BBVA Plans Buyback After 2Q Beat Expectations on Interest-Rate Boost

   By Adria Calatayud 
 

Banco Bilbao Vizcaya Argentaria said Friday that it plans to launch a share buyback of up to 1 billion euros ($1.10 billion) after net profit rose and beat expectations, thanks to a top-line boost from higher interest rates.

The Spanish bank said it made a net profit of EUR2.03 billion for the quarter compared with EUR1.63 billion for the same period last year. BBVA attributed the result to the performance of recurring income from its banking business, mainly net interest income.

Gross income--the bank's top-line figure--rose to EUR7.19 billion from EUR6.02 billion. This was mainly driven by a rise in net interest income----the difference between what banks earn on loans and what they pay clients for deposits--to EUR5.77 billion from EUR4.60 billion.

Analysts expected BBVA's net profit at EUR1.85 billion, net interest income at EUR5.66 billion and gross income at EUR6.95 billion, according to consensus estimates provided by the bank.

The bank has requested authorization from the European Central Bank to launch a new share-buyback program of EUR1 billion, which will be considered an extraordinary capital distribution in addition to its dividend policy.

Write to Adria Calatayud at adria.calatayud@dowjones.com

Corrections & Amplifications

This article was corrected at 0738 GMT to reflect BBVA has requested authorization from the European Central Bank for a share buyback. The original version incorrectly said it had received authorization from the European Central Bank in the last paragraph.

(END) Dow Jones Newswires

July 28, 2023 01:29 ET (05:29 GMT)

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