Shares of Banco Bilbao Vizcaya Argentaria SA (ES:BBVA) gained 6.2% yesterday on stronger-than-expected 2023 results. BBVA Group’s net attributable profit jumped 26% annually, crossing the €8 billion mark for the first time. Also, adjusted earnings per share grew 27%, thanks to hefty share buybacks undertaken during the year. Importantly, BBVA announced a 28% increase in cash dividends to €0.55 per share and a new share repurchase plan of €781 million.
Banco Bilbao Vizcaya Argentaria is a Spanish multinational bank with major operations in Mexico, Spain, and the Sunbelt region of the Southern U.S. BBVA offers mainly retail and commercial banking services. BBVA shares have gained over 33% in the past year.
Details of BBVA’s Results
In Q4 FY23, BBVA’s net attributable profit rose 32% year-over-year to €2.06 billion, backed by higher loan volumes. However, quarterly net interest income (NII) fell nearly 2% year-over-year to €5.25 billion.
For the full year 2023, BBVA added 11.1 million new customers, with lending activity increasing 7.6%. The group’s results were boosted by solid performances in Spain, Mexico, and South America.
In FY23, NII increased 20.7% to €23.09 billion, while fees and commissions gained 17% compared to the prior year. Also, the provisions for asset impairments increased by 31%, primarily in Mexico and South America. In South America, the results were impacted by hyperinflation adjustment and peso devaluation in Argentina.
Looking ahead, BBVA expects 2024 to be a year of growth, backed by franchise strength and a focus on strategy, innovation, digitization, and sustainability efforts.
What is the Price Prediction for BBVA?
Following the Fiscal 2023 print, J.P. Morgan analyst Sofie Peterzens lifted the price target for BBVA stock to €10.60 (23.1% upside) from €10.10 while maintaining a Buy rating. Analysts at Barclays, UBS, and RBC Capital also reaffirmed a Buy rating on the stock.
Overall, with eight Buys, two Holds, and one Sell recommendation, BBVA stock has a Moderate Buy consensus rating on TipRanks. The Banco Bilbao Vizcaya Argentaria SA share price prediction of €9.72 implies 12.9% upside potential from current levels.
