BBVA obtained an attributable net profit of 2,200 million euros in the entire first quarter of 2024, which represents an increase of 19.1% compared to the same period last year, as reported by the bank this Monday when publishing its quarterly accounts.
The increase in profit occurs despite the fact that in this first quarter the bank has recorded at the accounting level the total of the special banking tax, which amounts to 285 million euros, which is 26.6% more than the amount paid last year.
“In the first quarter of 2024, we obtained excellent results that improve our prospects. Now we expect to increase annual profit at double-digit rates,” explained the bank’s CEO, Onur Genç.
The bank’s total income (gross margin) stood at 8,218 million euros at the end of the quarter, which implies an increase of 18.1%. Of that figure, net interest income (interest margin) reached 6,512 million euros, 15.4% more, while net commissions increased 31.1%, to 1,887 million euros.
The result of financial operations contributed 772 million euros to the income, 76.2% more, while the accounting line of other operating income and charges, which includes the special tax, deducted 952 million from the income. , which represents an increase of 69.7%.
The bank’s personnel expenses were 1,778 million euros, 14.7% more, while the rest of the administration expenses stood at 1,229 million euros, 9.1% more. The negative impact of amortizations stood at 375 million, 10.9% more.
The impairment of financial assets not measured at fair value was 1,361 million euros, 40.5% more. Likewise, the bank decided to provision 57 million euros, a figure that multiplies by four the provisions from a year ago, but which is lower than those of the last three quarters of 2023.
By geography, Mexico remained BBVA’s main market, with a gross margin of 3,967 million euros (20%) and a profit of 1,441 million (12.7%). In second place was Spain, with a gross margin of 2,162 million (25.2%) and profits of 725 million (36.5%).
In third place was Turkey, where BBVA increased its total income by 11.8% (to 897 million) but reduced its profits by 48%, to 144 million euros, due to the depreciation of the Turkish lira due to hyperinflation.
In the rest of the Latin American countries, the bank earned 600 million (-5.8%) and earned 119 million, 34.3% less. The rest of the businesses closed the quarter with 176 million euros in revenue, 41.9% more, and with profits of 121 million, 30.1% more, highlighting the contribution from the rest of Europe and the New York branch. York.
BALANCE SHEET AND SOLVENCY
At the end of March, BBVA had total assets valued at 801,690 million euros, 8.4% more. Of that figure, loans and advances to clients rose by 7.4%, to 388,949 million euros.
Of the total loan portfolio, loans to companies increased by 6.6% in the year, up to 188,902 million euros. Of the portfolio dedicated to individuals, mortgages increased by 3.1%, to 94,887 million euros, while the consumer credit business increased 10%, to 44,175 million euros. The credit card portfolio rose by 20%, to 22,816 million euros.
On the other hand, liabilities experienced an increase of 8.4%, reaching 745,912 million euros. Deposits from central banks and credit institutions fell by 28.3%, while customer deposits increased by 10.3%, to 436,763 million euros.
Off balance sheet, the bank managed 178,313 million euros of customer resources, 10.8% more than a year before. Of that figure, investment funds and managed portfolios stood at 143,345 million euros, 20.8% more. For their part, pension funds contracted by 24.7%, up to 29,286 million euros.
The total volume of doubtful credit as of March 31 was 14,938 million euros, which represents an increase of 13% compared to a year before. In any case, with the increase in the credit portfolio, the default rate only rises by one tenth, to 3.4%.
Regarding solvency, BBVA closed the first quarter with a CET1 ratio in its ‘fully loaded’ variant of 12.82%, which represents a decrease of 31 basis points compared to the start of 2023. The total capital ratio, on the other hand, , improved by 36 points, up to 16.66%.
Return on tangible equity (RoTE) was 17.7% between January and March 2024, an improvement of 1.4 percentage points compared to 16.3% in the first quarter of 2023.
