Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) Q3 2023 Earnings Conference Call October 31, 2023 4:30 AM ET

Company Participants

Patricia Bueno - Investor Relations

Onur Genc - Chief Executive Officer

Luisa Gomez Bravo - Chief Financial Officer

Conference Call Participants

Maks Mishyn - JB Capital

Benjamin Toms - RBC

Sofie Peterzens - JPMorgan

Alvaro Serrano - Morgan Stanley

Francisco Riquel - Alantra

Andrea Filtri - Mediobanca

Carlos Cobo - Societe Generale

Marta Sanchez Romero - Citi

Britta Schmidt - Autonomous Research

Carlos Peixoto - CaixaBank

Ignacio Ulargui - BNP Paribas

Fernando Gil - Bestinver

Patricia Bueno

Good morning and welcome everyone to BBVA’s Third Quarter 2023 Results Presentation. I am joined today by Onur Genc, our CEO; and Luisa Gomez Bravo, BBVA CFO. As in previous quarters, Onur will start discussing the group figures, and then Luisa will go through the business areas. Afterwards, we will open the line to receive your questions. Thank you very much for your participation. And now I turn it over to Onur.

Onur Genc

Thank you, Patricia. Good morning to everyone. Welcome, and thank you for joining our third quarter ‘23 results audio webcast. Before going into the presentation, I want to welcome Luisa to the results presentation in her new role as the CFO of the group, although I believe that most of you have already met here, but welcome Luisa.

So results, starting with Slide #3. On the left-hand side of the slide, you can see the net attributable profit reaching €2.83 billion, showing another quarter of record results. Again, over the €2 billion mark, the second quarter that we are passing the €2 billion mark and the 13% above the results of the same quarter of last year. These results, they represent also at the bottom of the page, €0.33 earnings per share, 18% year-over-year growth, a higher growth rate, obviously, than the one on net attributable profit due to the share buyback programs we have been executing.

The graph on the right-hand side of the slide, it shows our capital ratio at 12.73%, reflecting a 6 basis points increase in the quarter after discounting the 32 basis points impact on the ratio from the €1 billion ongoing share buyback program that we are, at the moment, executing. Our CET position, obviously, as also the page shows, remains very clearly above our target range and above the regulatory requirements.

Moving to Page #4 showing the consistent growth in our operating income with a very robust upward trend, in our view, that serves as an indication of our potential going forward. It underscores also the strength of our franchises and the success of our profitable growth strategy.