Analysts praised BBVA’s foresight as the group booked €1.43 billion in provisions during the first quarter to cover the expected impact of COVID-19 on its business. The Group’s capital ratio was another one of the quarter’s standouts. The reports published by analysts also focused on BBVA’s strong top-line growth and the soundness of the messages conveyed by the bank’s management, particularly in connection with its expectations regarding provisions and capital generation.
30 Apr 2020
Carlos Torres Vila, BBVA Group executive chairman and Onur Genç, BBVA CEO, presented the results for the first quarter of 2020 at an online press conference from their homes. Carlos Torres Vila stressed that now, “The most important thing is to look ahead and return to activity” to foster the economic recovery. This reopening should prioritize health, but “reactivate our productive network and employment.” In this sense, “everyone’s collaboration – governments, the private sector and society in general – will be fundamental to overcoming this crisis.” A recession that he predicts will last “for a limited time”.
BBVA USA Bancshares, Inc., a Sunbelt-based bank holding company (BBVA USA), reported today a net loss of $2.2 billion for the first quarter of 2020. Included in first quarter 2020 results is goodwill impairment (non-cash charge) totaling $2.2 billion reflecting the drastic change in macroeconomic conditions and forecasts brought about by the COVID-19 pandemic. Excluding the impact of this non-cash charge, the adjusted net loss¹ for the quarter was $52 million, further reflecting the abrupt decline in interest rates and higher provision expense necessary to reflect the economic and business disruption caused by the pandemic.
BBVA’s recurring revenues (net interest income and net fees and commissions) grew strongly during the first quarter and the operating income was the highest of the past ten years. Also, the attributable profit absorbed the provisions established to anticipate the impact of the COVID-19 crisis. According to BBVA Group Executive Chairman Carlos Torres Vila, “the recurrence of our profits before provisions and our solid capital and liquidity position allow us to face the crisis from a position of strength and to front-load in this first quarter the provisions to hedge against the impact of the pandemic”.
BBVA posted a recurring profit of €1.26 billion in 1Q20 (+6.4 percent yoy), driven by the highest operating income in ten years (+14.1 percent), and boosted by a good performance of revenues and a containment in operating expenses. Following front-loaded provisions of €1.43 billion related to the COVID-19 crisis, BBVA earned €292 million in the first three months of the year. Including the goodwill adjustment at the U.S. unit, the bank registered a €1.79 billion loss in the quarter.
Carlos Torres Vila, Group Executive Chairman:
26 Feb 2020
BBVA is a customer-centric global financial services group founded in 1857. The Group operates in more than 30 countries and has a strong leadership position in the Spanish market, is the largest financial institution in Mexico, it has leading franchises in South America and the Sunbelt Region of the United States. It is also the leading shareholder in Turkey’s Garanti BBVA.
21 Feb 2020
03 Feb 2020
Carlos Torres Vila presented BBVA’s 2019 results today, “a year with record-high income” for the bank. BBVA’s Group executive chairman went over the bank’s biggest accomplishments since the presentation of the strategy in 2015 and also announced new strategic priorities. Of these, he emphasized two. On the one hand, “we want BBVA to be a trusted partner to improve our customers financial health”. And on the other, “we want to help them in the transition to a sustainable future.”
31 Jan 2020
BBVA USA Bancshares, Inc., a Sunbelt-based bank holding company (BBVA USA), reported today a net loss of $331 million for the fourth quarter of 2019. Included in fourth quarter 2019 results is goodwill impairment (non-cash charge) totaling $470 million. Excluding the impact of this non-cash charge, adjusted net income¹ for the quarter was $139 million, a 29 percent decrease from the $196 million earned in the fourth quarter of 2018. Return on average assets and return on average tangible equity¹ for the fourth quarter of 2019 were (1.37) percent and (14.46) percent, respectively. On an adjusted basis, return on average assets¹ was 0.58 percent and return on average tangible equity¹ was 6.09 percent.
Recurring revenues (net interest income and net fees and commissions) continue growing robustly, reaching a record high in 2019. According to BBVA Group executive chairman Carlos Torres Vila, the bank obtained outstanding results despite a macroeconomic environment that was more complex than expected. “Looking toward the future, at BBVA, our goal will be to dig deeper into our strategy, integrating the interests of customers, employees, shareholders and society as a whole, balancing economic, social and environmental perspectives in everything we do,” he indicated.
Following the publication of 4Q19 earnings, BBVA Group executive chairman Carlos Torres Vila explained today that: “BBVA has achieved outstanding results in 2019, thanks to record-high recurring revenue.” This, in conjunction with exemplary cost management, has helped us “reach an ex items profit of €4.83 billion — our highest since 2009.”
Carlos Torres Vila, Group Executive Chairman:
30 Jan 2020
Türkiye Garanti Bankası A.Ş. today announced its fourth quarter earnings. In 2019, the bank’s net income was TL 6.241.390 billion, with total assets at TL 428.554.148 billion. The bank’s contribution to the economy through performing cash and non-cash loans reached TL 321.964.117 billion.
29 Jan 2020
A company’s shareholders — ultimately the company’s owners — expect the company to create value that they can eventually recognize. Can the generation of shareholder value be measured? Which metric is a better indicator: book value or tangible book value?
28 Jan 2020
The net interest income is the difference in euro between financial income and financial costs; that is, the difference between an asset’s profitability (the credit lines and loans that the institution has on its balance sheet, mainly) and the interest that the bank pays for the resources it needs to finance that asset (such as customer deposits and wholesale financing).
These are the expenses that an institution incurs in its business operations.
27 Jan 2020
To calculate a bank’s relative productivity, the market uses what is called an efficiency ratio. This indicator calculates the income earned for the expenses required to achieve said income over a given period of time. An institution’s efficiency ratio, expressed as a percentage, is the result of the ratio between operating expenses and the gross margin. For example, if the efficiency ratio is 60% it means that to earn 100 euro, an institution needs to spend 60. Therefore, the lower the percentage, the more efficient the institution.
05 Nov 2019
31 Oct 2019
The bank’s chief executive officer, Onur Genç, wants Spain’s contribution to BBVA Group profit to continue to grow. “Our ambition for Spain is to have continued growth,” he stated in the 2019 Q3 results press conference.
BBVA USA Bancshares, Inc., a Sunbelt-based bank holding company (BBVA USA), reported today net income of $183 million for the third quarter of 2019 compared to earnings of $160 million in the second quarter of 2019 and $175 million earned in the third quarter of 2018. Return on average assets and return on average tangible equity¹ for the third quarter of 2019 were 0.76 percent and 8.03 percent, respectively.
BBVA’s 3Q19 earnings reveal how core revenues of the banking business –net interest income and net fees and commissions– keep growing steadily. BBVA CEO Onur Genç noted the impact that digital transformation is having on the business. “We’re leveraging digital transformation in everything we do to create a competitive advantage,” he pointed out.
BBVA earned €1.23 billion in the third quarter, +6.1 percent yoy, excluding capital gains from the sale of BBVA Chile and this franchise’s earnings in 2018. The net attributable profit for the first nine months of 2019 reached €3.67 billion, +1.2 percent yoy (+0.5 percent in constant euros), on a comparable basis. The result was driven mainly by growth in recurring revenues and containment in operating expenses.
Onur Genç, BBVA CEO:
30 Oct 2019
Garanti BBVA today announced its third quarter earnings. The bank’s net income for the first nine months of the year was TL 4.998.460 bilion(approximately €786 million), with total assets at TL 411.161.696 billion (around €64.67 billion).
Financial institutions are preparing to present Q3 2019 earnings. This week, it will be the turn of most Spanish banks, among them BBVA.
02 Aug 2019
The Basel Committee has designed two liquidity ratios to ensure that financial institutions have sufficient liquidity to meet their short-term and long-term obligations: LCR and NSFR. These two requirements are intended to reduce risks in case of episodes of financial turbulence.
31 Jul 2019
BBVA USA Bancshares, Inc., a Sunbelt-based bank holding company (BBVA), reported today net income of $160 million for the second quarter of 2019 compared to earnings of $184 million in the second quarter of 2018. Return on average assets and return on average tangible equity¹ for the second quarter of 2019 were 0.69 percent and 7.34 percent, respectively. Net income for the first six months of 2019 totaled $301 million compared to earnings of $393 million for the first six months of 2018. Return on average assets and return on average tangible equity¹ for the first six months of 2019 were 0.65 percent and 7.00 percent, respectively.
BBVA has reported its second quarter results for 2019, revealing positive dynamics in the business, as explained by the Group’s CEO. Onur Genç stressed the bank’s continued progress in its transformation process, which is having a “clear impact on the growth of the customer base, customer loyalty, efficiency, and the customer experience.”
BBVA CEO Onur Genç stated, “Today we are pleased to present excellent results.” He made the statement after BBVA reported 2Q19 results, announcing a net attributable profit of €1.28 billion, up 10 percent from the previous quarter and 6 percent yoy, excluding the sale of BBVA Chile. “We are once again leaders in terms of profitability, coming out ahead of comparable European peers,” he stressed.
Between January and June 2019, BBVA Group earned €2.44 billion. In the second quarter, the net attributable profit reached €1.28 billion, up 10 percent qoq, and 6 percent yoy, excluding the sale of BBVA Chile, thus maintaining the same business perimeter (or +2.6 percent including Chile). The results were driven by a solid evolution of more recurring revenue items, with a double-digit growth of the net interest income, and lower impairments on financial assets.
30 Jul 2019
Garanti BBVA has released its financial statements through June 30, 2019. Based on its consolidated financials, the bank posted a net income of 3.7 billion Turkish Lira (TL) in the first half of the year.
07 May 2019
Last week during the 2019 first quarter results presentation, BBVA CEO Onur Genç outlined some of the continued progress the bank has been making in its digital transformation.
30 Apr 2019
Türkiye Garanti Bankası A.Ş., announced its financial statements for the period ending March 31, 2019. Garanti’s net income in the first quarter of the year stood at TL 1.76 billion while its total assets increased to TL 423,32 billion, driven mainly by Turkish Lira loans.
29 Apr 2019
During today’s first-quarter earnings presentation to analysts and journalists, BBVA CEO Onur Genç underscored the strength of BBVA’s diversified business, which has allowed the company to grow its operating income by 10 percent yoy, in constant euros. “Diversification helps markets balance each other. BBVA’s power lies in its diversified model,” he explained.
Between January and March 2019, the BBVA Group earned €1.16 billion, down 9.8 percent compared to the same period a year earlier and up 16.2 percent from the previous quarter, at current exchange rates. Excluding BBVA Chile’s Q1-18 earnings from the comparison (the unit was sold in July 2018), the result was 7.7 percent lower (-6.0 percent in constant euros) versus a year ago.
BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income of $141 million for the first quarter of 2019 compared to earnings of $209 million in the first quarter of 2018. Return on average assets and return on average tangible equity* for the first quarter of 2019 were 0.61 percent and 6.64 percent, respectively.
Following the release of BBVA’s Q1-19 earnings, the Group’s CEO Onur Genç said today that, “the P&L shows positive dynamics, with operating income growing over 10 percent driven by recurring revenues and significant improvement in efficiency.”
• Transformation: BBVA continued to make progress in its transformation, with a clear impact on growth of its customer base, productivity, efficiency and customer experience. Digital unit sales now account for 57 percent of the total and over half of the customers use digital channels to interact with the bank
• Efficiency: Positive top-line trends in the P&L account, together with an ongoing focus on cost reduction, led to double-digit growth in operating income compared to the first quarter 2018 in constant euros, and an improvement in the efficiency ratio, which dropped 118 basis points since December, to 48.1 percent
• Risk management: The NPL ratio remained at 3.9 percent, while the coverage ratio improved to 74 percent. The cost of risk stood at 1.06 percent
• Capital adequacy: The fully-loaded CET1 capital ratio closed the quarter at 11.35 percent, inching closer to the target of 11.5 to 12 percent, fully absorbing IFRS 16 impact
Profitability: BBVA continued to be a leader in profitability, with ROE standing at 9.9 percent, and ROTE at 11.9 percent, well above the average of its European peers
• Value creation for the shareholder: The tangible book value plus dividends per share rose 11 percent from a year earlier
• Board of Directors: At its meeting today, the Board also approved a series of agreements related to appointments and its committees
27 Feb 2019
According to the latest Economic Outlook published this week by BBVA Research, GDP growth is expected to slow to 2.5 percent in 2019 and 2.0 percent in 2020, while the risk of recession remains elevated over the next 24 months.
04 Feb 2019
01 Feb 2019
Carlos Torres Vila presented BBVA’s 2018 earnings in his first press conference as chairman of the bank. He stressed that the “positive results” were sustained by recurring revenues, cost containment efforts and the strength of the Group’s diversified business model. During the presentation, he also addressed the news published in some media outlets regarding services provided by Grupo Cenyt. The chairman made appeals not to “prejudge” the alleged news and to let the BBVA investigation “do its job”, which will be conducted with “rigor, diligence, and thoroughness” in order to shed light on the facts. In addition, he made assurances that “BBVA has been, is, and will continue to be an honest bank”
Garanti Bank released its earnings for 2018. Based on its consolidated financials, Garanti’s assets were valued at slightly more than TL 399 billion, and its contribution to the economy through performing cash and non-cash loans totaled just over TL 311 billion. The bank achieved an ROAE (Return on Average Equity) of 15.0 percent and a ROAA (Return on Average Assets) of 1.7 percent.
BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income of $196 million for the fourth quarter of 2018, a 276 percent increase from the $52 million earned during the fourth quarter of 2017. Included in fourth quarter 2017 results is income tax expense of approximately $121 million related to the revaluation of net deferred tax assets at the lower statutory tax rate mandated by the Tax Cuts and Jobs Act (non-cash charge). Excluding the impact of this item, the year-over-year increase in net income for the fourth quarter of 2018 compared to adjusted net income* of $173 million for the fourth quarter of 2017 was 13 percent.
In 2018, the BBVA Group earned €5.32 billion, 51.3 percent more than in the previous year. Recurring revenues, cost containment efforts, and capital gains on the sale of BBVA Chile drove these results. BBVA’s diversified model and the transformation strategy are behind this positive evolution and of the improvements in efficiency.