Latest news with #Ibex-35
Yahoo
30-04-2025
- Business
- Yahoo
BBVA warns of US tariff uncertainty on Mexican business
By Jesús Aguado MADRID (Reuters) - Spain's BBVA on Tuesday warned of the potential impact of U.S. tariffs on its Mexican unit and said the fallout could curb growth in loan income, although a solid performance in Spain helped the bank beat first-quarter profit expectations. BBVA and peer Santander have depended on Latin American markets to offset pressure from lower interest rates in the euro zone, but BBVA now wants to reduce its reliance on emerging markets such as Mexico and Turkey and last year made a hostile bid for smaller Spanish rival Sabadell. In the first quarter, BBVA's net profit rose 23% and beat forecasts thanks to its home market. The bank's net profit in Spain grew 43.8% while net profit in Mexico, where it makes around half its profit, fell 7.6% partly due to the depreciation of the Mexican peso at a moment when the country braces for a shift in U.S. tariffs policies. BBVA's CEO Onur Genç said the bank was not revising upwards its high single-digit outlook guidance for loan and lending income growth for 2025 in Mexico due to current uncertainty despite solid business dynamics in this country. "In a normal environment, we would have upgraded our guidance, but we need to be cautious and we need to see how things turn out in the coming weeks and months before we can certainly say that it will be a higher figure," Genç told analysts. At 0916 GMT, shares in BBVA had fallen 1.5% down compared to a decline of 0.4% at Spain's blue-chip index Ibex-35. BBVA, which shocked Spain last May when it turned hostile in its pursuit of Sabadell with a more than 12 billion euros ($12.84 billion) bid at the time, wants to create a bank with over 1 trillion euros in total assets. Spain's competition watchdog CNMC is set to approve BBVA's proposed acquisition Sabadell as early as this week and Genc said this process was expected to be resolved in the coming days. BBVA booked a net profit of 2.7 billion euros ($3.08 billion) in the January to March period, above the 2.42 billion euros expected by analysts polled by Reuters, thanks to lower impact from the renewed banking tax in Spain. Higher earnings and revenues helped BBVA lift its return-on-tangible equity ratio (ROTE), a measure of profitability, to 20.2% in the quarter from 19.7% at end-December and the bank maintained its forecast to achieve profitability levels similar to those of 2024. Overall net interest income, the difference between earnings on loans minus deposit costs, fell 1.7% year-on-year. In Turkey, net profit rose 9.7% to 158 million euros but would fall short of expectations of meeting the bank's target of a net profit of 1 billion euros by the end of 2025. In terms of solvency, BBVA managed to lift its core tier-1 capital ratio to 13.09% at end-March from 12.88% at end-December. ($1 = 0.8784 euros)
Yahoo
24-04-2025
- Business
- Yahoo
Bankinter beats profit forecast, sees lending income holding up
By Jesús Aguado MADRID (Reuters) -Spain's Bankinter ( on Thursday stuck to its forecast for lending income to hold up this year after net profit in the first quarter beat forecasts, supported by a pick up in demand for loans in its home market. Spanish banks are mainly retail lenders and have benefited from higher costs of loans tied mostly to variable rates. However, recent reductions in European Central Bank interest rates are now starting to squeeze margins. In the first quarter, Bankinter's net interest income, or earnings on loans minus deposit costs, fell 6% year-on-year to 541 million euros, in line with analysts' forecasts. Against the previous quarter, NII fell 2%. "With recent volatility and some marketing uncertainty it is very hard to predict future interest rate movement, but we're still not changing our previous flattish or slightly positive guidance on net interest income for 2025," Bankinter's Chief Financial Officer Jacobo Diaz told analysts. At 0942 GMT, shares in Bankinter were up 1.8% compared with a decline of 0.4% in Spain's blue-chip index Ibex-35. Diaz expected lower deposit costs and a mid-single-digit percentage increase in loans to support margins this year, adding that NII should begin to recover in the second quarter. Bankinter's customer spreads decreased to 2.71% from 2.74% in the previous quarter, as yields on loans declined 19 basis points while deposit costs fell 16 bps. Net profit rose 35% to 270 million euros, beating estimates of 224 million euros after the bank did not book any charges in the quarter related to a renewed banking tax. Chief Executive Officer Gloria Ortiz said that overall the bank expected the impact of the tax to be "around zero or close to zero" due to some tax deductions. In the first quarter of 2024, Bankinter had reported a 95 million euro cost related to the levy. Ortiz also stuck to the bank's net profit goal of around 1 billion euros for this year. First-quarter earnings were also boosted by a 13% increase in net fees and commissions, while loans rose 5% against the same quarter of 2024.
Reuters
27-03-2025
- Business
- Reuters
Spain's Criteria says no current talks on stake in Naturgy
MADRID, March 27 (Reuters) - Spanish holding company Criteria said on Thursday it was not at present in negotiations with any potential investor regarding its stake in the energy utility Naturgy ( opens new tab. The statement comes after Bloomberg News reported on Monday that Abu Dhabi's TAQA ( opens new tab had approached Naturgy's largest shareholder, Criteria, to revive an offer for a stake in the Spanish utility. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. Criteria, which holds a 26.7% stake in Naturgy, said in a filing to the stock market supervisor that it "is not currently in negotiations with any potential investment group regarding its stake in Naturgy Energy Group". Bloomberg said on Monday the UAE's minister of investment and TAQA chairman, Mohamed Hassan Alsuwaidi, had travelled to Spain to meet with a Criteria executive to discuss a potential deal. Last year, TAQA was eyeing Criteria's stake for a possible partnership agreement but failed to reach a deal. Shares in Naturgy were up 0.5% in late afternoon trading while Spain's blue-chip index Ibex-35 (.IBEX), opens new tab was flat.
