Results

The BBVA Group generated a net attributable profit of €1,651m in the first quarter of 2022, representing a year-on-year variation of +36.4%. Excluding non-recurring impacts in the first quarter of 2021, namely €177m from the results of discontinued operations and corresponding to BBVA USA and the rest of the companies sold to PNC on June 1, 2021, the Group's net attributable profit registered a year-on-year increase of 59.8%.

CONSOLIDATED INCOME STATEMENT: QUARTERLY EVOLUTION (MILLIONS OF EUROS)

In a complex environment marked by a high level of uncertainty, the results generated by the Group in the first quarter of 2022 were characterized by the good performance in recurring income from the banking business, which continued to grow for the fifth consecutive quarter. This favorable trend in net interest income and net fees and commissions, together with lower provisions for impairment on financial assets and provisions, largely explain the positive year-on-year performance of the Group’s income statement.

CONSOLIDATED INCOME STATEMENT (MILLIONS OF EUROS)

Unless expressly indicated otherwise, to better understand the changes under the main headings of the Group's income statement, the year-on-year rates of change provided below refer to constant exchange rates. In doing so, with regard to income statement amounts, average exchange rates for the first quarter of 2022 are used for each currency in the geographical areas where the Group operates for all periods.

The accumulated net interest income as of March 31, 2022 was higher than in the same period of the previous year (+26.3%), due to the good performance in Mexico, Turkey and South America, where the rate increases carried out by the monetary authorities of the different countries in 2021 and during the first quarter of 2022 have already started to be reflected. These geographical areas compensated for the flat performance in Spain and Rest of Business.

All areas, with the exception of Rest of Business, showed a positive performance in the net fees and commissions line compared to the accumulated amount reported at the end of March 2022 (+14.1% at Group level), which is partly explained by the increase in activity and higher fees from payment systems and deposits in the first quarter of 2022.

NET INTEREST INCOME/AVERAGE TOTAL ASSETS⁽¹⁾ (PERCENTAGE)

⁽¹⁾ Excluding BBVA USA and the rest of the companies in the United States sold to PNC on June 1, 2021 for the periods 1Q21 and 2Q21.

NET INTEREST INCOME PLUS NET FEES AND COMMISSIONS
(MILLIONS OF EUROS AT CONSTANT EXCHANGE RATES)

⁽¹⁾ At constant exchange rates: +17.8%.

NTI showed a year-on-year variation of +8.7% at the end of March 2022, mainly due to the good performance of the Global Markets unit in Turkey and, to a lesser extent, South America and Mexico, which offset the lower results of the aggregated Group’s Rest of Business and the losses of the Corporate Center.

The other operating income and expenses line accumulated a result of €-39m as of March 31, 2022, compared to €-11m in the same period last year, due to the more negative adjustment for inflation in Argentina in 2022 and despite the good evolution of the insurance business, especially in Mexico.

GROSS INCOME (MILLIONS OF EUROS AT CONSTANT EXCHANGE RATES)

⁽¹⁾ At constant exchange rates: +15.2%.

Although operating expenses broke the quarterly growth path and decreased by 4.7 compared to the fourth quarter of 2021, in year-on-year terms they increased at Group level (+8.5%), in an inflationary environment in all countries in which BBVA operates. By area, they recorded a year-on-year decline in Spain, due to the lower staff, in the Corporate Center and in the aggregated Rest of Business.

Notwithstanding the above, thanks to the remarkable growth in gross income (+21.3%), the efficiency ratio stood at 40.7% as of March 31, 2022, with an improvement of 528 basis points compared to the ratio at the end of December 2021. All geographical areas recorded a favorable performance in terms of efficiency.

OPERATING EXPENSES (MILLIONS OF EUROS AT CONSTANT EXCHANGE RATES)

⁽¹⁾ At current exchange rates: +4.8%.

EFFICIENCY RATIO (PERCENTAGE)

Impairment on financial assets not measured at fair value through profit or loss (impairment on financial assets) closed March 2022 with a negative balance of €738m, significantly lower than the previous year (-17.9%), despite the more unfavorable macroeconomic environment, thanks to the good performance of the underlying asset, highlighting the decrease in Spain, Mexico and South America.

OPERATING INCOME (MILLIONS OF EUROS AT CONSTANT EXCHANGE RATES)

⁽¹⁾ At current exchange rates: +23.7%.

IMPAIRMENT ON FINANCIAL ASSESTS (MILLIONS OF EUROS AT CONSTANT EXCHANGE RATES)

⁽¹⁾ At current exchange rates: -20.1%.

The provisions or reversal of provisions line (hereinafter "provisions") accumulated a negative balance of €48m as of March 31, 2022, mainly due to provisions for legal contingencies in Spain and was 70.0% below the accumulated figure in the same period of the last year.

With regard to other gains (losses) line, it closed March 2022 with a positive balance of €27m, which is an improvement over the figure reached the previous year (€-17m), mainly due to the results related with real estate assets in Mexico, Spain and Turkey.

As a result of the above, the BBVA Group generated a net attributable profit of €1,651m in the first quarter of 2022, representing a year-on-year increase of +41.0%. Excluding the non-recurring impacts in the first quarter of 2021, i.e. €177m for the result generated by BBVA USA and the rest of the companies included in the sale agreement to PNC and recorded in the "Profit (loss) after tax from discontinued operations" line, the Group's net attributable profit increased by 68.4%, compared to that achieved in the first quarter of 2021.

The cumulative net attributable profits, in millions of euros, at the close of March 2022 for the various business areas that comprise the Group were as follows: €601m in Spain, €777m in Mexico, €249m in Turkey, €158m in South America and €81m in Rest of Business.

NET ATTRIBUTABLE PROFIT (LOSS) (MILLIONS OF EUROS AT CONSTANT EXCHANGE RATES)

⁽¹⁾ At current exchange rates: +36.4%.

NET ATTRIBUTABLE PROFIT (LOSS) EXCLUDING NON-RECURRING IMPACTS (MILLIONS OF EUROS AT CONSTANT EXCHANGE RATES)

General note: non-recurring impacts include BBVA USA and the rest of the companies in the United States sold to PNC on June 1, 2021 for the periods 1Q21 and 2Q21 and the net cost related to the restructuring process in 2Q21.

⁽¹⁾ At current exchange rates: +59.8%.

TANGIBLE BOOK VALUE PER SHARE⁽¹⁾ AND DIVIDENDS (EUROS)

General note: replenishing dividends paid in the period.

ADJUSTED EARNING PER SHARE ⁽²⁾ AND EARNING PER SHARE ⁽²⁾ (EUROS)

General note: adjusted earning per share excludes: (I) BBVA USA and the rest of the companies in the United States sold to PNC on June 1, 2021 for the periods 1Q21 and 2Q21; and (II) the net cost related to the restructuring process for the period 2Q21.

⁽¹⁾ At the end of March 2022, 290 million shares acquired as from the start of the share buyback program until the end of the period and the estimated number of shares pending from buyback as of March 31, 2022 of the first segment of the second buyback program (€1,000m), in process at the end of that date, were taken into account. At the end of December 2021, 112 million shares acquired as from the beginning of the share buyback program until the end of the period and the estimated number of shares pending from buyback as of December 31, 2021 of the first tranche (€1,500m), in process at the end of that date, were taken into account.

⁽²⁾ The additional Tier 1 instrument remuneration was adjusted. In 1Q22, the average number of shares acquired as from the start of the share buyback program until the end of the period was taken into account. In 4Q21, 112 million shares acquired as from the start of the share buyback program until the end of the period were taken into account and, in addition, for the calculation of the earning (loss) per share, the estimated number of shares pending from buyback as of December 31, 2021 of the first tranche (€1,500m), in process at the end of that period, was included.

The Group’s profitability indicators improved compared to the end of December 2021, supported by the favorable performance of results.

ROE AND ROTE ⁽¹⁾ (PERCENTAGE)

ROA AND RORWA ⁽¹⁾ (PERCENTAGE)

⁽¹⁾Excludes: (I) BBVA USA and the rest of the companies in the United States sold to PNC on June 1, 2021 for the periods 1Q21 and 2021; and (II) the net cost related to the restructuring process for the period 2021.