Company: BBVXF
Filing Date: 2025-01-30
Form Type: 6-K
Source: 0001193125-25-016633
Chunk: 2

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-01-30
Form: 6-K
Chunk 2
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 results from hedging foreign currency positions, especially on the Mexican peso. In the heading of other operating income and expenses, the good performance of the insurance business, the end of the contributions to the Single Resolution Fund and a lower impact from hyperinflation in Turkey offset a higher impact from hyperinflation in Argentina and the extraordinary tax on banking institutions in Spain (€285 million, registered in 1Q24). As a result, gross income saw an increase of 25 percent yoy, to €35.48 billion. Operating expenses rose 18 percent yoy, to €14.19 billion, on the back of new hirings in all geographies and a higher level of investment in recent years. Expenses grew below the average inflation rate in BBVA’s footprint (19.6 percent). The remarkable strength of gross income allowed for positive jaws and the efficiency ratio stood at 40 percent, improving the 42-percent target set for the end of 2024. Operating income reached a record €21.29 billion, up 30 percent from a year earlier. Provisions for impairment on financial assets rose 32 percent yoy on the back of a high rate of growth in lending, particularly on retail products, the most profitable in recent years. The accumulated cost of risk, however, remained virtually stable compared to September 2024, at 1.43 percent, in line with expectations. Additionally, the NPL and the coverage ratios improved to 3.0 percent and 80 percent, respectively, thanks to the reduction of loan-loss provisions in all geographies. The total of provisions and other results registered lower provisions compared to a year earlier (-63 percent), mainly originated in Türkiye, to €137 million. The BBVA Group posted a record net attributable profit of €10.05 billion in 2024, up 33 percent from a year earlier (+25 percent in current euros). Earnings per share grew by 28 percent in current euros, also driven by the share buyback program implemented throughout the year. In 4Q24, BBVA earned €2.43 billion. Thanks to these earnings, profitability indicators improved yoy. ROE stood at 18.9 percent, and ROTE at 19.7 percent, notably above the 14-percent target set for the end of the year. This excellent performance has allowed the bank to continue increasing the value for shareholders: At the end of December 2024, the tangible book value per share plus dividends was 17.2 percent higher