BBVA made a record profit of 6,420 million in 2022 and collects a dividend

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The entity led by Carlos Torres improves its cash payment by 39% and announces a new share buyback for 422 million euros

Historic year for BBVA. The bank led by Carlos Torres said goodbye to 2022 with a record profit of 6,420 million euros, a figure that surpasses the previous ‘peak’ of 2007, when the entity achieved a result of 6,126 million. As in the rest of the industry, these figures are supported by strong margin growth in typical banking activities, in the wake of the European Central Bank’s (ECB) rate hike.

Thanks to these results, the bank wanted to make its shareholders happy by announcing a 39% increase in dividend compared to 2021, the juiciest in cash in the last 14 years. Specifically, it will make an additional distribution of 31 cents per share in April, which, on top of the 12 cents it already paid in October, totals 43 cents per share. The entity has also confirmed that it will allocate 422 million euros to a new share buyback plan, following last year’s assessment for a value of 3,160 million euros.

In total, between the cash dividend and the share buyback, BBVA will allocate approximately EUR 3,000 million in shareholder remuneration, 47% of its earnings, up from 44% last year.

This historic benefit to the entity was achieved thanks to an increase in revenues that far exceeded the increase in costs. Specifically, the gross margin grew by 18.2% to EUR 24,890 million, thanks to the interest margin, which recorded a strong increase of 30.4% to EUR 19,153 million as a result of the strong growth in lending and, in particular, the environment of rising interest rates.

The entity also increased its commission income by 12% to EUR 5,353 million, while costs barely increased by 13% (EUR 10,760 million). Of course, provisions increased by about 11.5% to 3,379 million euros, especially those for business in South America and Turkey.

In fact, Turkey has been the stone in the shoe of these record bills for the bank. And it is that the entity’s result in the region fell by 31% compared to 2021, to 509 million euros, despite the application of the so-called hyperinflationary accounting in its accounts (formula used to adjust the figures to the high price level in the country).

Mexico and Spain repeat themselves as the regions that attract the most clients for BBVA. Specifically, the entity made a profit of 4,182 million euros in the Aztec country, 64% more, which already generates 57% of the total result.

In Spain, BBVA earned 21.4% more to 1,879 million euros. Attributable result (taking into account the purchase of the Merlin offices) amounts to 1,678 million euros, 8.4% more than last year. That is 22.8% of the profit.

Like the rest of the industry, BBVA has also managed to fend off one of the major concerns of regulators in the face of the energy and price crisis wreaking havoc on consumers’ pockets. Specifically, the entity’s default rate was 3.4% compared to 4.1% last year, with much higher coverage, 81% compared to 75% in 2021.

Source: La Verdad

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