The Diplomat
Mexico consolidated its position as the most important country for BBVA. Of the almost 3,900 million euros of net profit it obtained in the first half of the year, 2,614 million came from the Aztec country, an increase of +46.8%.
BBVA closed the first half of 2023 with a net attributable profit of 3,878 million euros, an increase of 31% compared to the same period last year, the bank reported yesterday when it published its half-yearly income statement.
By geographical area, Mexico once again contributed the highest profits, ahead of Spain. Specifically, profits amounted to 2,614 million euros. Revenues rose 40.7% to EUR 6,774 million, while operating expenses were somewhat more contained, rising 32.4% to EUR 2,057 million.
In second place was the Spanish market, where BBVA obtained net attributable profit of EUR 1,231 million, 53.6% more than in the first half of 2023. The bank’s total revenues between January and June were EUR 3,630 million, 19% more, with an even greater containment of expenses, which only rose 6.4% to EUR 1,517 million.
In Turkey, another of the bank’s big bets, BBVA obtained profits of 525 million euros, almost nine times the profit of 59 million euros it posted between January and June 2022. Revenues in the country rose 10.8% to 1,480 million euros, thanks to extraordinary accounting items derived from Turkish inflation. Expenses in the country rose 18.9% to 591 million euros.
In the rest of the South American countries where BBVA operates, which are accounted for jointly, the bank’s profit was EUR 367 million, 12.2% lower than in the first half of 2022, due to higher tax payments and financial extraordinary items. Revenues in the period were 2,415 million euros, up 21.9%, while expenses rose 17.3% to 1,083 million euros.
On the other hand, BBVA has decided to reward its shareholders with a new share buyback programme that will amount to a maximum of 1,000 million euros, for which it has already requested the relevant authorisation from the European Central Bank (ECB).
The bank has emphasised that this share buyback programme is of an extraordinary nature, so it is not included in the ordinary remuneration and payout target.
“The good results and the execution of our strategy allow us to have a positive impact on all our stakeholders: customers, shareholders, employees and society as a whole; and to face the future with great optimism,” said the CEO of the banking group, Onur Genç.
