BBVA's quarterly net profit falls on peso, lower lending income
The euro zone's fifth-largest lender by market value reported a net profit of 2.75 billion euros ($3.14 billion) for the April-June period, exceeding analysts' expectations of 2.37 billion euros in a Reuters poll.
BBVA's return on tangible equity (ROTE) rose to 20.4% from 20.2% in March, marking the highest profitability among listed Spanish banks. BBVA reiterated its forecast of achieving a profitability level of around 20% by the end of 2025.
It also announced new financial goals for the 2025-2028 period, where it expects to earn an accumulated net attributable profit of around 48 billion over four years and reach an average current ROTE of around 22% during this period.
BBVA, alongside peer Santander (SAN.MC), opens new tab, has relied on Latin American markets to offset pressure from lower interest rates in the euro zone. But BBVA now wants to reduce its exposure to emerging markets with an around 14 billion euros bid for smaller rival Sabadell (SABE.MC), opens new tab.
Net interest income, a metric representing the difference between earnings on loans minus deposit costs, fell 4% year-on-year in the quarter, to 6.21 billion euros, slightly below analysts' forecasts.
In Mexico, net profit fell 12% year-on-year, though underlying trends remained positive, despite a challenging economic environment due to persistent uncertainty surrounding the trade policies of the U.S., Mexico's top trading partner.
In Mexico, net profit dropped 12% year-on-year due to economic uncertainty stemming from U.S. trade policies, despite positive underlying trends. However, net profit in Spain rose 6%, driven by loan growth, while Turkey saw a 23% increase in net profit, buoyed by an 85% rise in lending income.
BBVA maintained its guidance for Turkey, forecasting net profit to close 2025 at slightly below 1 billion euros.
($1 = 0.8747 euros)
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Reuters
2 hours ago
- Reuters
Eurobank to distribute interim dividend after strong first half
ATHENS, July 31 (Reuters) - Greek lender Eurobank ( opens new tab, the country's largest by market capitalisation, said on Thursday that it will distribute an interim dividend of 170 million euros after announcing a strong profit for the first half of the year. The bank reported adjusted net earnings for the January-June period of 711 million euros ($812.96 million), slightly down from a record profit of 732 million euros a year earlier. Chief Executive Fokion Karavias told analysts on a call that profit was "progressing according to our expectations". "For the full year 2025 we have been committed to at least a 50% payout ratio... meaning that this may be higher than 50%," Karavias said, pointing to stronger than expected loan growth. Greek banks are returning to profit after they were nationalised following a financial meltdown in late 2009 amid the country's debt crisis, requiring several capital injections from the government. They were fully privatised last year. The European Central Bank (ECB) has approved requests by Greece's four largest lenders to resume dividend payments for 2024 after 16 years, a further sign of the sector's recovery and the country's economic rebound. Eurobank, which also operates in Bulgaria and Cyprus, said in a statement that its net interest income rose 12% year-on-year to 1.27 billion euros while its non-performing loan exposure (NPE) ratio fell to 2.8% from 3.1% a year earlier. Net fees jumped 29% to 364 million euros, mainly boosted by network activities and its wealth management business. ($1 = 0.8746 euros)
The Sun
2 hours ago
- The Sun
Chelsea have spent eye-watering £360MILLION on defenders in three years – but how many of them were worth it?
THE arrival of £37million Jorrel Hato takes Chelsea's spending on defenders under their new owners past a record-shattering £360m. Yet the Blues back four which lines up against Crystal Palace on the opening weekend of the new season may well include just one player who cost a fee. Marc Cucurella, who came in from Brighton three years ago in a deal worth up to £62m, is the biggest success of Chelsea 's hit-and-miss defensive recruitment. The signing of Hato is a major coup for the Blues, with Liverpool and Arsenal among the other major clubs who wanted the talented and versatile teenager. The young Dutchman is the 12th defender brought in since the consortium led by Clearlake Capital and Todd Boehly took over the club in May 2022. But Cucurella, a Euro 2024 winner with Spain, is the only member of the current Chelsea back four that you would describe as world class. And if Chelsea are to win domestic and European titles, they will need more defenders to reach that level. To be fair, Enzo Maresca 's side can already claim to be world champions. To beat a flair-filled Paris Saint-Germain side 3-0, just weeks after they had spanked Inter Milan 5-0 in the Champions League final, was an impressive achievement. The back four which started the Club World Cup final was left back Cucurella, homegrown centre backs Levi Colwill and Trevoh Chalobah, and right back Malo Gusto. The Frenchman, now 22, could end up costing Chelsea £30.7m after signing from Lyon in January 2023 and spending the rest of that season on loan back at the French club. Gusto has done a decent, sometimes very good, job at right back. He covered for the long injury-related absences of Reece James over the last two seasons and kept his place when James was employed in midfield - as he was against PSG. 8 8 But if you believe Moises Caicedo and Enzo Fernandez will start the biggest games in front of the defence, and James will mostly play as an inverted right back when he is fit, then Gusto will not be in Enzo Maresca's strongest 11. Chalobah did well after returning from half a season on loan at Crystal Palace, but could yet find himself being sold this summer. As a product of the Chelsea Academy, he would generate pure profit for financial rules purposes and there could be clubs willing to pay £40m for him. If Chalobah left, his replacement as right-sided centre back at the start of the season would almost certainly be Tosin Adarabioyo. The free transfer from Fulham last summer has carved a niche for himself off the pitch as well as on it. At just 27 he is one of the senior members of the squad, and plays an 'Uncle Tosin' role to the youngsters, enjoying a particularly close relationship with fellow Mancunian Cole Palmer. But no-one, not even Tosin himself, would claim that he is one of Europe's best defenders. If Wesley Fofana is able to put his injury hell behind him and rediscover his previous form, he could yet meet those standards and become a Chelsea stalwart for years to come. Fofana, still just 24, has made only 34 appearances for the Blues since arriving from Leicester in the summer of 2022 in a deal worth up to £75m. He is the most expensive of all Chelsea's defensive signings and that means, through no fault of his own, he has also been the biggest let down. But only just. The Blues really have had trouble finding a settled and satisfactory centre back pairing. Within weeks of the 2022 takeover, Kalidou Koulibaly became the new regime's first defensive signing. The Napoli star's £35m fee felt a little steep for a player about to turn 31, but the Senegal international was highly-rated and on the radar of other big clubs. Koulibaly failed to live up to his billing, although he could point to the chaos of playing under three different managers and a hamstring injury as decent explanations. He was offloaded after just one season to Saudi Pro League side Al-Hilal - and played for them in this year's Club World Cup. When Chelsea set a new record for winter window spending in early 2023, Benoit Badiashile 's £35m arrival from Monaco went a little under the radar in the wake of massive deals for Enzo Fernandez and Mykhailo Mudryk. The Frenchman did fine in a struggling team in the remainder of the 22/23 season, but not well enough to seal his spot. And when injury kept Badiashile out of the start of the following campaign, Colwill took his chance after returning from loan at Brighton. 8 8 8 Meanwhile the unfortunate Fofana had suffered the second major knee injury of his short Chelsea career in the summer of 2023. Within weeks, the Blues had gone back to Monaco to bring in Axel Disasi for another £38m. The France international was a first choice under Mauricio Pochettino for much of the 2023/4 season. But new boss Maresca did not fancy Disasi, and he was sent on loan to Aston Villa for the second half of last season. The signing of Hato, 19, fits Chelsea's current transfer philosophy of signing the best young players and trying to turn them into superstars. If they fail, they can usually be sold on for a profit, as is likely to be the case with Renato Veiga. The versatile Portuguese was signed only last summer, did well enough to earn a loan to Juventus for the second half of the season and could find himself joining Atletico Madrid for a chunky fee. In addition to Veiga, Chelsea signed two teenage defenders last summer in centre back Aaron Anselmino and left back Caleb Wiley. The latter has now returned to Watford for a second season on loan, while Anselmino may well also leave on a temporary deal after recovering from injury. Mamadou Sarr, 19, is likely to be loaned back to Strasbourg after the Blues paid £12m to their sister club. Hato is also 19 but at a fee of £37m, he will surely need to deliver for Chelsea this season. The Blues will probably ease him in, perhaps initially as cover for left back Cucurella. In the longer term, Hato should end up challenging Colwill for that left-sided centre back slot or forming a partnership with the England international. And finally, after spending more on defenders than any club, Chelsea could end up with a world-class back four to show for it. 8
Daily Mail
3 hours ago
- Daily Mail
Divorced man awarded only 0.5 per cent of wife's $80million fortune wins 'gender bias' appeal
A city trader who claimed his divorce settlement was 'gender prejudice' after being handed $450K of his ex-wife's $80million family fortune has won an appeal case to have the arrangement reviewed. Simon Entwistle's three-year marriage to Jenny Helliwell ended in 2022 but he was awarded just 0.5 per cent of her fortune. He blamed gender bias for the decision and has won his case at the Court of Appeal in London, meaning his settlement will now be considered again. Appeal judges ruled Jenny had engaged in 'fraudulent' behavior by not declaring almost $64milllion of her £personal fortune whilst making a prenuptial agreement. The couple had a lavish wedding in Paris in August 2019 and Entwistle 'enjoyed the trappings of being married into a family of exceptional wealth,' it was said. They were living in a luxury villa in Dubai gifted to Helliwell by her father, businessman Neil Helliwell. But when they split up, Helliwell got her lawyers to order her husband out of the family home with just 48 hours' notice in August 2022. The pair, both 42, then went to court, with Entwistle asking for $3.3million from his interior designer ex-wife's personal fortune. Entwistle claimed he needed $48K a year for flights and $35K a year 'on a meal plan just for himself' because he said: 'I can't even cook an omelet. The judge told him: 'Being married to a rich person for three years does not suddenly catapult you into a right to live like that after the relationship has ended.' He was left with a 0.5 per cent share of the pot after the judge upheld a pre-nuptial agreement the pair had signed promising they would each keep their own assets in the event of a split. Appealing that ruling, Entwistle said he was a victim of 'gender prejudice' and that the prenup had been invalidated by Helliwell having failed to disclose assets worth almost $64milllion- amounting to 73 per cent of her wealth. Now, Lady Justice King has ruled that the nondisclosure by the heiress amounted to 'fraudulent' behavior which had invalidated the prenup. She allowed Entwistle's appeal and sent the case back to the divorce courts, ordering it to be recalculated as if the pre-nuptial agreement did not exist. The judge said: 'Willful or fraudulent breach of that agreement such that the disclosure made bears no resemblance to the true wealth of a capable of being material non-disclosure, as it deprives the other party of the information that they have agreed is necessary in order for them to decide whether to agree to a pre-nuptial agreement. 'Since the husband in the instant case was deliberately deprived of information which it had been agreed that he should have, in my judgment, the agreement cannot stand.' Challenging the judge's ruling at the Court of Appeal, Deborah Bangay KC, for Mr Entwistle, said: 'The judge was warned against gender prejudice, but failed to heed that warning. 'Had the positions been reversed, it is very unlikely that he would have so ungenerously assessed the needs of a wife after a six-year relationship.' She also argued that the prenup, which had been key to the husband's low award, was invalidated by Helliwell's failure to disclose her full wealth. Lady Justice King, giving her ruling, made no finding on the gender prejudice argument but said: 'The husband and wife entered into the agreement on the day they married, July 12, 2019. Upon divorce, each party would retain their own separate property and split any jointly owned property as to 50 per cent each. 'At the heart of the dispute is whether the wife's undoubted failure to disclose the majority of her substantial wealth should have the consequence that the agreement should not be upheld by the court. 'In the present case, the non-disclosure of the majority of her assets by the wife was undoubtedly deliberate.'
