Of Special Interest
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- Newslink Trends-The Global Strategic Perspective
- Juniper Research says digital wallet users to exceed 4.4 billion by 2025, as mobile drives digital payments’ revolution
- Criminals exploit COVID-19 pandemic with rise in scams targeting victims online
- Equifax says Open Banking proving pivotal to pandemic lending
- Consumer confidence in banks, credit card providers and investments remain stable as demand supercharges digital finance says Toluna research
- Mintos says Europeans are starting to embrace investing
- US banks see IT modernisation as a way to improve customer experience
- Risk mitigation in global trade depends on digitisation-Andrew Raymond, CEO, Bolero International comments
- Juniper Research new study says the volume of B2B payments facilitated by non-banks will exceed 53 billion in 2022, from a COVID-related low of 38 billion in 2020
- CMA issues fifth publication over 3 years of the service quality league table of personal and business current account providers
- Barclays says scammers take advantage of COVID-19, cashing in on nations’ uncertainty
- S&P Global report says financial market infrastructure sector's earnings likely to cool off In second half
- Global banking market capitalisation slumps by over 30% amid pandemic says Buyshares research
- Digital wallet spend in Europe & North America to increase by 40% in 2019, finds study
- Juniper forecasts mobile money transactions will exceed 200 billion by 2024
- Banks can save the world from climate change, says former UN climate chief
- Research by NatWest reveals gender divide over attitudes to saving
- Europe’s big bank problem: too much capital is trapped in the US, says Scope
- Later-Life lending market set to almost double in the next 10 years, finds report
- Barclays/Cebr report challenges nation to think differently about wealth
- Fifth of UK investors looking to debt investment, new research reveals
- Regtech will play a more important role in PSD2, says Mitek
- Banks turn to Fintech partnerships to improve customer experience, finds Fraedom
- New industry code to tackle fraud must deliver, says Which?
- New TTF report highlights loss of trust in financial services
- Arxan highlights financial app vulnerability epidemic
- SAS asks whether banks really need to choose between operations and innovation
- Which? raises alarm as almost 1,700 free ATMs become fee-charging
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
27th April 2012
BBVA big expense increase
BBVA reported Q1 net attributable of €1,005m (£819m $1,323m ¥107.3bn Y8,339m) DOWN 13% on the year ago period. Part of the fall was due to the requirement to increase loan loss provisions for the bank's Spanish property and construction lending. The other, not adequately explained is the 10% increase in expenses. This can be seen to come roughly equally from personnel and other expenses.
The profit was a little higher than had been expected and the stock price increased on the day around 5% initially, falling back to end the day around 2.5%. If the bank does not get its expenses under tighter control this is likely to impact its ongoing share prices. Following the day's rise the stock price is still down nearly 30% from its YTD high. Some Spanish banks have suggested that NPL will peak around tis quarter and fall. Analysts are less convinced believing the very high levels of unemployment and continued recession will continue to turn some loans bad. BBVA has some protection against this from its extensive Latin American banking operations and its growing US banking business.
Income Summary Q1 2012 2011 Change
€m €m %
Net interest income 3,597 3,175 13
Net fees and commissions 1,216 1,114 9
Net trading income 367 752 -51
Dividend income 27 23 17
Income by the equity method 193 121 60
Other operating income and expenses 47 79 -40
_______________________
Gross income 5,447 5,263 4
Personnel expenses -1,379 -1,276 8
General and administrative expenses -974 -887 10
Depreciation and amortization -232 -196 18
________________________
Operating costs -2,585 -2,359 10
Operating income 2,862 2,904 -2
Impairment on financial assets (net) -1,085 -1,023 6
Provisions (net) -131 -150 -13
Other gains (losses) -222 -71 >
________________________
Income before tax 1,423 1,659 -14
Income tax -250 -369 -32
_______________________
Net income 1,173 1,290 -9
Non-controlling interests -168 -141 19
_______________________
Net attributable profit 1,005 1,150 -13