BBVA 4Q Profit Beat Forecasts on Higher Earnings – Update

By Xavier Fontdegloria


Banco Bilbao Vizcaya Argentaria SA’s profit in the fourth quarter rose more than expected, as revenues rose and provisions fell.

The Spanish lender recorded a net profit of 1.34 billion euros ($1.51 billion), an increase of 1.6% compared to the 1.32 billion euros recorded in the same period a year earlier early. Analysts had expected BBVA to post a profit of 1.04 billion euros, according to a consensus forecast provided by the bank.

BBVA said net interest income – the difference between what lenders earn on loans and paying deposits, a key profit driver for retail banks – rose 14% year on year to 3 .98 billion euros in the fourth quarter, while income net of fees and commissions increased by 20% to 1.25 billion euros. Impairment of financial assets fell to 832 million euros over the period, against 901 million euros a year earlier.

The bank’s fully-loaded common equity Tier 1 ratio decreased to 12.75% in December from 14.48% in September due to the €3.5 billion share buyback program.

The lender said it will complete the second tranche of the buyback program, for a maximum of 2.0 billion euros, once the first tranche of 1.5 billion euros is completed. The buyout is expected to be fully executed by October 15.

BBVA declared an additional dividend of 23 European cents per share over its results for 2021. This would bring the total dividend for the year to 31 European cents per share, the highest in cash for a decade, it said. declared.

The Spanish bank said it expects double-digit core revenue growth in 2022, while anticipating a cost of risk – the ratio of provisions to expected loan losses – of around 1%. . The measure stood at 0.93% in December.


Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com

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