BBVA, a renowned Spanish bank, has recently unveiled its first-quarter financial results for 2024. The bank reported earnings of 2.2 billion euros, representing a 19.1% increase compared to the same quarter last year. This growth can be attributed to several factors, including an increase in income and strong performance in Mexico.
In the interest margin in Spain, BBVA experienced significant growth, which helped boost overall profits. Additionally, net commissions increased by 31.1%, further contributing to the bank’s success. The market responded positively to these figures, with a nearly 1% increase in the stock market in the early stages of trading.
BBVA’s growth follows a successful year in 2023 when favorable interest rate increases on both sides of the Atlantic boosted recurring income for banks. Despite this growth, however, the rate of growth has slowed somewhat compared to the previous year. Nonetheless, BBVA is expected to surpass its profit record from 2023 thanks to continued focus on efficiency and improving profitability metrics such as return on equity (ROE) and return on tangible capital (ROTE), both of which have increased compared to the previous year.
By territory, Mexico remains the primary driver of profits for BBVA, accounting for 56.5% of total profits. In Spain, earnings grew by 36.5% compared to the previous year due to strong performance in the interest margin and net commissions. Meanwhile, profits declined by 48% in Türkiye due to economic challenges in the region despite these challenges; BBVA remains focused on efficiency and profitability with a continued emphasis on digital channels and customer growth.
Overall, BBVA’s first-quarter financial results demonstrate its ability to achieve double-digit growth once again while maintaining a strong focus on profitability and efficiency metrics that are essential for long-term success as one of Spain’s leading financial institutions.
BBVA’s recent financial report highlights its robust performance during Q1 of 2024 with earnings reaching €2 billion euros – an impressive increase of €379 million or 19.1% compared with Q1 last year.
The bank’s success can be attributed to several factors including an increase in income across all markets as well as strong performance specifically seen in Mexico where earnings grew by €494 million or 15%, significantly higher than Q1 last year.
Net commissions also saw substantial growth with an increase of €75 million or approximately +30%. This combined with an increase in interest margin by €688 million or +15%, resulting in a total income boost that catapulted BBVA into positive territory.
The market responded positively with a slight rise of nearly +0