BBVA - Banco Bilbao Vizcaya Argentaria S.A. (BBVA) Q1 2024 Earnings Call Transcript
2024-04-29 15:11:09 ET
Banco Bilbao Vizcaya Argentaria, S.A. (BBVA)
Q1 2024 Earnings Conference Call
April 29, 2024 03:30 a.m. ET
Company Participants
Onur Genç - Chief Executive Officer
Luisa Gómez Bravo - Group’s Chief Financial Officer
Patricia Bueno Olalla - Global Head of Shareholder & Investor Relations
Conference Call Participants
Maks Mishyn - JB Capital
Francisco Riquel - Alantra
Benjamin Toms - RBC Capital Markets
Marta Sanchez Romero - Citi
Antonio Reale - Bank of America
Sofie Peterzens - J.P. Morgan
Alvaro Serrano - Morgan Stanley
Ignacio Ulargui - BNP Paribas Exane
Britta Schmidt - Autonomous Research
Andrea Filtri - Mediobanca
Carlos Peixoto - CaixaBank
Chris Hallam - Goldman Sachs
Ignacio Cerezo - UBS
Fernando Gil - Bestinver
Presentation
Patricia Bueno Olalla
Good morning. Welcome, and thank you for joining BBVA's First Quarter Earnings Conference Call. I'm joined today by Onur Genç, our CEO; and Luisa Gómez Bravo, the Group’s CFO. As in previous quarters, Onur and Luisa will firstly discuss quarterly figures and then we will open the line to receive your questions. Thank you very much for your participation.
Now, I’ll turn the call over to Onur.
Onur Genç
Thank you, Patricia. Good morning to everyone. Welcome and thank you for joining BBVA's first quarter 2024 earnings webcast. Let's jump into it, starting with slide number three. On the left-hand side, you can see our net attributable profit reaching EUR 2.200 billion, showing another quarter of record results, obviously continuing the positive trend that we have been having for the past years.
This figure is 19% above the results of the same quarter of last year and almost 7% above last quarter. I should remind you that this quarter's number already includes the EUR 285 million of extraordinary tax in Spain. If the extraordinary tax was not there, the net attributable profit would have been obviously close to EUR 2.5 billion.
Our results represent EUR 0.36 earnings per share, 23% year-over-year growth, a higher growth rate than the one of the net attributable profit due to the share buyback programs we have been executing. The graph on the right-hand side of the slide shows our CET1 ratio, CET1 ratio at 12.82%, reflecting a 15 basis points increase in the quarter and stands clearly above our target range and also the regulatory requirements.
Moving to page number four, behind the excellent results we have been announcing lies, in our view, the strength of our franchises and our performance at the core operating income level, core operating income level. In that sense, and acknowledging here some inherent seasonality between the quarters of the year and so on, we are showing a very consistent growth in our operating income, more than EUR 4.8 billion in current year reported this quarter, very close now to the EUR 5 billion operating income line.
Page number five, our tangible book value per share plus dividends. It continues the outstanding evolution of previous quarters with a 20% increase year-over-year and a 6.5% growth in the quarter. Regarding profitability, we continue to improve on our profitability metrics, reaching 17.7% in return on tangible equity and 16.9% in return on equity. These numbers in this page, in my view, are some of the most impressive figures of this presentation.
Page number six, we talk about in this page, it sounds like a conceptual chart, but it is driven by numbers. We talk about the truly unique profile of BBVA within the European banking sector, combining growth and profitability at the same time. To be more specific, on this map, in the x-axis, we use return on tangible equity as a profitability metric, and in the y-axis, we show the loan growth in current Euros for comparability purposes during 2023.
As a clear indication of potential future value creation, in our view, BBVA stands out, being in the top right corner, with one of the best profitability metrics and the highest loan growth among the European peers. Obviously, we will see how our competitors have evolved in this quarter, but in our case, when we update the slide with BBVA's first quarter 2024 figures, our positioning moves even further to the top right corner of the chart as we continue to increase our profitability and as our growth also has improved in the quarter, year-over-year growth.
We are very much committed to maintaining this differential value creation profile, and some of this optimism is related to the potential evolution of our core markets. And with that, I move to page number seven, where we would like to show the positive prospects that we see in Spain going forward.
On the left-hand side of the slide, you can see the GDP growth evolution in Spain versus the Eurozone in the last decade. Despite a stronger hit during COVID, there is a positive growth gap for Spain that we expect to widen during 2024 and 2025. Additionally, in the top right chart, Spain, after a very long period of deleveraging, shows in both households and companies, debt levels leverage lower than the Eurozone, in our view indicating a potential recovery to arrive when rates come down in Europe. ...
Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) Q1 2024 Earnings Call Transcript