Banco Bilbao Vizcaya Argentaria S A : USA Responsible Banking Report 2019

Responsible

Banking Report

USA 2019

TA B L E O F

C O N T E N T S

Executive Summary

Letter from the CEO | 3

Letter from the Responsible Business Executive | 4

Key Responsible Business Indicators | 5

Awards | 6

Strategy

About BBVA | 7

Values | 8

Strategic Plan Process | 9

New Strategic Priorities | 10

Materiality & Stakeholder Approach | 11-13

Governance

Organizational Structure & Board of Directors | 14 BBVA USA Management Team | 15

Internal Control Model | 16

Compliance System & Compliance Training | 17 Standards of Conduct | 18

Liquidity Management | 18

International Commitments & Corporate Policies | 19 Human Rights | 20

Supply Chain | 20

The Customer

Customer Experience | 21

Transparent, Clear & Responsible (TCR) Banking | 22

BBVA Transformation | 23

Complaint & Claims Management | 24

Customer Protection | 25

The Team

Talent Acquisition | 26

Professional Development | 27

Diversity & Inclusion | 28

Compensation & Benefits | 29

Volunteerism & Social Engagement | 30

BBVA Charity | 30

BBVA Compassion | 30

Employee Data | 31-32

Sustainable Finance

Five Year Commitment | 33 2019 Impact | 34

Support for Small Business Lending | 34 Home Mortgage Lending | 34 Community Development Services | 35

Community Investment

Community Investments | 36

Financial Education | 37

BBVA Momentum | 38

The Environment

Environmental Commitment | 39

Energy & Emissions | 40

Water | 40

Materials | 40

Appendix

Sustainable Development Goals | 41-42 Additional Context | 43-44

About this Report | 45

GRI Standards Content Index | 46-54 Principles for Responsible Banking | 55-56 Assurance Letter | 57

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Executive Summary	Strategy	Governance	The Customer	The Team	Sustainable Finance	Community Investment	The Environment	Appendix

Letter from the President & CEO

Dear Stakeholders,

As BBVA USA wrapped up a busy and productive year in 2019, none of us could have anticipated how well the work we did throughout the year would prepare us to successfully navigate the complicated and unprecedented environment that now surrounds us in 2020.

The many and varied crises that have impacted all of us have shone a spotlight on the continued value and the relevance of our new five- year strategic plan. As we have heard many times from our Executive Chairman Carlos Torres Vila, the future of finance is financing the future. This means that we must align our business efforts with the social and environmental challenges in order to achieve continued success.

The five-year plan for continued growth is underscored by the same six pillars that are guiding BBVA globally, including developing solutions that help clients improve their financial health through advanced technological innovation and a focus on a future grounded in sustainability. Specifically, the pillars are:

• Improving the client's financial health
• Helping our clients transition toward a sustainable future
• Reaching more clients
• Operational excellence
• The best and most engaged team
• Data and technology

Going forward, we will continue to focus our efforts on these key elements of success, along with topics that are of specific importance to our shareholders. In 2019, we saw an increase in importance for both the bank and its stakeholders in three key categories: corporate governance, environmental and climate change impact, and diversity and conciliation. We further identified additional topics as material: Easy,

fast and do-it-yourself (accessibility and simplicity); solvency and sustainable results; cybersecurity and responsible use of data; ethical behavior and consumer protection; and corporate governance.

In addition, as the bank works toward its purpose of bringing the age of opportunity to everyone, we continue our focus on a more sustainable future through lending, products and services, building value for stakeholders and contributing in a meaningful way to a more sustainable world. The bank's previous $11 billion community development program, fulfilled in 2019, along with our renewed commitment of nearly $15.4 billion in 2020, provide lending, investments and services to support low- to moderate-income individuals and neighborhoods in the U.S.

The results we see from this ongoing commitment are both good business and responsible banking. Through a combination of community investment, financial education and small business support, we are able to deliver on the bank's mission.

Our commitment to these key initiatives will continue to be one of the threads that bind us to our past achievements as we move forward. Combined with our ongoing digital transformation, BBVA is well-positioned for continued success, despite the social, health and financial challenges we all face. The partnership between our extensive branch network and our award-winning digital channels has proved prescient in a time of social distancing, allowing us to provide an omnichannel experience that serves our customers according to their needs.

Francisco Javier Rodríguez Soler President & CEO

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Executive Summary	Strategy	Governance	The Customer	The Team	Sustainable Finance	Community Investment	The Environment	Appendix

Letter from Executive Vice President, Director of Communications and Responsible Business

Dear Stakeholders,

Looking back on the accomplishments of 2019 from the perspective of 2020, it is heartening to see the solid foundation we have been able to establish for ourselves and the communities we serve. The myriad challenges of the current year - social and economic - bring into sharp focus the value of our ongoing efforts to foster community development, support entrepreneurship and find ways to deliver on our commitment to diversity and inclusion both inside and outside the organization.

Throughout 2019, BBVA USA has continued to demonstrate its strong commitment to responsible banking across the footprint with renewed and improved programs, and that is reflected in the fulfillment of our five-year, $11 billion commitment for lending, investments and services supporting low- and moderate-income individuals and neighborhoods. We made this commitment in 2014,

and before the end of 2019, we exceeded the expectations we set for ourselves all those years ago.

We expanded that commitment with a new commitment to carry us through 2025, pledging an additional $15.4 billion over the next six years. Within that time frame, the bank plans to originate $3 billion in mortgage loans to low- to moderate- income (LMI) homebuyers and in LMI neighborhoods, nearly $7.3 billion in small business lending, $4 billion in community development lending, and to make more than $1.1 billion in community development investments. The plan was developed with input from stakeholders on the bank's 20-member advisory board, established in September 2015.

In 2019, BBVA USA implemented programs and enhanced processes in a number of key areas, including:

Lending and Investments

• The bank worked in close partnership with 31 CDFIs (Community Development Financial Institutions) across our footprint reaching $106 million in investments to increase CDFI lending capacity.
• The bank's community development lending program supported 26 affordable housing activities totaling $190.2 million.
• In 2019, the bank originated 21,729 small business loans totaling $1.2 billion.

Community Giving

• During 2019, the Community Giving Program invested $8.9 million in bank charitable sponsorships and grants from the BBVA Foundation for 722 community-based organizations.
• The Center for Financial Education program continued to expand, working with 51 nonprofit partners across the bank's seven state footprint and investing nearly $850,000 to support those partners and the financial education workshops they hosted.
• BBVA nearly doubled the number of people reached through these programs from just over 10,000 in 2018 to 18,758 adults in 2019.
• BBVA Momentum hosted 19 social enterprises that participated in the five-month program, delivering more than 1,200 hours of one-on-one technical assistance, mentorship and strategic advice through BBVA employee volunteers.

Employee Involvement

• BBVA employees contributed 120,959 volunteer hours in community service activities in 2019.
• BBVA employees further donated a total of $886,655 to 1,568 charities nationwide. .

Additionally, our work in building one team has earned BBVA a perfect score in the HRC 2019 Corporate

Equality Index, along with national recognition as a DiversityInc 2019 Top 50 Companies for Diversity.

Going forward through 2020, we will continue to identify and act on opportunities to engage employees and the communities we serve in efforts to improve diversity and inclusion in the workplace.

In the coming years, Responsible Business will continue to demonstrate our dedication to the global organization's core values - the customer comes first, we think

big, and we are one team - by aggressively diving into the new $15.4 billion pledge and enhancing and building the capstone projects that further affirm our commitment to the communities where we operate. All these efforts combine for one single purpose: bringing the age of opportunity to everyone.

J. Reymundo Ocañas

Communications and Responsible

Business - EVP, Director, BBVA USA

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Executive Summary	Strategy	Governance	The Customer	The Team	Sustainable Finance	Community Investment	The Environment	Appendix

Key Responsible

Business Indicators

$3,742,977*$1,214,146*$1,181,934*

RevenuesOperating CostsEmployee Wages and Benefits

$676,178*	$254,022*	2,213,997
Payments to Providers of Capital		Payments to Government		Number of Customers

10,447	641	1,505
Employees		Branches		Number of Suppliers

$8,948,146 $886,665 120,959

Charitable Contributions		Employee Donations		Employee Volunteer Service Hours

8,273	28,633		$2.696 billion
Number of Mortgages		Number of SME Loan Customers		Value of SME Loan Portfolio

$1,215,914*$865,599*$458,004*

Small Business Lending		Community Development Lending		LMI Home Mortgage Lending

* In thousands

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