On the one hand, the bank’s accounts suffered for thenegative adjustment of the goodwill of the United States for a total of 2,084 million euros. This adjustment was made, as the entity points out in a statement, due to the “negative evolution of interest rates in the country along with the worst prospects for the economy. Although, the bank assures, this does not affect even tangible net worth, neither to the capital nor to the liquidity of the group.
The other point that penalizes bank accounts are the provisions that the entity made in the first quarter to face the deterioration of the economy due to the impact of the COVID 19 crisis of 1,433 million euros.
The entity notes that following the recommendation of the European Central Bank on March 27 on dividend payments during the COVID-19 pandemic, the Board of Directors has agreed that BBVA will not pay any amount as a dividend against the results of the 2020 financial year until the uncertainties generated by the coronavirus crisis disappear and, in no case, before the close of said financial year.
These are the main figures of BBVA’s results for the first quarter of 2020:
- Net profit: -1,792 million euros
- Gross margin: 6,484 million euros, 7.2% more.
- Interest margin: 4,556 million euros, 3.6% more than last year.
- Net margin: 3,566 million euros, representing an increase of 14.1%.
- ROE, or return on invested capital: 2.4%
- CET1 fully loaded capital ratio: 10.84%
- Total delinquency of the group: 3.6%.
“Our net margin reaches 3,566 million euros, with a year-on-year growth of 14%, and the result without singular and without taking into account the provision for the Covid-19 rises to 1,258 million euros, with a growth of 6, 4% “, said the president of the entity Carlos Torres in a statement.
“This recurrence of profit before provisions, our solid capital position, our solid liquidity position, our diversified business model and our digital capabilities allow us to face the crisis from a position of strength,” he added.