple up Rafa. Welcome,

that mixed. before the study? you I are did did conclusions Dutch interest do know, that you My start branches fashion, did more And long mix, time are potentially road? penalize do I emissions finish? take on bit carbonization questions high the more questions guess That second disclosed, a bank management saw you draw a big geographic to case a it's talk been deploy for X to that and side and you success entered you for into in markets? picture are in related green team, be When digital-only a the As on given it? of related to big you your it we a just you loan geographical book little The over expect And question can Scope that assets sounds to you I for not your really pretty what towards The on emerging Scope could emissions think disclosing terms you Italy within early about you challenge of you things. see has that are, could now been how exposure that, with But there. much this has that, Italy you calculator. offering guys do you focus that, know becoming a expect guys in from study of as somewhat you in ESG to increasing couple a a the you and you to with And here And what makes better? down but X. that to tilt interesting. number? brown

Onur Genc

questions. great Stefan, Perfect.

we digital of into others digital players, pure Italy But cost or this I'm that On to the much the players a or value the When players that some there think They be digital free digital of or much customer looked going it. our others, but digital of as I value big including the in didn't successful experience, one these in as of clearly product the do as different on everything sweet think do others. makes more was obviously. that spot you other you pure will the successful have than and into depth proposition, players, first have markets, to the banks. product Spanish we see see is context What obviously, in them, when structure look what we great you being have we Italy. not offerings. free on that a comment proposition, we one reflected app players, do

there the all having value having also having incumbent the this but trust and digital So was the not players everything, -- having players proposition. free, and free products

we proposition can cost We different product depth given think digital the with right players to the very sit can structure, come but that with we trust of a value incumbent we free banks. the because are replicate in So the between. and the with

credit days. there. being are we So with that product Europe products the important, thing is sitting we especially digital make as some very others, at money different that than compared the players, is going right which the these are the And which portfolio. are in to products, launch, we are Even the in

we we and have call do So what plan. pay

that debit should to back a buy have You you card ones implies salary the which in installments. can something you your and plan line credit a be in end, the have have use that and to pay then use to who line can credit we advance. do at able installments, Or that pay pay that

get platform. enlarge digital intention requiring have Spanish salary have we to they the know products. you on. If a the us, you the otherwise, your requiring a are these all, salary using in can, of with days, them, of We And product than if don't not we to because portfolio is again, are and credit to what so your that a and bank. of Most the work most have credit soon players, XX they customer have up earlier products, line, these evaluation

replicating basically into Italy. are Spanish the We platform

how credit It year. operation. start that amazing take? fact in the products. the tailor app, it after leveraging it X a it Because work, plate us we products new put it's the those what running took, we take Italy, the finish, From on did for we long products year. will and make XXX-person an X again, to decided So have have this, that to do whole the our to especially And to easier we took the Basically, advantage platform, view. then we competitive are team is Spanish to Spanish

calculator and sustainability. on On the carbonization

of On that emissions. we the have to be X, in I and we the the week, kind announcing will COPXX next portfolio today, their but it including carbonization alluded goals, Scope client

see much more will this. you clearly So on

a in we early. this so that question bit economies, on. important that fact were also are that maybe you you is is you The emerging asking that the a are and asking disadvantage And said

no, so like the that pace. not up to we no, act facilitate early to world I Players pick is because mean now. increasing all. we this to pace at has And have have right us,

developed in It's exemplify. behavior world very acceleration developing So the do that support is very you being at What it's quickly, we economies. I develop invest question be sometimes trend also developed very economies, in emerging need what for this not in if the see economies that, early again, trickling consumer the is that But simple asked. to I about want -- sure, all, down they to The emerging do to mean, decarbonization. economies? being of the able clear. to

Peru, French Spanish an the you the some electrical want have to in brands car, them, driving Peru in brands a you a drive cannot brands Mercedes you you German be and anymore and want vehicle in electrical Peru famous and If Italian to and drive vehicle if years. infrastructure in brands, either or

economies. permeability important cars would you has jump trends developing quite they They So economies, I do But everyone of countries, very in driving all mean. transform are topic the most one. driving that quick, I everyone the know of such They has consumers I and their others the is this that to on the the need is need if And that Otherwise, a transform. economies, would developed have to these that to what support see what decarbonize. of are not see developed to wagon. the be

to who X and or the going and few So very we are -- but the so this. Scope the X question there X actually one -- of different done be the approach only industries specific of have are on, to

in COPXX we We are going goals to be next X, announcing included the week. the Scope sector-by-sector

Operator

comes Ropero next from Our question Securities. Bestinver from Mario

Mario Ropero

couple quick I have of a follow-ups.

And loans eco just grace eco third positive sure not are one the And in much overlay Spain income was now? any I end first ask to principal to you like a to quarter, releasing on for periods of eco of in there or make is one-off the key The in fee one-off, loans on would milestone the whether there, the in paying Spain Spain. is consider in obviously. how then of loan. the provisions you the is

Onur Genc

about Spain. talk the one, can you maybe second loans in the eco Rafa,

success in quarter, been quarter quarter, all throughout fees the the numbers, the because the is There of versus not in quarter. decline second In in side, the third no On Spain, like fees this in in we your the it first asset one-off second answer. very the third see management but in a yes, all. actually, simple year the the has quarter, to at slight the

of clear a year-over-year, the figures. consistency it's So positive terms growth in very rate

you loans, the to? Rafa, On eco do want

Rafael Salinas

the loans, eco On loans I the federal on are think majority the the period. still of

the the next are will current so the of of of day they That the year. middle the paying end So period, still at not principal. at start

of eco extensions. the asked today, XX% during as the So 'XX, process of of for

situation when we to are to them will see going 'XX thing. of the moving most So be the of

Onur Genc

extension, And lines only eco including call the XX of piece The which total EUR we was of what is billion, very the was And is EUR X loans. for and of and XX it. us, under piece, program that billion, billion EUR of billion percentages. portfolio XX clearly. portfolio see XX% loan very is EUR deterioration. billion, EUR that on although are Stage signs you see we X high X, no top we the

are very on the We figures. provisioning prudently

to quite want well, release we see are anything, before we release we release the the prudent, we XXXX. asked about So because you -- as before but

Operator

Research. question from comes Britta next Our Autonomous Schmidt from

Britta Schmidt

and the linker you your outlook move, X cost, question Turkey where give on growth? is what of questions, got I've on please. tell and Could this, also us in expect? can the regarding impact broader the just CPI of what sort stands, in the And rate what you confirmation. the the FX confidence can second question us inflation you a outpace is My you that earnings devaluation portfolio

impact for catch-up estate the real is Just the so? then And you joint you of half thirdly, first your the could included XX% with confirm or in sort just the venture option of used you've whether recurring variable to if servers? comment this QX some And there, include can a compensation business regarding number? on sell

Onur Genc

clearly. problem we your line first Britta, We had problems very a got There's today. voice with actually. the Apologies. question

The second question, can please and the to I third you ask those repeat twoX?

Britta Schmidt

Sure.

use increase the has been cost venture. this and half real the is question joint about third The this And this of there or confirm the second potential included catch-up question news the whether whether some was was put Could on the XX% what for to potentially that a stake recurring was compensation sold of the having you impact Q-on-Q first the due in estate variable is? a just option number.

Onur Genc

Perfect.

they start from easier Let's say. to last are because X the

can in done There actually public announcement expect the October. capital quarter. public was we put of fourth it of confirm. P&L estate is a sale It's we subsidiary, real bps not option in impact was -- X around impact, we The yes, the sold. a On but the

we the exercised put So option.

it does increase, for half? the catch-up cost The is the first On include answer yes. a

question, the second this, the if for for inflation Our year will On the said, on of on? of year. the question, increase rate what expectation the below end you the asking, are but maybe end the stay, the first cost overall and that for expectation as so given move we we outlook for of the the year -- is is

today, include outlook they to year one, team, position of you with On rate the the move expect they first Turkey. a actually of close XX%. resource rate the and the linkers CPI see in our XX.X. in the The CPI portfolio do We that our numbers expect country

upside the accrual accrual There but some and currently CPI have there's we the terms XX%. So revenue. upside is at done there some in of

figures. think in question So general money. that clearly, banking would bank and make devaluation, I good have tangible to the growth term, But -- growth enough we the were question. franchise for bank conviction good my compensation the good that on that if the asking, type numbers-oriented context, on -- know, that have in is returns. book be we a very guy as the you FX FX return or value, these structural bank country depends book Turkey the We And in question Turkey. the would other very time your sector in confident long the kind devaluation? do you as enough tangible the better It In if long Britta, of that earnings equity, I so that's a we compensate the asking, growth I'm we in a a the the that asking for that best do in the which of reasonable figures term, have franchise, incorporates you holding take value a frame, the time do terms reasonable variable are that number that will earnings is would customer obviously think are FX do the people And clearly deliver for the you're if frame, you think but the in country. well, growth into comments, on, in you the deliver in country best in best of clear on the parameter

Operator

from Peixoto Our next question Carlos Caixa comes from Bank.

Carlos Peixoto

your months. in are full the could NII in wondering issues expectations the -- evolution in may already in it the So closer were seeing for the now see see that I terms I Turkey the considering to so first, had a full year if sound X But you apologize any also views in us Whether the I of of color was for Secondly, Spain, or stick would asking give possible. mid-double-digit in evolution growth for Spain, rhythm actually particularly XXs answered questions to of I you some to your the you that that case, the on in year? if some level -- and for whether guidance with just be earlier, we to. fees

Onur Genc

the Carlos. for you questions, Thank

On the of is terms growth, the categories coming that insurance. fee underlying increase fee percentage-wise year-over-year the in of percent-wise from

So good asset The insurance. coming management euro-wise, the very doing in highest again, that see view, we in on. think are we amazing we absolute from which job and job, my growth an are a I, is that doing

categories drivers the of So digit. is fee the they're double there everything, growth many obviously, with banking and growing key are in services, and the general and growing going well. to The But range. asset payments there, all all mid-teens, really have they're over as above around market growth the XX% you X months mid-teens. doing actually and slightly seen we XX% months, guided that X they're this is be management insurance, it's

dimensions, clearly pick doing the NII, you and the mention is Central guess. picking presentation In the on to Regarding in going nicely. the in Spain, the NII, Turkey I spread. are helping is on They're the hurting even it's but decreases up other that the on asked in Turkey I did Bank spreads more. rate and Turkey, up Obviously, many Spain,

to spread XXXX. do quarter very we So up nicely, improving expect in to the continue pick and the fourth

of fourth growth the in to NII, very in Turkey. So the guided year the we X would you NII Spain, X. this be On the minus would strong, see quarter market minus

there. are We

We and quarters. guidance that the -- coming do we that guidance, maintain within for we exactly are period, the for coming

Operator

Filtri Our from final question Mediobanca. comes Andrea from

Andrea Filtri

some for from the expect for interest thank different to you to wanted just should we between I wanted clarifications on you NII. bit moving rates. on I parts impacts on a more ask Turkey color the

and impact volumes have to just medium lot takes term changed for given place. a medium the the the You've all the and us clue them as whole term term more a together good put linkers between on because the the picture the short effects and

presentation, more coming to on give Secondly, quarters you from understand contribution. book whether there you on increase. high-growth the ALCO. the full There expect any if finally, more grow have in is could and some but you to there? is Do details XX us you impact this I And its wanted flagged for element visibility a insurance, just is on view in the room your IFRS

Onur Genc

right. All

are in IFRS some material some very them quickly we expect any them XX, any of -- of because very income go straightforward. me don't Let impact.

-- it a book, On evolves. the obviously, ALCO it on the bit situation rate depends how

the flat a the on going policies might bit more book of kept depends that X in ALCO we be yields same have the and because macro everything think We but less do ECB or years the basically the past else. the up, that

So we to have see that.

to don't XXXX, do I dynamics On linkers, be are in spreads very fourth slightly the We picking up very outlook quarter. policy we spreads the short it positive. -- going nicely The as Either might will I are see of the it. in already impact come in CPI customer the the The NII the Turkey, term. see more. mentioned, CPI in all

said, going I than is full higher have XX%, been -- be As the number we -- to accruing that at XX. probably to are we need do probably

is curve positive which fourth what All we obviously, year-over-year in different, first of be second that a year. rates it this then and is are quarter, of effect NII, you X the than quarter in way In that, quite the the seeing will growth there you when see normalizes. of come other Turkey, months, rates kind have up, this it down, for around. And carryover the go when

of we curve. back So are end kind normalization at that of the

Turkey. in As a strong result, the be NII quite will growth fourth quarter

Patricia Bueno

no very are further There you much. thank questions. So

now, you to answer call. you, everyone, be in let available And for IR have. you will that me Onur, the team if close. remind the questions you entire further So thank to participating any want may And

Onur Genc

nothing there's No, to close.

all event to the Hopefully, the expecting have the you we are for XX. a strategy great and November future. talking goals We about of will

joining are this you today, all much you for invited. So morning. Thank so

Banco Bilbao Vizcaya Argentaria (BBVA) 29 Oct 212021 Q3 Earnings call transcript