BBVA(BBVA)2025-03-21 17:00Financial Performance - BBVA Group reported a net profit of €1.5 billion for Q1 2025, representing a 12% increase year-over-year[5]. - BBVA reported an attributable profit of €10,054 million for 2024, a 25.4% increase from 2023[18]. - The net profit attributable to the Group for the year was €5.013 billion, up from €2.491 billion in June 2024 and €4.759 billion in December 2023[167]. Customer Growth and Digital Transformation - The total customer base reached 80 million, with a 5% growth in digital customers, now totaling 30 million[5]. - BBVA plans to invest €500 million in technology and digital transformation initiatives over the next two years[5]. - BBVA is developing a new mobile banking app expected to launch in Q3 2025, enhancing user experience and functionality[5]. - Digital sales accounted for 78.5% of total sales, with mobile customers reaching 58 million[20]. Capital and Liquidity Ratios - The bank's CET1 capital ratio stood at 12.5%, exceeding the regulatory requirement by 2.5 percentage points[5]. - The CET1 fully loaded ratio stood at 12.88%, well above the regulatory requirement of 9.13%[46]. - BBVA's liquidity ratios included an LCR of 134% and an NSFR of 127%[19]. - The liquidity coverage ratio (LCR) averaged 146% throughout 2024, significantly above the minimum requirement of 100%[52]. - The net stable funding ratio (NSFR) was reported at 127% as of December 31, 2024, exceeding the required minimum of 100%[53]. - The leverage ratio remained strong at 6.81% as of December 31, 2024, well above the minimum requirement of 3.00%[54]. Risk Management and Capital Requirements - BBVA's risk-weighted assets (RWA) increased due to organic business growth, impacting the CET1 ratio by -155 basis points[47]. - The total risk exposure amount for the Group is €394,468 million[154]. - The minimum capital requirement as of December 31, 2024, is €52,427 million, corresponding to a total capital requirement ratio of 13.29%[183]. - The phased-in capital ratios and leverage ratio are calculated considering the transitional provisions defined by Article 473a of the CRR[191]. - The risk appetite framework aligns with the bank's business strategy and model, ensuring a sound governance and risk management framework[199]. Strategic Initiatives and Market Expansion - BBVA aims to expand its presence in Latin America, targeting a 15% increase in market share by 2026[5]. - The bank plans to enhance its presence in enterprise segments, targeting SMEs to large corporations[37]. - BBVA's strategic plan for 2025-2029 emphasizes customer-centric innovation and the use of artificial intelligence[32]. Regulatory Compliance and Reporting - The BBVA Group's Consolidated Financial Statements comply with IFRS-IASB and EU-IFRS applicable as of December 31, 2024[117]. - The Prudential Relevance Report (Pillar 3) reflects prudential information at the consolidated level for the year ended December 31, 2024[105]. - The report highlights the importance of the Capital Markets Union (CMU) revitalization as a major EU priority for 2024[102]. - The implementation of new regulations aims to unify public information with regulatory reporting, simplifying standard templates[107]. Operational Efficiency - The bank's cost-to-income ratio improved to 45%, reflecting operational efficiency gains[5]. - The Group's strategy focuses on promoting profitable growth, as evidenced by the organic growth of the loan portfolio contributing to the increase in RWA[169].