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Results 29 Apr 2019

Onur Genç: “We continue to create opportunities for our customers and value for our shareholders”

Following the release of BBVA’s Q1-19 earnings, the Group’s CEO Onur Genç said today that, “the P&L shows positive dynamics, with operating income growing over 10 percent driven by recurring revenues and significant improvement in efficiency.”

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Carlos Torres Vila

BBVA earns €1.16 billion in first quarter

• Transformation: BBVA continued to make progress in its transformation, with a clear impact on growth of its customer base, productivity, efficiency and customer experience. Digital unit sales now account for 57 percent of the total and over half of the customers use digital channels to interact with the bank

• Efficiency: Positive top-line trends in the P&L account, together with an ongoing focus on cost reduction, led to double-digit growth in operating income compared to the first quarter 2018 in constant euros, and an improvement in the efficiency ratio, which dropped 118 basis points since December, to 48.1 percent

• Risk management: The NPL ratio remained at 3.9 percent, while the coverage ratio improved to 74 percent. The cost of risk stood at 1.06 percent

• Capital adequacy: The fully-loaded CET1 capital ratio closed the quarter at 11.35 percent, inching closer to the target of 11.5 to 12 percent, fully absorbing IFRS 16 impact
Profitability: BBVA continued to be a leader in profitability, with ROE standing at 9.9 percent, and ROTE at 11.9 percent, well above the average of its European peers

• Value creation for the shareholder: The tangible book value plus dividends per share rose 11 percent from a year earlier

• Board of Directors: At its meeting today, the Board also approved a series of agreements related to appointments and its committees

The BBVA CEO said the Group was off to a good start in 2019 with net attributable profit of €1.16 billion in the first three months of the year. “Despite a challenging macro economic environment, our diversified model allowed us to maintain sound risk indicators and a solid capital position,” he added.

As for progress in the bank’s transformation, Onur Genç said that, “we continue to move forward in our transformation, with a clear impact on growth of our customer base, productivity, efficiency and user experience.” Genç reiterated that, “digital sales accounted for 57 percent of the total for the quarter. We maintain our goal of surpassing the 50-percent threshold of customers banking with us through their smartphones by year-end.”

All in all, for the BBVA CEO it has been a good quarter, in which “we continue to create opportunities for our customers and value for our shareholders.”