Banco Bilbao Vizcaya Argentaria (BBVA) Q2 2024 earnings summary

Executive summary

• Net attributable profit for Q2 2024 reached €2,794 million, up 38% year-over-year, and for 1H24 reached €4,994 million, up 28.8%, driven by strong recurring revenues and lending growth.

• EPS grew 28% sequentially and 42% year-over-year in Q2, with adjusted EPS for 1H24 at €0.84, up 30.6% year-over-year.

• Tangible book value per share plus dividends increased 20% year-over-year, reaching €9.39, and tangible book value per share at €8.84, up 12.7%.

• CET1 fully-loaded ratio stood at 12.75%, above regulatory and internal targets, despite lending growth and market impacts.

• ROTE reached 20% and ROE 19.1% for H1 2024, outperforming peers.

Financial highlights

• Net interest income grew 17% year-over-year in Q2 to €6,481m and 13.9% in 1H24 to €12,993m; net fees and commissions up 35% in Q2 and 32.1% in 1H24.

• Gross income rose 31% year-over-year in constant euros for Q2 and 23.3% in 1H24 to €17,446m.

• Operating income for 1H24 was €10,586m, up 29% year-over-year.

• Efficiency ratio improved to 39.3%, down 362 bps year-over-year.

• Loans to customers up 4.3% and customer funds up 5.9% since December 2023.

Outlook and guidance

• Upgraded loan growth and P&L guidance for Spain, expecting low single-digit loan growth and NII to grow at low teens for 2024.

• Mexico expected to maintain high single-digit NII growth, with strong lending momentum and stable customer spreads.

• Turkey’s net income for H2 2024 expected to be in line or slightly higher than H1, with normalization in cost of risk.

• Group maintains double-digit revenue growth guidance, with positive outlook for H2 2024.

• Management expects moderate global GDP growth and a gradual slowdown in inflation, with interest rates remaining above pre-pandemic levels.