The Spanish bank BBVA reports a significant profit increase in 2024, driven by rising commission income and favorable trading amid high interest rates, boosting demand.
In a remarkable display of financial prowess, the prominent Spanish banking institution BBVA has reported a substantial increase in profits for the year 2024, outpacing analysts’ forecasts. The bank’s earnings were buoyed by a significant uptick in commission income, favorable trading transactions, and an environment characterized by elevated interest rates.
On Thursday, in a statement issued from its Madrid headquarters, BBVA disclosed that its surplus had surged by an impressive 25%, reaching just over ten billion euros. This performance exceeded the projections made by financial experts surveyed by Bloomberg, who had anticipated a more modest increase.
In a strategic move indicative of its robust financial health, BBVA has announced plans to allocate approximately half of its profits towards dividends and share repurchase initiatives. The bank intends to enhance direct profit participation by a noteworthy 27%, raising it to 70 cents per share, which cumulatively amounts to around four billion euros. Furthermore, BBVA is poised to embark on a share buyback program, with intentions to repurchase shares valued at nearly one billion euros.
As a testament to its market performance, BBVA’s shares experienced a notable uptick, rising by 1.54% to reach 11.24 euros in Madrid. This surge reflects investor confidence in the bank’s strategic direction and financial stability, particularly as it continues to engage in discussions regarding a potential acquisition of its smaller rival, Sabadell.
The Spanish bank BBVA’s impressive profit growth and proactive capital management strategies underscore its resilience and adaptability in a dynamic financial landscape, positioning the bank favorably for future endeavors.
