BBVA Compass Bancshares, Inc., a Sunbelt-based bank holding company (BBVA Compass), reported today net income of $175 million for the third quarter of 2018, a 34 percent increase from the $130 million earned during the third quarter of 2017. Included in third quarter 2017 results is approximately $60 million (pre-tax) of provision expense related to Hurricanes Harvey and Irma. Return on average assets and return on average tangible equity(1) for the third quarter of 2018 were 0.77 percent and 8.35 percent, respectively.
The BBVA Group posted a net attributable profit of €4.32 billion during the first nine months of 2018, up 25.3 percent from the same period a year earlier (+43 percent at constant exchange rates). A surge in recurring revenues, cost containment efforts, lower impairment losses and capital gains of €633 million from the sale of BBVA Chile have all contributed to this result.
BBVA today presented its earnings for the January-September 2018 period. What stands out in the bank’s quarterly financials? In the words of BBVA CEO Carlos Torres Vila: “In spite of a challenging situation in Turkey and Argentina, the results we are presenting today reveal the strength of our business model and geographic diversification.”
• Transformation: Digital and mobile customers as well as digital sales continued to grow across all geographies, with a positive impact on efficiency. Digital customers now account for 49% of the total, very close to the year-end target of having half of the customers banking through digital channels
• Income: Operating income improved (+5.8 percent at constant exchange rates), driven by a positive trend in recurring revenues and containment in operating expenses. BBVA’s ROE between January and September was 12.2 percent, with ROTE standing at 14.8 percent
• Risks: The NPL ratio was 4.1 percent in September (4.4 percent in June). Coverage ratio reached 73 percent
• Capital: Despite a complex environment, the fully-loaded CET1 ratio stood at 11.34 percent. During the first nine months of the year, the tangible book value per share plus dividends grew 7.2 percent to €5.95
BBVA Group Executive Chairman received the ‘Lion Award’ for the best corporate management, presented by online newspaper El Español. The award recognizes Francisco González’s impressive career and his role as “a great innovator in banking.”
Türkiye Garanti Bankası A.Ş., released its earnings report dated September 30, 2018. Based on the consolidated financials, Garanti’s asset size reached TL 456.33 billion, while its contribution to the economy through cash and non-cash loans increased to TL 354.75 billion. The Bank’s ROAE (Return on Average Equity) stood at 17.5% and ROAA (Return on Average Assets) reached 2.0%.
BBVA Wealth Solutions, Inc. (BWS) today announced the launch of its newest digital investment services product, SmartPath Digital Portfolios, a new digital advice solution designed to help investors achieve their financial goals. SmartPath Digital Portfolios—powered by BNY Mellon’s Pershing—delivers an engaging user interface, along with a selection of managed account options, to provide an optimal advisory investment experience and help investment advisors achieve increased efficiencies and scale.