Profits jump at BBVA after sale of Chile unit offsets Argentina woes
Spanish lender BBVA posted a 46 per cent rise in third-quarter net profit after the sale of a business unit in Chile helped offset a loss taken from problems in Argentina.
The bank reported net profit of €1.67bn in the period July to September, in line with analysts’ forecasts. BBVA took a charge of €190m in Argentina to adjust for the country’s hyperinflation and a capital gain of €633m from the sale of BBVA Chile.
Weakness in the Turkish market also weighed on results, where the bank said the “macroeconomic environment prompted an increase in impairment losses on financial assets and cost of risk”.
The non-performing loan ratio in the country increased from 4.5 per cent in June to 5.2 per cent in September.
Analysts at Jefferies said that they were a “decent set of results”, highlighting strong than expected performance in Mexico which helped to offset some weakness elsewhere.
Carlos Torres Vila, the chief executive of BBVA, said that despite the “challenging” situation in Turkey and Argentina, the “results we are presenting today reveal the strength of our business model and geographic diversification.”