Carlos Torres Vila: “BBVA’s ability to combine growth and profitability sets us apart from our competitors”

Carlos Torres Vila began his address by taking stock of 2023, "a great year for BBVA" on the back of leading franchises, the commitment of the team, and progress in strategic pillars like innovation and sustainability.

In his words, "In 2023, we have increased our positive impact on all countries where we operate." First, through the bank's main activity, granting loans. "Banks promote economic growth, channeling savings toward productive investment," the Chair recalled. In 2023, BBVA added over 11 million new customers and increased its loan portfolio by 7.6 percent. The bank also channeled €15 billion to projects fostering inclusive growth, such as financing for sustainable infrastructure, support for entrepreneurship and financial inclusion. "Financing families and businesses is our biggest contribution to the progress of society in the countries where we operate," he said.

From a financial standpoint, 2023 was also a historic year for BBVA, with its best results yet, €8.02 billion. Net attributable profit increased by 26 percent and earnings per share rose even more, "an impressive 32 percent, bolstered by the share buybacks that took place throughout the year." "Our ability to combine high profitability with significant growth in activity and results clearly sets us apart from our European competitors," he said.

These results have allowed BBVA to reinvest in its business to continue creating value and increase distributions for its shareholders. Specifically, "we are proposing to the AGM the distribution of more than €4 billion, which represents 50 percent of the annual attributable profit. And we will do so through a cash dividend payment of €0.39 per share, which together with the €0.16 per share paid in October, amounts to a total gross dividend of €0.55 per share; and a new €781 million share buyback program, which is already underway". In addition, the bank also executed share buybacks in 2023 that amounted to €1.42 billion. "These buyback programs will contribute to the growth of the dividend per share in the future," he added.

"The 2023 dividend of €0.55 per share is nearly 30 percent higher than last year," he said. In total, should this dividend be approved, BBVA will have distributed approximately €13.2 billion in dividends and share buybacks in the past three years. Furthermore, including the recently initiated share buyback program, the bank will have canceled about 14 percent¹ of its shares, "with the corresponding positive impact for the bank's nearly 800,000 shareholders."

Carlos Torres Vila underlined that the market is rewarding BBVA's strengths and strategy. This recognition is reflected in the appreciation of the bank's share price: From January 2023 to date², and taking into account the dividends paid and the share performance, BBVA has delivered a total return for its shareholders of 95 percent - more than double the average of its competitors in Spain (+41 percent) and Europe (+39 percent). Since early 2019, BBVA's total return stands at over 190 percent, nearly tripling its value, compared to a 74 percent increase among European competitors, and 39 percent among the rest of Spanish banks.

The BBVA Chair considers that on top of the positive impact on clients and shareholders, "this value creation allows us to have a greater positive impact on society." By the end of 2023, BBVA had allocated over €410 million to its Community Investment Plan, nearly 75 percent of our total commitment for 2021 to 2025, benefiting almost 90 million people. Carlos Torres Vila also mentioned the work of the bank's foundations. On one hand, in 2023, the BBVA Microfinance Foundation contributed more than €1.5 billion to finance vulnerable entrepreneurs with limited resources. On the other, the BBVA Foundation has continued to foster knowledge and research, as demonstrated by the Frontiers of Knowledge awards, presented every year in Bilbao.

In 2024, BBVA expects the economy to continue growing, although at a more moderate pace than in 2023. Carlos Torres Vila foresees a year marked by some uncertainties, with elections in several countries, and inflation still above the central banks' goal. He also expects that "the gradual normalization of interest rates in the financial sector will help banking activity to continue growing."