Mexico becomes the main focus of business for the bank
BBVA closed the first half with excellent results, generating a profit of EUR 3,001 million, an increase of 57% compared to the same period last year. However, the bank’s activity has not been linear and there are significant differences depending on the geographic area in which it operates. For example, the most brilliant and substantial results have been achieved in Mexico, a country that is currently the main business area of the financial institution chaired by Carlos Torres. “These solid results were possible thanks to the positive evolution of the revenues, driven by the growth of the activity and the good behavior of the risk indicators. All this, despite applying hyperinflation accounting in Turkey,” said the entity’s CEO, Onur Genç.
As has happened today with energy companies, BBVA has also informed through its quarterly income statement that the main money-generating machines are not in Spain but abroad and that the dynamics of the national economy are good, but lower than others. latitudes of the world. A situation that contrasts and clashes with the reports of the government of Pedro Sánchez about the existence of extraordinary benefits obtained by banking and energy companies in Spain, which forms the basis for proposing the so-called “taxation” already incorporated in Congress.
The bank was proud of the smooth operation of its digital customer relationship channel, which allowed it to land 55% of new additions, in a semester that was particularly good in this regard. For example, between January and June, the entity acquired a total of 5.3 million new customers in all countries where it is present.
The interest margin, the difference between the price BBVA pays for having money and the price it charges its customers for loans, has increased by 26.5%, anticipating the growth of this source of income that will determine the evolution of the interest rate rise . However, the income from commissions and services showed a more controlled evolution to grow by 17.8%.
By geographic area, Mexico already contributes 53% to the bank’s business, compared to 29% represented by Spain, 12% of its business in South American countries and Turkey’s very modest 2% contribution. The company’s evolution in these countries has also been very different, contrasting Mexico’s high dynamism with Spain’s more subdued numbers. For example, in Mexico lending grew by 13.3% compared to 3.6% in Spain and net profit by no less than 48.3%. Spain’s contribution to the bank’s profits grew by only 11% at 808 million euros.
On the other hand, Genç has pointed out that “in these times of uncertainty, profitable growth is the best recipe. We achieve this with the best team and through our strategy focused on digitization, innovation and sustainability.”
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
