Good morning, everyone, and welcome to BBVA's Q2 2021 results presentation. I am Patricia Bueno, Head of Investor Relations, and here with me today is Onur Genç, Chief Executive Officer of the group, and Jaime Sáenz de Tejada, BBVA Group CFO. As in previous quarters, Onur will begin with the presentation of the group results, then Jaime will review the business areas. We will move straight to the live Q&A session after that. Now, I will turn it over to Onur to start with the presentation. Thank you, Patricia. Good morning, everyone. Welcome, and thank you for joining our Q2 results audio webcast. As always, I hope everyone is safe and sound. Let me just jump into it, starting with slide 3. On slide 3, on the left-hand side of the slide, you can see our net attributable profit, excluding non-recurring impacts, which continues its upward trend v ery good, nice trend you see on these numbers. The number is up to EUR 1,294 million in the Q2. It implies obviously doubling the results in the same period last year when we had some obviously extraordinary provisions due to COVID. As compared to the Q1 of 2021, net attributable profit is also growing very nicely by 25%. Earnings per share, we are going to be reporting this very vividly in all the presentations from now on E UR 0.18, EUR 0.18 a gain, very nice growth. These numbers, they are two very important notes that I would like to do here, f irst of all, these numbers represent the all-time high quarterly results in the perimeter that we have. They have been achieved, very important, preserving all the accumulated 2020 extraordinary COVID reserves intact. We are not releasing anything from the reserves that we built for COVID in 2020. Let me note for comparison purposes that all these figures, they exclude the non-recurring impacts, more specifically, the results from our U.S. business sold to PNC, and the one-off from the restructuring costs of the collective layoff process in Spain. Including all these concepts, the final reported profits amount to EUR 701 million. The graph on the right-hand side of the slide shows our capital position with the CET1 up to 14.17% now, including the impact from the U.S. sale and also including the restructuring process in Spain. This obviously represents a new level of capital strength, providing ample strategic optionality for us. Even considering the targeted 10% share buyback, our capital position will still remain at a very high level, 12.89%. Well above our target range and well above our minimum requirements. This CET1 ratio pro forma, the 12.89% that I was telling you about, it has been calculated with the share price of 22 July, which implies an amount of the share buyback of EUR 3.5 billion. On the share buyback, I am very happy to report right up front that following the ECB's announcement last week, we have already initiated the necessary steps to start the program in the Q4 2021, as we have been sharing with you before. Slide number 4. We keep advancing in our commitment to value creation, w e keep putting this page right up front, tangible book value per share. As you can see, we have closed at EUR 640, a strong increase of 9% year-over-year and 4% quarter-over-quarter. Also noteworthy, the increase in profitability metrics on the right-hand side of the page. Double digit ROE, double digit return on tangible equity, 10.4 and 11% respectively, despite the excess capital that we accumulated after the U.S. sale. Slide number 5. What stands out? Some key highlights of the quarter, s trong core revenue evolution, 9.7% growth versus the Q2 of last year. This is explained by both NII and FI but o n NII recovery, 4.1% increase. On the fee income, excellent performance, 30.8%, 31% increase year-over-year. Second point of the quarter, leading efficiency ratio, we closed at 44.8% a s a result of these two items, excellent performance of operating income, number three, growing at double digit, 11% growth in operating income versus same quarter last year. Fourth, solid risk indicators. Our cost of risk continues its decreasing trend to 100 basis points. Better than our expectations. As we will share with you in a second, we are upgrading our cost of risk guidance to all of you today. Fifth, as mentioned, our great capital position after the sale of U.S. Lastly, our outstanding progress in key areas of our strategy, which ensures the success of our bank in the mid to long term on multiple dimensions that we have put into our strategic plan. We are advancing very positively, and we are very happy with that. Our differential digital capabilities, again, creating very good figures in new customer growth. Regarding sustainability another of our strategic priorities, we have done so well that we decided to double our target of sustainable finance in the pledge that we have announced some years ago. Slide number 6. A summarized P&L of the Q2 and focusing on the comparison with the Q1 of this year in constant EUR. The first column from the right, you can clearly identify the excellent quarter-over-quarter evolution in almost all the P&L lines. I would highlight the positive performance of net interest income, fee income, and obviously impairments. In terms of the year-over-year comparison with the Q2 of last year, the second column from the left, the strong 11% increase in operating income supported by core revenues, especially the fee income, again, as I mentioned, 31% growth. And NII growing 4.1%, coupled with the significant lower impairments and provisions leading to an excellent net attributable profit growth. Including the results from the U.S. business sold to PNC of EUR 103 million in the Q2, and the net cost related to the restructuring process in Spain of EUR 696 million after tax. The final reported results in the Q2 are EUR 701 million. Slide number 7. Summarize P&L again, this time for the half. As compared to the same period last year, similar messages, but I would again highlight the very positive core revenues evolution, increasing 5.1%, obviously despite the interest rate environment complexity that we live in, but still very positive results there g reat fee income performance, growing nearly 20%, so very positive results on core revenues. We are also registering a positive evolution in gross income and operating income as a result t hey are both growing close to 5%, as you see on the table. The bottom line profit comparison is very positive, obviously affected by the extraordinary provisions that we did in 2020 for COVID, but still a very positive comparison. Net attributable profit for the first half of the year is EUR 2,327 million, excluding the non-recurring impacts, and EUR 1,911 million, including all the non-recurring impacts. Slide number 8, some more light on the quarterly revenues breakdown. Our net interest income increasing nicely, as we discussed, versus last year and versus last quarter, driven by activity recovery and margin improvement in most of the countries. The recovery, which already started, you might remember in the previous calls, already started towards the end of the Q1, has accelerated during this quarter and is expected to continue throughout the rest of the year. In the following slides, I will elaborate more on this, the second half positiveness is creating very good vibes in our management. Next, extraordinary evolution of net fees and commissions. You see this positive evolution across the board. The good news of this one is it's across the board in all the countries, in all the line items, in such a way that this fee income number is the highest quarterly figure reported over the past few years. Very good evolution of the net trading income, continuing with a solid performance in the Q2 and increasing 14% year-over-year. All in all, strong growth in gross income of 10% versus the same period last year. Also, it is worth noting that the positive quarter-over-quarter evolution is also there d espite Q2, as you might know, it's being affected by the Single Resolution Fund contribution under other income. But despite that huge negative impact, quarter-over-quarter evolution is also positive. Slide number 9. Maybe we can talk a little bit about the future. On that one, on revenues, let me show you the economic development on this page. Very positive signals, and we do think that this is going to be reflected into the activity, into the risk parameters in the second half of the year. On slide number 9, you can see how economic growth is strengthening. BBVA Research, they have revised upward their GDP forecast for practically all countries, but Peru, a slight reduction in Peru, but very positive upgrades in everywhere o bviously, again, this will be helping us in the second half. Slide number 10. As a result of that economic development, we already see it, but again, we are even more positive for the second half, y ou can see how new loan production has continued its upward trend. You see in the bubbles the total loan growth in terms of new production, and you see very positive figures here in all the countries, t his is making us, again, quite optimistic about the second half. On slide number 11, the last slide of this section about the future, it reveals the NII improvement in all of our core markets and also, again, gives some indication for the rest. On the left-hand side of the slide, and linked to the previous slide, you can see how new loan production recovery is being translated into loan book growth into the stock in both segments, in both retail and wholesale. Additionally, in the center of the slide, the stabilizing interest rate environment and our good pricing management, we put so much focus on pricing management, it has led to stabilization and improvements in the margins a nd in the bubbles, you see the latest month, June 2021 month-only figures so y ou see a clear improvement in all the markets. If you combine them all, the activity and the margins on the right-hand side, you can see the improvement in the net interest income. As I mentioned, we expect this trend to continue throughout the rest of the year, and Jaime will walk you through the different countries in a while. Slide number 12. After revenues on costs, growing 5.1% versus the first half of the last year, where they were very low, as you can imagine, due to low accrual of variable compensation l ast year, variable compensation we accrued it at a very low percentage. This year, variable compensation normalizing obviously has an impact on the figures. Despite that, despite the higher variable compensation accrual, we managed to keep the growth in costs below the blended inflation of 5.4% in our footprint. On the left-hand side of the slide, you can see how our efficiency ratio, the lowest compared with our European peers, has improved since 2016, and now we are at 44.8% in the first half of 2021. Slide number 13. We continue a lthough we are number one in terms of cost income, although we have been improving on this for many years, we continue on our disciplined cost management approach. On 8 June, we announced a restructuring process for BBVA in Spain and in the corporate center. As you can see on the left-hand side of the slide, there are many reasons for this, but this is a good reflection. Digital servicing transactions in Spain, they have more than doubled since 2019, whereas the branch transactions, they have nearly halved. As a result of this, we had to adjust, we had to do the restructuring t he restructuring process responds to these trends and implies the closing of 480 branches and affects 2,935 employees. The one-off cost for this process is, as I mentioned, EUR 696 million post-tax, EUR 994, close to EUR 1 billion before taxes, recorded in the Q2 w e already recorded it in the corporate centers. Going forward, the total savings estimated from this is going to be slightly more than EUR 250 million annual. Lastly, on this process, which has been a long process, but I would like to highlight that we are very satisfied with how the entire negotiation process has unfolded, and that we have reached an agreement with the majority of the union representatives with volunteerism at the top of this process. Slide 14 on risk. Total impairment for the quarter are now more aligned and even better than pre-COVID levels a s I already mentioned, this level has been achieved with no change in the accumulated COVID-19 reserves. We are not releasing from the accumulated prudential reserves to get to these figures. Year-to-date cost of risk continues its improving trend, closing the Q1 at 100 basis points versus the 117 basis points in the Q1, and versus the 155 basis points in 2020. With all these positive signals that we are seeing in the underlying portfolio, in the underlying metrics, risk metrics, we are upgrading our guidance. Now we expect to close the year for the group at around 110 basis points. Regarding the rest of the asset quality indicators, we see a slight decrease in the NPL ratio in the quarter to 4.2%, mainly explained by the good dynamics of the underlying portfolios and some write-offs, especially in Spain. Our coverage ratio closed at 77%, again affected by the write-offs. As you would see also in the backup of this presentation, our coverage level as compared to our competitors in respective markets is much better than the industry average. Slide number 15 on capital generation and the results. We basically have now leapt into a new level, our CET1 14.17% in the Q2, including the impact from BBVA USA, including the restructuring process. Regarding the quarterly evolution beyond that, excluding the non-recurring impacts, it is negatively affected by the inclusion of 14 basis points from the SA-CCR that we have already updated you about in the previous calls, the counterparty risk implementation. We have completed that process as well a s a result, the good news is that after two quarters of important regulatory impacts, we don't expect any material impact from regulatory topics for the remainder of this year. Excluding this regulatory impact, we would have generated 8 basis points in the quarter, yo u see the breakdown in the chart, 38 basis points in terms of results. Dividend accrual at 40%, deducting the 40% dividend accrual and AT1 coupon payments all in, they are detracting 11 basis points, - 6 basis points from RWAs. The bucket others or - 13 basis points mainly explained by the lower minority interests due to a transitional regulatory measure in Peru i n Peru, they have reduced the capital requirement and as a result, it has affected negatively our numbers i t's a transitional thing i t's going to be coming back in 2022. The market impact this quarter was basically negligible. Slide number 16, continuing on capital. Following ECB's announcement last week, and as we shared before, on top of resuming the ordinary distributions to shareholders, we expect to start the targeted 10% share buyback program in the Q4, obviously subject to supervisory approvals. As I mentioned at the beginning of the presentation, even considering this targeted 10% share buyback, the CET1 ratio will still remain at a very high level, 1,289. The CET1 ratio pro forma obviously is calculated by certain assumptions w e have used the July 2022 share price, which implies an amount of EUR 3.5 billion share buyback amount. As you know, the 2021 AGM already approved the steps required to be able to implement such buyback. After last week's ECB announcement, not to extend the shareholder distribution limitation beyond 30 September again, I would like to underscore that, as mentioned, we have already initiated the necessary steps so that we can start the program in the Q4. Slide 17 on the evolution of our strategic initiatives. As I mentioned, we continue to do really well, o ur focus on building end-to-end digital products and processes, it has proven to be differential during COVID and even now in reaching more customers. The graph on the left-hand side illustrates the growing trend of the new customers acquired digitally, which already represent, by the way, 37% of the total customers that we acquire in the first six months of the year t his digital customer acquisition, i t's a 45% increase versus the same period a year before. When you look into the profitability of these customers, it's also very good and y ou see a clear reflection of that on the right-hand side of the page, where it basically says that after we acquire these customers, after a meaningful time frame, we turn them into value customers w e refer to value customers as those customers that we want to grow, that we want to retain due to their balances, assets and liabilities and transactionality with us. Very positive news are arriving on this front. Lastly, on slide number 18, another strategic priority for us is helping our clients transition to a more sustainable future, sustainability. We have been doing really well here w e have made great strides in this front. As a result, we have recently announced doubling our target of sustainable finance granted between 2018 and 2025, the original time frame of our pledge. We doubled that to EUR 200 billion sustainable finance origination. There's also, you might have seen from our announcement yesterday, we are elevating sustainability to the highest level of the organization. Javier Rodríguez Soler, our current country manager in the U.S., will head this new area. It's a disruption to be managed, so there are risk implications as well, but this is a huge business opportunity for BBVA, and we are trying to become the reference bank on this topic, in the global banking landscape. Having said all of this, I turn it to Jaime for the business areas. Jaime? Thank you. Thank you very much, Onur, and good morning, everybody. Let me start, as usual, with Spain. Again, economic growth is strengthening in the country. 2021 GDP growth estimates have been revised upwards by a full percentage point, to 6.5%. It remains at 7% for 2022, mainly thanks to better data in the first half of the year. Growth going forward will also be supported by the Next Generation EU recovery fund, as you all know. New lending flows, as Onur has commented, have increased by 13% quarter- on- quarter. On top of a very solid loan demand in retail segments, credit is also steadily picking up in the commercial sector, except in CIB, where it's still lagging. This has allowed a quarter-on-quarter loan growth of 2.3%, with the consumer portfolio growing at over 4% and the SME book at 3.4% quarter-on-quarter e ven the mortgage book is happening in Q2. For the full 2021, we expect the loan portfolio to remain broadly flat, with consumer lending growing at high single digits. Looking at the six months P&L, BBVA Spain delivered an outstanding pre-provision profit, growing by 13.2% versus last year, mainly driven by a very strong core revenue growth, up over 4%, supported mainly by the strong fee performance, up 16%, led by activity recovery and a robust growth, particularly in banking fees, especially credit cards, asset management, but also insurance fees, as you know, positively impacted by the closing of the JV alliance with Allianz in December of last year. This dynamism allows us to expect fee growing by mid-single digits for the whole 2021 versus our high single-digit guidance before. Another highlight of the half is clearly net trading income, thanks to the strong global markets results, but particularly in Q1. Our continued cost control efforts, expenses decreasing by 2.2%, resulting in a significant improvement of our efficiency ratio, now at 49% in the first half of 2021 versus 55%, almost 55% at the end of 2020. For the whole 2021, including the savings from the restructuring plan recently announced, expenses are expected to go down by around 3%. Net attributable profit year to date was also positively impacted by the significant reduction of impairments, mainly explained by the front-loading of COVID-related provisions set aside last year, and the very good dynamics of NPL net entries. As a result, the cost of risk of the first half of 2021 stands at 45 basis points, better than expected. For the entire 2021, we now expect cost of risk to stand below 40 basis points, clearly better than the original guidance. All in all, a very good set of results in Spain, with the first half net attributable profit reaching pre-COVID levels of EUR 745 million. Let's now move to Mexico. In Mexico, we have once again improved our GDP growth forecast for 2021 to 6.3%, and also for 2022 to 3%, driven by better investment and consumption, supported by the higher U.S. demand and record remittances, which should support activity and asset quality trends in the second half of the year. Year to date, the loan portfolio is growing by 2.1%, driven by retail segments, as we've discussed before, up 3.3%, with wholesale segments also in positive territory. These loan growth levels have led to a 60 basis points market share gain in the 12 months to May, particularly supported by credit cards and the commercial segment. In short, very solid activity dynamics that make us even more confident on achieving our mid-single digit growth guidance for 2021. In terms of P&L, BBVA México's net attributable profit year to date increased by 75% compared to last year, driven by the reduction of impairments and the excellent core revenue performance. Core revenues as of June are improving by 5.8% year-on-year, thanks to the strong fee performance up over 15% due to the higher activity and transactionality. NII is also up, increasing 3.9%, due to a better customer spread on our efforts to reduce customer defunding costs, which have clearly paid off. Also lower wholesale funding costs, also helped, of course, by the base effect, as remember that we did not accrue interest on some loan deferrals granted in 2020. For 2021, we expect NII to grow at mid-single digits, levered on activity growth and margins improvements. Expenses have increased year-on-year by 7.4%, driven by higher inflation and variable remuneration normalizing. In June, with a very strong cost-to-income ratio of 35.2%. The cost of risk stands at 283 basis points, thanks to the good dynamics in retail segments and lower impairments in commercial. The good asset quality trends during the first six months make us revise our estimates for the year in Mexico, and we now believe that we will end 2021 with a cost of risk around 300 basis points. Let's now turn to Turkey. On the macro, GDP growth estimates for 2021 have been significantly revised upwards, also in Turkey, to 9% versus 5% previously, thanks to the strong momentum and upward global growth forecast that the economy reopens. For 2022, we expect a 4% GDP growth in line with what we could consider to be the long-term structural growth rate for the country. In terms of activity, the TL loan portfolio grew by over 23% year-on-year, with double-digit growth in both the retail and the commercial segments. While foreign currency loans continue decreasing by 11% year-on-year, in line with our strategy in this segment. This strong TL loan growth continues in Q2, which is up 6.7% quarter-on-quarter, with similar growth rates both in retail and commercial segments. For the full 2021, we maintain our expectations for TL long growth at mid-teens, but now with an upward bias. The foreign currency portfolio will continue decreasing. In terms of P&L, gross income in the half of the year grew by 6.9% year-on-year, supported by the excellent performance of fees and also net trading income. While NII was negatively impacted by the strong compression of the customer spread in Turkish lira after the sharp increase in rates. Having said this, NII grew by over 9% quarter-on-quarter, thanks to strong TL loan growth, the improvement in customer spread, both in TL and foreign currency, and the higher contribution from the CPI linkers portfolio as inflation expectations increase. We expect spreads to continue improving after reaching the bottom in Q1, thanks to higher new loan rates, which will support NII going forward. Net fees and commissions grew by almost 50% year-on-year in the first half, mainly driven by payment systems due to the significant higher levels of activity, but also to brokerage fees in CIB. We had an excellent net trading income, up almost 90% year-on-year, due to FX results, higher contributions from global markets, but also to gains in the ALCO portfolio. Expenses grew by 18% year-on-year, above inflation, above the 12-month inflation, which stands at 14.5%, negatively impacted by the TL depreciation and by higher personal expenses, due, as we've discussed previously, to variable remuneration normalizing. The cost income ratio remains very strong at 31.7%. Impairment decline significantly down almost 64%, impacted by the high provisions booked in the first half of last year, and to a better underlying performance, resulting in a cost of risk of 97 basis points in the first half of 2021. Clearly exceeding expectations. As a result, we are also improving our cost of risk guidance in Turkey and n ow we expect to end the year below 150 basis points. Also, a very strong set of results in Turkey with net attributable profit in the half up by 92% year-on-year in constant to 44% in current. Finally, South America. BBVA Research has also revised its macro prospect for the region in 2021. Now expects a stronger recovery in Colombia with a 7.5% GDP growth rate for the year. In Peru, we expect GDP to grow at 9% and 6.5% in Argentina. Let me give you some color on the three main countries. In Colombia, loan growth is up 1.7% year-on-year, but accelerating quarter-on-quarter to 2.2% with positive trends both in retail and commercial, supported by the reopening of the economy. Operating income grew by 5.2% year-on-year, thanks to core revenue growth and positive jaws. Additionally, impairments decreased 33%, driving net attributable profit to EUR 106 million in the first six months of the year. In Peru, loan growth is up over 12% year-on-year, supported by the state guarantee programs. Operating income increased by almost 16% on the back of fee growth up over 37% and an excellent net trading income evolution. This, together with the reduction in impairments, drove net attributable profit to EUR 55 million as of June. Finally, Argentina, that was able to deliver a positive net attributable profit of EUR 15 million in the first half of the year, even after a high inflation adjustment. Now back to you, Onur. Thank you, Jaime. That we have had, it's my 11th call with you. It's one of the best quarters that we are showing in terms of results, in my view. Rather than the summary, I will jump into the last page t he thing that you have been all looking for, you have been asking for this for quite a long time B BVA has not been doing this for many years. I would like to announce the upcoming Investor Day. In this event, we will have the chance to share with you more details on our strategy and our, obviously, future goals and targets. We had to postpone the one that we previously announced due to pandemic. The pandemic is continuing still by popular demand, we have decided to go for it. Please mark 18 November in your calendars t his event will be fully online still due to pandemic, to be able to play it safe. Patricia and the Investor Relations team will be in contact with you with more details in due time. Q&A. Before going into the Q&A session, we might be even more short squeezed on time at the end, so let me do it right away. You might have seen it yesterday, we have done some organizational announcements. As part of those changes, Jaime, our dear CFO, is assuming the group's Chief Risk Officer role. I would like to congratulate Jaime for his new role, thank and recognize him for the terrific job that he has done as the group CFO for the past seven years. Based on your opinions, actually, Jaime has been recognized several times as the best CFO in Europe and Spain. You will be missed in this role, but you will be contributing so much to the bank in your new role c ongratulations once again, Jaime, and it was great to have you in this role, and it's great to have you in the new Chief Risk Officer role. Rafael Salinas, our current Chief Risk Officer, will be the new Chief Financial Officer for the bank. Again, a wealth of experience in Rafa, and he will be joining us for the next quarter's earnings call as the new CFO. All set, Patricia, Q&A. Okay, thank you, Onur. We are now ready to move into the live Q&A session. First question, please. Our first question comes from Sofie Peterzens from J.P. Morgan. Sofie, your line is now open. Hi, here is Sofie from J.P. Morgan. Thank you very much for taking my question. On the presentation, you mentioned that you have initiated the discussions with the ECB on the 10% share buyback c ould you just elaborate a little bit more what this means? what the timeframe is? when we should expect you to start buying back those shares? How we should think about the kind of timeframe of buying back those 10%? will it be done within six months or shorter or longer time period? If you could elaborate a little bit more here, that would be great. My second question would be on the COVID reserves y u mentioned on slide 14 that you haven't touched your COVID management reserves. Could you just remind us how much unused COVID reserves you have? Thank you. Thank you, Sofie, for both questions. On the first one, as we mentioned today, a few times, actually, because it's an important program for us. Our expectation is that we are going to start the program in the Q4. We have initiated the process y ou're asking, what does that mean? We basically submitted our application to start this process yesterday to the respective authorities in ECB. It takes some time for them to evaluate and approve this. The maximum timeframe foreseen for that is three months, which means if it's approved, obviously subject to regulatory approvals, if it's approved as we were forecasting, as we have been planning, we will start the process in the Q4 of this year. You ask about the timeframe of when to complete it E UR 3.5 billion, it is one of the largest share buybacks out there g iven the size and given some restrictions on this, and the most relevant restriction is that for market regulation, you cannot be buying back shares more than 25% of the daily average max volume over a certain period so i t takes time to complete this. Given the size of 3.5, 10% of shares, we do think that it's going to take six to nine months to complete the full program. On the second one, the COVID management reserves. On that one, there are two components that you should be aware. The first one is what we call the macro adjustment. Beyond the regular deterioration that you might be seeing in the portfolios, your PDs, probability of defaults, LGDs, and so on, it is being adjusted every quarter with the evolution of the macro with a future perspective. If you look into the macro adjustments that we have done since the Q1 of 2020, at the beginning of COVID, from that day, from the Q1 2020 to the end of Q2 2021, in the last six quarters, the macro net effect on the bottom line, on the provisions, has been around EUR 700 million-EUR 800 million i' m giving you the rough figures. That's one piece that is still out there. If macro improves, which is improving, some releases might be done from that. That macro is actually integrated into the portfolios, into the PDs of every single file and so on. It is integrated in a way that you are expecting something bad in terms of macro i f those macro improve as it is happening now, some releases might be happening t hat's one component, EUR 700 million - EUR 800 million. There is a second component, which we call management adjustment. On that management adjustment, you basically say you do not see a specific issue in a specific client yet, but you might see in the future. You become prudent and you do these adjustments. On that one, we have another EUR 700 million-EUR 800 million. In total, EUR 1.5 billion is the total of macro plus management adjustment. The EUR 700 million-EUR 800 million management adjustment that you have, we have allocated some of this already to clients and to certain portfolios f or example, the tourism sector in certain countries and so on. EUR 450 million of that is allocated to certain portfolios. EUR 350 million is left at the general level. I'm giving you all these details, but it is very important so f rom the beginning of the crisis of COVID, we have accumulated EUR 1.5 billion some of it is allocated to portfolios, some of it is not. Given the signals that we are seeing, there might be some releases from this portfolio, from these reserves. Especially in 2022 i hope you do realize that we are very prudent on these type of things. Until we see the clear signals on the economic development, we will hold on to those reserves. Thank you, Sofie. Thanks. Next question, please. Thank you. Our next question comes from Ignacio Ulargui from Exane BNP Paribas. Your line is now open. Hi. Thanks very much for taking my questions, and good luck to Jaime his new position. Just have two questions. One is on NII outlook. What should we expect for the second half? particularly focused in Spain after one of your competitors has been giving a bit of a more proven guidance today? How do you see competition and loan growth demand into the coming two quarters? Also linked to that, have been quite bullish on Turkey's recovery of NII. What should we expect? Should we start to see in Q3, in the second half, a recovery of margins once interest rate hikes are absorbed? On the cost of risk, you are guiding 410 basis points at a group level. The first half has been around 100 basis points w here do you see the deterioration coming in your franchise? or is it that you want to stay conservative still in the light of what you have recently commented on Sofie's question? Thank you. Thank you, Ignacio. On three questions, I guess o n NII, you're asking specifically for Spain. On Spain, I think we should have put it in the announced presentation as well y ear-to-date, you have year-over-year growth and so on. I don't comment, obviously, on competitors. Our numbers are quite positive in terms of volumes. I'm looking into the quarter-over-quarter figures. End of March, end of June. We are basically seeing growth everywhere, m ortgages after the, I don't know how many quarters, Jaime, mortgages is growing, stock. Consumer is growing 4.3%, stock. SMEs is growing, m idsize companies, which we call back commercial companies, it's growing. Everywhere, except CIB, is growing. As you know, the margins are coming from those portfolios. I'm quite positive in the sense that the volumes are coming quite nicely. As such, the Q2, I think Jaime mentioned that we are confirming our perspective on the fact that the NII will be delivering what we were projecting at the beginning of the year q uite positive because the volumes are coming very strong. On the margins, I didn't get it, Ignacio, but you were asking Turkey or you were asking the Turkey? Yes. On Turkey? About Turkey. On Turkey. You see it in one of the charts that we put in here w e wanted to reflect a bit to the future on that page. In the Turkish numbers, you see it bottomed out in the Q1 2021 t he June number for the TL spread is 312. As you know, in Turkey, there is this time lag that happens with respect to margins. Because the deposits, the average duration is slightly more than a month. Average duration for your loans is around one year. As a result, when rates go up, you immediately reprice the deposits y ou get hit on the deposit on the cost of funding, but it takes a while for you to come back on the loans and t hat process is still continuing. As you know, the country has increased the rate by 9% i t's huge. The first six months of this year, it has come down i 'm actually looking into it every single day i t's one of my focus areas w hat happens to that margin? every single day it is improving. Every single day it's improving so i m quite positive on the second half margin expectation u nless, obviously, there is a new rate hike in Turkey, which we don't expect. Unless that happens, there will be continued improvement in the margins in Turkey as well. Then 110. Why are you guiding for 110 when the first half is 100? It's regular business as usual. In the context of what we do, Ignacio, the total loan book and so on, 100, 110, it's not a huge difference between the two. Actually, we don't see any negativity in the second half at all. But 110, looking into the past portfolios and so on, we said in that range would be probably the final number. Do you want to add anything, Jaime? No, it's perfect. Thank you, Ignacio. Next question, please. Our next question comes from Carlos Peixoto from CaixaBank. Carlos, your line is now open. Hi. Good morning. Thanks a lot for taking my questions. First on the share buyback, again, just a follow-up. I was wondering because, well, given the share performance and, well, depending on the future share performance as well, but basically, the cost or the capital employment for a 10% buyback has gone up since you announced the intention to do so. I was wondering, up to what level of capital are you willing to go all the way up to the 10% share buyback? or whether we should think about the buyback more in narrow terms, on capital deployment terms, w ell, basically, where is the limitations to that, or any certain threshold of capital. Then, the asset quality front, I was wondering, we saw here an increase in NPLs or in the NPL ratio across several business areas. Spain was the exception a t the same time, we witnessed some deterioration in coverage levels, which I guess it's part of the point in the cycle we are in. I was wondering down to what levels of coverage could the NPL coverage go? In what level do you see as being the minimum or the level at which you wouldn't be comfortable any longer? I know this is a very theoretical question, just if you could give us some color on that. Thank you. Thanks, Carlos. On the first one, as I said, the AGM approval is up to 10%. We have done the calculations, as you have seen in the document, the EUR 1,289 after the share buyback w e have done the calculations there with the 22 June share price, which implied EUR 3.5 billion in amounts t hose are the numbers that we are currently thinking about, w e are going to execute this in tranches. Obviously, our commitment is to this 10%, up to 10%, as we said, in the AGM approval. That's kind of the amount that we are talking about. On the NPL and on the NPL coverage, we don't have a commitment or goal on coverage and w hat happens is we look into every single client, actually i t's client-specific, as you know. Every single client, when we see signs of deterioration, when we have expectations of future deterioration, we take provisions. As a result of that, the coverage comes up so w e don't optimize for a certain coverage number i t's all driven by the underlying quality of the portfolio. It's in the appendix, but on page 45. As a result of this, what comes out is we are more conservative or, I don't know, prudent, I guess, than the rest of the industry. On page 45, you see that our coverage is 77% versus 66% of European peers average, a gain, it's very tough to compare because of the mix of the portfolios. In different countries, Spain, we have 64% coverage. Spanish banking peers average is 56% and i remind you that we are more mortgage-heavy in our portfolio as compared to our competitors. In Turkey, we are 69%, the industry is 66%. Again, I'm giving you some final numbers on this, but our prudent policy will continue on provisioning, I would say and w hat matters is the underlying quality of the portfolio. We don't manage the coverage as an optimization variable w e look into the portfolios. Yeah r egarding the comment on deterioration in certain countries t he deterioration has taken place in two, maybe a little bit more relevant in Turkey, but that's because of one specific client that was included in stage three this quarter. As you were able to see, didn't require any provisions, and the cost of risk didn't increase h e was already well-provisioned in stage two. A lot lower in terms of size, only a 9 basis points increase, in Mexico because of a one-off also from a client in the leisure sector. The underlying behavior, both of the retail portfolios and the commercial portfolios, apart from these two one-offs, remain very, very strong. Again, the specific client in Mexico was provisioned fully w e didn't increase the provision because of that client either. Thank you, Carlos. Next question, please. The next question comes from Francisco Riquel from Alantra. Francisco, your line is now open. Yes t hank you for taking my questions and best wishes for Jaime. First question on Mexico y ou can update on the NII guidance and the interest rate outlook has changed. You were budgeting for rate cuts, if I remember well. I know the sensitivity to rates is limited in Mexico, but I don't know if there is any upward bias on the guidance or if because of the repricing is delayed into 2022 or not. You can update on this. Wanted to ask about the fee income, it's the positive surprise in the quarter, if you can update the guidance for the group and the main units and explain where the growth comes from. If you are raising tariffs, if it is because of external factors, the markets or the macro helping, or if you are really improving cross-selling ratios in any geography t hank you. Perfect. Thank you very much for the questions on the first one and t he second one, Jaime, it's your last call, and you're not taking too many questions. No, you're being gentle to me. Okay. You're being gentle to me. Take the second one. It's one of my favorite topics, but it's yours. On the first one, the sensitivity of the Mexican book, there is sensitivity. The local currency, Mexican peso sensitivity to 100 basis points is 1.5%. It's a positive sensitivity in that sense. But, the rate rises that we are expecting will probably be coming towards the end of the year, which means towards the end of the year implies that we are not going to be seeing the impact this year f or the next year, there will be some impact, limited, but there will be some impact positive as you highlight in your comments. On the implications of NII this year, again, positive w hat I see in the productions, you already see it in the page that we put into the presentation. In terms of stock growth, stock has also grown very nicely in detail, in the retail book in Mexico in the Q2, and that's going to be reflecting into the figures, o n the fees, Jaime? Yes. Thank you, Paco. Fees year-on-year increase everywhere in the footprint. We are up almost 20%. It's mainly explained by banking services, particularly those related to credit cards and other payment services due to the economy's reopening after the different lockdowns. Also asset management, that has behaved extremely well, particularly in Spain, both because of net entries but also because of the market performance. Also affected by the insurance fees, as I've mentioned in my comments, due to the joint venture agreement with Allianz. Also thanks to CIB. CIB, particularly in the first half, has behaved extremely strongly. These numbers on a quarter-on-quarter basis are even more impressive, because we are up 6.3%. Again, due to exactly the same concept. As you know, Paco, we do not provide guidance for fee income growth at all except in Spain. I take this opportunity to highlight that maybe it wasn't well understood in my presentation. We have upgraded the guidance for Spain for a growth of mid-teens versus the previous high single-digit growth that we had so v ery confident that what we're seeing today is going to be sustained going forward. Thank you, Paco. Next question, please. Our next question comes from Benjamin Toms from RBC. Benjamin, your line is now open. Morning. Thank you for taking my questions. Firstly, it's in relation to the ECB announcement last week on dividends and the guidance that banks remain prudent post September. For a bank like BBVA, which is so far ahead of its regulatory target, do you think that the board basically doesn't have to think too much about that statement? Does it bind constraints when they sit down to decide the bank's full-year dividend? Presumably the guidance doesn't change the aspiration to be within your target range within two to three years. Secondly, in your presentation, you mentioned you don't expect any significant regulatory impacts for the rest of the year a re there any other types of headwinds this year that we should think about? Are there any regulatory headwinds for next year that are worth noting? Thank you. Okay. Benjamin, we had some problems in the line i hope we got it properly i f not, please correct us or ask the missing pieces at the end. On the capital and on the target, you're asking whether the board might be looking into it and o bviously, it's the board's call. In terms of this affecting the ECB, the dividends and so on, as I mentioned, we are ending the Q2 at 14.17. This is 557 basis points above our requirements. I would remind once again, I personally failed in explaining this properly to our analyst community and the investor community, the fact that we are one of the lowest requirement bank in Europe. We should compare our capital positions to the requirement. When you do that comparison, we are one of the best capitalized banks out there. In that context, after the 10% that we have put here, the pro forma, with the share price of 22 June w ith the EUR 3.5 billion, with those numbers, we are 1289. I remind once again that this number is coming from a bank with one of the best organic capital generation capacity w e will add on to this number every quarter. To cut a long story short, given our capital position, given the capital position of others, given our organic capital generation capacity, I do think that we are one of the ones who can take these capital decisions in a comfortable way in terms of our capital position. The board deciding on the rest, obviously it's the board's call, but I don't foresee anything in the short term. The second question was on the headwinds on the regulatory side. On the headwinds for the regulatory, as I said, this year, we have done the New Definition of Default, w e have done SA-CCR, w e have done the Low-Default Portfolios, which was a relatively big impact. We have done the new PD/LGD guidelines. The PD side of this is done w e have done a lot. The only remaining thing for next year would be the new guidelines on the LGDs. The PD/LGD guidelines, the PD side is completed. The only thing that is remaining is this LGD topic i t's like, if I'm not mistaken, 10 to 15 basis points that might come in in 2022. Unlike other years, our expectation is that 2022 would be, new things should not be popping up in our view because it's the year before Basel. The Basel impact will be coming in 2023. It's going to be, in our view, at least as it seems, it's a light year in terms of regulatory impact and t he only thing remaining is that final piece, LGD 1. Thank you, Benjamin. Next question, please. The next question comes from Maksym Mishyn from JB Capital Markets. Maksym, your line is now open. Hi, good morning t hank you for the presentation, and taking my questions. I have one technical question w hat was the final impact of Coinbase on your accounts in the Q2? I also have a question on restructuring in Spain d oes the agreement that you've reached with the labor unions? limit you from any further restructuring in the coming years? Thank you. On the Coinbase, it's not just Coinbase w e don't specifically tell exactly this company impact, but Propel Venture Business, including Coinbase, obviously. The impact in the Q2 was EUR 160 million. EUR 110 million came in net trading income, EUR 50 million came in other income. EUR 160 million in total. This is lower than the EUR 200 million-EUR 250 million that I guided you at the end of the Q1. Two reasons. Coinbase share price has come down from the time that I talked to you about it and to the end of the quarter, plus one of the portfolio companies, which is going to post a good trading income as well, it is delayed to the Q3. That's why it's EUR 160 million. In the Q3, by the way, from the other portfolio companies of Propel, we are expecting some good registry of trading income as well t hat venture capital arm that we have is proving to be a very good investment vehicle for the bank. On any further restructuring, you're asking whether we are bottlenecked by the existing area, the answer is no, obviously no t his area has to be complete and done t he process is still ongoing i n the future years, obviously, we can do other restructuring programs, obviously. That's not our plan at the moment but y ou can, y ou're asking legally whether you are bound by it i f that's the question, no, you are not legally bound y ou can do others. Exactly. Thank you very much. Thank you, Maksym. Next question, please. Our next question comes from Benjie Creelan-Sandford from Jefferies. Benjie, your line is now open. Yes, good morning, everyone. Two questions from me just on lending growth, please f irst of all, in Spain, I guess after the strong performance this quarter, the guidance for the full year perhaps looks a little bit cautious in terms of guiding for flattish trends still. I was just wondering whether there's any specific pockets of weakness in loan growth in Spain in the second half of the year that you're expecting. Thinking slightly further forward, what impact do you think this Next Generation EU funds could have on loan growth in the European business? The second part is just on Mexico. You've touched on this already, but if we look consumer lending, X cards is still shrinking on a year-on-year basis in Mexico. Can you perhaps talk a little bit more about how you see that developing through the rest of the year and the mix of volume growth in Mexico going forward? Thank you. Okay, I'll take the first question. Actually the behavior in Q2 has been quite good. It's up, as I said, during my presentation, 2.3%. What was probably the best news is that, except for the CIB portfolio, all the remaining portfolios increased during the quarter. As I highlighted also, the mortgage book. It was particularly relevant, the consumer and credit card portfolio and the mid-size, the SME segment, that grew at 4% and 3% respectively. I think those trends will be able to be sustained in the second half of the year. That's why we've also gave guidance on the consumer portfolio evolution for the full year. There's probably the only question mark of this CIB book evolution. As you know, the base effect is very negative. A number of clients drew massively on their lines during Q1 and Q2 of last year. That still creates a large base effect that will start to disappear because as you remember, at the end of Q2, but also during Q3 and Q4, we received a significant amount of pay downs in this portfolio p retty much all across the footprint, but particularly in Spain. We are maintaining our guidance of broadly flat. but clearly, with a much stronger confidence that this guidance can even potentially be beat. Okay o n Mexico, Benjie, I guess you're referring to page 21 of the presentation. The credit card is actually growing. Year-over-year growth in balances, the stock balances is 4.3%. The negative was consumer. But on that one, what I would say is in general, as you see, mortgages is growing, credit cards is growing. SMEs is growing t he only one that's not growing is consumer in the retail SME side. The reason for that is, as you know, this is a very short duration book. As such, during COVID, we have obviously slowed down our production, and the customer demand was not fully there w e also wanted to be a bit prudent in terms of new production. As a result, the lack of production in the second half of last year, in the Q2 of last year, that production, it takes time to ramp it up. Because the reflection to the balances comes after a while. As such, the 3.3% reduction is what you are seeing in the year-over-year. Again, we don't have the quarter-over-quarter numbers there, i have it in front of me. In consumer, the quarter-over-quarter growth is 1.2% in stock, March versus June. Credit cards, you said credit cards, c redit cards is actually 4.8% growth quarter-over-quarter S MEs, 5.4% growth. We are seeing growth across the board in Mexico. In credit cards, you mentioned again credit cards, which is very important for us in terms of margins and as a product linkage with the customer. The new production, the new cards that we generated, the total limits, Q1 versus the Q2 is up 14%. The production is coming, and you will see the implications of this in the balances in the coming quarters. We see very positive signals, in short, in the production. Thank you, Benjie. Next question, please. The next question comes from Marta Romero from Bank of America. Marta, your line is now open. Thank you very much. I have a couple of follow-ups on NII in Spain. Your previous guidance was -1%, -2% for this year, but you're running at +1%. Assuming similar levels that in Q2, could you please provide an update on what's driven the improvement in the quarter? you've done much better than your competitors. I'm wondering whether that is lending activity or there could be some ALCO portfolio additions and TLTRO and so on. Related to the NII as well, would you say you have more risk appetite in Spain than your competitors? You've guided for very strong growth in consumer lending so i m wondering whether your cleaner balance sheet and your stronger capital position is driving that increase in risk appetite. Thank you. Thank you, Marta i 'll take the first question. On NII in Spain, there's nothing really that I could qualify as a one-off in Q2. First of all, we have the very positive news of volume growth. Average loans have increased by 0.6% in this quarter. There's been a mix improvement, also, which is also quite relevant c onsumer and SME books clearly are more profitable. I would probably highlight the fact that as Onur clearly highlighted in the Q1 results presentation, the Euribor repricing is almost done. The mark to market of the whole portfolio at these historically low 12-month Euribor has already been done. Onur mentioned that we could have a 1, 2 basis points negative impact going forward, and that's what has happened in Q2. We feel that is now over. Of course, during the first half of the year, we have benefited from the TLTRO. We were able, as we guided in Q1, that we were able to meet the volume requirement. We expect to do so also at the end of this year to also benefit from June 2021 to June 2022 of the TLTRO - 1%. ALCO, is true that we had a slightly more positive contribution in Q2 versus Q1, but it was marginal. NPL recoveries were fine, but still nothing particularly relevant. What we are saying is that things are behaving more or less as we were expecting t hat's why we are reiterating the guidance. It is important to highlight in Spain that Q2 of last year did have a significant one-off, that we very clearly highlighted then. We feel very confident that we will be able to achieve the guidance that we are producing. Marta, on the country page in Spain, there are so many numbers on these pages i don't know which ones you look into, so we are a bit purposeful in selecting which to put. The quarter-over-quarter numbers we could have put, which is very good for Spain, that I would like to very quickly give to you for the first question that you were asking. In the quarter-over-quarter, Q1, Q2, stock growth. Mortgages is growing 0.1%. Consumer and credit cards, very high margin, growing 4.3%. Very small businesses is growing 0.1%. Mid-size companies, which is very important to us, commercial companies, is growing 3.4% a ll these high margin areas are growing very nicely quarter-over-quarter t hat is the reason why you are seeing these good figures. Linking it to the second question, you are saying that you are growing in certain areas like consumer, is it high-risk and so on. I think the numbers should speak here i f you take the past whatever years, how many years you take, and the cost of risk of BBVA versus cost of risk of competitors, you will see that we do have this conservative profile and the prudent profile in our risk appetite. On consumer, I would like to remind you or tell you that the reason that we are growing so nicely is for two reasons n umber one: a very high percentage of these customers, they either have their payroll with us or their flow of income to us, if they're not employed, if they're autonomous and so on. We are looking into that income flow. We have the payrolls, w e are a franchise in Spain, we are looking into that relationship and going from there, w hy are they getting it from us? If they're also a payroll customer, it is so easy for them to get it m ore than 70% of these loans are now digitally given so t hey just go to the app and click and get the money. The convenience and the relationship that we have is what is different here. I remind you, the lending yield for consumer is around 6%. The probability of default and the cost of risk on that portfolio is very, very little so w e have to optimize for that return. Thank you, Marta. Next question, please. The next question comes from Mario Ropero, from Bestinver. Mario, your line is now open. Hi, good morning, everybody. A follow-up question, please, on fee guidance in Spain y ou mentioned mid-teens in 2021. If you were to repeat in the second half what you did in the first half, you will get to 20%. I would like to ask if we should consider any one-off in the fee number in Q2? or you just want to give yourself some leeway. Then, on capital, I just wanted to ask a follow-up. Is any additional decision on what to do with the excess capital will be delayed until the buyback is completed? or these are two completely independent processes that you can make at the same time? Thank you. Okay i 'll take the first question on fees in Spain. Nothing relevant except that, as you probably remember, during January and February, we did get some extra success fees in the asset under management arm of Spain. That's what probably explains the slightly lower contribution in the second half versus the first t he rest of the underlying trends remained pretty much the same. Mario, on your second question, you're saying, are you going to wait for the other thing? I don't know what that other thing is, i guess you refer to M&A? Yeah. Sorry. No, I mean any additional decision that you can make with the remaining excess capital, whether it is M&A? or whatever it could be? Okay. No t hese decisions are independent, and it's all driven by value creation w e don't wait for something to finish before we can do another thing i f there is an opportunity, if we have the means to do it, we do it w e don't wait for things to happen before we can do other things o n M&A- I was very clear in the past few calls, in my view, which is for M&A, the fact that we have excess capital has no relation to what we might want to do in M&A. As I said it before as well, we are not naive t here is some, convenience benefits from having the capital and so on, but an M&A decision should make sense whether you have capital or not. If you have a great deal, I'm sure you can find ways to finance that deal so t he fact that we have the excess capital doesn't create this motivation in us that now we have to spend it, o therwise No, that's not how we look into it, t he project has to make sense. If the project does not make sense, we don't use that money for M&A and a s we mentioned before, this share buyback program is six to nine months. In the future, if we cannot find reasonable alternatives to make the best for the capital deployment, we might do other programs. What we have been saying is that every single capital deployment opportunity is in competition with another one. They have to compete with each other i f there is an opportunity, I'm sure we'll find a way to finance that deal. Thank you, Mario. Thank you. Next question, please. Our next question comes from Stefan Nedialkov from Citigroup. Stefan, your line is now open. Thank you. Good morning, guys. Jaime, all the best to you in your new role as well, and welcome to the new head of finance. A couple of questions, if I may here. By the way, my line dropped before a little bit, so if I'm repeating a question, just tell me to not ask that question, I can check later with you guys. Having said that, number one, on Mexico, you seem to be implicitly guiding to stable margins for the rest of the year. Seems like consumer lending, credit card volumes plays a part in terms of loan mixing and how that affects the overall NIM in Mexico. With limited rate sensitivity until the remaining period of 2021 and stable spreads, what you seem to be saying is that there isn't really much upside to Mexican NII for 2021. I was just curious to see what is your outlook for 2022 i t may be a little bit early to say. However, if you can just give some color on how the competition is evolving, the underlying competition, so to say, when it comes to consumer lending, credit cards, SMEs heading into next year. It will be really useful for our understanding of how Mexican NII is going to develop going forward. The second question is on digital. You guys keep on posting very good digital metrics in terms of mobile penetration, overall digital penetration numbers are 62% - 66%. I am wondering what is the digital contribution to fees, h ow much of your fees are currently raised via digital channels? I'm not only talking about payments, which are obviously mostly digital, but the actual value added for you going digital, how can we measure that when it comes to fees? Any other metrics you can give us as well. If I may, a quick bonus question here. At your Investor Day on the 18 November, are you going to break with tradition and actually give the market an ROTE target? Thank you. Thank you, Stefan. On the first one, Mexico, actually, I'm expecting margins to slightly go up in the second half, mainly because of the customer mix that I was talking to you about, because we are growing more in the high margin products. Retail actually has grown in the Q2 very nicely, and we are seeing very nice production pickup in those portfolios. Given the fact that they come with high margins due to mix effect, I would expect some slight pickup in the margin. For 2022, as I said, even better. For 2022, we don't provide guidance yet, but you're asking about competitive positioning and so on. On that one, I am extremely happy with what we have been doing in Mexico from a competitive perspective o ur lending market share has grown year after year, but even last year-over-year number is 59 basis points in the total lending market share w e are growing market share in credit cards, w e are now 30.4% market share in credit cards, which is a very important product and portfolio, as you know, in Mexico. Year-over-year market share gain is 224 basis points. Commercial, which we wanted to increase this year, gaining market share, p ublic sector, gaining market share i n general, we are doing really well and overall lending market share has gone up, as I said, by 59 basis points. We have a wonderful bank in Mexico a s I did mention in some other calls in the previous times, I would encourage you are covering BBVA, if you have the time, if you go to Mexico, please go meet our teams there. It's a wonderful bank that we have w e have the best talent w e have the best NPS. Clearly the best NPS by far, we have been gaining market share every single year. We are doing extremely well i 'm very positive for 2022 as well l et me not deep dive more. On the digital contribution of the channels, we don't tag it because at the end of the day, it's the customer feed t he customer can do the transaction wherever. The only thing I can tell you is that the share of digital has been going up and up in the daily transaction, in the daily account activity of the customer. When you look into the what we call accounting entry generating transactions. It's not like checking your balance because it doesn't create an accounting entry. An accounting entry generating transaction, the digital's share in the total number of transactions has been going up. In the first six months of, for example, 2018, I have it in front of me, l et me just share it. It was 24%. All the channels, ATMs, branches, digital, other channels, call center, and so on, if it's 100, that accounting generating entry transactions, 24 in 2018 was digital t hat 24 has become 54%. It has been going up dramatically and then a s they generate accounting entries, some of those transactions, again, I'm not specifically tying it to fees, but they also generate fees. Very, very positive evolution adn t hese percentages of digital sales that we are sharing with you from time to time, you can find them at the backup of the presentation. Digital penetration competitively, in our view, as far as we can see, we are one of the clearly the best banks out there in terms of using digital in our banking business. Are we going to give a return on tangible equity target in Investor Day? We have not obviously finalized it, but yes, I do think that we will put something on the table for sure. Thank you, Stefan. Great stuff. Our next question comes from Pamela Zuluaga from Credit Suisse. Pamela, your line is now open. Hello g ood morning t hank you for taking my questions. A couple of questions. You gave the new cost of risk guidance of 110 basis points w hat does that imply in terms of the release of provisions from that overlay that you were mentioning earlier? Is there any further potential upside to that guidance if these releases were actually achieved? Another one is, you talk about the pricing action on margins. Could you maybe please give us an example on differentiation versus the market price? If I may, sorry, one last. You were saying that you're almost done with Basel III, but maybe can you give us some guidance on the impact from Basel IV? Thank you. Pamela, we couldn't get the last question c an you repeat that, please? Yeah. Sorry. Can you hear me? Yeah. Now, yes. Yeah. Sorry y es, I was saying you mentioned that you're almost done with Basel III. I was wondering if maybe you can give us some guidance on the impact that you expect from Basel IV. Okay. On the first one, 110 basis points, the overlay are we going to be using, no, that is very limited to none in that guidance that we are giving to you o ur, again, expectation is that if things continue to improve and so on, there might be some releases from that, but we would probably have that in 2022 w e have to see, especially in Spain, the development of the portfolios until we do any releases from that. On the pricing, you are asking what exactly you are doing different than the market and so on. If that's the question, if not, please alert me. The thing that we are doing is, especially for what we call mid corporate, above SMEs. All the capital that has to be deployed to a client has to generate a return. We have now a new system w e had it, but we upgraded it, which is basically looking into the return on regulatory capital of every single client loans. If you are giving a loan, you have to create the returns for it, for the client. You might choose to invest into a client because you might not be able to create the return right away. You have the time w e create these, what we call exception pools. In those exception pools, after a certain while, you have to invest, yes, but then you have to take that client from that exception pool so that it's still profitable at the return on capital level. That's how we manage it and i do think that the diligence that we have in this process is better than the rest of the industry. On the Basel IV, the answer is, we are going to be one of the good ones out there because as you know, again, we keep saying this every quarter, and it's a little bubble in the presentation n obody pays too much attention, probably, but we are the best. Risk density bank out there so w e are not going to be affected from the key impact of Basel IV, which is output floor. Output floor will have no impact on BBVA a s a result, our initial estimations are that we are going to be affected from Basel IV, one of the lowest out there because of no impact coming from the output floor. Thank you, Jaime. Perfect. Thank you. Next question, please. The next question comes from Andrea Filtri from Mediobanca. Andrea, your line is now open. Thank you. Two questions, one on asset quality and one on capital. On asset quality, there is clearly no signs of deterioration so far. I just wanted to understand in terms of constraints on usage of overlay provisions, both the macro and the management parts, at what point do you envisage auditors to come in and ask you to either allocate or release the provisions? you've indicated 2022, if you could explain a bit better the mechanics of it? would be very helpful. On the capital side, today's price reaction is kind of saying that the market forgot what it was expecting to get. What are the kind of next steps beyond the buyback that you will start in Q4 to actually start giving some visibility to your shareholders as to if there is more juice coming or if this will be translated into organic or inorganic growth? And just finally, I didn't understand before, after the question of Marta on the Spanish NII guidance, if you're actually confirming the negative 1%-2% NII growth in Spain for this year. Thank you. To Marta's question, Andrea, yes, we are confirming. On the other two questions, asset quality, usage of the overlay, a good part of our daily life is spent with our stakeholders including the auditors o bviously, they analyze everything. What that money is for is regulation-driven t he regulation tells us that if you have an uncertainty for the future, then you have that overlay, t hat's what we have. When we see the signs of overlay not being realized, obviously we will release it and a ll of this, obviously, is under the full management and control of the auditors as well. On the capital, you are asking, is there more juice coming? I don't know what you mean by juice, but if it's share buyback or return of capital back to the shareholders, as we mentioned before, possible. We are one of now, the 14.17% after the share buyback, 12.89%, our organic capital generation capacity. We will have excess capital, and we don't like to operate with structurally excess capital. We have a clear target. Anything above that, we will be subject to capital deployment decisions. If you're asking about the M&A, again, I'm not sure that you were there with the previous call, the question, but we don't have this reserved money for M&A. The M&A, once again, the project has to make sense. If the project doesn't make sense, we don't keep the capital waiting for something that might be coming in the future and so on. We will give back the capital. If the project is good, we can always raise capital in the future. To cut a long story short, on the share buyback, the first 10%, the targeted 10% program, we will start it hopefully, as we were expecting, as we were hoping in the Q4 t here are now even more certainty in my view on that whole thing w e initiated the process. Actually, yesterday, we sent the full documentation and the application to the ECB so w e have initiated the whole thing, which is a great message to the market in my view. That will take six to nine months to complete because of the Market Abuse Regulation. After that, we might do even more. It depends on what alternatives we have, and each one has to compete with each other, d epending on the share price, if nothing else beats the share buyback alternative as a capital deployment alternative, we will do even more capital deployment, share buyback alternative so- -Obviously, we have to make sure that they all compete with each other, and we deliver the best value to the shareholders. I hope we have shown in the past few years that we are very disciplined on this value-based capital approach. We sold USA. You know how difficult that decision was? We had to do it from that value perspective, and there was a better and natural owner for that asset. I don't see many other banks in that same camp. We are very disciplined on this approach, and we will continue to be w hatever delivers the best return, we'll be using that capital. Thank you, Andrea. Well, I'm afraid we're running out of time, so just one last question, please. Whatever the question is, it is going to be for you, Jaime. If that is the last question, so it is you. Our final question comes from Britta Schmidt from Autonomous Research. Britta, your line is now open. Hi there. I'll make it easy for you m y questions have actually been answered t hanks. Already answered, so maybe you take one more. No. Britta was very nice to me. Don't take that away. Now that I have the microphone, I've been asked to repeat the guidance for Turkey because it seems that we had some audio issues during my speech. I talked about TL loan growth for 2021. I reiterated that we expect TL loan growth at mid-teens, but now with an upward bias. The foreign currency portfolio should continue decreasing. On the cost of risk side, we now expect to end the year below 150 basis points. Maybe one final thing to add, because we didn't get to it, but I have in front of me this wonderful page, which is talking about the guidance previous quarter versus guidance this quarter in a tracked change version. I hope we could have put that into the presentation as well, but which is, it's improving everywhere, f or the group, asset quality, improvement from 130, 140 to 110. In Spain, we are improving our net fees and commissions from previous high single digit to mid-teens growth w e are improving our expenses guidance to - 3% w e are improving our asset quality guidance in Spain, less than 40 basis points, w e are improving our asset quality guidance in Mexico, and we are confirming with positive bias the NII numbers there. We are improving the cost of risk guidance in Turkey and South America is more or less flat. Overall, I have red and green tags into these tracked versions, and all of them are green. We are providing a good guidance for the rest of the year. Anything else on your side, Patricia? We close, no? Yeah. Thank you. Thank you very much, all of you, for participating in this call. Let me remind you that, of course, the entire IR team will be available to answer any question you may have. Onur, if you want to close. I want to close by thanking once again, Jaime. He will be missed dearly, and I want to thank everyone for the ones on the call. Stay safe, and if you have not taken your vacations yet, have a great summer. Thank you so much.