BBVA will grow in loans and income in Spain and Mexico despite the crisis

The CEO of BBVA, Onur Gençhas predicted this Wednesday that credit will grow this year in Spain and Mexico, its two key markets, as will income, despite the economic situation and future prospects.

In a conference with analysts and investors organized by Bank of America, Genç has specified that the credit portfolio will grow in Spain “at a low single digit rate“, that is, up to 5%, and the interest margin that collects most of the income except commissions will do so around that percentage.

Higher will be the increases of both magnitudes that the entity expects for Mexico, double digits for credit and around 20% for the interest margin.

Likewise, the indicators that measure credit quality will maintain their good behavior, with a forecast of the cost of risk below 100 basis points for the entire group, in line with the previous year, despite “the complexity of the environment”.

BBVA would thus be “well prepared” to face the new economic cycle and other challenges, such as competition from new players, neobanks and fintechsGenc says.

In this sense, the executive values ​​the “quality” and “resilience” of the entity’s capital to face whatever comes, with a “fully-loaded” CET1 ratio, which includes all the established requirements, which was 12.45% on June 30, within the bank’s target (between 11.5 and 12%) and much higher than the 8.60% requested by the European Central Bank (ECB).

In addition, it highlights the good prospects in terms of shareholder value creation, with a dividend yield of 6.3% (as of September 16) above the 5.4% average of European competitors and 4. 1% of Spaniards.


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