Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) Q2 2024 Earnings Call Transcript July 31, 2024 3:30 AM ET
Company Participants
Patricia Bueno - IR
Onur Genc - CEO
Luisa Gomez Bravo - CFO
Conference Call Participants
Maksym Mishyn - JB Capital
Francisco Riquel - Alantra
Antonio Reale - Bank of America
Ignacio Ulargui - BNP Paribas Exane
Carlos Peixoto - CaixaBank
Sofie Peterzens - JPMorgan
Pablo de la Torre - RBC
Cecilia Romero Reyes - Barclays
Marta Sanchez Romero - Citi
Britta Schmidt - Autonomous Research
Ignacio Cerezo - UBS
Andrea Filtri - Mediobanca
Patricia Bueno
Good morning and welcome to BBVA's Second Quarter Results Conference Call. I'm joined today by Onur Genc, our CEO, and Luisa Gomez Bravo, the Group CFO. As in previous quarters, Onur will start reviewing the group figures, followed by Luisa, who will go through the business areas results. Then, Onur will give a brief update on the offer to Sabadell shareholders, and finally, we will open the live to receive your questions. Thank you very much for participating, and now I turn the call over to Onur.
Onur Genc
Thank you. Thank you, Patricia. Good morning to everyone. Welcome and thank you for joining BBVA's second quarter 2024 earnings webcast.
Let's jump into the presentation as always, starting with Slide number 3. On the left-hand side of this page, you can see our net attributable profit in the quarter reaching EUR2,794 million showing obviously another quarter of record results. This figure is 38% above the results of the same quarter of last year and 27% above last quarter results. Our results, they represent EUR0.47 earnings per share, 28% quarter-over-quarter, and 42% year-over-year growth, both higher growth rates than the ones of the net attributable profit due to, obviously, to the positive impact of the share buyback programs that we executed. And then the graph on the right-hand side of the slide, it shows the excellent tangible book value per share plus dividends growth. We had 20% increase year-over-year and the 2.4% growth in the quarter. We always highlight the importance of this figure to all of you. We are very happy to see a solid number in the quarter, the 2.4%, despite all the market impacts, especially the upper movement of the interest rate curves and the Mexican peso depreciation in the quarter.
On Page number 4, our CET1 capital ratio at 12.75%, reflecting a 7 basis points decrease in the quarter, impacted by the market impacts, as I just mentioned in the previous page, but also due to a very positive development in our view of very strong lending growth, very strong lending growth in our core markets, leading to market share gains. I'm sure we can discuss that in the Q&A as well. The 12.75% CET1 ratio obviously is much above our target range and regulatory requirements. Regarding profitability, on the left-hand side -- on the right-hand side, sorry, on the page, we continue to improve our metrics, reaching an outstanding 20% in return on tangible equity and 19.1% in return on equity in the first six months of 2024. We have been truly looking forward to this day of reaching the 20% threshold on return on tangible equity for so many years, and it makes us really happy getting to 20%.