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01 Feb 2019

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.

30 Oct 2018

27 Jul 2018

In the presentation of its results to the media, BBVA’s CEO Carlos Torres Vila emphasized the bank’s “strong push to business digitization not only drives sales but is fundamental to cost control.” This “digital push” is driving total revenues while keeping costs down. As a whole, this allows efficiency to continue to improve. In fact, the efficiency ratio stood at 49.2 percent as of June, 82 basis points below the figure for 2017 at constant exchange rates.

BBVA today released its second quarter 2018 financial results. What were the key figures? To begin with, the bank is close to meeting its goal of having 50 percent of its total customer base made up of digital customers. Customer digitization drives sales through digital channels, propels total sales and improves efficiency. BBVA CEO Carlos Torres Vila said,  “We were off to a very good start of 2018 last quarter, and this quarter we’ve managed to achieve some excellent results.”

27 Apr 2018

BBVA posted a net attributable profit of €1.34 billion between January and March 2018, up 11.8 percent compared to the same period of 2017 (+22.3 percent in constant terms) and the highest quarterly result in the past three years. During Q1-18, BBVA Group’s net attributable profit grew across all regions year-on-year. A solid performance of recurring revenues, moderation in operating expenses and the drop in impairment losses on financial assets and provisions were the main drivers supporting this growth.

20 Apr 2018

01 Feb 2018

BBVA’s digital customers are increasing in number, are more satisfied and interact more with the bank. In fact, the bank has reached its digital tipping point, at which more than 50 percent of its customers are using the bank’s digital channels in six countries (Spain, the United States, Turkey, Argentina, Chile and Venezuela). It’s a milestone that foreseeably will be reached this year by more of the countries where BBVA operates. Indeed in Davos last week, BBVA Group Executive Chairman Francisco González predicted the Group’s customer base as a whole will pass the 50 percent tipping point in 2018.

In 2017, the BBVA Group generated a net attributable profit of €3.52 billion (+1.3%). Without taking into account the impairment losses from Telefónica, net profit for 2017 stood at €4.64 billion, up 19.7% compared to 2016 results, excluding the provisions related to ‘floor clauses’ in Spain. Record revenue and cost containment efforts in operating expenses were the main drivers of this result.

One in every three sales of BBVA products in December 2017 was done through digital channels. Two years ago, in December 2015, only one in every 10 sales was digital. Beyond income and profits, the Group’s digital transformation stands as one of the key takeaways of its year-end earnings report. “2017 was a good year for BBVA,” said Group Executive Chairman Francisco González.

These are the key takeaways of BBVA’s economic performance in 2017:

25 Jan 2018

09 Jan 2018

27 Oct 2017

Every quarter, BBVA rolls out new products and functionalities, delivering new amazing experiences for its mobile and online customers to enjoy. By year end, the bank expects that about 92% of its current product portfolio will be available on its digital channels in Spain, as well as to be able to continue making progress in its other franchises. BBVA CEO Carlos Torres Vila explained how this effort is having an “impressive impact”, as evidenced by the exponential rate at which digital sales are growing. Digital sales account for about one fourth of the bank’s total, with more than 3.5 million units sold between July and September.

The BBVA Group posted a net attributable profit of €3.45 billion during the first nine months of 2017, nearly equal to its profit for the whole of 2016 and an increase of 23.3% from the same period a year earlier (+28.7% at constant exchange rates). A solid performance in terms of recurring income, cost containment and a drop in impairment losses on financial assets were the main factors driving this growth.

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BBVA CEO Carlos Torres Vila today explained, following the publication of the third quarter 2017 results, that in the first nine months of this year, BBVA earned 3.45 billion euros, 23% more than in the same period last year. “These excellent results prolong the positive trends we saw in the first two quarters of the year. The two key aspects fueling earnings were the growth in recurring income, and a great control of costs. On top of that, the decline in impairments is very positive and we also generated capital once more this quarter.”

  • Operating income: Recurring revenues continued their upward trend, growing 4.2% between January and September. This, together with cost containment efforts (expenses dropped 1.7% in the year to September), drove operating income to a record €9.52 billion
  • Risks: The NPL ratio continued to improve, reaching 4.5% in September (vs. 4.8% in June), the lowest level in the past five years. Coverage increased to 72%
  • Capital: The fully-loaded CET1 ratio rose to 11.2% in September, reflecting a capital generation of 30 basis points in the first nine months of the year
  • Transformation: The digital customer base grew 24% y-o-y to 21.1 million in September. Of these, the number of customers banking with their smartphones surged 43% to 15.8 million

24 Oct 2017

27 Jul 2017

BBVA presented today its financial statements for the April-June 2017 period. BBVA CEO Carlos Torres Vila said that “the second quarter results confirm the positive trends recorded earlier this year, both in terms of financial results and of transformation and value creation for shareholders.”

How did the bank do during these three months? And what about during the first half of the year? These are the keys to understanding the results:

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BBVA CEO Carlos Torres Vila explained today, after the publication of the earnings report for the first quarter of 2017, that the Group’s net attributable profit from January through June increased by 26%, to €2.31 billion. This has been possible thanks to the solid performance of revenues, moderation in operating expenses and a drop in impairment losses on financial assets. On top of that, all countries have performed well.

24 Jul 2017

28 Apr 2017

27 Apr 2017

BBVA CEO Carlos Torres Vila  focused on the company’s solid quarterly financials. The results reflect the Group’s capacity to “generate recurring revenues across all countries in which it operates,” he said. This, together with the Bank’s ongoing digital transformation and improving macroeconomic outlook, is enabling the company to “lay the foundations for BBVA’s future success.”

BBVA Group obtained a net attributable profit of €1.2 billion between January and March 2017, up 69% compared to the same period a year earlier (+79.2% in constant terms) and the highest of the past seven quarters. Net attributable profit grew across all business areas in y-o-y terms. The solid performance of income, moderation in operating expenses and a drop in impairment losses on financial assets are the main factors that underpinned this growth.

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Following the publication of first quarter results, BBVA CEO Carlos Torres Vila today said that net attributable profit from January through March increased by 69%, to €1.2 billion. “This is the highest level of profit of the past seven quarters,” he said. This has been possible thanks to income growth, lower impairments on financial assets and exemplary cost containment practices.  Also, the capital generation during the quarter was very notable.

24 Apr 2017

Now that the reporting season in the banking sector is underway, it may be the right time to take a look at some of the most commonly used, but more frequently misunderstood, financial terms. One of these terms is the expression “positive jaws,” which is used, for example, by BBVA CEO Carlos Torres Vila during the results presentations.

02 Mar 2017

All companies need to make sure they have the money required to cover both eventual asset impairments and potential obligations that have still not materialized. These funds are commonly known as provisons. In the case of banks, due to the intrinsic structure of the business, default provisions are a key element with the potential to significantly affect results.

02 Feb 2017

Industry analysts reacted positively to the annual results announced by BBVA, which beat consensus estimates. Lower-than-expected loan-loss provisions, solid net interest income at Group level and Mexico’s overall good performance, the banking activity in Spain and the U.S. were the year’s highlights for analyst firms.

01 Feb 2017

– Income: Net interest income increased 3.9% in 2016 (+14.9% stripping out the impact of currencies). The fourth quarter was the year’s highest (€4.39 billion). Cost-containment efforts improved the efficiency ratio (51.9% in 2016)

– Risks: BBVA Group’s NPL ratio improved to 4.9% in December (from 5.4% at the end of 2015), with coverage ratio of 70%

– Capital: BBVA reached a fully-loaded CET1 ratio of 10.90%, after generating 58 basis points in the year. The Group maintains its 11% target for 2017

– Transformation: At the end of December 2016, BBVA’s digital customer base stood at 18.4 million (+20% y-o-y). Mobile customers grew 38% to 12.4 million

– Dividend: BBVA plans to implement the shareholder remuneration policy announced in 2013, which aims to distribute between 35% and 40% of profits to dividend payouts, with a 100% cash dividend

08 Nov 2016

According to Investorpedia, retail banks are banks devoted to provide services to particular savers and investors and small and medium sized enterprises. On the other hand, wholesale banks specialize in the provision of services in large operations, generally with large companies and organizations.

Although financial institutions today specialize in a certain type of activity, this has not always been the case. In fact, it was not until after the crash of 1929 that these two types of banking began to operate separately.

This took place in 1933 through the Glass-Steagal Law, which was promoted by Roosevelt as part of a package to stimulate the economy (The New Deal). This law was abolished by Bill Clinton in 1999, which allowed both models of banking to be housed under the same institution once again. However, after the financial crisis that devastated banks in 2008, these activities currently operate separately in most cases.

The main difference between both banking sectors is that they each specialize in different types of customers, but this is not the only difference, Let’s take a look at other things that distinguish them.

27 Oct 2016

BBVA today reported financial results for the first nine months of 2016. According to BBVA CEO Carlos Torres Vila, “it has been a good quarter, with solid growth in recurring revenues, cost control, and stability in risk indicators. Furthermore, we have already achieved the capital goal we had set for 2017.”

These are the 5 keys to understanding BBVA’s results:

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Following the publication of the third quarter results, BBVA CEO Carlos Torres Vila said today that the Group hit an important milestone in capital generation: a CET1 fully-loaded capital ratio of 11%, a goal originally set for 2017. “We have had solid growth in recurring revenues, cost control and stability in risk indicators,” he indicated prior to the press conference with Spanish media.

-Income: Positive trends in recurring revenues (NII plus fees and commissions) continued between January and September, boosting gross income to €18.43 billion (+5.1% y-o-y)

-Risks: The Group’s NPL ratio remained stable and stood at 5.1% at the end of September, the same level as in December 2012, while the coverage ratio was 72%

-Capital: BBVA achieved its 2017 capital goal ahead of schedule. The fully-loaded CET1 ratio stood at 11%, with a capital generation of 29 basis points in the quarter

-Transformation: BBVA’s digital customer base stood at 17.2 million (+20% in the past year). Of these, 11 million are mobile customers (+41%)

The BBVA Group earned €2.8 billion between January and September 2016, up 64.3% from the same period a year earlier. Stripping out the impact of corporate operations and currency fluctuations, growth reached 15.0%. Net attributable profit rose to €965 million in the third quarter.

21 Oct 2016

Banks play a critical role as providers of funds to the real economy. In this regard, the active management of the balance sheet has become more and more important, and is now a strategic area for financial institutions. Some of its key goals are guaranteeing liquidity, strengthening solvency and reducing exposure to credit risk.

14 Sep 2016