Executive Summary

BBVA Group’s (hereinafter the Group) fully loaded CET1 ratio stood at 11.74% at the end of 2019 (11.98% phased-in), including the impact of the first application of IFRS 16 which entered into force on January 1, 2019 (-11 basis points impact), which represents a growth of 40 basis points from December 2018, mainly supported by the profit generation, net of dividend payments and remuneration of contingent convertible capital instruments (hereinafter CoCos), nothwithstanding the moderate growth of risk-weighted assets.

The Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR) in the Group has remained well above 100% throughout 2019. At December 31, 2019, these ratios stood at 129% (158% considering the excess liquidity of the subsidiaries) and 120%, respectively. Although these requirements are only established at Group level, the minimum is comfortably exceeded in all subsidiaries.

As for the leverage ratio, as of December 31, 2019, the fully loaded ratio was 6.68%, above the minimum required ratio of 3%, still comparing very favorably with the rest of the Peer Group¹.

The following sections provided detailed information about the Group’s solvency and the Management Report (linked to the Group's Consolidated Financial Statements) provided the Group’s main indicators of activity and profitability.

¹ The peer group of the Group consists of the following entities: Barclays, BNP Paribas, Crédit Agricole, Commerzbank, Deutsche Bank, HSBC, Intesa Sanpaolo, Lloyds Bank, RBS, Santander, Société Générale, UBS and UniCredit.