The BBVA share
During the first three months of 2017, the BBVA share sustained a stronger relative performance than both the European banking sector and the Ibex 35; the share price rose by 13.3%, closing the quarter at 7.27 euros.
To this regard, global growth improved in the second half of 2016 (around 0.9% on a quarterly basis) and the trend appears to be solidifying so far in 2017. Growth in developed countries is accelerating thanks to an increase in confidence and global trade, also underpinned by an improved outturn in the Chinese economy. The performance of the rest of the emerging economies is uneven, but in general the trend is for recovery.
Against this backdrop, the main stock market indices delivered positive results in the first quarter of 2017, except the U.S S&P Regional Banks, which recorded a decline of 1.7%.
BBVA share evolution
Compared with European indices (Base indice 100=31-03-2016)
As regards shareholder remuneration, a new “dividend option” has been executed. BBVA has committed to buy each free allocation right at a price of €0.131 gross per right. Owners of 83.28% of these rights chose to receive new shares. In the future, BBVA intends to distribute fully in cash between 35% and 40% of profits obtained each year by means of an interim dividend and a final dividend.
Shareholder remuneration
(Euros-gross/share)
Read moreGroup information
Results
- Good performance of gross income, thanks to a positive trend in more recurring revenue (particularly income from fees and commissions) and net trading income (NTI).
- Operating expenses under control.
- This has led to a further improvement in the efficiency ratio.
- Impairment losses on financial assets slightly below the figure for the first quarter of 2016.
- Inclusion of €177m restructuring costs in provisions.
- As a result, the net attributable profit in the first quarter of 2017 was €1,199m, 69.0% higher than in the same quarter last year and 76.8% higher than posted in the fourth quarter of 2016
Net attributable profit (Million euros)
Net attributable profit breakdown(1) (Percentage 1Q 2017)
(1) Excludes the Corporate Center.
(2) Includes the areas Banking activity in Spain and Non Core Real Estate.
Balance sheet and business activity
- Loans and advances to customers (gross) remain strong in emerging economies but have declined in Spain and the United States.
- Non-performing loans continue to improve, particularly in the areas of Non Core Real Estate and the United States.
- Deposits from customers have performed particularly well in the more liquid and lower-cost items.
- Finally, renewed growth over the quarter of off-balance sheet customer funds.
Solvency
- The capital position is above regulatory requirements, with a fully-loaded CET1 ratio of 11.0% as of 31-Mar-2017. Recurring generation of earnings and the positive effect of the evolution of the markets in the period have offset the combined impact of a negative 13 basis points stemming from operations carried-out in the quarter (increased stake in Garanti and sale of the 1.7% stake in China Citic Bank -CNCB-).
- The fully-loaded leverage ratio of 6.6% still compares very favorably with the rest of the peer group.
Capital and leverage ratios (Percentage as of 31-03-17)
Risk management
- Positive trends also of the metrics related to credit-risk management. As of 31-Mar-2017, the NPL ratio has declined and the coverage ratio has increased slightly on the figures for the close of 2016. The cost of risk is stable.
NPL and coverage ratios (Percentage)
Transformation
- The Group's digital and mobile customer base continues to increase (up 20% and 41% year-on-year, respectively, according to the latest available data as of February 2017).Digital sales are also up in all the geographic areas where BBVA operates.
Digital and mobile customers (Millions)
Results
- Good performance of gross income, thanks to a positive trend in more recurring revenue (particularly income from fees and commissions) and NTI.
- Operating expenses under control.
- This has led to a further improvement in the efficiency ratio.
- Impairment losses on financial assets slightly below the figure for the first quarter of 2016.
- Inclusion of €177m restructuring costs in provisions.
- As a result, the net attributable profit in the first quarter of 2017 was €1,199m, 69.0% higher than in the same quarter last year and 76.8% higher than posted in the fourth quarter of 2016
Net attributable profit (Million euros)
Net attributable profit breakdown(1) (Percentage 1Q 2017)
(1) Excludes the Corporate Center.
(2) Includes the areas Banking activity in Spain and Non Core Real Estate.
Business areas
(Click on each country to see information)
SPAIN
Highlights
- Lending continues its downward trend.
- Recovery in income from fees and commissions and excellent NTI.
- Positive trend in operating expenses.
- Accounting for restructuring costs to improve efficiency..
- Stability in risk indicators.
THE UNITED STATES
Highlights
- Lending continues to focus on selective and profitable growth.
- Positive trend in more liquid funds and good management of their cost.
- Good performance in more recurring revenues.
- Containment of operating expenses and of the impairment of financial assets.
- Improved risk indicators.
MEXICO
Highlights
- Good year-on-year performance of lending, despite moderate economic activity.
- Expenses continue to increase below gross income and net attributable profit is growing year-on-year at double-digit rates.
- Asset quality resilience. Better than expected cost of risk.
TURKEY
Highlights
- Activity continues strong, despite uncertainties in the environment.
- Very positive behavior of more recurring revenues.
- Stable asset quality indicators.
SOUTH AMERICA
Highlights
- Growth continues to slow in lending activity, in line with the seasonal nature of the period and the current macroeconomic environment.
- Positive trend of more recurring revenues.
- Expenses conditioned by the high inflation in some countries.
- The macroeconomic environment continues to influence the behavior of the risk indicators.
REST OF EURASIA
Highlights
- The loan book continues its upward path begun in the fourth quarter of 2016.
- Reduction in the balance of deposits.
- Significant progress in earnings, supported by the good performance of the Global Markets unit and reduction in costs.
News
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