BBVA Earns EUR 9.066 Billion: What the Numbers Show

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EUR 9.066 billion in profit and 22 percent profitability: BBVA's figures for January through September show a significantly larger group. According to the available reports, the main driver lies in its business with companies, while rising costs are weighing on the Spanish portion of the result.

For you, this is primarily a story with two different perspectives: At the group level, BBVA is gaining ground; regionally, profit is declining slightly in Spain. Both are happening at the same time – and it is precisely this tension that makes the current figures revealing.

Why Is Profit Growing by 13.6 Percent?

Group profit

BBVA generated a profit of EUR 9.066 billion between January and September. That represents an increase of 13.6 percent compared with the same period a year earlier, as both CincoDías and Expansión report.

Revenue growth is even more pronounced: According to CincoDías, revenue rose by 18 percent. This means revenue is growing faster than reported profit. Cost developments therefore remain a factor the group has to manage.

Higher profitability

Expansión cites profitability of 22 percent for BBVA. The banking institution therefore continues to characterize its performance as highly profitable. The precise classification of the report points to BBVA's business report; the key issue for investors and market observers is the connection: higher revenue, double-digit lending growth and a significantly higher group profit.

Which Business Is Driving BBVA Higher?

Lending to companies

According to Expansión, activity with the “Empresas” customer group is particularly important. It is driving the double-digit expansion of the loan portfolio. BBVA is therefore focusing on an area where companies need financing and banks provide loans.

For interpreting the figures, this means: The growth does not come solely from a broad increase in all revenue, but according to the report is particularly linked to the business with companies. It is precisely this connection that makes the outlook for the coming quarters interesting – according to the available reports, how strong growth remains will also depend on whether lending continues to grow at a double-digit rate.

Why Is Profit Falling in Spain Nevertheless?

The Spanish market comes under pressure

The group is growing, but the regional result is declining slightly: In Spain, higher costs are weighing on profit, according to Expansión. Profit there fell by 0.2 percent. This does not contradict the 13.6 percent increase at group level, because group and national figures cover different areas.

The comparison does, however, clearly show where the challenge lies: BBVA cannot measure its international business, or its overall business, solely by its Spanish result. Strong growth in lending and revenue more than offsets the pressure there at the group level.

For a sober look at the figures, a dual perspective therefore helps: More profit, more revenue and 22 percent profitability at group level – but slightly lower profit in Spain. It is precisely this combination that makes the current report relevant to investors, customers and market observers.

You can find the full background in the reports from CincoDías and Expansión.