BBVA once again recorded a new record of results in 2023 thanks to the high interest rate environment. The profit stood at 8,019 million euros, 26% more than the previous year, and was also the best in the bank’s history in the two main countries in which it operates, which are Mexico and Spain, where the extraordinary tax banking had an impact of 215 million.
Despite the strong improvement in annual profit, in the fourth quarter of last year there was a slight decrease in profits, of 1%, to 2,058 million, due to the narrowing of interest margins. The difference between the money the bank receives for loans and pays for deposits decreased by 18%.
In the whole of last year, the interest margin, equivalent to the bank’s income, was 23,089 million euros, 21% more, while commission income increased 17%, up to 6,288 million. Expenses rose 15%, to exceed 12.3 billion.
With the change in cycle, the bank had to assume an item of 4,428 million in deterioration of financial assets and face a provision for provisions of 386 million.
Of the results, highlights are the acquisition of 11.1 million new clients, the increase of 8% in the granting of credit and the good quality capital ratio, of 12.67%, above the requirements of the Central Bank European (ECB).
With the improvement in profit there will also be an increase in the cash dividend of 28%, up to 55 cents per share, which will be added to a new share repurchase plan for 781 million euros. It will allocate a total of 4,000 million euros to remunerate the shareholder, that is, half of the net profit.
The bank recorded a drop in the granting of mortgages and credit to large companies in Spain, which did not prevent the profit in the country from being a record, of 2,755 million euros, 65% more, after the interest margin will shoot up 49%. The default rate is increasing and is already at 4.1%.
The greatest benefit continues to correspond to Mexico, of 5,340 million, 17% more, thanks to the “strong dynamism of credit activity”, of 11%. The default rate in the country is only 2.6%. BBVA also earned 528 million in Türkiye, 5% more.
