BBVA has confirmed its objectives for 2024. As explained by the bank’s CEO, Onur Genç, who has participated in a conference organized by Bank of America, the entity is in “good position” to achieve goals marked on its roadmap, among which it stands out to reach a ROTE of 14% or an efficiency ratio of 42%.
In addition, Genç highlighted to investors that BBVA has “good prospects” for creating shareholder value, with a dividend yield of 6.3% as of September 16, above 5.4% of the average of European competitors and 4.1% of Spanish ones.
In fact, the CEO of BBVA has underlined that the entity’s strategic decisions are “always aligned” with the objective of creating value for shareholders. In this sense, during the presentation, he has compared the evolution of the rtotal payment for the BBVA shareholder (including dividends and share performance) that has increased by 27% from 2019 to the present, compared to an average drop of 9% for its competitors in Spain in the same period, according to data presented by Genç.
As for the business prospects for 2022, BBVA foresees an improvement in Mexico and Spain, two of its main markets. In this way, it foresees an increase in the interest margin of 5% in Spain (driven by the rate hikes and the increase in credit). In Mexico, the bank expects double-digit growth in the loan portfolio while the interest margin will grow around 20%.
It also foresees a good performance of the credit quality indicators, and estimates that the cost of risk for the group will be 100 basis pointsin line with the previous year, despite the complex environment due to high inflation and the war in Ukraine.