Banco Bilbao Vizcaya Argentaria (BBVA) recently released its second-quarter results, surpassing expectations and demonstrating strong performance. Here are the key highlights:
Net Profit
BBVA achieved a net profit of €2.03 billion ($2.23 billion) during the quarter, outperforming the €1.63 billion recorded in the same period last year. Analysts’ consensus estimates, provided by the bank, had anticipated a profit of €1.85 billion.
Gross Income
The bank’s gross income, representing its top-line figure, totaled €7.19 billion for the quarter. This impressive result exceeded both the €6.02 billion reported in the corresponding quarter last year and consensus estimates of €6.95 billion.
Shareholder Returns
BBVA announced its plans to launch a share-buyback program, which could amount to €1 billion pending regulatory approvals. According to RBC analyst Benjamin Toms, this exceeds market expectations and equates to approximately 2.3% of the bank’s market capitalization.
New Targets
The bank has revised its targets, now aiming to achieve a return on tangible equity (ROTE) in the high teen percentage digits by 2024. This ambitious goal surpasses the previously set target of 14%. BBVA’s ROTE for the first half of this year stood at 16.9%. Analysts at Citi noted that this upgraded target could result in adjusted net earnings surpassing €7 billion, exceeding consensus expectations.
These strong results highlight BBVA’s commitment to delivering value to its shareholders and further solidify its position in the market.