It will dedicate more than 3,000 million to increase the dividend for the year and to a new share repurchase plan of 422 million
BBVA registered a net profit of 6,420 million euros in 2022, which represents an increase of 38% compared to a year earlier (39% without the effect of currencies), the highest to date, as reported this Wednesday by the entity, which has highlighted that it has achieved "very solid" results despite the uncertain environment generated by the war in Ukraine and its impact on the global economy.
With this result, it will dedicate more than 3,000 million euros of these results (47% of the reported attributable profit) to shareholder remuneration.
On the one hand, it proposes raising the cash dividend for the year to 43 gross euro cents per share (the highest in 14 years and 39% more than in 2021).
After the 12 cents per share paid in October, the bank will submit a complementary dividend of 31 cents per share to the shareholders' meeting for approval, which is expected to be paid in April.
In addition, the bank will launch a new share repurchase plan worth 422 million euros.
This remuneration is consistent with the group's shareholder remuneration policy, which contemplates distributing between 40% and 50% of the profit for the year annually, with the option of combining the payment in cash with the repurchase of shares.
In the fourth quarter of 2022, profit amounted to 1,578 million euros, 29.8% more than in the same quarter of the previous year.
Excluding non-recurring impacts, annual profit was 6,621 million euros, 32.3% more than the previous year. This last line translates into earnings per share of 1.05 euros, 48% more (in current euros) compared to last year, due to the effect of the share buyback program that closed in August, one of the largest of Europe (3,160 million euros, equivalent to 9.6% of the share capital at that date).
The bank has attributed the result achieved in 2022 to the "strong" increase in income, driven by double-digit growth in credit (13.3% in constant euros).
Likewise, the net margin also registered a record, with 14,130 million euros, 29.2% more than in 2021.
THE GREATEST BENEFIT IN ITS HISTORY
"2022 has been a year of growth for BBVA. We have achieved the greatest profit in our history, with a strong expansion of credit and with great advances in our strategy, focused on digitization, innovation and sustainability. Looking forward, and to Despite the uncertainty, in 2023 we will continue creating opportunities for everyone and contributing to the economic and social growth of the countries where we are present", highlighted the Chairman of BBVA, Carlos Torres Vila.
Interest margin amounted to 19,153 million euros, 35.8% more than in 2021. According to the bank, all geographic areas contributed to this increase thanks to double-digit credit growth (13.3% in 12 months, more than double that of the previous year) and the improvement in the customer differential.
Net commissions, for their part, grew by 15.3% year-on-year, up to 5,353 million euros. The sum of interest margin and net commissions, which make up the recurring income of the banking business, registered a rise of 30.7%, up to 24,507 million euros.
The result of financial operations (ROF) reached 1,938 million euros (9.4% year-on-year). The line of other operating income and charges accumulated a result of -1,555 million euros, mainly due to the negative adjustment for hyperinflation in Argentina and Turkey.
In short, the gross margin reached 24,890 million euros, which represents an increase of 22.9% compared to the previous year, while the efficiency ratio stood at 43.2% in 2022, which represents an improvement of 277 basis points with respect to the ratio registered the previous year.
Likewise, write-offs at the end of December stood at 12.9% above those of 2021, a growth similar to that of the credit portfolio (13.3% year-on-year).
NPL RATE AT 3.4%
The default rate stood at 3.4% at the end of the year, compared to 4.1% registered a year earlier, and the coverage rate increased to 81%, compared to 75% in December 2021.
For their part, provisions and other results improved slightly with a decrease of 4.6% to -261 million euros.
The entity closed the year with a ROTE of 15.3%, "well above the average of its European peers" (7.4%), and an ROE of 14.6%, both excluding non-recurring impacts.
Likewise, the strength of the results was reflected, according to the entity, in the solidity of the CET1 'fully-loaded' ratio of the group. As of December 31, this stood at 12.61%, above the group's target range of 11.5% to 12%.
SPAIN, THE HIGHEST RESULT OF THE LAST TWELVE YEARS
In 2022, Spain generated the highest attributable result of the last twelve years, 1,678 million euros (8.4% compared to that achieved in 2021), due to the dynamism of the interest income and the results from financial operations (ROF).
This result includes the net impact of -201 million euros from the purchase of offices from Merlin, recorded in the second quarter of the year. Excluding this impact, the attributable result of the area in 2022 would stand at 1,879 million euros, 21.4% above the result of the previous year.
Regarding risk indicators, the drop in the default rate stands out, to 3.9%, compared to 4.2% a year earlier. The coverage rate fell slightly from 62% to 61%, while the cost of risk fell to 0.28%, compared to 0.30% a year ago.
In 2022, BBVA has made "great progress" in its strategy: it has attracted more than 11 million new customers and continues to increase its sales through digital channels, which already represent almost 80% of the total. Likewise, it has channeled 50,000 million euros of sustainable business.