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Finance

Finance

BBVA today tapped the markets, issuing the largest ever green bond (€1 billion) by a eurozone financial institution. The 7-year non-preferred senior green bond makes BBVA the first Spanish bank to issue such debt instrument. High demand -three times higher than the bond’s value– allowed it to lower the price to mid-swap plus 80 basis points.

The consultancy Accenture analyzes the inroads made by big tech in the financial sector and identifies five key steps banks need to take to create value in the face of advances made by fintech companies. BBVA’s focus on open banking and transformation in the digital era has been acknowledged by a number of institutions.

BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income of $209 million for the first quarter of 2018 compared to $52 million in the fourth quarter of 2017 ($173 million(1) adjusted for the impact of the Tax Cuts and Jobs Act) and $121 million earned during the first quarter of 2017. Earnings in the quarter represented a 20 percent increase from adjusted earnings(1) in the fourth quarter and a 73 percent increase from year ago levels. Return on average assets and return on tangible equity(2) for the first quarter of 2018 were 0.96 percent and 10.51 percent, respectively.

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.

BBVA kicked off 2018 with a strong performance. First-quarter earnings confirm the positive trends seen in the previous quarters. “We had a very solid start of the year, with solid and recurring results. The significant progress in the transformation highlights the success of our strategy,” said BBVA CEO Carlos Torres Vila.

These are the keys to BBVA’s results in the first quarter of this year:

  • Transformation: Digital sales grew in all regions and accounted for 37 percent of total in Q1-18. Clients banking through digital channels rose 25 percent yoy, while those using mobile devices grew 43 percent. Such exponential growth contributed to the strength of recurring revenues, and the efficiency ratio reached its best reading since June 2012
  • Income: Driven by strong recurring revenues and cost containment efforts, the operating income grew 5.1 percent yoy in constant terms
  • Risks: Risk indicators continued to perform positively. At the end of March, the NPL ratio stood at 4.4 percent, with coverage of 73 percent
  • Capital: BBVA’s pro forma fully-loaded CET1 ratio -including the already announced agreements of BBVA Chile and Cerberus, which are to be concluded later this year- stood at 11.47 percent at the end of March