BBVA Swung to 4Q Loss on EUR1.3 Billion US Goodwill Impairment
January 31 2020 - 2:11AM
Dow Jones News
By Pietro Lombardi
Banco Bilbao Vizcaya Argentaria SA (BBVA.MC) swung to a net loss
in the fourth quarter due to the effects of a goodwill impairment
at its U.S. business.
Net loss for the period was 155 million euros ($170.8 million),
the Spanish bank said Friday. The bank reported a EUR1.32 billion
goodwill impairment at its U.S. unit.
Excluding the impairment, the lender's quarterly profit was up
15% on year at EUR1.16 billion, it said.
Gross income, the bank's top line, rose 4.3% to EUR6.42
billion.
The results compare with analysts' expectations of a loss of
EUR271 million on revenue of EUR6.02 billion, according to a
consensus forecast provided by the bank. Excluding the impairment,
analysts had forecast a quarterly profit of EUR1.01 billion.
For the year, the bank had a profit of EUR3.51 billion on
revenue of EUR24.54 billion.
For the quarter, net interest income--the difference between
what lenders earn from loans and pay for deposits, and a key profit
driver for retail banks--rose 0.7%, while fees and commissions were
up 5.2%. Revenue was also boosted by trading income, which grew
55%.
BBVA's core Tier 1 ratio, a key measure of capital strength, was
11.74% in December from the 11.6% it reported in September.
BBVA said it would propose a final dividend of EUR0.16 a share
for 2019.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
January 31, 2020 01:56 ET (06:56 GMT)
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