BBVA's Q4 2024: Diverging Views on Mexico's Loan Growth, Turkish Margins, and Capital Strategies

These are the key contradictions discussed in Banco Bilbao Vizcaya Argentaria's latest 2024Q4 earnings call, specifically including: Loan Growth Guidance in Mexico, NII Margin Expansion in Turkey, Excess Capital Utilization, and Loan Growth Guidance in Mexico (second instance):



Profit and Shareholder Distribution:
- BBVA reported a net attributable profit of €15.2 billion for 2024, surpassing the €10 billion threshold and growing earnings per share by 28%.
- The growth was driven by a 14.3% increase in the loan portfolio and the successful execution of strategic goals, leading to a 50% payout ratio in shareholder distributions.

Growth and Strategic Pillars:
- The company achieved loan growth of 14.3% and acquired 11.4 million new customers, expanding its digital strategy with a 66% increase in digital customer acquisition.
- This was supported by a strong customer satisfaction rate, with a net promoter score improvement of 10 percentage points, driven by enhancing digital capabilities and client service.

Mexican Market Leadership:
- In Mexico, BBVA delivered a high loan growth of 16%, increasing its market share to 25.4%, up 87 basis points year-on-year.
- The growth was driven by strong leadership in key market segments and effective management of cost of deposits, maintaining a competitive advantage over peers.

Spain's Robust Performance:
- Spain achieved a 2024 full year net profit of €3.8 billion, with loan growth of 4.1% and a significant improvement in loan growth compared to previous years.
- The performance was supported by solid economic growth and lower rates, leading to improved lending activity and market outperformance.