Group
Results
The BBVA Group generated a net attributable profit of €10,054m in 2024, once again driven by the performance of recurring revenues of the banking business, that is, net interest income and net fees and commissions, which together grew by, 13.2%. These results represent an increase of 25.4% compared to the same period of the previous year and include the recording of the annual amount for the temporary tax on credit institutions and financial credit institutions3 for €285m, included in the other operating income and expenses line of the income statement. Excluding the currency variation impact during the year, the Group´s result grew by 32.9%.
| CONSOLIDATED INCOME STATEMENT (MILLIONS OF EUROS) | ||||
|---|---|---|---|---|
| 2024 | ∆ % | ∆ % at constant exchange rates | 2023 | |
| Net interest income | 25,267 | 9.4 | 12.9 | 23,089 |
| Net fees and commissions | 7,988 | 27.0 | 30.8 | 6,288 |
| Net trading income | 3,913 | 79.2 | 90.8 | 2,183 |
| Other operating income and expenses | (1,686) | (16.5) | (21.7) | (2,018) |
| Gross income | 35,481 | 20.1 | 25.0 | 29,542 |
| Operating expenses | (14,193) | 15.3 | 18.3 | (12,308) |
| Personnel expenses | (7,659) | 17.3 | 20.4 | (6,530) |
| Other administrative expenses | (5,001) | 14.3 | 17.5 | (4,375) |
| Depreciation | (1,533) | 9.3 | 11.3 | (1,403) |
| Operating income | 21,288 | 23.5 | 29.9 | 17,233 |
| Impairment on financial assets not measured at fair value through profit or loss | (5,745) | 29.7 | 32.4 | (4,428) |
| Provisions or reversal of provisions | (198) | (47.1) | (44.8) | (373) |
| Other gains (losses) | 61 | n.s. | n.s. | (13) |
| Profit (loss) before tax | 15,405 | 24.0 | 31.9 | 12,419 |
| Income tax | (4,830) | 20.7 | 27.5 | (4,003) |
| Profit (loss) for the period | 10,575 | 25.7 | 34.0 | 8,416 |
| Non-controlling interests | (521) | 31.2 | 60.1 | (397) |
| Net attributable profit (loss) | 10,054 | 25.4 | 32.9 | 8,019 |
| Adjusted earning (loss) per share (euros) (1) | 1.68 | 1.32 | ||
| Earning (loss) per share (euros) (1) | 1.68 | 1.29 | ||
(1) Adjusted by additional Tier 1 instrument remuneration. For more information, see Alternative Performance Measures at this report.
| CONSOLIDATED INCOME STATEMENT: QUARTERLY EVOLUTION (MILLIONS OF EUROS) | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 4Q | 3Q | 2Q | 1Q | 4Q | 3Q | 2Q | 1Q | ||
| Net interest income | 6,406 | 5,868 | 6,481 | 6,512 | 5,246 | 6,434 | 5,768 | 5,642 | |
| Net fees and commissions | 2,234 | 1,912 | 1,955 | 1,887 | 1,694 | 1,685 | 1,470 | 1,439 | |
| Net trading income | 983 | 1,044 | 1,114 | 772 | 753 | 658 | 334 | 438 | |
| Other operating income and expenses | (303) | (107) | (324) | (952) | (255) | (820) | (383) | (561) | |
| Gross income | 9,320 | 8,716 | 9,227 | 8,218 | 7,438 | 7,956 | 7,189 | 6,958 | |
| Operating expenses | (4,004) | (3,330) | (3,477) | (3,383) | (3,068) | (3,303) | (2,922) | (3,016) | |
| Personnel expenses | (2,216) | (1,810) | (1,855) | (1,778) | (1,693) | (1,756) | (1,530) | (1,551) | |
| Other administrative expenses | (1,380) | (1,154) | (1,238) | (1,229) | (1,025) | (1,169) | (1,054) | (1,127) | |
| Depreciation | (408) | (366) | (384) | (375) | (349) | (378) | (337) | (339) | |
| Operating income | 5,316 | 5,386 | 5,751 | 4,835 | 4,370 | 4,654 | 4,267 | 3,942 | |
| Impairment on financial assets not measured at fair value through profit or loss | (1,466) | (1,440) | (1,479) | (1,361) | (1,225) | (1,210) | (1,025) | (968) | |
| Provisions or reversal of provisions | (99) | (61) | 19 | (57) | (163) | (81) | (115) | (14) | |
| Other gains (losses) | 8 | (19) | 31 | 40 | (49) | 2 | 50 | (16) | |
| Profit (loss) before tax | 3,759 | 3,867 | 4,322 | 3,458 | 2,932 | 3,365 | 3,178 | 2,944 | |
| Income tax | (1,171) | (1,135) | (1,374) | (1,151) | (799) | (1,226) | (1,028) | (950) | |
| Profit (loss) for the period | 2,588 | 2,732 | 2,949 | 2,307 | 2,133 | 2,139 | 2,150 | 1,994 | |
| Non-controlling interests | (155) | (105) | (154) | (107) | (75) | (56) | (118) | (148) | |
| Net attributable profit (loss) | 2,433 | 2,627 | 2,794 | 2,200 | 2,058 | 2,083 | 2,032 | 1,846 | |
| Adjusted earning (loss) per share (euros) (1) | 0.41 | 0.44 | 0.47 | 0.37 | 0.34 | 0.34 | 0.34 | 0.30 | |
| Earning (loss) per share (euros) (1) | 0.40 | 0.44 | 0.47 | 0.36 | 0.33 | 0.33 | 0.33 | 0.29 | |
(1) Adjusted by additional Tier 1 instrument remuneration. For more information, see Alternative Performance Measures at this report.
Unless expressly indicated otherwise, for a better understanding of the changes under the main headings of the Group's income statement, the rates of change provided below refer to constant exchange rates. When comparing two dates or periods presented in this report, the impact of changes in the exchange rates against the euro of the currencies of the countries in which BBVA operates is sometimes excluded, assuming that exchange rates remain constant. For this purpose, the average exchange rate of the currency of each geographical area of the most recent period is used for both periods, except for those countries whose economies have been considered hyperinflationary, for which the closing exchange rate of the most recent period is used.
The accumulated net interest income as of December 31, 2024 was higher than the one registered in the same period of the previous year (+12.9%), mainly driven by increases in all business areas except for Turkey. This increase shows the strong dynamism of lending activity, which grew by 14.3% during 2024.
Likewise, net fees and commissions experienced a year-on-year growth of 30.8%, thanks to the performance of fees and commissions due to payment fees and, to a lesser extent, asset management fees and commissions. Turkey made an outstanding contribution, well above the other business areas.
As a result, overall recurring banking business revenues, increased by 16.7% in 2024, with an upward quarterly trend over the last two years.
NET INTEREST INCOME / AVERAGE TOTAL ASSETS
(PERCENTAGE AT CONSTANT EXCHANGE RATES)
NET INTEREST INCOME PLUS NET FEES AND COMMISSIONS
(MILLIONS OF EUROS AT CONSTANT EXCHANGE RATES)
(1) At current exchange rates: +13.2%.
At the end of December 2024, NTI showed a growth of 90.8%, mainly driven by the evolution of the results obtained from hedging foreign currency positions, especially of the Mexican peso, recorded in the Corporate Center. To a lesser extent, this growth also shows the favorable performance of this line in all areas, with a notable contribution from Turkey thanks to its foreign currency positions, Spain and Mexico, supported by Global Markets' contribution and lastly, South America helped by the performance in Argentina.
The other operating income and expenses line accumulated, as of December 31, 2024 a result that improves compared to the same period of the previous year. This was achieved in spite of a higher negative impact from hyperinflation in Argentina and an increase in the annual amount for the temporary tax on credit institutions and financial credit institutions in 2024. These effects were offset by: a lower impact from hyperinflation in Turkey, the lack of contributions to the European Single Resolution Fund (hereinafter SRF) after the completion of its construction stage4 and the Deposit Guarantee Fund (hereinafter DGF) for Credit Institutions in Spain, which in 2023 reached the minimum coverage level established by European regulations for covered deposits and therefore no additional contribution was required for this purpose during 2024 and, lastly, by a favorable evolution of the results of the insurance business.
GROSS INCOME
(MILLIONS OF EUROS AT CONSTANT EXCHANGE RATES)
(1) At current exchange rates: +20.1%.
On a year-on-year basis, the increase in operating expenses at the Group level stood at 18.3%, a rate that is below the inflation rates observed in the countries in which the Group operates (an average of 19.6% in the last 12 months5).
Thanks to the remarkable growth in gross income (+25.0%, higher than the growth in operating expenses), the efficiency ratio stood at 40.0% as of December 31, 2024, with an improvement of 226 basis points compared to the ratio as of December 31, 2023. This achievement consolidates BBVA's leadership in terms of efficiency among the fifteen largest banks across Europe, comfortably surpassing the Group target of 42% by the end of 2024.
OPERATING EXPENSES
(MILLIONS OF EUROS AT CONSTANT EXCHANGE RATES)
(1) At current exchange rates: +15.3%.
EFFICIENCY RATIO
(PERCENTAGE)
The impairment on financial assets not measured at fair value through profit or loss (impairment on financial assets) at the end of December 2024 was 32.4% higher than in the same period of the previous year, due to a high rate of growth in lending, both in loans to companies and in retail products, the most profitable in recent years, as well as the timing of the economic cycle in some of the Group´s geographical areas. All business areas required greater loan-loss provisions, especially Mexico and Turkey.
OPERATING INCOME
(MILLIONS OF EUROS AT CONSTANT EXCHANGE RATES)
(1) At current exchange rates: +23.5%.
IMPAIRMENT ON FINANCIAL ASSETS
(MILLIONS OF EUROS AT CONSTANT EXCHANGE RATES)
(1) At current exchange rates: +29.7%.
The provisions or reversal of provisions line (hereinafter provisions) registered at the end of December 31, 2024 lower provisions compared to the same period of the previous year, mainly originated in Turkey.
On the other hand, the other gains (losses) line ended December 2024 with a balance of €61m, which compares favorably with the previous year mainly due to the positive impact of the appraisal update of real estate assets in Turkey and to the reversal of impairments for investments in associates, recorded in Corporate Center.
As a result of the above, the BBVA Group reached a net attributable profit of €10,054m in 2024, showing a significant growth compared to the same period of the previous year (+32.9%). This solid result is supported by the positive evolution of the recurring banking business income, which has been able to offset both the increase in operating expenses and the rise in provisions for impairment losses on financial assets.
The net attributable profits, in millions of euros and accumulated at the end of December 2024 for the business areas that compose the Group were as follows: 3,784 in Spain, 5,447 in Mexico, 611 in Turkey, 635 in South America and 500 in Rest of Business.
NET ATTRIBUTABLE PROFIT (LOSS)
(MILLIONS OF EUROS AT CONSTANT EXCHANGE RATES)
(1) At current exchange rates: +25.4%.
The Group's excellent performance has also allowed it to continue generating value, as is reflected in the growth of the tangible book value per share and dividends, which at the end of December 2024 was 17.2% higher than at the same period of the previous year. Thus, the 2021-2024 compound annual growth rate (CAGR) registered by the aggregate of the tangible book value of each share, along with the dividends received in the period reached 18.1%, well above the 9.0% target.
TANGIBLE BOOK VALUE PER SHARE AND DIVIDENDS
(EUROS)
General note: replenishing dividends paid in the period. For more information, see Alternative Performance Measures at this report.
EARNING (LOSS) PER SHARE
(EUROS)
General note: Adjusted by additional Tier 1 instrument remuneration. For more information, see Alternative Performance Measures at this report.
(1) Year-on-year variation of adjusted EPS. The year-on-year variation of EPS stands at 30.0%.
Lastly, the Group’s profitability indicators show BBVA's ability to combine higher growth rates and better profitability ratios in a way that differentiates it from its peers. All the indicators improved in year-on-year terms supported by the favorable performance of the results and comfortably meeting the profitability target at the end of 2024.
ROE AND ROTE
(PERCENTAGE)
ROA AND RORWA
(PERCENTAGE)
3 In compliance with Law 38/2022, of December 27, which established the obligation to pay a patrimonial benefit of a public and non-taxable nature during the years 2023 and 2024 for credit institutions that operate in Spanish territory whose sum of total interest income and fee and commission income corresponding to the year 2019 is equal to or greater than €800m.
4 The Single Resolution Fund, whose funds would be allocated to the resolution of financial entities in certain circumstances, has been increasing during a transitional period of eight years (2016-2023) with the objective of reaching at least 1% of the covered deposits by the Member States that make up the Single Resolution Mechanism at the end of 2023.
5 Weighted by operating expenses and excluding Venezuela.