BBVA earned 1,846 million by March, 39.4% more

He BBVA achieved a net attributable profit of EUR 1.846 million between January and March 2023, 39.4% more than the year beforethanks to the higher revenues achieved and despite the 225 million he allocated payment of extraordinary tax to banks in Spain.

This result, which was above analysts’ expectations, was supported by an increase in commercial activity, which was translated into an interest margin of EUR 5,642 million, which includes almost all revenues and which grew by 43.1 percent. the CNMV reported today.

For another quarter, Mexico was the subsidiary that contributed the most to the Group’s profit, more than twice that of Spain, to be exact, 1,285 million euros, mainly due to the higher income it achieved thanks to the increase of more than 13% recorded in loans.

IN Spainthe entity earned 541 million euros, 9.5% less than a year earlier, due to the impact of the aforementioned extraordinary tax, with the loan portfolio falling by 1.2% to 169,215 million and deposits falling 3.1% to 213,311 million.

Turkey earned 277 million euros, compared to losses of 76 million registered until March 2022, thanks, the bank explained, to the applied lower corporate tax. South America earned EUR 184 million, up 14.8%, mainly due to the evolution of fixed income, which offset the rise in costs, in an environment of high inflation across the region, and higher provisioning needs for impairment of financial assets. Finally, the area Other business received 92 million, 12.4% less.

Loans and advances granted to clients increased by 8% and amounted to EUR 373,481 million, with delinquency rate of 3.3%, which is lower than 4% of the previous year, and coverage for dealing with possible illiquidities of 82%, also better than the previous 76%.

The customer deposits added 395,880 million after a 9.6% increase, bringing total client resources to 556,839 million after a 9.5% increase.

In terms of solvency, the group’s “full load” CET1 ratio, which includes all regulatory capital requirements, was 13.13%, up from 12.70% a year ago. As for the main margins in the profit and loss account, interest increased by 43.1%, to 5.642 million, thanks to the increase in lending activity, he stated.

Gross margin was 6,958 million after a 29% improvement, driven by commissions, which totaled 1,439 million (+15.8%), thanks mainly to the contribution of Mexico and Turkey. In this way, the net margin amounted to a total of 3,942 million after an increase of 38.6% and discounting global operating costs of slightly more than 3,000 million, which increased by 25.7%, under the influence of high inflation in all geographical areas in which the entity operates .