The Spanish bank BBVA has reported its results for the first quarter of 2024, showing a profit of 2,200 million euros, a 19.1% increase from the previous year. This growth is attributed to increased income, especially in the interest margin in Spain and strong performance in Mexico. The stock market responded positively to these figures, with a nearly 1% rise in the early trading session.
BBVA has maintained its growth trajectory after a successful year driven by interest rate increases. The group’s activity, as evidenced by a 9.5% increase in credit to customers, has contributed to this growth. The interest margin increased by 15.4% at the beginning of the year, while net commissions rose by 31.1%. Despite some slowing in profit growth compared to last year, BBVA is on track to surpass its record profits from the previous year.
Operational expenses rose by 12.2%, reflecting the pressure of inflation in the markets where BBVA operates. However, these costs increased at a slower rate than income, resulting in an improved efficiency ratio of 41.2%. The group also saw improvements in profitability metrics such as return on equity (ROE) and return on tangible capital (ROTE).
By territory, Mexico remains the largest contributor to BBVA’s profits, followed by Spain and Türkiye. Mexico saw a 12.6% increase in profits, while Spain experienced a 36.5% growth. Türkiye, on the other hand, faced challenges due to inflation and currency exchange effects. Despite these challenges, BBVA continues to focus on growth and profitability in its key markets.
Overall, BBVA’s strong performance in the first quarter of 2024 reflects its resilience and strategic focus on key markets. The bank remains optimistic about its future prospects and aims to build on its success in the coming months.