BBVA earnings call for the period ending March 31, 2022.
MADRID (Reuters) -Spain's BBVA beat forecasts on Friday with a 36.4% year-on-year rise in first quarter net profit, driven by a strong performance in emerging markets, while competitor Caixabank suffered some pressure on lending income. Net profit at BBVA came in at 1.65 billion euros ($1.74 billion) in the January to March period, more than the 1.24 billion euros forecast by analysts polled by Reuters. Like larger Spanish rival Santander, BBVA has been expanding in emerging economies as it struggles to boost income in more mature markets, though some analysts point to risks from its exposure to current macroeconomic uncertainty in Turkey.
Spain's BBVA on Friday said it had bought back 662 branches, which it sold between 2009 and 2010 under a sale and lease back agreement to Tree Inversiones Inmobiliarias, owned by real estate company Merlin Properties. As part of deal, the Spanish bank agreed to pay 1.99 billion euros ($2.20 billion) for 100% of the shares of Tree Inversiones Inmobiliarias, which owns 659 branches and three individual buildings. BBVA estimated the deal would hit its capital by 7 basis points and have a negative net impact of 200 million euros once the transaction is completed, which is expected at the end of the second quarter.