BBVA, a leading Spanish bank, has announced its first-quarter results for 2024, reporting earnings of €2.2 billion, a 19.1% increase compared to the same period last year. The growth was attributed to an increase in income, particularly in Spain and Mexico’s interest margin and strong performance in Mexico. The market responded positively to these figures, with a nearly 1% increase in the stock market in the early stages of the session.
In 2023, BBVA achieved double-digit growth once again by leveraging favorable interest rate increases on both sides of the Atlantic. The bank’s interest margin increased by 15.4%, reaching €6.5 billion, while net commissions rose by 31.1% to €1.8 billion. Despite this growth slowdown compared to the previous year, BBVA is expected to surpass its profit record from 2023.
BBVA continues to prioritize efficiency and improving profitability metrics such as ROE and ROTE, which have both increased compared to the previous year. By territory, Mexico remains the primary driver of profits for BBVA, contributing over half of total profits at 56.5%, followed by Spain at 28.4%. Türkiye accounts for only 5.6% of total profits.
The bank’s performance in Mexico was particularly strong, with an impressive 12.6% increase in earnings compared to Q1 of 2023 due to robust financial performance and market share expansion.
In Spain, earnings increased by a whopping 36.5% due to strong financial performance and continued investment in digital channels and customer growth initiatives.
Despite declining profits in Türkiye due to economic challenges in the region, BBVA remains focused on efficiency and profitability with continued emphasis on digital channels and customer growth.
Overall, BBVA’s success can be attributed to its ability to adapt quickly to changing market conditions while maintaining a long-term focus on efficiency and profitability metrics that drive sustainable growth over time.