By 2020, Bbva’S Revenue Will Be $1.305 Billion, Down 63%, Due To The Supply Of The Epidemic.
2021-01-29 | by CusiGO
BBVA achieved a net profit of 1.305 billion euros in 2020, 62.9% lower than a year ago, due to the funding provided to cope with the coronavirus crisis and the impairment of the US subsidiary sold in November last year, which charged 2.084 billion euros. These accounts benefited from the sale of insurance to Allianz, which generated $300 million in capital gains.
According to a note sent to the national securities and Market Commission (cnmv), fourth quarter profit was 1.329 billion euros, the highest quarterly performance in the past two years, enabling it to make up for the bank’s losses as of September.
All profit margins in the income statement are falling. Mexico accounted for 45% of profits, Spain 15%, Turkey 14%, the United States and South America 11% each.
The agency, chaired by Carlos Torres, explained that the sale of its US subsidiary would provide “about 8.5 billion euros of capital” for “profitable growth” in its market. In November last year, BBVA broke off negotiations to acquire sabadel bank after failing to reach an agreement on the transaction price.
Basque will also use its subsidiary’s funds to increase dividends, and it said it expects to pay 5.9 euros a share by 2020. This amount is prepaid by the state and is approved by the European Central Bank (ECB) as it represents 15% of the consolidated profit for 2019-2020, or 0.20% of the CET 1 (highest quality) capital ratio. Of these two amounts, the bank must choose the lowest.
BBVA explained that it hopes to “take back its policy this year, pay 35% to 40% of its profits in cash and recover them through two payments, which are expected to be in October and April, when the European Central Bank will withdraw its latest dividend instruction” without any additional restrictions or restrictions “, As he said.
In addition, in order to recover the outdated offer, the agency pointed out that “its goal is to buy back about 10% of the group’s shares after the sale of the US subsidiary. All of these have to meet market conditions and the necessary approvals. ”
In 2020, BBVA helped 3 million customers affected by the epidemic, providing nearly 63 billion euros between public guarantees and suspended lines of credit.