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FINANCIALS: BBVA (A3 Pos/A/A-) 3Q Results - Hostile approach for Sabadell

FINANCIALS
Credit BulletsCEEMEAEurozoneSpainBulletGlobalRegion

Results are a little disappointing overall, but will take a back seat this morning as BBVA's hostile approach for Sabadell is in focus. BBVA has commented they do not see and competition issues from their Sabadell deal, which quite opposed to the Spanish anti-trust agency which has flagged the potential need for an extended review. 

  • Net income is down 6% vs Q2 at €2.6bn, although up 26% vs Q3 23. Net interest income comes in below expectations at €5.8bn, €-0.6bn lower than both Q2 and Q3 23. Fee & commission income beat expectations at €1.9bn, although this is marginally lower than in Q2, fee income has been much stronger than in 2023.
  • CET1 ratio climbs to 12.84%, up 0.09% on Q2. Capital generation was +69bps, dividends accounted for -36bps and RWE's reduced by -48bps. This makes minority interests, FX and mark to market moves responsible for the increase, which is already a bit lower than peers, although above the target of 11.5-12%.
  • Cost of risk has climbed pretty consistently from 105bps in Q1 23 to 1.42bps now. NPL ratio is more contained however and has remained at 3.3% over the same period

Call at 08:30 UK time - https://streamstudio.world-television.com/gaia/bbva/20241031/en/index.html

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Results are a little disappointing overall, but will take a back seat this morning as BBVA's hostile approach for Sabadell is in focus. BBVA has commented they do not see and competition issues from their Sabadell deal, which quite opposed to the Spanish anti-trust agency which has flagged the potential need for an extended review. 

  • Net income is down 6% vs Q2 at €2.6bn, although up 26% vs Q3 23. Net interest income comes in below expectations at €5.8bn, €-0.6bn lower than both Q2 and Q3 23. Fee & commission income beat expectations at €1.9bn, although this is marginally lower than in Q2, fee income has been much stronger than in 2023.
  • CET1 ratio climbs to 12.84%, up 0.09% on Q2. Capital generation was +69bps, dividends accounted for -36bps and RWE's reduced by -48bps. This makes minority interests, FX and mark to market moves responsible for the increase, which is already a bit lower than peers, although above the target of 11.5-12%.
  • Cost of risk has climbed pretty consistently from 105bps in Q1 23 to 1.42bps now. NPL ratio is more contained however and has remained at 3.3% over the same period

Call at 08:30 UK time - https://streamstudio.world-television.com/gaia/bbva/20241031/en/index.html