Banco Bilbao Vizcaya Argentaria (BBVA) Goldman Sachs 28th Annual European Financials conference summary

Value creation and capital optimization

• Strategic focus on optimizing capital as a scarce resource, driving asset sales and operational decisions.

• Over the past decade, €16 billion in assets sold, including major divestments in China, the U.S., Chile, and Paraguay.

• Micro-level capital planning ensures all lending decisions meet strict benchmarks for capital efficiency.

• Long-term compensation tied to Tangible Book Value per Share and shareholder value, reinforcing value creation.

• Delivered €13.4 billion to shareholders since 2021, with a 202% total return since 2019, outperforming European and Spanish peers.

Market outlook: Spain

• Spain expected to maintain high profitability over the next two years, supported by macroeconomic strength and EU funds.

• Service-based economy, decarbonization, and deleveraging trends position Spain above Eurozone averages.

• Banking sector leverage now below Eurozone, with corporate debt over GDP halved since 2010.

• NII sensitivity to rate cuts managed through hedging; 5% NII sensitivity equates to €300 million per 100bps move.

• Volume growth and lower cost of risk expected to offset NII pressure, supporting continued profitability.

Market outlook: Mexico

• Strong macro tailwinds from nearshoring, demographic dividend, and low leverage drive optimism.

• Mexico became the top U.S. trade partner in 2023; FDI up 27%, and private investment is surging.

• Banking debt over GDP is just 36%, among the lowest globally, enabling healthy double-digit lending growth.

• BBVA Mexico holds leading positions in cost of funding, payroll, and POS acquiring, with 44% payroll market share.

• Digital leadership: 83% of new customers acquired digitally; largest ATM network and fintech presence in Mexico.