Group BBVA recorded attributable profit of 4,842 million euros between January and September of this yearAs reported by the entity on Friday, representing an increase of 47% year-on-year (+46.2% at current exchange rates).
Except for non-recurring effects, profit was 5,044 million euros, 37.1% more. In the third quarter of this year, BBVA earned EUR 1,841 million, up 34.1% (+31.4% at current rates) compared to the previous year.
The organization emphasized that: The result is a result of the dynamism of the activity with double-digit growth in the loan portfolio. (+15% at constant exchange rates) and positive growth of recurring income (+28.8% at constant exchange rates).
“We have achieved very good and quality results in the first nine months of the year. We hope that the coming quarters will be positive for BBVA and, as always, we will support companies, families and society as a whole in an environment. BBVA CEO Onur Genç emphasized.
In the first nine months of 2022, BBVA achieved “good” results despite the environment of uncertainty created by the business. ukraine war and its impact on inflation and growth in the global economy.
Net interest income increased by 32.6% year-on-year in the first nine months of the year to €13,811 million, driven by strong loan growth of 15% versus September 2021 and improved client margins. Particularly noteworthy, according to the bank, Good development of this line in Mexico, Turkey and South America.
Net fees and commissions increased 17.4% to €4,030 million, again driven by business in emerging markets. As a whole, the interest margin and net commissions, representing the recurring income of the banking business, increased by 28.8% year-on-year to €17,842 million between January and September.
Similarly, the result of financial operations (ROF) reached €1,669 million (+17.4% YoY) thanks to the positive development of the Global Markets unit in key geographies.
The other operating income and expenses line accumulated as a result of -1,145 million euros as of 30 September 2022, mainly due to the negative adjustment for hyperinflation in Argentina and Turkey and the higher contribution to the Single Solution Fund (FUR).
As a result of all this, Between January and September, the gross margin reached € 18,366 million, representing an annual increase of 21.2%.
In an environment of high global inflation, operating expenses grew by 14.5% in the first nine months of the year. However, this figure is below the average inflation (16.5%) recorded in countries with BBVA.
Thus, the net profit margin increased by 26.7% year on year to EUR 10,494 million between January and September. In the third quarter, this line reached 4,038 million euros, an increase of 44.9% compared to the same period of 2021.
Same way, default rate increased from 3.7% to 3.5% in the quarter and coverage increased from 78% to 83%By the end of September, ROE rose to 15% and ROTE to 15.7%.
The group also underlined that it continues to create shareholder value: Tangible value plus dividends were €7.66 per share as of September 30, representing an annual increase of 20%.
This figure includes a gross dividend of 12 euro cents per share, which BBVA paid to its shareholders on 11 October due to its fiscal 2022 results, 50% more than in October of the previous year.
BBVA also maintains a solid capital position with a fully loaded CET1 ratio of 12.45%, above the Group’s target range (between 11.5% and 12%).
Withdrawal of Spain and Mexico
Spain achieved a recurring result of €1,514 million (+27.1% yoy) between January and September, thanks to the improvement of the ROF and lower operating expenses and provisions, as well as the interest margin and net commissions.
This result does not include the net impact of -201 million Euros from the office purchase from Merlin recorded in the second quarter of the year. Taking this effect into account, the cumulative attributable profit at the end of September 2022 is EUR 1,312 million, or 10.2% more.
The default rate fell 13 basis points to 3.9% this quarter, while the coverage rate improved from June to 64%.
In Mexico, BBVA posted attributable profit of €2,964 million (+47.5% YoY) between January and September, as a result of the good performance of all revenue lines and particularly the dynamism of the net interest rate. Income.
Thanks to this revenue increase, the productivity rate improved significantly (351 basis points) to 31.9%.
Finally, 8.6 million new customers joined BBVA in the first nine months. According to the business, this record is more than 2.5 times the customer acquisition five years ago. Just over half (54%) of them joined the bank through digital channels.