Spanish multinational financial services company BBVA (BME:BBVA) has reported a net attributable profit of €5.96 billion ($6.7 billion) in the first three quarters of 2023, marking a year-on-year increase of 24.3%. This strong financial performance was primarily driven by recurring revenues such as Net Interest Income (NII) and net fees and commissions.
BBVA's third quarter followed suit, posting a net profit of €2.08 billion ($2.34 billion), a 13.4% year-on-year increase. The bank's earnings per share were significantly enhanced by 17.8% due to the execution of a €1 billion share buyback program.
The bank's capital strength was evident in its fully-loaded Common Equity Tier 1 (CET1) ratio of 12.73%, indicating robust financial management strategy. The Return on Tangible Equity (ROTE) stood at 17%, reflecting the bank's profitability.
BBVA also saw an expansion in its loan portfolio by 8% year-on-year, facilitating financing for home purchases by 100,000 families, supporting the growth of 400,000 SMEs, and aiding the development of 70,000 large corporations.
The bank's organic growth strategy added 8.3 million new customers, predominantly through digital channels. This strategy contributed to the tangible book value per share plus dividends increasing by 18% over the past year.
As part of its commitment to sustainable business, BBVA allocated €49 billion to sustainable business in the first nine months of 2023, contributing to a total investment of €185 billion since 2018.
InvestingPro Insights
BBVA's financial performance is further underscored by InvestingPro's real-time data. The bank's market capitalization stands at $46.95 billion, and it boasts a low P/E ratio of 6.37, which is even lower when adjusted for the last twelve months as of Q2 2023 at 5.46. This, coupled with a PEG ratio of 0.17, signifies that BBVA is trading at a low earnings multiple relative to its near-term earnings growth, a key InvestingPro Tip.
Moreover, BBVA has consistently increased its earnings per share, which is in line with the 17.8% enhancement reported due to the execution of a €1 billion share buyback program. The bank's revenue growth over the last twelve months as of Q2 2023 is also noteworthy at 23.85%, further demonstrating its robust financial performance.
InvestingPro Tips also highlight that BBVA has maintained dividend payments for 33 consecutive years, which is a testament to its financial stability. However, it's important to note that the bank's dividend growth has decreased by 32.04% over the last twelve months as of Q2 2023.
These insights are just a snapshot of the wealth of data and tips available on InvestingPro. The platform offers an additional 10 InvestingPro Tips specifically for BBVA, providing a comprehensive understanding of the company's financial health and investment potential.
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