BBVA shares rise sharply on the Madrid Stock Exchange in the wake of better-than-expected financial statements and the presentation of the 2028 strategic plan, which foresees a strong increase in profits and capital distribution to shareholders.
In the middle of the day, the title The Eurozone's fifth-largest bank by market value, the largest in the Ibex 35 index, gained 8,37% to 14,70 euros per share. The stock also rose sharply. Sabadell (+3,53%) on which the Basque bank launched a very troubled takeover bid.
BBVA's numbers
Bbva closed the second quarter with a Profit down 2% (but up 18%) at constant currencies) to 2,75 billion euros, a result however higher than the 2,37 billion euros expected by analysts. The first half of the year closed with a record net profit of 5,45 billion euros, up 9% on a historical basis and 31% at constant exchange rates, "driven by increased activity in Mexico and Spain," the group's main markets. This figure also exceeded the expectations of analysts interviewed by Factset, who had forecast an average profit of five billion euros.
Spain's second largest bank also closed June with an index of return on capital tangible (Rote) of 20,4%, up from 20,2% in March. The net interest margin rose 10% at constant currencies but fell 3% reported to $12,6 billion, net commissions rose by 18% and 4% respectively, while net trading income fell by 13% and 24%. total revenues amount to 18 billion (+20% and +3%). Theoperating profit increased 26% at constant currencies to 11,2 billion and 6% on a historical basis.
“BBVA is experiencing the best moment in its history"We are one of the most profitable and fastest-growing banks in Europe," BBVA CEO Onur Genc said in a statement. BBVA attributes these good results to "the dynamism of business in Spain," despite the interest rate cuts imposed by the European Central Bank (ECB), and "in Mexico," its main market.
The new targets: 48 billion in profits, 36 billion in dividends and buybacks.
The group also announced financial targets for the period 2025-2028, which "do not include the impact of the transaction with Banco Sabadell," which BBVA is seeking to acquire. The bank is aiming for a cumulative attributable net income of approximately 48 billion of euros in the four years, with an average level of Rote of approximately 22%.
As regards shareholder remuneration, BBVA plans to distribute until 2028 36 billion in cash dividends and buybacks, approximately 13 billion euros will then be “invested in growth”.
