Banco Bilbao Vizcaya Argentaria is set to release its third-quarter results on Tuesday. Here are the key details you need to know:
Gross Income Forecast
The Spanish bank is expected to report gross income of 7.38 billion euros ($7.79 billion) for the third quarter, according to consensus estimates provided by the bank. This marks an increase from last year’s third-quarter gross income of EUR6.86 billion.
Net Profit Forecast
Analysts anticipate BBVA’s quarterly net profit to reach EUR2.01 billion, according to the consensus provided by the bank. In comparison, the net profit for the same period last year was EUR1.84 billion.
What to Watch
Mexico and Spain are expected to remain strong growth drivers for BBVA in the third quarter. Renta4 analyst Nuria Alvarez Anibarro highlights that this is due to an expansion in net interest margins and credit momentum in Mexico, as mentioned in a research note. Barclays Capital analysts Cecilia Romero Reyes and Paola Sabbione also suggest that BBVA’s outlook in Mexico seems promising, supported by a positive economic climate and advancements in foreign-exchange rates.
RBC Capital Markets analysts Benjamin Toms and Pablo de la Torre Cuevas caution that the bank’s results may be affected by Turkey and Argentina, despite the positive trends in its core markets. RBC expects BBVA to post a quarterly loss due to a larger-than-expected hyperinflation adjustment and a significant tax charge resulting from recent changes in Turkey’s monetary policy.