The BBVA Group won in Mexico €2.964 million (58,659 million pesos) up to September, 64.7% more than a year before and more than double that in Spain, mainly due to the increase in income and the containment of credit provisions, which offset the increase in expenses derived from of inflation.
As reported this Friday by the entity to the Spanish stock market supervisor, the CNMV, For yet another quarter, Mexico was the subsidiary that contributed the most profits to the Group’s consolidated accounts61.21% of the 4,842 million that the bank earned in total in all the markets where it operates.
The net interest income of the Mexican subsidiary, which includes all income except commissions, increased by 38.3% and totaled 5,921 million euros, thanks to the greater volume of managed investment and the improvement in the customer spread, favored by increases in interest rates in the country, 375 basic points in the year.
Net commissions totaled 1,174 million, 30.7% morethanks to the higher level of transactions, especially in credit cards, as well as those charged for the management of investment funds.
Operating expenses increased by 25.7%, to 2,470 million, mainly due to the increase in personnel expenses and also general expenses, in an environment of price growth in which certain expenses are indexed to that indicator.
The entity also had to allocate 1,277 million euros, 18.7% more, to mitigate the deterioration of some financial assets, in addition to allocating 45 million to the provisions piggy bank compared to 18 million a year earlier.
As a result of all of the above, the accumulated cost of risk at the end of September 2022 remained at 25.7%, while the efficiency ratio improved to 31.9% compared to 35.3% registered twelve months earlier.
Loans and advances to customers recorded as non-doubtful grew by 32.7%, up to 74,199 million, not including temporary assignments of assets, with a delinquency of 2.5%, better than the 3.2% registered at the end of 2021, and a coverage of 133%, also better.
For its part, the South America area, which includes the subsidiaries in Argentina, Colombia and Peru, as well as the businesses encompassed in “other countries” such as Bolivia, Chile, Uruguay and Venezuela, achieved net profits of 614 million euros , 87.4% more.
Colombia contributed 207 million euros, almost 33% more; Peru won 128 (+122.3%); and Argentina, 156 million, almost four times more, while the rest of the “other countries” earned between all 83 million, 44.4% more.
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