-
Rising revenues: BBVA's net interest income increased for
the fifth consecutive quarter to 3.6 billion, up 13.3%
compared to the first three months of 2011. Growth was
spread widely across all geographic regions
-
Generating earnings: net attributable profit in the
quarter exceeded 1 billion, demonstrating once again
BBVA's ability to generate earnings in a recurring and
solid fashion despite a complex environment
-
Strong capital position: organic generation of capital
allowed BBVA to meet the recommendations of the European
Banking Authority (EBA) ahead of time without resorting
to the sale of strategic assets
BBVA's profit for the first quarter of 2012 was 1.005
billion, which is 12.6% less than the same period last year
but exceeds that of the two previous quarters. Gross income
rose 3.5% to 5.45 billion, supported by firm recurring
income in all the regions where the Group operates. The
solid ability to generate capital organically was the key
factor in achieving early compliance with EBA's
recommendations. Risk indicators remained stable for the
ninth consecutive quarter.
"These results demonstrate the strength and resilience of
our business model, which allows us to navigate the crisis,
generating earnings and strengthening our capacity to grow
while maintaining dividend payments," BBVA President and
Chief Operating Officer Αngel Cano said.
Net interest income, a measure of basic banking business,
was highly positive thanks to excellent pricing in all
regions and to buoyant activity in emerging markets. This
indicator continues its upward trend, rising 13.3%
year-over-year to 3.6 billion in the first quarter
compared to the same period a year earlier. Additionally,
recurring gross income, which excludes net trading income
(NTI) and dividend income, continued to climb reaching
5.05 billion (up 12.6% year-over-year). The resilience of
these items was assisted by limited rises in costs, which
grew slower than recurring income and were mainly related
to investments in emerging economies. In the first quarter
the Group's workforce increased 2.5% year-over-year to
111,306 employees, the number of ATMs grew 8.2% to 19,007
and branches increased slightly to 7,466. Lastly, recurring
operating income (excluding the effect of NTI and dividend
income) stood at 2.47 billion, up 15.9% compared to the
same period last year.
Prudence and anticipation in risk management kept the
indicators stable for the ninth consecutive quarter despite
Spain's complex environment. The non-performing asset ratio
(NPA) was again 4.0%, improving on the figure of 4.1% a
year earlier, and coverage stands at 60%. Loan-loss
and real estate provisions continued to be stable (1.3
billion in the quarter).
The organic generation of capital means BBVA has met the
EBA recommendations (core capital ratio of 9%) ahead of
time. This was accomplished without selling strategic
assets and without any type of public-sector aid while
keeping dividend payments stable. When calculated according
to current rules the core capital ratio stands at 10.7%.
In terms of finance requirements BBVA Group enjoys a very
comfortable position. Debt redemptions for 2012 and 2013
are already covered and there is ample collateral. BBVA has
used funds from the European Central Bank's three-year
loans to improve its liquidity structure.
In terms of business activity gross lending to Group
customers rose 3.4% year-over-year to 358.51 billion
thanks to buoyant business in emerging economies. Total
customer funds rose 0.6% to 429.8 billion.
Geographic diversification
The BBVA Group's regional diversification, with special
emphasis on emerging economies, was a key factor for the
income statement.
Spain's contribution to the income statement was 229
million, down 52.2% year-over-year affected by net trading
income (NTI) figures extremely high in the first quarter of
2011 and higher provisioning in the current year. In the
declining economic context the favorable management of
prices was noteworthy, as were the market share gains in
lending and deposits, and the positive evolution of net
interest income. The NPA ratio stands at 4.9% and the
coverage ratio is 43%.
Eurasia, which includes the investments in China Citic Bank
(CNCB) and Garanti, enjoyed vigorous business and growing
earnings. Net attributable profit rose 51.7% to 299
million.
In Mexico, BBVA Bancomer consolidated its lead over
competitors with a stable risk premium. The franchise
contributed 430 million (up 3.6% at constant exchange
rates) and it set a new record for quarterly income.
The buoyant activity in South America was reflected in
revenues. Gross income grew 18.1% in constant euros to
1.37 billion. The region reported an improvement in
efficiency, NPA ratio stood at 2.3%, with a coverage ratio
of 141%. Net attributable profit came to 370 million (up
27.1% at constant exchange rates).
In the United States the notable features were the
resilience of income and cost control plus a steady
improvement in risk indicators. The NPA ratio improved to
3.2%, compared to 3.5% in December and 4.3% in March 2011.
Net attributable profit at BBVA's U.S. franchise came to
115 million (up 15.6% at constant exchange rates).
The highlight in Corporate & Investment Banking was the
resilience of the Group's wholesale banking results. This
is due to its focus on customers and the low-risk business
model with a high degree of diversification by region and
product. In the first quarter this unit generated net
attributable profit of 279 million, down 18.7% at constant
exchange rates.
Contact
Corporate Communications
Tel: (+34) 91 537 53 48
BZA00104@grupobbva.com
About BBVA
BBVA is a customer-centric global financial services group
founded in 1857. The Group has a solid position in Spain,
it is the largest financial institution in Mexico and it
has leading franchises in South America and the Sunbelt
Region of the United States. Its diversified business is
biased to high-growth markets and it relies on technology
as a key sustainable competitive advantage. BBVA ranks
among the leading euro zone banks in terms of ROE and
efficiency. Corporate responsibility is at the core of its
business model. BBVA fosters financial education and
inclusion, and supports scientific research and culture. It
operates with the highest integrity, a long-term vision and
applies the best practices. The Group is present in the
main sustainability indexes.
Recommend:
