BBVA’s president, Carlos Torres Vila, spoke this Monday about continued growth as the bank has expanded since its 2024 onboarding of 11 million new customers and a portfolio upgrade reaching 8% through last September. He noted that the market expects central bank policy to remain a key driver of bank income, with reference rates gradually easing but not plummeting to ultra-low levels as seen before the inflation spike. The tone remains cautious about how low rates will go in the current cycle.
During a discussion with an employee this Monday, an unusual practice for the bank’s corporate culture since 2020, the executive projected gains across major markets. Spain is anticipated to grow about 1.5 percent in 2024, a step down from 2023 but still positive. Analysts estimate a roughly 2.4 percent pace for Spain in 2023. The bank also expects growth in its key markets, including Mexico at around 3 percent, Turkey where policy shifts are aimed at restoring balance through monetary policy reforms, and a slower yet long-term growth outlook for South America.
dividend
Torres highlighted the forthcoming dividend per share based on 2023 results, to be announced January 30. The payout will be cash and clearly higher than the 2021 figure, reflecting improved profitability. The plan includes two regular payments in the past two years and an advance payment in October last year. The dividend indicates a substantial improvement compared with the prior year.
By September, BBVA reported a 24% rise in earnings. The executive also emphasized share repurchases that have reduced the number of shares outstanding. With rising profits and a lower share count, the dividend per share trend is set to increase again, aligning with a policy that ties payout to a stable portion of profits.
Torres noted BBVA was among the strongest risers on the Spanish stock market last year, outpacing European peers and the broader index. When factoring in both price appreciation and dividends, the total return for BBVA shareholders in 2023 was notably strong.
BBVA reaches 23% of share buyback program in its second week
good for society
The banker also defended the banking sector against critics who point to recent profit gains. He argued that profitability is essential for banks to continue serving clients and supporting the economy. Profitable banks attract capital, enable private investment, and fund economic growth. The message stressed that strong earnings help banks finance investment and fuel social welfare.
The executive outlined how the bank allocates earnings: approximately half of pre-tax profit is reinvested in core activities and capital, with around a third directed to taxes and government revenues. A portion is used to settle supplier obligations, which sustains economic activity. The remainder is distributed to shareholders, including families and small savers. The approach aims to maintain a balance between rewarding investors, supporting employees, and funding credit growth that drives long-term societal benefits.
By continuing to grow lending capacity and managing risk prudently, BBVA intends to safeguard its role as a financial partner for households and businesses alike. The emphasis remains on sustainable profits that underpin steady dividends, responsible governance, and a positive contribution to the wider economy.