Genç defends BBVA’s ability to generate value and meet its objectives with investors

MADRID, Sep. 21 (EUROPA PRESS) –

The CEO of BBVA, Onur Genç, has highlighted to investors the bank’s track record in generating value for shareholders and its competitive advantages, while defending that it is in a “good position” to achieve the objectives set for 2024 on your Investor Day.

During a conference organized by Bank of America, Genç emphasized the “extraordinary” prospects for BBVA in the future and expressed his confidence that the market will recognize BBVA’s potential.

Likewise, the manager has reiterated the improvement in business prospects in 2022 for Spain and Mexico, two of its main markets. Specifically, BBVA expects credit to grow at a low single-digit rate for the year as a whole and the interest margin to increase by around 5% in Spain, while in Mexico the expected growth of the loan portfolio in 2022 is double digit and for the interest margin is around 20%.

The CEO also foresees a good performance of the credit quality indicators, with a forecast of the cost of risk in 2022 for the group below 100 basis points, in line with the previous year, despite the complexity of the environment.

Genç highlighted that BBVA has presented a higher profitability than that of its competitors over the years, has registered a customer acquisition record during the first half (with 5.3 million new customers, more than double the number five years ago years) and has increased gross margin by 3.2% since the beginning of 2019 (compared to 1.9% of its European competition), which has translated into a progression of earnings per share higher than its peers (+93% vs. +74%).

The manager has valued the quality and resilience of the entity’s capital to face future challenges, with a fully-loaded CET1 ratio of 12.45% as of June 30, 2022, within the bank’s goal of being in the range between 11.5 and 12%.

In this way, the CEO has defended that BBVA is prepared to face the new economic cycle and other challenges, such as competition from new players and fintechs.

GOOD PROSPECTS FOR THE CREATION OF VALUE FOR THE SHAREHOLDER

During his speech, Genç highlighted the good prospects in terms of shareholder value creation, with a dividend yield of 6.3% (as of September 16) above the 5.4% average of European competitors and 4.1% of Spaniards.

Regarding the possibility of increasing shareholder remuneration, Genç has pointed out that the current dividend policy is very clear and seeks to be “consistent and sustainable”, with the annual distribution of between 40% and 50% of consolidated ordinary profit, although the board of directors will be the one to decide.

Tangible value per share plus dividends (in compound annual growth rate) has increased 9.2% since the beginning of 2019, compared to 5.4% for these same competitors.

The CEO has shown his confidence that the market will recognize BBVA’s potential and has recognized that the entity is frequently penalized by the situation in Turkey, something that he assures that he understands and respects. In this sense, he has reiterated the long-term potential of the Turkish subsidiary to create value.

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