BBVA has increased its treasury stock to 5.28% of the bank’s capital, up from 4.38% previously, setting a record high since records began. The increase in treasury shares is in response to BBVA’s programme to buy back up to 3.5 billion euros of these shares. On 18 March 2022, BBVA’s general shareholders’ meeting approved a proposal to reduce the bank’s share capital by up to 10% through the redemption of own shares acquired in the buyback programme. This may be carried out once or several times.
Nevertheless, the share price remains anchored at the 5 euros it touched before the share buyback programme began on 22 November. At that time, BBVA’s treasury stock stood at 0.124% of share capital, a percentage that has risen progressively in recent months. Just a few weeks earlier, the share price reached 6 euros.
The buyback, of up to 3.5 billion euros, began on 22 November 2021 with a first tranche of 1.5 billion. This was completed at the beginning of March with the acquisition of 281.21 million shares, representing 4.22% of BBVA’s share capital.
On 16 March, a first tranche of 1 billion euros of the second tranche of the buyback, of 2 billion euros, was launched. Almost one third of this has been executed to date, with the acquisition of 65.39 million shares for 327,15 million euros.
BBVA’s share buyback programme is one of the largest in Europe. Its aim is to reduce BBVA’s share capital by subsequently redeeming the shares acquired.
