BBVA has the two biggest drivers of profit growth in Spain and Mexico. In the first of these countries, it achieved the greatest increase in earnings in the first semester, by 53%, up to 1,231 million; and in the second, it continues to achieve its best results, with 2,614 million, 30% more. This double boost allowed the bank to reach a record half-year profit and earn 3,878 million, up 31%.
As with the rest of the banks, the rise in interest rates largely explains this situation. Thanks to the increase in the price of money, the bank chaired by Carlos Torres widened the gap between what it receives for credits and what it pays for deposits. He did it after paying 225 million for the new tax to banks and large energy companies.
The CEO, Onur Genç, stated at yesterday’s press conference that the entity “continues to have a lot of liquidity” despite having returned to the ECB at the end of June more than 11,000 million euros from the special credits granted during the pandemic It is a sign that, “in the short term”, the remuneration of deposits will not increase, he said.
The bank’s income increased by 33%, up to 11,410 million, of which 2,909 million corresponds to commissions, 9.4% more. This semester also saw an increase in the number of clients and a profitability of over 16%. Delinquencies advanced by a tenth, to 3.4%, but remain at very low percentages.
BBVA has taken advantage of the favorable wind to address a key relief in its organizational chart. The financial director, Rafael Salinas, resigned yesterday from the position after several decades at the entity and will be replaced by Luisa Gómez Bravo. The investment banking business will now be led by Javier Rodríguez Soler.
In Spain, the bank reduced the granting of mortgages by 12%, although it is gaining market share. “Customers, if they have liquidity, prefer to pay off the mortgage and not pay interest,” said Genç.
“Spanish households have been deleveraging for 13 years in a row and their debt has gone from 80% of GDP to 52%”, added the CEO.
The bank’s CEO also said that “the Spanish economy is doing better than expected” and was cautious when assessing the political situation. “Our responsibility is to grow and the sooner uncertainty is eliminated and there are clear economic policies, the better,” he said.
The bank announced yesterday its intention to dedicate 1,000 million euros to the purchase of its own shares, which will reduce the securities in circulation and increase the value of the existing ones. This way of rewarding shareholders was reflected in the stock market yesterday, where the shares rose by 1.6%.
To buy back shares, ask for permission from the ECB. BBVA is confident of obtaining it without problems, since its ratio of good quality capital is around 13%, above the regulatory requirements.
