BBVA has joined the presentation of record banking profits by announcing profits of 5,961 million euros in the first nine months of the year, 24% higher than those of the same period of the previous year. With one quarter left, the result remains close to the 6,420 million earned in 2022, when the entity broke its profit record.
The improvement in results responds mainly to increases in interest rates and its business in Spain is the fastest growing. It earned 2,110 million euros in the country, 61.9% more, despite the payment of 215 million related to the new banking tax.
The volume of loans granted in Spain fell by 1.8% mainly due to the repayment of mortgages and the reduction of debt among large companies, says the bank. Interest margins, which are the difference between what was received from loans and what was paid for deposits, increased by 50.8%, while the default rate stood at 4%.
The bank as a whole, which also operates mainly in Mexico and Turkey, added an interest margin of 17,843 million, 36.5% more, and commission income of 4,594 million, 17.5% more. The sum of these two variables places total income at 22,437 million, 32% more.
The group operates in countries with high inflation, with an overall rate of 18% in the last twelve months, which caused an increase of 22% in operating expenses, up to 9,241 million. It also made a provision until September of 3,203 million to cover itself against the deterioration of assets, 35% more than a year before.
BBVA has also obtained approval from the European Central Bank (ECB) to buy back its own shares for 1,000 million, which serves to improve shareholder remuneration, and maintains a good quality capital ratio with respect to 12% assets. .7%, above regulatory requirements.
“In the first nine months of 2023 we obtained excellent results, thanks to the positive evolution of recurring income. We are one of the most efficient and profitable banks in Europe, with profitability that has already reached 17%,” says the bank's CEO, Onur Genç.
Its organic strategy consists of growing through innovation, digitalization and sustainability, he indicates. Until September, it attracted 8.3 million new customers, 65% of them through digital channels.
In Mexico it earned 3,987 million euros, 22.3% more, while in Turkey the profit was 367 million, slightly higher than the 333 million in the same period of the previous year.
