BBVA earns 38% more in 2022 and sets an all-time profit record

The Spanish bank BBVA obtained an attributable profit of 6,420 million euros in 2022 (US$ 6,972 million), the highest in its history and 38% more than the previous year, supported by higher recurring income derived from its commercial activity, reported this Wednesday the entity.

These results include some non-recurring expenses such as the 201 million euros (US$ 218 million) from the purchase of offices in Spain from the real estate company Merlin in June; the net costs of its restructuring process or the 416 million euros (US$ 452 million) from BBVA USA and the rest of the companies sold to the PNC investment fund.

In this way, the bank can allocate more than 3,000 million euros (US$ 3,258 million) to raise the dividend corresponding to 2022 to 43 cents per share, and to a new share repurchase plan of 422 million euros ( US$ 458 million), the bank explained in an explanatory note.

The portfolio of loans and advances to customers grew by almost 12%, greatly favored by the evolution of loans to companies in all business areas and, to a lesser extent, by the behavior of loans to individuals, it adds.

The delinquency of this portfolio ended the year at 3.4%, compared to the 4.1% registered at the end of 2021, with a coverage ratio for possible insolvencies of 81%, also better than the 75% of a year ago.

Customer deposits grew by 12.6% and total resources contributed by customers rose by 9.5%.

In terms of solvency, the group’s “fully-loaded” CET1 ratio, which includes all the capital requirements contemplated in the regulations, stood at 12.61%, above the target range of 11.5% – 12% set for it. ask the entity.

In the main business areas, Spain obtained a profit of 1,678 million euros (US$ 1,822 million), 8.4% more, due to “the largest investment in the most profitable segments” and double-digit net margin growth.

Mexico was, as always, the subsidiary that contributed the most profits to the Group, more than double that of Spain, specifically 4,182 million euros (US$ 4,542 million), almost 64% more, mainly due to higher revenues, the improvement in risk indicators and the efficiency ratio.

South America earned 734 million euros (US$ 797 million), 54.4% more, due to the good performance of recurring income, the increase in credit activity and customer resources, and the improvement in the default rate.

Turkey reduced its earnings by 31%, to 509 million euros ($553 million), which includes the impact of the application of hyperinflation accounting throughout the year.