2023-07-28 08:04:07
BBVA has achieved a profit of 3,878 million in the first half of the year, which represents an increase of 31% compared to the same period of 2022. The rise in interest rates in the markets in which it operated, with special relevance in the euro zone in general and Spain in particular, has allowed the entity to raise all margins
The income of the financial institution (gross margin) experienced growth of 23.9%, reaching a total of 14,148 million euros. Specifically, the net interest income for the first six months reached 11,410 million euros in the first half, 39.2% more than in the same period last year, thanks to improvements in the customer spread and greater activity. The good evolution in Mexico, South America and Spain stands out.
In the specific case of the Spanish business, credit investment fell by 1.4% in the interannual rate, mainly due to the deleveraging of the mortgage portfolio, in a context of rising interest rates. However, the dynamism of consumer credit and cards and financing for medium-sized companies stands out positively. Customer funds grew 2.7% largely due to the boost in off-balance sheet funds, mainly investment funds.
The attributable result in Spain reached 1,231 million euros in the first half, 53.6% more year-on-year, thanks to the dynamism of the interest income (+44.7%), which boosted the growth of the gross margin and allowed a notable improvement of efficiency, up to 41.8% (-495 basis points in the last 12 months). Credit quality indicators remained solid and in line with expectations. The NPL rate increased slightly compared to the end of March (+15 basis points), although the accumulated cost of risk remained stable at 0.27%. The coverage rate stood at 57%.
The entity’s CEO, Onur Genç, has pointed out the “solidity” of these results. “We have made great progress in customer acquisition and sustainable business, with record figures in the semester. The good results and the execution of our strategy allow us to have a positive impact on all our stakeholders: customers, shareholders, employees and society as a whole; and face the future with great optimism”, he pointed out.
Based on these results, BBVA has decided to reward its shareholders with a new share buyback program that will amount to a maximum of 1,000 million euros. In line with its commitment to profitable growth and attractive shareholder remuneration, BBVA has requested authorization from the European Central Bank to carry out this operation. The repurchase is considered extraordinary remuneration and is added to the ordinary dividend policy. Between 2021 and 2022, BBVA distributed another 8.2 billion euros to its shareholders between dividends and share repurchases.
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