BBVA obtained an attributable profit of 1,846 million euros in the first quarter of the year, 39% more than in the same period of the previous year, after cutting profits in Spain due to the annual payment of 225 million corresponding to the new government tax to the banks. It offset this decline with strong growth in Mexico.
The rises in interest rates helped boost the bank’s interest margin, which rose to 5,642 million euros, 43% more. Commission income reached 1,439 million, 15% more.
The group also attracted 2.6 million new customers during the quarter, 64% of them through exclusively digital channels, and increased credit granting by 9.8%. It has 6,051 offices in the more than 25 countries in which it operates.
In Spain, profit in attributable terms was 541 million euros, 9.5% less than a year earlier and 23% of the group’s profits. The setback was due to the new tax and was accompanied by a stagnation in credit investment, which fell by 0.1%. The NPL rate stood at 3.9%.
Mexico, on the other hand, grew strongly and reached a weight of 54% of the group’s profits as a whole. The benefit in the country was 1,285 million euros, 44% more, after credit activity experienced an increase of 13.9%. The default rate is lower than that of Spain, at 2.3%.
“For yet another quarter, we have presented very solid results, which highlight BBVA’s strength in times of high volatility such as those experienced recently,” said the bank’s CEO, Onur Genç. The “strategic focus,” he said, is in “digitization, innovation and sustainability”.
The gross margin as a whole, which includes income from interest and commissions, was 6,958 million euros, 32% more. On the other hand, operating expenses grew by 25.7% and stood at 3,016 million euros, affected by inflation.
The bank recorded a high-quality capital ratio against risk-weighted assets of 13.13%, above the ECB’s requirements of 8.75%.
