Analysts satisfied with BBVA’s results markets

BBVA accounts, which posted a net profit of 1,578 million euros in the fourth quarter, 3% more than analysts had expected, generally satisfied market experts. Of the 12 who updated their comments on BBVA’s progress, eight recommend buying stocks, three hold them in their portfolio, and only one sells them. The 12-month price target stands at €7.13 per share, giving a potential upside of 7.8%.

“No surprises” is the headline provided by Nuria Alvarez, Renta4 Analyst. “The fourth quarter result was lower than our estimates and in line with the consensus, with a good read on the items. By geographies, they showed more strength in Mexico and Turkey, widely exceeding estimates The consensus of these markets, ”said the expert.

Credit Suisse is one of the few companies that has remained neutral on its recommendation after updating its view. “Not to get excited about,” they call their report. “In line with our expectations, the 2% qoq growth in net interest income for the group was mainly due to an encouraging increase in margin per customer in Spain (which offset more moderate loan growth), commercial dynamics and margin and cost increase were generally in line with expectations. The reduction in provisions resulted in a limited improvement in results. Total shareholder remuneration for fiscal year 2022 will be around €3,000 million, which translates to will be spent 47%, less than management’s commitment of 50%. The prospects for 2023 point above all to an improvement in outlook”, a summary from the Swiss entity.

Specifically, regarding what to expect in 2023, Credit Suisse experts confirm that the Spanish bank’s leadership expects interest margin growth of 20% in Spain and 15% in Mexico. “We believe the market will await further clues as to why the 50% payout forecast has not been met. As possible reasons, we note that explanations could include future headwinds limiting excess capital availability or, on the other hand, saving capital in search of growth opportunities. inorganic “, at their discretion.

More bullish than Credit Suisse at UBS. “Strong earnings, better capital ratio and positive outlook. Group NPL ratio decreased by 10 basis points quarter on quarter to 3.5%, CET1 capital ratio increased to 12.6% above target of 11.5% – 12%. It was a strong impression from BBVA, improvement in Capital inflows and a particularly optimistic outlook for 2023 support our positive view on the stock UBS’s target price is €7.85.