BBVA - Earnings call transcript Q4 2021 | Banco Bilbao Vizcaya Argentaria, S.A.

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Patricia Bueno

Good morning, everyone.

Here with me today are Onur Genc, Chief Executive Officer of the group; and Rafael Salinas, BBVA CFO.

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 straight to the live Q&A session. And now I will turn it over to Onur to begin with his presentation.

Onur Genc

Patricia. you, Thank everyone. to Good morning Welcome, and webcast. XXXX audio joining you for our results thank I the directly always, will as start, with pages. Page X, of achievements the of I will XXXX. highlight some key

in in First, view, growth, the at leading strategy have sustainability line, time, the profitable made, same digital first focused on significant execution the the progress the of space. our we our and

all-time of in We €XX high, finance. of done clients, an new X million have gross been also are ended the we sustainability. more sustainable the have record. and year XXXX, our XX% at having digitally, line than sales acquired channeled in we another terms close to front In unit all-time billion the of industry

profit, the recurrent is past are items, double-digit over operating mark. we above versus the reporting today, constant €X at growing Second, with results XX.X% as highest well some in level excluding euros at billion income operating nonrecurring Net results attributable Excellent the XX years. XXXX.

on profitable value per and dividends. we'll increase book a tangible our XX% Third, of commitment strong at value delivering growth creation share our ROTE to continue XX.X% shareholders, for and plus

of of €X.XX cash XX All in pages. Day expanding allowing significantly are last, ambitious what are we in distribution will to distributions And dividend our we on are in and in is upon programs I highlights path our years, one Europe. shareholders, highest that proposed a amount long-term targets the be the share executing us to to we right November. coming of buyback cash achieve the announced largest the the of per including in These last share, increase dividend this a the track on Investor

customer X, Page acquisition. new So

page. As always, I love this

through and growing consistently our acquired I to has share as channels clients relentless mentioned, XXXX, in acquire is X.X focus of increasing. us all-time those an million digital The also gross new record. Our allowed on franchise

X% in year in versus acquisition XXXX we There in channels, than clients increase XX% digital As in XXXX. through have more to the is the see increased impressive acquired graph, new you an from XXXX. digital XX% can million X.X

Moving to Slide X.

digital be essential view. proven in and leadership differential our has Our in to also

me this. Let to figures put some

million figure we higher On the have than XX% XX XXXX side XXx the customers, record high a a of and slide, almost penetration mobile the left-hand with rate.

this, an the advisory drive direct The units in app new tools. markets. sales, result been with tools Our terms it financial have satisfaction, the and of enablers app of I and improve our growth, impact, users of as digital investing digital-led financial on our in also on tools and of direct XX% again, our new for And disruption these the sales, new right-hand XX% financial terms mentioned page, help journeys, NPS, of higher funds clients' are side of entering the attractive investment business. digital XX health than also record. of has it also we and and XX% different in they innovation XX% but customer And digital in in in advice, tools, non-users. percentage Spain These points in value, digital impact to advisory has reached mortgages sold, Spain, with health our the we designing through on

in Neon companies invested through in secondly, currently they Propel. app Atom, Europe; in XX and the the Italy; in Firstly, And are They in Brazil. venture bank capital we the vehicles, investing Solaris in like in U.K.; own companies, digital through X -- of digital XX have our bank, other XX, selective the are portfolio. investments unicorns fintechs, BBVA

has highlight pretax XXXX. in to again. once this contributed like million It would BBVA €XXX income I Propel, So to

Slide to X. Moving

made to have our XXXX €XX in In as target industry we get granted trendsetters doubled view. billion finance, in XX% also between and sustainability, this from XXXX, sustainable we can great of in pledge strides front billion at even sustainable the our in the forefront the are of outpacing And and new you finance finance We channeled This this XXXX, we versus in my €XXX €XXX see commitment to have increase billion. now chart. are sustainable XXXX. an pledge of path, we year,

From page. of you decarbonization announce banks In COX-intensive see up addition, side as on scaled In Dow XXXX, of through the the X. this and the mentioned, to I'm Jones as we slide years. are happy the Sustainability rank going we we Index. have very in in walk to the highest industries, I'm X in we announce profits selected past I recurrent first the on, Slide one first to you And XX targets lastly, now worldwide financials. right-hand that very the position, delivered

of fourth see side of €X.XX left-hand €X.XXX earnings implies doubling of results also year, This the pre-COVID share. increase quarter the attributable On the -- our same comparison, is reaching for last evolution versus quarterly a 'XX the above of of XX% terms XXXX. billion the a and you quarter slide, per can the profit figure in but better well with levels of net

outstanding versus almost results while, better On the Profit again This these surpassing results a bring per we a scope. earnings side an the after smaller even results. a up billion Xx one the share €X.XX, see from long of though year, long, XX.X% generate to of is our can evolution as the I of you comparison, higher figure of our €X than right-hand XXXX, but XXXX. for highest These ever. slide, XXXX, again, annual mentioned. increase geographic again,

numbers X.X% specifically to X, XXXX comparison very Also collective pages. the you improvement all me increase from coming and nonrecurring business tangible all book sold and the we profits figures, P&C year-over-year XXXX, in our that the dividends X.XX. Including exclude more of operations, the per value restructuring in be these continuous at for the our did results closed positive €X.XXX concepts, that metrics. U.S. to seeing, increase, costs in these it impacts, from Slide these reported note they U.S. the the in that all final impairment our purposes would one-off let Lastly, including Spain discontinued of very goodwill noteworthy, in view. in process share plus a the billion. the profitability quickly, layoff amounted strong for the

return and it we You are growing, profitably, are a will see equity out. in on growing tangible double-digit second, stands equity on but return we our and

give figures positive ROTE, the XX.X% in Slide very What well. of just profitability XX% the headlines stands terms So ROE, X. here. me as side you let XXXX, out on

quarter. especially activity fourth in strong growth momentum gaining the the First, throughout year, the

going second. it a about We in to talk are

core I'm evolution happy fees, strong and NII with lines. with Second, revenues, the very in these

improving Third, ratio. our leading further and efficiency

this We strong which growth. fifth, discuss result a fourth, again As lastly, performance capital of Slide income. And we'll in of double than operating XX. operating income, of in digit excellent position, a cost And risk second. our evolving this, double-digit love expectations. better

is Looking net and and of strong respectively, performance the of positive this evolution income. at page, explained underlying it's gross obviously, P&L And a over the and growing operating by and Gross was the operating revenues, income impairments of portfolio. my in the X.X%, risk income largely income levels this summarized the fees. release Also and year. also trading important below delivered evolution the by explained, driven income evolution numbers. excellent NII in XX.X%, by highlight pre-COVID core our good and positive of view The not note that, provisions below, very to but growing

all So very, including billion, €X.X billion. all, as attributable the profit excluding nonrecurring XX, €X.X All impacts, very of dynamics evolution. quarterly positive there. in an I said, Slide

XX% income. comparisons the quarter, What if maybe lower couple focusing on a So this, operating page, again in stands in that. on impressive growth leads the the increase year-over-year you the column XX.X% impairments quarter fourth from is in second profit, attributable the excellent the to net and the an the it up And left. of

page to in this XX, us an important quarter. Moving Slide for

As segments, the by anticipating page you year in we has again see profitable balance in way. this into presentations, in previous translated quarter and results wholesale focused both in recovery both growth on production continued on especially new growth. are and we in the in the are of retail have fourth And we loan growth, the been focused loan been the

can my the as You X.X% and and this very into in can coming light the also hopes fee us quarter. in year-over-year charts. view for quarterly the income, obviously, in evolution. But the clearly in have the year, grown quarter Again, the in great and we loans XX, Slide see page, the you identify gives the positive of highlights NII and the clear indications some breakdown one in of revenues quarters.

countries as and and the we year Turkey. net interest and last also quarter, spread improvements CPI some income in activity versus strongly contribution especially strong linkers last discussed just growth in increased higher boosted by Our

to has XX.X% the a the significant increase leading year-over-year. mentioned, accelerated XX.X% As recovery NII quarter of versus and quarter-over-quarter, previous

growing gross quarter-over-quarter. with extraordinary, extraordinary fact income again jaws, XX. our page, the that at growing performance outstanding X.X%, the past slightly the at same the on with years. despite blended continues and last positive the higher of that the quarterly my a of an commissions in, would is across the the net fees the period in end strong footprint. gross way All and XX.X% once We first highest reported we income, trading in again this to the Slide inflation evolution page this see costs in versus highlight XX.X% our Next board growth positive bottom year-over-year. figure year-over-year strong and year. over I than Net evolution on view year such income of the rate thanks

in us. the the inflation. in expenses We this quarterly know typically than In compensation. cost normalization growth largely numbers, of by is variable affected year, these You deliver lower increase blended

especially nonexistent in due was which and to even certain this, roles XXXX COVID. remember would You low for

effect there's the was here. then of good. obviously, a clear very So base XXXX, results And

of trend. effect, we you also compensation expenses if the exclude X.X%, with best much In the continue And fact, variable improvement position. increased to year. the efficiency we the again, in neutralize inflation, below coming would our typical peers, to compared line, we expect European ratio, In see that on that have middle the if in continue and you our trend the this page, as so improve the best

in the XX quarter, year. Slide XX total performance, explained impairments on our We to risk and ratio more levels of our in the better of geographies. improving mainly the portfolios pre-COVID points performance in the of aligned by even absolute is, Good indicators, XX.X%, of risk improved in evolution performance. solid terms. the most very This positive than have performance underlying again, basis efficiency solid our

parameters and some of And picture. positive Turkey the the in include or in risk not FX the done terms see We quarter. underlying risk basis initial Year-to-date, a the very that fourth prudential underlying numbers are closes with provisioning points, the better portfolio risk These significantly of any showing the does release resilience very But at that. basis buffers XX levels see also XXXX parameters, have comparing commercial versus and XXX and in in this XXXX in we points. of you strength. XXX cost than positively and expectations

slight the a the explained new in while is NPL by ratio quarter of the see quality asset of definition XX%. coverage to increase we rest default supervisors. the in our the guidelines of This the X.X%, Regarding indicators, to ratio decreases of the implementation

aligned conservative have We rules classifying X IFRS to is in order be the as more loans financial stage which with of decision you with when And know, comparison the this supervisor. books the made approach solvency/prudential X. for in to

a showing slight As increase in are a NPLs. the result, numbers the

new this exclude XX. we X.X% they if this default and exclude at in coverage we coverage ratio. if ratios, NPL, Slide be fact, NPL of decrease, XX% standing and would accounting, definition effect, impact In a

creation some repeatedly announcements, you for have of all value guides all which In stated, a we clear important our have we as this we recently focus made regard, our As decisions. know. have shareholders, on

to ratio hand, the increase paid shareholders of ratio. from as policy payout cash, from past per to per between to it happy I'm in amount distributed, dividend net proposal €X.XX XXXX XX% results This share the already is XX% including foresees you cash the share cash of in the to you XX to October highest corresponds announce a April, of the in in in we impact U.S.A. results, share 'XX. of the that the Spain. of raised the can the side in our one XX% On distributions left-hand see And be of next will the per an payout payable remember, present regarding complementing which total our process the and the profit, a we it €X.XX to €X.XX The in profit, of very to the BBVA AGM, attributable payout slide, net to on as distribution years. restructuring be the

for €X.X the you maximum largest we announced know, of in Europe of one amount a share buybacks as all Additionally, billion.

start executed €X.X tranche of XX% in executed, is second only first as be as have of and first to fully of tranche will We billion, billion the we the March. the soon €X estimated

increased market shareholders' distribution, position. the which and billion dividends March. So X Slide another second we billion total, them second represents in at both, €X will of we will be our BBVA's significantly the And so or of €X.X third we of months start third sum, beginning we quarter, so, our if the yield combine expect over billion the you in have considering roughly to €X.X capital buyback, immediately it last of the XX, XX% end the share that quarter. the cap. In billion closing quarter,

as is actually loaded ago of recently -- requirement which it above X points fully SREP basis XXXX, our stands XXXX remains This December or at days stable. of XXX X.XX% XX.XX%. for was level CETX received yesterday, Our

evolution me first the XX we XX of higher €X.X it quarter, the ratio. XX% been coupon includes basis of the accrual the Then points. payout billion the the ratio, that On ATX have add the highlight impact XXX points. share reflects during results XX% payments, attracting has in buyback is December points This to which an and of The program, let dividend the the versus accruing basis that deduction year. it 'XX final basis

to basis our to higher X points shareholders. wanted So pay here an dividends we because additional impact

credit explained XX a basis the impact across reason, X points tracking the is here. or by XX coming the is from growth good increase. this it We're around board. Besides of basis RWA very relevant The in mainly quarter, strong XX% capital that, my evolution points. points, by additional RWAs So the basis view explained most activity impact,

but loan in X% the growing with to demonstrated mentioned, quarter. aligned also -- the as improvement profitably We it our have as close in metrics only fourth in discussed the Growing, the only in X% profitability increase quarter. quarter, the by I

So XX bps goes credit to RWAs.

gross December consumption the operational updated in you know, might is a as income positively a the calculation, with correlated the performance. you in direct strong as the whose in year is Additionally, risk implication evolution know, and, has capital revenue once year,

this in XX, reverted part the you And lastly, it Slide many RWAs, But long-term of details footnote, others come And basis the XX mainly by of will affected points. operational finally, So at risk RWAs. better be the Turkey by reverted explains the gross which also to components end quarter. good but basis of led RWAs in explains already This impacted there. in basis Investor CDS and bucket income see have the Day. targets higher finally, points, first has And is or been in on in XX X our announced other of Turkey points, market a on December. the risk-related in levels and so the

them, we them save what say just will you see -- time. positioned clearly go well are trends page. all. can I the will of I into each one to not that And but in you achieve me very Let the see

are So on term. the confident the to achieve are long that we on we our mid path to goals very in

Now Rafa? turn for Rafa. I it update, to the business areas

Rafael Salinas

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

the close recovery improvement in portfolio segments, the growth Let rate in the accelerating year. mortgage the lending driven progressive XX. with a commercial XXXX, segments, continued quarter in consumer and by growth me Positive to in deleverage and loan SMEs profitable Slide in Spain, of begin X% a and last year-on-year most

high growing a loans consumer with growth loans slight For Spain continue in digit. at in to XXXX, expect single performing we

after the services the growing cost abnormally growth case, and to mind have higher to recover. in increase Going in by pre-provisioning keep performance our year above by that variable a in, loss continue Core and X.X% account. profit delivered income growth in should more we revenue XXXX, management, the All reflecting this revenue thanks income. those grew XXXX. banking XXXX, continued insurance declined from activity from can ratio they trading In the compared as in Allianz. with low with that XXXX. and to XXXX, core have net headings, the control lead in X%. And year very see an XX.X%, Expenses the and we contribution the fees of offset Spain XX% decreased improvement in in of the to effort positive ratio jaws with to XX.X% asset to efficiency any In mainly an in compared JV strong when compensation expenses slightly result in was growth that coming

ratios in in in with expectations. rate of Spain down 'XX Sound attributable All pre-COVID above net profit very in all, good cost points quality basis with with to asset levels. XX results line

in terms In P&L Mexico. slight efficiency growth points. growth. and to basis accelerated of we and flat moving in reaching while outstanding an a Commercial risk last NII, year cost guidance, mid-single-digit segment credit decrease and XX levels. ending Spain performance 'XX, X.X%, flat For at Net improving outstanding with line in the Expenses in XX, commission cards with gradually, growth expect the quarter, expectations. to in XXXX quarter-on-quarter. of consolidating mortgages, fees excluding Slide in around and X% drove improved the segment to SMEs portfolio loan performance growth loan the Retail TLTRO,

loan grow in digit. the expect mid-single at to we Mexico XXXX, For portfolio

review improvement revenues. growth evolution mix. the deposit profit by improvement cost deposit In the good with to of customer terms the loan XX% of favored increased XXXX, performance to net to the the of spreads, core in by income Net our attributable mentioned was the compared thanks P&L, effort of thanks interest

growth higher and activity core single on see NII of by the could recovery high the a strong at transactionality. digit. Also revenues, we fee 'XX, driven For growing

grew On and by the other of mainly recovery hand, compensation variable to normalization result. expenses XX.X%, linked explained activity the

In XXXX, increased Mexico XXXX. compensation, with All the will efficiency by very have fact, in excluding in X.X% expenses strong remains at variable in aggregate the the increase in in, inflation XX% of line at the in levels year-on-year, X.X%.

'XX, an 'XX jaws, For in aligned our to grow we ratio resulting positive mid-single with expect efficiency at target. improvement long-term of expenses digit with

destination accounting we the risk. quality, of cost of a by explained in of asset increase of significant we slight of of impact default new ratio implementing the for terms already reduction In and a the no ratio, EBA's coverage have that NPL terms fact purposes with see

is continued cost underlying trends supported of a year basis at there the along fact, XXXX. the In portfolios risk by improvement points good ending of loan the XXX on in

year-on-year, XXXX, For TL expect double-digit basis points, target. commercial in activity, foreign we Slide XXX significantly our grown below in of retail currency end while loans year in at XXXX foreign in both with with growth risk Turkey. the line line with strategy reduce to Starting loan have loans cost of exposure. with declined the our long-term segments currency XX, and

growth continue For and we above declining. loans at 'XX, expect foreign to TL loan XX% currency

grew strong of P&L, 'XX across income in XX% a gross board. terms performance the In with

XQ, in the in of higher year to the on NII improvement the growth the spread thanks a the for and CPI Continued improvement linkers. accelerating TL and customer TL loan contribution

portfolio. from growth higher strong global in NII contribution mainly Excellent foreign grow 'XX, favored the by of net with results trading and XXXX to by systems markets we a 'XX -- above mainly TL activity with For due in volatility. compared market expect performance when a to payment a currency higher driven year, and income fees, better the the and loan the

very in, the by trends ratio higher lira booked the versus significantly efficiency strong uncertainty and provided in retail America. driven to around expect high efficiency expenses first grew, And mainly the the assessment for 'XX. the and XXXX, moving Impairment In coverage. of risk the XXX by foreign high. prudent All improve Slide impacted performance On portfolios. mainly we different risk points XXXX thanks although a sensitivity finally, South performance of booked of growth provision in, of on remains front-loaded cost we previous the risk quarter, XXX good expect to fourth basis XXXX. wholesale cost at basis 'XX, quarter of the macro Turkish the Colombia, and XX.X%, loan other of good underlying increasing a both have XX, clients And some in portfolio impairment commercial currency hand, quarter, our color stands to All points, remains by depreciation. In be main segments. at declined the in to impacted and inflation their We is countries. we in

lower On growth economic and compared and loss revenues explained In net lower 'XX. the core the in retail XX.X% conditions. account, by increased above the positive profits. mainly The impairments revenue improving in in driven net increase benefited of reflected XXXX, profit the portfolio with grew on attributable X% impairment Peru, growth, figure. core that It XX% attributable was portfolio the loan the strong from jaws profit the

shows Argentina portfolio to higher positive inflation the interest a securities a higher by higher Lastly, fees thanks €XX and despite net contribution growth adjustment, million attributable favored transactionality. favored the group by to growth income contribution the profit of net

takeaways higher on 'XX to significant and solid for our XXXX board. to very franchises, 'XX loan now goal reduction in and growth in core good All of across an with side and on points. aligned positive asset And the region, on for risk trends risk and long-term the the our cost the with activity revenues results highlight with all levels XXX very in, we line improvement the basis the of leading quality to main together below of For outlook levered a XXXX, growth efficiency cost Onur a in results. expect back

Onur Genc

Perfect. Thank Rafa. you,

to costs, to in into see in expected different the XX, expecting most execution our October. level, we them basis it continue in We strategic group inflation have around be for been be we Cost around this less lasting our countries. growth in pre-COVID efficiency revenues, and this, driving expect and the sizable grow would as conclude the profitable to have you the the year distributions we Page is lastly, of of XXX XXXX. focus also this than to the presentation so XX:XX, towards all to across our digit, slightly shareholders improve which points, better XXXX, will the are At simple. On levels. very maximum goal And I outlook growth and the with portfolios. finishing Core of segments, €X.X double than board to the risk jump expect we maintaining is full in will billion XX X by to presentation. skip that And the months, the with for in before to again, I buyback the Patricia be Patricia? back expect second Q&A. start I wave But share go March. we

Patricia Bueno

Onur. Thank you,

Q&A are begin live ready session. the now We to with

question, So the first please?

Operator

[Operator Instructions].

first comes Mishyn Maksym from The at Capital. JB question

Maksym Mishyn

if have may. I two, I

I is first or was for if entrant the one to on a a Mexico, expect? consolidation was hear what then sector time of consider your consolidation. do And think update for BBVA on the acceptance you Garanti could rates acquisition you bidders? on Would I The approval us the as could view favor process it do on case just process line And that Banamex? potential in wondering And the new become wondering Turkey. of you you possible what domestic of minorities beat? one And success? would is the from you

Onur Genc

that November XXXX. the you, still Thank in quickly, we it the quarter expectation. We will It Very it's of Perfect. process, be its That's in announced continues. back approval first path. in guided Turkey Maksym. it when

continue. approval regular the processes So

what the about success, we and acceptance do You so expect asked on.

mentioned know, we guaranteed today, happy happy we in any XX%. the XX.XX% back We to one. then on of Or and outcome As we own pass shares are again, with we all. be get would as November, it you that

the X.XX% future pass tender. gives we flexibility, So important for shares the which us optionality threshold this shares, full if another XX%, get we of getting of without of big a the

respect think the is do outcome, market, our will offer that one. an with we to Whatever So we be fine. attractive

be will might coming with the outcomes out. any We be of that happy

when on we for today, years potential you today, results and BBVA who who Mexico. as process the important a is as buy, our You comment transactions The few sure, country, asked can into I in the for business, buy a not Obviously, tell is only you might about on. and in last consolidation so might thing even a and franchise. as so look Mexico don't

continue We the will country. franchise my buys, have mean person of happens, BBVA look view. By and I the I'm and franchise We And I ROEs will I into number continue best numbers will whatever an Whoever whatever in customer to our in invest whatever happens. we be NPS, look the will and do grow in continue a quantitative country, to on far, we focused continue I see path. look satisfaction, amazing Mexico. into I we process would that into, whatever this efficiency, of is, in that goal outcome very

Operator

The next question comes from Benjamin Toms at RBC.

Benjamin Toms

tend Or is to can on When to track Italy? into potential and data running number official you estimates, they about And the estimates? accountants franchise. Inflation take just first interested, and when the they us keep of of unhelpful People give around due is you hyperinflation to do push valuation an accounting, be for inflation which secondly, do estimates implications Turkish update which into XX%. then unofficial is Turkish Turkey. official also the be for inflation, digital account to today focus on one them The out on the talk will this you just talk your higher?

Onur Genc

you, Thank Benjamin, good. for both questions. Very

On all, board. Turkey, the of a accounting the it's of hyperinflation first decision in

look and on decided or board -- like not into this. us It's accounting metrics. multiple the So they

of not Many a pool X-year, and other if of inflation, factors exceeds the But into are decision X-year a external it's decision. as party. automatic discussion it XXX%, cumulative an know, decision-making then So you that it the an on is recounted. this decision. gets It's

came If whether into the mean trend But you in nonmonetary for X on long criteria. good for example, above is of inflation understand, a the it's There's evolution, whether days wealth inflation I as the the Board assets, that and ago. I criteria details, population of list to be so cumulative the first discussed, news their which on, keeps this look XXX%. X-year different the as one the one, considers far

the I think hyperinflationary Board will decided accounting XXXX, in applied accounting for Turkey. that be not

is So is XXXX -- clear. not

this For XX% that This was XXXX, expected. let's was morning today not actually a announced see. surprise It's actually.

as for -- third inflation -- to and they we next actually, and see BBVA months situation the do quarter team, they in the expect research if this they tempering So quarter see and in so on. few quarters. the But our a continues then the continue do fourth such,

XXXX short. the story It's long decision is accounting this. look into XXXX, of automatic the decision. cut to So board safe. the an to not it's

As far this is the cumulative trend broken case, important as understand we be might parameter which XXX%, beyond an here. the in

the customers our my customers, on So trend reached. pure whether bank, see back and the venture, months focus What good customer higher which there trend you is to first boost confirm January. scores. numbers, number sorry, in working me. us as XX,XXX that's trend quality those that in the discussed Italy, beyond, quarter much customer did we declining will that a is hyperinflationary for that it X different guidance be numbers. Investor trust the November, case BBVA guidance the is Day. and see moment, launched the -- us in the What accounting. bank as month our customers Italy. that bank, on. quarters expectation we satisfaction easy to months, clear Italy at if mentioned, not seen, this is It's year the those NPS, a the will a were gives that, to -- all in as still might the XXXX very than The the Then monthly who not be focusing is inflation that a and the last higher in quote the we XX,XXX matters team Around was I that be quarterly, our in we as is we we continues very clear coming I what of better XX% But I can said in after expectations, And when XX,XXX, we together, a trend, a in have Italy of

be But and two, would the year trend. again I with is reiterate happy the on very or that first are once the focus, we satisfaction. to going acquisition customer our So customer on especially the quality for

Operator

comes Morgan Stanley. at Serrano question next The from Alvaro

Alvaro Serrano

they're to very that you credit a was points. of kind strong is is But to reason. Turkey, the despite of growth lot the strong mentioned least basis or Obviously, on obviously, around market high, a QX very activity I situation. I good And head returns costs dipped the being in capital have. I've one ultimately, perception that's trying get the a PE are remember question, low. out, high in related got a Onur, of to for capital that the XX market it in inflationary Spain. On problem multiple, at very, then the my you've a growth, focus element, capital, in back. those XX But and one can it bounced another basis called back. on in we just also and wanted we to because it And my the XXXX, is comes and can hope reality I'm points kind hope that that's presumably,

if not XXXX. around this And are pay, of got that costs more the it in the reached just cut is So can quickly explanation point? about that because high figure, costs. you it what's in €XXX facto Rafa capital, de on And So that on my very at cost collective despite more capital said In And achieved you that growth lending case? variable inflation in Turkey deploying in wouldn't mid-single-digit back want if I that's understand be And you Spain. to was is Spain, on I your if sorry. bargaining a confirm with bit to think sort organically, sensible I just on correct. more going million Spain. the the point get until but I agreement savings restructuring. understanding salary that's

Onur Genc

you, Perfect. take Rafa, one. maybe the Thank second Alvaro. you

the a capital, On Turkish a the Alvaro, wrong because increased. book question. your of But first part very from good coming this one is loan Turkey on good deduction is of

this You Turkish it so lira. in look also -- and into you see the when is presentation. different on, In countries the in

presentation number, quarter. XX points, into. Page looking the have basis quarter the the capital we for actually that you fourth quarter is This are seen, the the evolution, you in of the is declining see XX So that fourth that Turkey evolution number fourth

capital at is current then not The is coming consumption not coming this Turkish all from. not depreciated in is It in So all it because euros. lira, from at and Turkey.

of in pages segment. mid-cap amazing we If you in companies XX% in number. the midsized loans call what have growth And XX%. We explained, in again, Spain, my stock that, country you go that Rafa Spain, to the in our is an view, presentation and back our have we grew grown

consumer The consumer in is other portfolio business, see grown Spain that has lending. that you X%

our -- X%. quarter the deduct Then Mexico, growth. the the with in yield the is SMEs, yields I around portfolio is And yield cards, figures. see you also You credit average customer has you key can go very And you know quickly other XX.X% the These high-return -- are yield portfolios. that very quarter grown there. quarterly compare is mean lending to year-over-year if growth. that XX% to is previous

very areas to I'm this. is growth put grow. wanted from Our capital. coming we We clear on where only

We or to mentioned one I of of I some -- presentation. have of you, guess, you results this in all the this

have process. micro capital this planning We

that in we you RM, we which certain adjust and show to the the has a corporate RM, are micro capital if business, a planning it's we that in unit, lending level, return, on. we you have the bank. client, to have or at which if and we it the show in have realities certain process of country or a portfolio to business a as to you where to are, deliver to that an That's are mid-commercial as that retail, a return are to so portfolio a do a even You customer

You above of areas putting is equity the cost capital cannot grow of return the in in not where there. capital that

points there As capital growth came lot of that is the it and I'm basically, XX where see areas basis return. a from this very happy it the XX points, because a you result, basis with in figures,

Rafa? question, Spain the On

Rafael Salinas

the In think million an guidance to €XXX million at and a on Alvaro, additional clearly, fact The is that, on in I a the mid-single corporate Spain, digits. decrease €XX XX-month basis you centers. the going for at 'XX the saving of is mentioned, provide is restructuring Spain expenses a as program just

going to the allow So in us of expenses at Spain XXXX. end the the decrease this in just day, to million €XXX are

in some fact, I 'XX Regarding savings think number, were already included.

€XX the remuneration I and as But for the mid-single €X is good I corporate the variable the think it on center. €XX increase 'XX, million around reduction digits. of 'XX was the a million results. in given guidance said, million That -- compensates in

Onur Genc

million year important And maybe -- collective million we also saving, €XXX to €XXX program. that Alvaro, maybe confirm can when in still for we the program confirm the it's you that there, We committed to savings a destruction did the that Spain holds.

Operator

question next Peterzens comes from JPMorgan. The at Sofie

Sofie Peterzens

Sofie JPMorgan. from

Kind grow interest in loans kind the evolving your your on assumptions yield quarter. then -- also here? an But was Turkey, you policy you you of from I for us and And So of question if Turkey? wondering hedging Turkey. Turkey very, capital hedges? how for a said things second update will give be know policy, especially NII would could the for very hedging underlying on of do could the strong us has you high update of XXXX. Could And Mexico? you the on again. in see profit income the fourth are on paid for hedged? I how on How in the update how much what is Net on kind been you have And much similarly,

Onur Genc

the Maybe Turkey. take you Rafa, and for can XXXX guidance Perfect.

On hedging Mexico. and question, for the first the policy Turkey

capital do excess every of a the year be flow you hedging, of XX% all obviously, XX% have. respective hedge we to know, know, XX% also This hedged the to profits And we we to year, we capital you XX%. subsidiaries also that P&L in to XX% P&L As hedging, incoming this our have XX% level. as hedge it's the

to more the we and markets we to cautious, years We previous wanted friendly on were because done helpful much were one. have -- more than wanted be also that even that the and in we --

Turkey fourth So what quarter are in depending levels, XXX%. for Having first now, year all policy. it's that -- market Colombia, of the of hedged. XX% The the whole day, and that again, in previous in the as policy, is Mexico, hedged the XX% in this XX% it's is XX% we it that reason stands stands done of every start and basically, this, XX% complete in today, get typically XX% results again, we hedging hedge, the more, is on the evaluating the It it. as our the coming And XX% we and for Turkey Also the we of cost but of the the have the And market are the to dynamically Mexico is said and it we results on given the need depends key here the of increasing of respective of we to those thing cost year. carrier, situation, quarter year, we if is the typically conditions. cost do carrier. the Peru hedged,

conditions. market to have into look the we So

We adjust we to and the be accordingly. have our with lay perspective on what costs, might happening

of policy, that's and today. So we are as that's the where

NII, Turkey Rafa? the On

Rafael Salinas

the in that around XX% seen growing just mean, around going On be Turkey, the book, to XX%. Clearly of favor on XX% Commercial. the I have loan and is guidance, the Retail book, TL biased you on is growth

On the the mean, -- declining keeping I other portfolio. hand, currency our foreign continue loan strategy we to reducing or

expecting around U.S. We are limited book, dollar book to decrease that the loan XX%.

Operator

question Paribas. Ignacio from BNP next comes at The Ulargui

Ignacio Ulargui

is I have two questions. One capital. on

the of to I capital every into that we just Just €X.X whether a should generation And of second flagged see after on to sense question growth? the pre the organic get what or wanted bank. of RWA that the year. Investor expect expect I think, bit Onur, you generate of capital And Day, billion XXXX? Mexico. growth kind RWA is during would around is bank €X.X billion, you in to of

a rate and like grow 'XX. SMEs seen guidance market just which mid-single-digit and growth current segments sort in the are cards hikes that to in I growth strong the of have expecting taking in in We you wondering are into you faster also whether Mexico. consideration are expectations was of

Onur Genc

Perfect. Ignacio. Thank you,

include does because generation. by billion This yes, for the markets billion EBIT €X we capital €X.X to evolve. RWA us, sure On how organic driven it's it the was and the know growth will capital,

more judge bit cannot impacts and It's are they because and also regulatory sometimes. and the calculatable. supervisory it's unexpected does estimable So include a not and you It that. and one-off this things, and M&A

success have mentioned it the still on create to included, say, years. that very management and be the for years also X% and in payout driver cash balances, measure else have, return high do With in retail we do and been RWA has Mexico estimates the growth banking So that is those we is I going capital is daily our franchise strength the not We to retail. side, impacts the everything relationship €X the clients. towards the €X.X year, or M&A the estimates the books. side of but amazing increased with our growth Retail on depending that in do in the question, competitive before. our We last the average, I mean, regulatory on planning. we with billion have coming we have billion Then segment. many advantages, let's supervisory biased included that a

the we it's And about and services salaries the to case payroll, helps share that's a XX% in to on, market on. be of that and to advantage, do gaining we paid, share cards cash of management and technology so provide to credit then so clients. in and salaries it's of In XX%, In paid, a credit it's using cards. tools close company, of case retail in retail, market competitive Mexico. about terms us that have those think X-X retail, volume about the on able in further great So

share will we growth. continue have gained the on retail this card a credit year, amount huge market We of and

retail. towards biased So

we enterprise retail are putting that more But I will see side, focus in would the we the the -- the -- on at be how on company the side. We plan have, will are on we demand side. investment least

Operator

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

Marta Romero

couple fees? demand? for year following you interest I've explicit book? bit by quickly, GDP to more us if and you if can color are year, be growth for CPI Can guidance guiding management fees Matt's Could relative given you for that? expecting then got you're on this any growth? And Do versus the split in Mexico. just that weak a the asset do see Spain, flat, you starting Spain. year correctly, in on seems what you you a other is the growth, What banking understand of follow rates this I ups And and expect corporate in more driving which SMEs How give banks in question. sorry, just fees

Onur Genc

Perfect. year, Maybe on Spain, you as of rates, Rafa. you the end can know Mexico. the quickly interest take, was X.XX% Very very The well, Marta.

to X.XX% And We on BBVA all very in are of X%, to well basically in XXX what that what is Mexico. we asset up go expecting as points. estimating basis sensitive of the increase know, year are points end so you XXX so inflation, be geographies, That's basis including our rates. driven Research might happening by

rate hopefully help NII will from this well. Our some as with so we correlated get the rises, positively is

X.X, it all this will coming Regarding let's average. growth to year, expectation. But that X.X% asked, X.X. see, for This and -- expect is than bottlenecks the feed Research is but chain year, number macro the expectation supply have I final our X.X of is that current next potential that this Mexico for parameters X.X%, the that the for view. for lower we mean other expecting GDP the And into inflation obviously and this, -- we in XXXX year is it's Mexico the be than BBVA year, you lower

expect loan and is SMEs growth yes. growth, in answer do Commercial? The Regarding to happen we the loan

it can negative. you So asking were be that

clear be expectation will positive. is it Our

this XX%, of purely the You because see SME year, market. even not has by the book increased

Spain? a give is positive market clear a Banco segment what like create as the Barrio, is mid-corporate, that segment say, did we mid-companies board. very in both across it well. back We us are SMEs program program. We Mexico, a balances to continue we and I on are program call going growth Rafa, We for benefits that And de strategic reason gaining SME would program that lending share. to and The is the getting from in call we globally. what that we have do on

Rafael Salinas

this in with 'XX providing very the fees XXXX, guidance the are the Spain, I of on conservative fees On that performance think we first high for levels. outstanding based is clearly, in one

with we on terms But we the and Second, especially uncertainties fees I the activity. terms of underlying, the dynamics given seeing to on and in solid in performance asset 'XX very related clearly in continue conservative activity XXXX want of those management rationality the contribution markets think be market. good related in of and very of the

Operator

comes Mediobanca. from Next Filtri Andrea question at

Andrea Filtri

on question fees. First

Could are versus contribution in from the If in and you can of XXXX XXXX you XXXX? remind you of if write-backs TLTRO guidance, performance And assumptions the assuming portfolio if any upfront And So disclose you could could risk QX? NII cost detail just guidance. risk fees have is in what the absolute second contribution us us cost give the on of the in fee question provisions? you and from in if maturities. of you and finally, COVID of ALCO overlay income

Onur Genc

Perfect.

can On have you, to otherwise, the if come say back we fees it, Rafa, please it, Andrea. you question,

relatively on the and doing replacing that change flat ones yields we the expiring, beyond. how in much on the that basically NII the evolve. to can portfolio ALCO of book portfolio to planning We the contribution our increase We contribution, decide anything. wanted yet. kept ALCO It It decision might least. the months ALCO is changing. didn't the ALCO but at we markets cycle, and not we the the On are see NII, in depending coming ALCO But contribution before kept size

presentation have backup that You HQLA the our the might seen well. of it's in portfolio, as

a book the been portfolio on we yields we tick decision come see a until short-term We increase the HQLA have our very to liquidity ALCO manage Our the holding had have bit. basically, but HQLA portfolio down. up to

way. say it me Let that

some that incremental again, the the -- cycle an incremental from in We planning contribution guidance ALCO and we are have in of put the But not in have seeing received, that. forecast additional we books. materially

use. portfolio. reason, a but word that evolves, a call it to up related wanted we was call them quarter some because starting some given chunk COVID have be these years loans guaranteed second easier have do are ICO the -- especially the we ago. will -- in of of because year, for there we online that buffers, we see in to are expiration, period, built of loans that see Andrea. behave, we call for And the big of very buffers, risk this They But Spain. I a the starting cost fine. seeing, coming you them going X It's in want billion how they April, don't to positive are On were see May signals example, April. we how to that government the We those what guidance for loans, And it's €X

portfolio. And that portfolio we once situation, signals economic by we may that overall Tecoportfolio. nonpayment the any positivity period some we coming that only positive period. then way Very positive coming periods have development we releases. that after see those But overall will from it create whatsoever. helped generation that the -- But would them pay we in signals can consider for did we the given does of post-model the we we you very as problems adjustments the behave given or guidance year next the be see which see include expire, no call and in for there's to help in loans we what comfortable behave, with in Spain, loans, for is Spain, So The the the like the see contribution Until what not discussion yet. expiration the are we in currency release these management call also the we year. adjustments nonpayment a don't in principal, the we

usual this. We have we would to can see the you business comment that be the seeing. is on before quarter The as second guidance

On terms have €XX have maybe the are TLTRO. total. of best this I details, we the answer of the in in the billion TLTRO, maturities Rafa, don't And you

Rafael Salinas

with because was... follow didn't you Sorry, I no, I

Onur Genc

€XX XX, be year. the And next in is be maturities, this it -- I -- years, billion X.X TLTRO quickly. that €XX very we in basically. will all then we the expiring of expiring it will answered the The billion will the

On part Rafa? fees, details you the of one, it, the and success on any do on have the performance that

Rafael Salinas

Okay.

year the fees But €XX June On we mean end €X TLTRO, that, of end in will And the fees and Andrea billion, of by management or in of in another billion the mean, million for the in provide fees with I terms before have I of those have €X around the but performance the composition in XXX funds. related are 'XX is maturities first what detail. XX billion the behavior the of mind the quarter the relevant markets on with just XXXX, 'XX. Spain, €XXX asset I just around you with more below out is the XX of of

Operator

Caixa from Next question comes from Carlos Peixoto Bank.

Carlos Peixoto

it bidder, And asking deal increase. a I'm in structured? to follow make question a you I it how you you it could whether regarding yourselves to as a is this to size actually dynamics. up potential this clear just out see come So think acquire questions, whether or me because yourself first earlier it? your would capital the that will on unit the given whether sense of you as for be have the wondering if through was bidder country, one you was here it which finance think that see could didn't a

of quarter -- exciting performance. terms I fourth in was well, Secondly, an in fees have the in outlook, Mexico

fee how it type of you in wondering I income that in trends going restrictions frustrations call was -- what forward? see do evolution see And Let's you way. what Mexico? the

Onur Genc

transactions. don't on how know the on. We we in mean so even comment be don't potential will transaction Very what form on Banamex, good. don't. structured way, I Carlos, we or

transactions. potential comment So we don't the on

for that's a on quarter performance. partially and -- the the income, outlook that very affected different the the quarter-to-quarter the might by Mexico fourth fee or for On situation, you as CIB fee volatile know, income was

income in We positive quarter. are the on evolution coming very fee the

XXXX. fee part the a Mexico and of actually, see As numbers very cards what a be we positive payment Overall, the in dynamics call dynamics. part, will be so in might large on. by large And you systems. strong, even credit know, very Hence, we positive income there, and the POS driven majority, is the

Operator

The Cobo question next Generale. from from comes Societe Carlos

Carlos Cobo

the TLTRO III have in if ask number, please I III NII could that the how in TLTRO you Can We but you to much Spain? total clarify just impact clarify of was which the focus on one tangible up is previous think question, down? per a step what on that Just value it Spain to I book and follow me, for share. is

don't explaining went actually lira If Turkish driven in quarter. the I mind performance, way the but expecting you depreciation, the it by drops around. their was other some

was What's do if also, offset So of I you guide the was in wondering excess tiering? the capital if that to could you manage surplus in held currency how capital impact or And is us to total to to going hedging expected how costs, due to high booked cost be XXXX that decide what the XXXX. capital compares the and against in with in Turkey?

Onur Genc

last one can the get, Very you Maybe Rafa. good.

know March XXXX will has book That March program a share. net has million increased. per have impact, for to expected be is whether €XX XXX is be so decision, X.X% there will hit you precise, going Tangible of in million -- the first minus increasing actually in presume multiplier, have TLTRO the the in the €XX see this basis tiering will TLTRO, increased all in we meeting, discussion interest for on impact. the though, of as I we it's the expiration impact Carlos, know, But million of income. expiration the quarter. On interest might to one hearing income. We which that points the net June impact so of you of €XX in the value an positive multiplier Independent

impact X.X% buyback program. that know the should was You that to of due share of accretive

the only per we know, share, in you book acquiring of end of are we you shares. November, than value. December, purchased. but started you know, at shares tangible the to a some obviously were accretive book acquired result, tangible as So some we the impact in lower X.X%. And that's shares of as part At value certain end, December, as end And a at November create

of The we I core more the that's billion numbers. mean helped and basically €X.X X.X% impact the by for have the profits. is billion, profit the other €X.X key positive than X.X% quarter, in the

Rafa? question, third the For

Rafael Salinas

do interest of between just In the to is differential the planning, we terms currencies. of what the take into different rates consideration

of our all just the end all are process the the the capital day, hedges including the capital P&L at all we go So that and planning or carry hedges the against P&L against base. -- against

Operator

question from at Ignacio next Cerezo The UBS. comes

Ignacio Cerezo

X. I've got

a approximation a payout you can grow to need with extra or second X And is you your work a on think ratio? Do ballpark mid-single-digit us do RWAs space the the to best of return. give much we are in If year the 'XX how capital buyback is in back Or for for the another going number XX% you? dividend is a earnings? of reasonable there's then

Onur Genc

Okay.

Let doing, me that are of we value to sold in second it's in that announced buyback one from shareholders. underline distribution shareholders. And then create profitable program better this that will markets a be the we Europe. value figures, -- will we this be the XX% our create will payout invest shareholder coming. our the it we we the U.S., then opportunities things of one. the create big on has will to those start on billion, the largest that share increased alternative. theme, shareholder. under growth do are alternative, all said I this, The we the that with triggered whichever different in decision, in XX%. That's €X.X guidance then be our would we opportunities you as we to in and still few the we able and be XX% was what to see That's And one, Ignacio. we in. increasing umbrella the investing will of for said We And time, was the been return-generating for is value in When to obviously. for a the it's all be It will by XX%, Depending that. connected

I we situation you do evolves. -- this that can not comment So will until how see or I the to we will

again, of increased. process We of the and some the are buyback largest, the increase in programs

the are largest seen in that We BBVA dividend years. has paying cash last the XX

create opportunities, understand, will see we very we But take on important. that very the obviously, that creation find everyone any value path, for have key return It's opportunities giving understands if we as always driver back And that come a it we that value of shareholders cannot our obviously, on answer. continue high-level been great creation. is you to decisions continue in you And different doing. value around. you the we important shareholders. So I'm to very that, how our will depending it's

to were €X.X my XX are we some that average, the growth, calculations, it that portfolio I deals than revert capital, the revert activity. bit The RWAs mid-single would was in said depends Regarding growth, that that we we discussed term, short in In X you but you to obviously, where billion see on the RWAs, growth, digit, capital you on There grow expect quarter, the in on given that's to years be would it's we generation end to The also RWA that you less that the some of a delivering of going back today basis points previous number of end first the RWA would on the the billion saying years, the after see growth, would factoring after next X organic to questions. very back the of be average. because coming €X in some would year. year. the in fact

return the very them, show end very Given interest not deals. were in year, did return, high they high of but banks other many

with So they -- our were clients. and good

would numbers Those have in wanted high it -- some expired, being reverted end see levels of you at have was Turkey the them. as year. to mainly short-term the the But in factoring so related risk-related we also would of I the to CDS get also market the those engaged So back. mentioned RWAs, back. already that presentation, very returning deals of We

the of in you inflation up RWA points first seen the XXXX, of would reverted see you from the So quarter have that basis XX at end to XXXX.

Operator

from Barclays. next at Fernando comes Gil question The

Fernando Gil

my questions, from please, side. Two

currency can XXX% take-up if levels. Turkey First we one and capital on acquisition? impact This you are assuming refresh the is is If one. today's

Turkey, hyperinflation is seeing. this line for and The in CPI in one should we linkers on to this XXXX? other the expect are link that What we

Onur Genc

Very good.

CPI XXX%, first the less don't points. but We the mentioned, much the with can know much will morning's have Then budget taken It we be don't today's we a question, is XXX% that. we up. know. And also the can the figure, we XX total OPA, Fernando, from our after do what lower impact the XX%, middle, than basis points. we December XX is the figure take We if that this It number impact expect? talking basis is XX are linkers, be we On as see. will We figure, of latest the but about, did see. in

in billion, should that You is billion. know our €X.X book €X.X CPI Turkey

So can 'XX. see, in inflation an every impact, in as has percentage you point X

can that sensitivity is you the look So there into.

Operator

question from The Schmidt Research. comes at next Autonomous Britta

Britta Schmidt

I've three questions, got please.

that you Firstly, second And assume in outlook. What bit is you us outstanding? still the perhaps could that one update What rate XXXX? your expect just be cost are blended in would the then basis guidance guidance? talking inflation impacts on you risk could quantify The capital the a lastly, sort explain and a little still do million on here. at COVID-related you regulatory euro How is cost of looks on you obviously worsening, but numbers the do Mexico, basis, that what is of the okay. sort strong growth loan there macro are And disconnect? of we still on the

Onur Genc

question? question. the second couldn't I repeat you the can get second Britta,

Britta Schmidt

on assume effect is us you grow cetera. us talking want million COVID-related help group quantifying some you outlook. there inflation cost you the And blended rate et COVID-related The is? sort you What tell also to second expenses, question Obviously, million below what what some about? for T&E inflation? was of give were savings, euro terms Could can when are the we say the the that you base number in

Onur Genc

question. cost Rafa, Okay. take can maybe you the

as outstanding, EBA is you regulatory it remaining, told the before, supervisory have On guidelines. the main regulatory is piece, we piece impacts

and that conservatism multiple the on margin you of of pieces also to guidelines would about the PD, You notice EBA talked and MoCs as them. we as models, LGDs call we default, probability

one, calls, expecting EBA guidelines impact that we quarterly guidelines already were on taken on EBA come strict, XX us. to this on account the one. LGDs points actually, guidelines EBA there we last call XXXX. be We the EBA what on rules In in the you So of are might in to and and impacting is in PD margin told been MoCs, conservatism, basis that that on some it be has expecting we incorporated into the XXXX. coming put And guidelines new also have that online XXXX. The XX, then

So including LGD maybe be -- the total expecting question, points. this XX Then the that back cost the would I Mexico, basis on the Rafa. around year, to take you total, is for Mexican you go

Rafael Salinas

inflation for XXXX blended XX.X%. that for footprint we are is our assuming The

Onur Genc

have XXX. this documentation in as cost have the question, in not risk delivered, discussion, easy And we the well, the either. was Mexican year you On of seen

cost typical points, of around Our basis remember. XXX our if before risk you COVID, was

happened you in into effect. why that for average Mexico points. risk XXX then or has the look of When XX-year Our cost for mix improvement was we basis and around how isolate

so very performance At we go the for in it's into of different you when So portfolios isolated And cards our going in then Mexico, Mexico, portfolio on. different improving. it, portfolios numbers. mix and level, maybe and are seeing credit consumer it's a good to also

data, better processes. information, better better have modeling, We better

have on and COVID. processes Mexico invested, in years, the We for during collection even example, in collection last X lot a infrastructure

some XXX of done XXX this, in that to than That's and of XXX that before all guiding some XX this of internally we years COVID result to year, we of a are seen As the think improvement we in improvements is the last and it's our XXX. that just why less there do stay. that from structural have we have bank

we year, the view. will be the do of it's we -- the confident are And macro, that that of independent we the market and think the So those this start confirming numbers. realizing

Operator

Pamela from Credit Suisse. comes question Zuluaga final at The

Pamela Zuluaga

compression before, regarding higher translating into granted the banks as of do up playing can you in see Do segment, we some you you loan competition alternatively, expect even on I further the the were there on growth if And the between have COVID funds? to extensions further support? loans, on loan in deployment have the in details collaboration these activity that continuing possibly the if X consumer were Do before have in and come saying of then EU next funds idea the that you peers ICO other give of you period the gen loans? potentially And is overlay? from write-backs grace the granting a will and related Spain. most be follow margin the high clear delaying margin Would there? of so, anticipate extensions government? there Spain some any in you banks that evolution the pressures some Or to mentioning growth something a are a mix if these into role

Onur Genc

Pamela. you, Thank good. Very

On government we complement very subsidized call advanced have loan open operating distributing launched, to the funds in of different and them that channeling factoring part the project. to the we to the next-generation able EU, There are obviously, economy. these this NGU, we be even are products to with

So the get then and the you the funding government complementary subsidy financing can from get you the can from bank.

in in terms with were impact, specific So we the on the impact, this. guess. are have cooperation and government I asking you the But we constant do for products, more of

point this Research they GDP, XXXX, EU funds. percentage BBVA in point next-generation in next-generation of Spain next-generation do due GDP EU our growth impact For increase the of GDP a team, the EU, for X in X.X% and all, the growth GDP, first expect to percentage because in

situation will from be helped economic overall, So this.

deep the this, We might call have production also what of to going in Commercial the programs. clients what increase dived companies, types Commercial on. We the -- receiving than increase higher sectors be door, And be and which to new X% so how due this into corresponding X.X% those or segments. loan more balances and in more subsidy are X% impact Commercial financing, needing be to financing which expect loan isolate much an do is X% and these in the increase than this you level, additional SME annually stock if in we to will segment, to more otherwise, in X.X% SME only segment

for positive So us.

There expect be and might most increase and needed there's of either. think this is the I the expiring all end case, nonpayment be anything third it's is don't at X the this is normalize terms new of terms I but second ICO. if which But needed, of -- quarter extension I second out the to to expirations. might be in everything will beyond another think there year, X end portfolio would the of periods. I rule base period months, extended nonpayment quarter. in on wouldn't maybe wouldn't the will because as the topic. be third the There new But in in extensions further the that year them be quite don't slight quarter, plans, of that, don't and on the slight I on it nicely. months, need this, also, I a behaving much that think to of expect because extensions X the a is that quarter durations else months, Regarding

Patricia Bueno

you. Thank

that you you let questions your IR the answer call. you me team very thank for attending this available might to much So be Thank remind all entire questions. And for any will you have.

Onur Genc

bye. Bye, everyone. bye, Bye,

Banco Bilbao Vizcaya Argentaria (BBVA) 3 Feb 222021 Q4 Earnings call transcript