The Diplomat
BBVA achieved net attributable profit of €4.994 billion between January and June, up 29% compared to the same period in 2023, a variation that rises to 37% in constant euros, as reported this Wednesday to the National Securities Market Commission (CNMV).
In the second quarter of the year alone, during which BBVA announced its intention to launch a hostile takeover bid for Banco Sabadell, profits grew by 38% -37% in constant euros-, to €2.794 billion, due to the “strong dynamism” of the activity.
Customer funds showed a growth of 5.9% compared to the close of the previous year. This favorable performance is due to the growth of customer deposits, which increased by 4.2% due to the positive evolution of term deposits in most business areas – with the ‘rest of businesses’ and Turkey standing out – and to the increase in off-balance sheet resources, which grew by 10.1%, thanks to the good performance in Mexico and Spain.
In Mexico, BBVA highlights the dynamism of the loan portfolio, with a year-on-year increase of 12.6%, with the increase in corporate financing in the last quarter (9.3%) standing out. The half-yearly attributable profit reached record levels: 2,858 million euros, 3.3% more year-on-year.
In Turkey, the growth of lending activity in local currency stands out (51% year-on-year), very much in line with the evolution of resources in lira and with the bank’s strategy of de-dollarization of the balance sheet. In the income statement, attributable profit for the first half of the year fell by 33.0% to €351 million.
In South America, lending activity (12.2%) and customer funds (24.5%) grew strongly year-on-year. Attributable profit for the half-year amounted to €317 million, 12% less than a year ago (in current terms). Argentina contributed €103 million to the area’s results, while in Colombia, attributable profit was €57 million, thanks to the strength of the net margin. And Peru contributed €110 million, supported by the growth of recurring revenues and improved efficiency.
