Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) Q1 2023 Earnings Call Transcript

For the period ending December 31, 2022

April 27, 2023 3:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Patricia Bueno

Good morning, and welcome everyone to BBVA's Conference Call to Discuss the First Quarter 2023 Results.

I'm joined today by Onur Genc, our CEO; and Rafael Salinas, BBVA's CFO. They will discuss quarterly figures, and then, we will open the line to receive your questions. Thank you very much for your participation.

Now, I hand it over to Onur.

Onur Genc

Thank you. Thank you, Patricia. Good morning to everyone. Welcome, and thank you for joining our first quarter 2023 results audio webcast.

I'm going to run you through, as I always do, through the presentation by indicating the page numbers. So, let me start with Slide Number 3.

On the left hand side of the slide, you see our net attributable profit reaching €1.846 billion. One more quarter in our view, we are posting very strong results, 39% above the results of the same quarter of last year. I should remind you that these numbers already include the €225 million of extraordinary tax in Spain. If the extraordinary tax was not there, obviously, we would have passed the €2 billion mark.

These results bring our earnings per share, at the bottom of the page on the left hand side again, earnings per share up to €0.29, 53% year-over-year growth, a higher growth rate than the net attributable profit due to the share buyback program that, as you all know, we have been executing.

The graph on the right hand side of the slide shows our capital ratio, 13.13%, above our target range and well above our regulatory requirements, 52 basis points higher than our December 2022 reported capital ratio.

Moving to Slide Number 4. Our tangible book value per share plus dividends continued outstanding evolution of previous quarters, 22% increase year-over-year and 7.1% in the quarter. This number, obviously, is a number that we treasure a lot, that we pay a lot of attention to and it's one of the most impressive figures in my view in this presentation.

Regarding profitability, on the right hand side, we continue to improve our excellent profitability metrics, reaching this quarter 16.3% in return on tangible equity and 15.5% in ROE, being the highest figures over the last 10 years, these numbers. We remain clearly one of the most profitable European banks. In fact, we were the first bank among the 15 largest European peers at the end of the fourth quarter, and we keep advancing on this. Not all the banks have announced their results yet, but our expectation is we will maintain our leading position here among the peer group of 15.