Spanish multinational banking group Banco Bilbao (NYSE:BBVA) Vizcaya Argentaria SA (BBVA (BME:BBVA)) reported a 13% increase in its Q3 net income, reaching €2.08 billion ($2.2 billion), according to a recent regulatory filing. This figure surpassed analysts' estimates of €2.02 billion and was primarily driven by a 23% surge in net interest income due to elevated interest rates and accelerated borrowing costs in Europe and Mexico.
Despite this overall success, BBVA experienced an unexpected quarterly loss in Turkey. The bank attributes this downturn to hyperinflation adjustments and tax increases. Nevertheless, the bank's profits in Spain exceeded estimates, and those in Mexico met expectations.
BBVA's shares have seen a significant rise this year, soaring 33%, which outperforms the Stoxx 600 Banks Index's 8% increase. The bank's successful performance is largely credited to CEO Onur Genc's strategic approach. Genc has focused on geographical diversification, digital expansion, and the recent introduction of a €1 billion buyback program. These strategies appear to be paying off, contributing to BBVA's robust financial results for the third quarter of 2023.
InvestingPro Insights
InvestingPro's real-time data and tips provide a deeper look into BBVA's financial performance and future prospects. According to InvestingPro, BBVA has a market cap of $46.95 billion and a P/E ratio of 6.37, indicating it is trading at a low earnings multiple. The bank's revenue growth over the last twelve months as of Q2 2023 is an impressive 23.85%.
Two key InvestingPro Tips provide further insights. Firstly, BBVA is noted for its consistently increasing earnings per share, which aligns with the reported 13% increase in Q3 net income. Secondly, despite the challenges in Turkey, BBVA has maintained dividend payments for 33 consecutive years, a testament to its financial resilience.
For those interested in more detailed insights, InvestingPro offers 9 additional tips and numerous other real-time metrics for BBVA. This wealth of data can provide a comprehensive understanding of the bank's performance and potential investment opportunities.
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