BBVA’s Net Profit Rises By 1.3% To €3.52 Billion But Hit By Writedowns On Its Telefonica Stake

BBVA's net profit in 2017Francisco González chairman of BBVA

Spain’s second largest bank BBVA generated a net attributable profit of €3.52 billion (+1.3%) in 2017. Without taking into account the impairment losses from Telefónica, net profit for 2017 stood at €4.64 billion, up 19.7% compared to 2016 results, excluding the provisions related to ‘floor clauses’ in Spain.

Furthermore, income reached record highs in 2017. Recurring revenue grew 4.1% y-o-y, (+10.3% excluding currency impact), and expenses dropped 2.3% in the year (+2.2% at constant exchange rates), boosting operating income to €12.77 billion

Regarding risks, the NPL ratio continued to improve, reaching 4.4% (vs. 4.9% in December 2016), its lowest level since June 2012. Coverage at year-end stood at 65%

On the other hand, fully-loaded CET1 ratio stood at 11.1% at the end of December, above BBVA’s target.

Finally, it is expected the dividend to be proposed for the consideration of the competent governing bodies a cash payment in a gross amount of €0.15 per share to be paid in April as final dividend for 2017.

Shares in BBVA were 1.8% higher in early trading at EUR7.70.