April 21, 2021

BBVA earns 5,324 million, 51.3% more, from the sale of its subsidiary in Chile – La Provincia

BBVA earns 5,324 million, 51.3% more, from the sale of its subsidiary in Chile - La Provincia

BBVA Group earned 5,324 million euros in 2018, representing an increase of 51.3% compared to the previous year, driven by recurrence in revenues, control of expenses and goodwill from the sale of BBVA Chile.

Specifically, this advance includes the result of corporate operations generated by the net capital gains from the sale of BBVA Chile (633 million euros) in the third quarter.

In constant terms, according to the entity, the good performance of recurrent income and the decrease in write-downs -because of the negative adjustment due to the impairment of Telefónica's share in 2017- stand out, as well as provisions, which compensate "with you grow "the lowest contribution of the results of financial operations (ROF) compared to the previous year.

The diversified model and the transformation strategy are the basis of this good evolution and the improvement of efficiency, according to the entity yesterday.

"In a complex environment, we have obtained very good results and double-digit profitability, while we have made significant progress in the transformation process," said BBVA President Carlos Torres.

In Spain, the attributed result, including banking activity and 'Non Core Real Estate', amounted to 1,445 million euros, 63.4% more than in the previous year.

On the contrary, the attributable result in Turkey reached 569 million euros in a "very complex" year marked by the fall of the Turkish lira, representing a year-on-year decrease of 4.5% (-31% in current terms), while South America generated an attributed result of 591 million euros in 2018, which represents a fall of 16.5% (-31.3% at current exchange rates).

This evolution of attributable results in South America is affected by the impact of hyperinflation in Argentina (-266 million euros) and the change in perimeter derived from the sale of BBVA Chile.

In his appearance, the president of BBVA warned about the consequences that the tax on financial transactions can have on the market, known asTobin tax, that the Government of Pedro Sanchez approved at the end of the year and that will tax with 0.2% the purchase operations of Spanish shares issued by companies whose capitalization is over 1,000 million euros. It is estimated that some 850 million euros will be paid for this new tax figure.

In that sense, Torres stressed that taxation should not cause distortions, since, otherwise, it can lead to a loss of efficiency. So he called for an international approach to these measures.

The same is true of Torres on Corporate Tax, so that, as changes are introduced, the financial sector could suffer "difficulties" both in terms of decision-making and in growth itself.


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