Despite “the difficulties in Argentina”, BBVA increased profits

September 5, 2018 - By Joseph Taylor

The second Spanish bank, BBVA, had an increase in its net profits by 46.4% in the third quarter “despite the difficulties in Argentina and Turkey”.

“Despite the difficulties in Turkey and Argentina, we present results that highlight the strength of our business model and geographic diversification,” said Carlos Torres Vila, CEO of BBVA.

 The high inflation in Argentina had a negative impact of 190 million euros in the quarterly figures, added to the impact of the collapse of the Turkish lira in the entity (which has 49.85% of the Turkish bank Garanti Bankasi).

Quarterly earnings were due to the sale in July of BBVA Chile to Scotiabank. And the proportion of the bank’s own funds, a key indicator for solvency, rose 11.34% in September.

Thus, the bank’s net profit reached 1,674 million euros in the third quarter, which at a constant exchange rate would have increased by 70.5% year-on-year.

The bank also saw its profit grow by 25% in Mexico, its largest market, although in its second place in size, Spain, it decreased by 4%.

On the other hand, the entity had 26 million customers online in September, a year-on-year increase of 23% and its rate of loans in danger of not being reimbursed decreased to 4.1%.

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