Jefferies | BBVA reported a solid 1Q24 print, with a 10% PAT beat versus consensus, driven by strong revenues, partly offset by costs. The quarter confirmed solid dynamics across most geographies, with beats coming from both Spain and Mexico. The FY24 outlook for revenues is improving on the back of better NII dynamics in Spain, and NAP for the group now guided to grow double-digit versus FY23 (consensus at 7% y/y growth). We expect the shares to perform well today.
BBVA reported 1Q24 profit after tax of €2,307m, which was 10% above Visible Alpha consensus of €2,100m. PBT was an 11% beat, with pre-prov profits a 7% beat. Income was a 5% beat, with costs a 3% miss.
• NII was 4% above Visible Alpha consensus, up 24% q/q and 15% year-on-year.
• Net fee income was a 10% beat, with trading income also a beat (+233m vs cons), but other income €247m worse.
• Total costs were a 3% miss
• Total impairment charge was a 2% beat
• Customer loans were 2% higher than consensus.
• Capital: CET1 ratio of 12.82% was 13bp above consensus, with CET1 a 3% beat, but RWAs 3% worse.
• Spain: PAT was a 9% beat, with PBT a 13% beat and pre-prov a 12% beat. Total revenues were a 7% beat, driven by better trading income (€205m vs cons of €81m), better NII (+2% vs cons), and better fees (+3% vc cons). Costs were 1% higher than consensus. The group upgrades the NII guidance for Spain and sees a better rate environment.
• Mexico: PAT was a 2% beat, with PBT a 4% beat and pre-prov a 4% beat. Total revenues were a 3% beat, driven by trading income (€213m vs cons of €137m), fees (+5% vs cons), with NII in line. Total costs were 1% heavier than consensus.
• Upgraded guidance includes Improving core revenues outlook for the Group on the back of upgraded NII guidance in Spain and the rate environment, and NAP growth for the group of double-digit vs 2023 (consensus at 7% growth y/y)
Banco Bilbao Vizcaya Argentaria | BUY
BBVA SM | €10.99 | PT: €12.60 | % to PT: +15%
BBVA 1Q24 First Look — Beat and Raise
