BBVA’s Q4 net profit rises 1.6% y/y buoyed by Mexico and lower provisions

The headquarters of the Spanish bank BBVA are seen in Las Tablas
FILE PHOTO: The headquarters of the Spanish bank BBVA are seen in Las Tablas, northern Madrid, Spain, February 3, 2016. . REUTERS/Juan Medina

February 3, 2022

MADRID (Reuters) – Spain’s BBVA on Thursday said its fourth quarter net profit rose 1.6% compared to the same period in 2020 due to a strong performance in Mexico, its main market, and lower provisions.

The lender booked a net profit of 1.34 billion euros ($1.51 billion) in the October to December period, more than the 1.02 billion euros forecast by analysts polled by Reuters.

As it struggles to earn money in mature markets, BBVA, like rival Santander, has been expanding in emerging markets where it see greater opportunities for growth.

BBVA’s full-year 2021 net profit more than trebled compared to 2020 to 4.65 billion euros, surpassing the bank’s 3.51 billion euro net profit in 2019, before the pandemic.

Analysts expected net profit of 4.33 billion euros in 2021.

Full-year results were helped by a decline of more than 41% in total impairments.

($1 = 0.8852 euros)

(Reporting by Jesús Aguado; editing by Inti Landauro)