BBVA expects for this year an increase in the granting of credits in Mexicowhich, together with Spainis a key market in which it also expects growth in incomeand this despite the situation economic crisis and the future perspectives.
At a conference with analysts and investors organized by Bank of Americathe entity’s CEO, Onur Genç, has specified that the credit portfolio will grow in Spain “at a low single-digit rate”, that is, up to 5%, and the interest margin that includes most of the income except commissions will be around that percentage.
Higher will be the increases of both magnitudes that the entity expects for Mexico, double digits for credit and around 20% for the interest margin.
credit quality
Likewise, the indicators that measure credit quality will maintain their good behavior, with a forecast of the cost of risk below 100 basis points for the entire group, in line with the previous year, despite “the complexity of the environment”.
BBVA It would thus be “well prepared” to face the new economic cycle and other challenges, such as competition from new players, neobanks and “fintechs”, says Genç.
In this sense, the executive values the “quality” and “resilience” of the entity’s capital to face whatever comes, with a “fully-loaded” CET1 ratio, which includes all the established requirements, which was 12.45% on June 30, within the bank’s target (between 11.5 and 12%) and much higher than the 8.60% requested by the European Central Bank (ECB).
In addition, it highlights the good prospects in terms of creating shareholder value, with a dividend yield of 6.3% (as of September 16) above the 5.4% average of European competitors and 4.1% of Spanish ones.
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