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FINANCIALS: BBVA: Lower Quality Results Beat; Perhaps Not Enough To Tighten

FINANCIALS

BBVA (BBVASM: Baa2 develop/BBB+/BBB+) is on the front foot indicating its bid for Sadabell is going “according to plan” whilst posting a significant (8%) revenue beat. Loan losses were a little weaker than consensus had, CET1 also marginally low but the NPL ratio is a small beat too. That revenue performance has generated a 21% pre-tax beat though a big chunk is from trading income, a lower quality revenue stream, in our view. Spreads don’t have much expectation built in, in our view, but with the beat being lower quality, this is perhaps not enough to drive incremental tightening.

  • “*BBVA 2Q NET INCOME EU2.79B, EST. EU2.39B
  • *BBVA 2Q NET INCOME EU2.79B, EST. EU2.39B
  • *BBVA 2Q CET1 RATIO FULLY-LOADED 12.8%, EST. 12.9%
  • *BBVA SAYS IT WILL `CLEARLY OUTPERFORM' 2024 GOALS
  • *BBVA SAYS SABADELL BID PROCESS PROGRESSING ACCORDING TO PLAN” - BBG

Conf call is 0830 (London time) at: https://streamstudio.world-television.com/gaia/bbva/20240731/en/index.html

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