Banco Bilbao Vizcaya Argentaria SA :BBVXF-US: Earnings Analysis: Q3, 2017 By the Numbers : November 8, 2017

Banco Bilbao Vizcaya Argentaria SA reports financial results for the quarter ended September 30, 2017.

We analyze the earnings along side the following peers of Banco Bilbao Vizcaya Argentaria SA – Huntington Bancshares Incorporated (HBAN-US) that have also reported for this period.


  • Summary numbers: Revenues of USD 7,264.31 million, Net Earnings of USD 1,342.68 million.
  • Net loan assets changed 3.41% compared to same period last year and 10.01% from previous period, total deposits changed 7.71% compared to same period last year and 4.23% from previous period.
  • Earnings growth from operating margin improvements as well as from one-time items.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income (See complete table at the end of this report):

2017-09-30 2017-06-30 2017-03-31 2016-12-31 2016-09-30
Relevant Numbers (Quarterly)
Revenues (mil) 7264.31 6980.56 6807.36 6697.56 6898.62
Revenue Growth (%YOY) 5.3 -4.57 6.81 -2.31 3.53
Earnings (mil) 1342.68 1219.23 1277.91 730.64 1077.04
Earnings Growth (%YOY) 24.66 -3.85 63.48 -28.98 191.67
Net Margin (%) 18.48 17.47 18.77 10.91 15.61
EPS 0.2 0.19 0.19 0.11 0.17
Return on Equity (%) 2.12 2.01 2.18 1.2 1.72
Return on Assets (%) 0.66 0.62 0.66 0.37 0.52

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Market Share Versus Profits

Revenues History
Earnings History

BBVXF-US’s change in revenue this period compared to the same period last year of 5.30% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that BBVXF-US is holding onto its market share. Also, for comparison purposes, revenues changed by 4.06% and earnings by 10.12% compared to the immediate last period.

Revenues Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Leader, Earnings Focus, Laggard, Revenues Focus

Net Loans and Total Deposits

A financial institution’s core operations represented by Net Interest Income and Net Interest Income after Provisions are dependent on both the growth and quality of its deposits as well as the growth and quality of its loans. A firm could boost its interest income in the short-term by just increasing its loan assets with less concern about their quality – but this would eventually lead to greater loan loss provisions. Similarly a drive to increase deposits could result in higher interest expenses and eventually effect the firm’s equity. It is thus important to understand net interest income performance in context to loan loss provisions, loan assets and deposits.

Loan Assets Growth Rate History (Qtr YOY)
Total Deposits Growth Rate History (Qtr YOY)

The firm’s improvement in net interest income margins was influenced by both the relative increase in the levels of net loan assets and the level of total deposits as a percentage of equity. On an absolute basis, net loan assets changed 3.41% compared to the same period last year and 10.01% from the previous period. Total deposits changed 7.71% compared to the same period last year and 4.23% from the previous period.


The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating margins from 44.72% to 47.04% and (2) one-time items. The company’s pretax margins are now 31.94%, compared to 27.49% for the same period last year.

EBIT Margin History
PreTax Margin History
EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables

Access our Ratings and Scores for Banco Bilbao Vizcaya Argentaria SA

Company Profile

Banco Bilbao Vizcaya Argentaria SA is a diversified international financial group, which engages in the traditional banking businesses of retail banking, asset management, private banking and wholesale banking. It operates through the following business segments: Banking Activity in Spain, Real Estate Activity in Spain, Turkey, Rest of Eurasia, Mexico, South America, and United States. The Banking Activity in Spain segment includes the retail network, corporate and business banking, corporate and investment banking, BBVA Seguros and asset management a well as of the portfolios, finance, and structural interest-rate positions of the euro balance sheet. The Real Estate Activity in Spain segment combines loans to real-estate developers and foreclosed real estate assets. The Turkey segment refers to the stake in Garanti. The Rest of Eurasia segment refers to the business carried out in the rest of Europe and Asia such a the retail and wholesale businesses. The Mexico segment include banking and insurance businesses such as retail business through commercial banking, consumer finance and corporate and institutional banking units and wholesale as well. The South America segment is the banking and insurance businesses which carries out in the region. The United States segment refers to the businesses in the country. The company was founded on December 18, 1999 and is headquartered in Madrid, Spain.

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