The group BBVA reached a profit of 1,210 million euros in the first quarter of this year, compared to losses of 1,792 million euros a year earlier, after accounting for a deterioration in the goodwill of the United States and making a greater effort in provisions, as reported this Friday by the entity.
The result for this quarter, a figure in the vicinity of the quarterly results prior to the pandemic, has been boosted by the positive evolution of recurring income and by lower write-offs and provisions.
Thanks to these results, BBVA generated 15 basis points of capital in the quarter, highlighting the Bank.
“In the first quarter of 2021 we have delivered positive results in an environment that continues to be very challenging. Furthermore, we are one of the strongest and best capitalized banks in Europe.. The sale of our subsidiary in the United States gives us a great strategic option to create value. Furthermore, in a context of profound transformation in our sector, we have continued to advance in key areas of our strategy such as sustainability and digital transformation “, highlighted the CEO of BBVA, Onur Genç.
Following the announcement of the sale of the BBVA subsidiary in the United States to PNC on November 16, 2020, the results of the business sold are reported in the Corporate Center under a single line of the income statement: profit (loss) after taxes from discontinued activities.
Net interest income reached 3,451 million euros in the first quarter of 2021, 2.3% less than in the same period of the previous year, due to the unfavorable interest rate environment.
Net commissions, for their part, showed strength in the period in the main business areas, with a year-on-year growth of 10%, to 1,133 million euros. Thanks to this momentum, recurring income (net interest income plus commissions) grew by 0.5% year-on-year.
Likewise, the result of financial operations (ROF) registered a year-on-year growth of 16.1%, reaching 581 million euros.
The growth in recurring revenues and ROF allowed a gross margin of 5,155 million euros (+ 0.2% year-on-year) to be recorded.
Operating expenses increased by 1.8% between January and March compared to the same period in 2020, to 2,304 million euros, a growth that is, according to the entity, significantly below the average inflation of the countries in which the that BBVA is present (4.7%). The efficiency ratio was 45%.
As a result, the net margin reached 2,850 million euros in the quarter (-1.0% year-on-year).
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.