The BBVA share

The BBVA share has performed positively over the quarter, closing September at €7.56, a quarterly rise of 4.1%, with a cumulative gain of 17.9% since December 2016. This represents a relatively better performance than the European banking sector as a whole and than the Ibex 35.

Global growth has continued to give signs of improvement. Increased trade, the upturn in investment and greater confidence are underpinning this positive performance. There are still no clear signs of inflationary pressure. In this context, the measures taken by the central banks continue to support economic activity, and the financial markets remain relatively calm. Performance in the developed countries continues to be positive, above all in Europe, and is now accompanied by an improved outlook for emerging economies. As a result of the above, global economic growth could be around 3.5% in 2017, according to the latest BBVA Research estimates.

Against this backdrop, the main stock market indices in Europe (Stoxx 50 and Euro Stoxx 50) closed the third quarter with gains of 5.4% and 9.2% respectively since December 2016. In Spain the Ibex 35 fell back slightly over the last three months, but its performance has remained positive since the close of 2016 (up 11.0%). In the United States, the S&P 500 index closed 4.0% up on the level at the close of June, an increase of 12.5% on the last nine months.

BBVA share evolution

Compared with European indices (Base indice 100=30-09-2016)

In the significant event published on February 1, 2017, BBVA announced its intention of modifying its shareholder remuneration policy to one of a fully cash payment of between 35% and 40% of the profits obtained each year. This policy will be formed each year of an interim dividend (which is expected to be paid in October) and a final dividend (which will be paid out upon completion of the final year and following approval of the application of the result, foreseeably in April). These payouts will be subject to appropriate approval by the corresponding governing bodies. An interim dividend against earnings for the year was paid for a gross amount of €0.09 per share on October 10, 2017.

Shareholder remuneration

(Euros-gross/share)

Read more

Group information

Results

  • Sustained general growth in more recurrent sources of revenue in practically all geographic areas.
  • Operating expenses remain under control, leading to an improvement in the efficiency ratio in comparison with January-September of the previous year.
  • Impairment losses on financial assets down on the same period of 2016. Inclusion in the third quarter of provisions in the United States stemming from the estimated negative impact of recent natural disasters.
  • As a result, the accumulated net attributable profit is €3,449m, up 23.3% year-on-year.

Net attributable profit (Million euros)

Net attributable profit breakdown(1) (Percentage. January-September 2017)

(1) Excludes the Corporate Center.

(2) Includes the areas Banking activity in Spain and Non Core Real Estate.

Read more

Balance sheet and business activity

  • Loans and advances to customers (gross) continue to increase in emerging economies but decline in Spain and the United States, albeit with some signs of recovery in the latter.
  • Non-performing loans continue to improve in practically all areas, particularly in Spain.
  • Deposits from customers have performed well in all geographical areas, fueled by an increase in more liquid and lower-cost items.
  • In off-balance-sheet customer funds, the trend in mutual funds continues to be positive.

Read more

Solvency

  • The capital position is above regulatory requirements and the 11% target, with a fully-loaded CET1 ratio of 11.2% as of 30-Sep-2017. This is an increase of 30 basis points since the end of 2016, primarily due to a reduction in risk-weighted assets (RWAs) and organic generation of earnings.

Capital and leverage ratios (Percentage as of 30-09-17)

Read more

Risk management

  • Positive trend once again in the main credit risk metrics: as of 30-Sep-2017, the NPL ratio closed at 4.5%, the coverage ratio at 72% and the cumulative cost of risk at 0.93%.

NPL and coverage ratios (Percentage)

Read more

Other matters of interest

  • Successful first issuance of €1,500m of senior non-preferred debt.
  • A cash dividend was paid to shareholders on October 10, 2017 against earnings for the 2017 financial year for a gross amount of €0.09 per share.

Transformation

  • BBVA's global mobile customer base exceeds 15 million, up over 40% year-on-year. Customer smartphone interactions with the Bank are increasing significantly, in line with an expanding number of available services.

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 3Q 2017)

(1) Excludes the Corporate Center.

(2) Includes the areas Banking activity in Spain and Non Core Real Estate.

Read more

Business areas

(Click on each country to see information)

SPAIN

Highlights

  • Ongoing deleveraging and increase in more liquid customer funds and mutual funds.
  • Good performance of net fees and commissions.
  • Faster decline in operating expenses.
  • Further reduction in the cost of risk.
  • Positive trend in risk indicators.

THE UNITED STATES

Highlights

  • Recovery in activity in the quarter.
  • Positive performance of net interest income and net fees and commissions.
  • Control of operating expenses.
  • Positive trend in risk indicators.
  • Provisioning affected by recent hurricanes.

MEXICO

Highlights

  • Good performance in activity.
  • Positive trend in customer spreads.
  • Costs continue to increase below gross income, and double-digit year-on-year growth in net attributable profit.
  • Stable asset quality indicators.

TURKEY

Highlights

  • Solid growth in Turkish lira activity, despite less use of the CGF program.
  • Very positive trend in more recurring revenue items.
  • Operating expenses growing below inflation and gross income.
  • Improvement in asset quality indicators, which continue to outperform the rest of the sector.

SOUTH AMERICA

Highlights

  • Activity continues to grow at a good pace.
  • More recurring revenue items performing very well.
  • Expenses increasing below inflation and the growth in gross income.
  • Stable risk indicators.

REST OF EURASIA

Highlights

  • Positive trend in lending activity in the European branches.
  • Deposit performance strongly affected by the low interest-rate environment.
  • Slight increase in earnings, supported by a positive performance in Europe and a decline in operating expenses.
  • Stable asset quality indicators.

Contact

Shareholder attention line
902 200 902
912 24 98 21
Subscription service
Sign up
Shareholder Office
C/ Azul, 4 – 28050 Madrid
Contact email
accionistas@bbva.com

Quartely report 3Q 2017

Additional information

PDF version Online version