BBVA 9-month Net Profit Surges - Update

(RTTNews) - Spanish financial services firm Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) Friday reported about 86 percent jump in net profit for the nine-month period, reflecting mainly sale of non-strategic assets as well as lower impairment charges.

BBVA noted that strong emerging markets contributed 58 percent of gross income, and the growth was 11.1 percent, while in developed markets, gross income declined 5.3 percent.

For the nine-month period, the company posted net attributable profit of 3.08 billion euros or 0.54 euros per share, significantly up from last year's 1.66 billion euros or 0.30 euros per share.

Income before tax rose to 2.93 billion euros from 1.83 billion euros in the same period last year.

Adjusted earnings per share for the recent period totaled 0.47 euros, while the company posted 0.69 euros per share last year.

The bank's operating income in the first nine months declined 8.1 percent to 7.95 billion euros, and was down 4.3 percent at constant exchange rates.

Net interest income for the period totaled 10.85 billion euros, down 3.2 percent from last year, but was up 1.4 percent at constant exchange rates.

Gross income for the first nine months of the year was 16.30 billion euros, a decrease of 1.7 percent year-over-year, but increased 1.9 percent excluding changes in exchange rates.

In Spain, gross income fell 7.5 percent to 4.73 billion euros. In the U.S., gross income was 1.6 billion euros, down 3.1 percent at constant exchange rates, and net interest income in the first nine months fell 7.9 percent at constant exchange rates to 1.06 billion euros.

Further, Cano said as per current Basel rules, core capital ratio at the end of September stood at 11.4 percent, compared to 11.3 percent at the end of June, that excludes impact from the sales of pension business in Chile, 5.1 percent stake in China CITIC Bank Corporation Ltd., and franchise in Panama.

Impairment on financial assets declined to 4.57 billion euros from 5.31 billion euros a year earlier.

BBVA said it will not pay a dividend in January 2014, but intends to increase shareholder remuneration payable in April 2014 to a total of 17 euro cents per share through the 'dividend option' scheme.

President and COO Ángel Cano stated, "Our cash dividend commitment going forward is a clear sign of our confidence in the growth of future earnings."

In Madrid, the shares are currently trading at 8.88 euros, down 1.95 percent.