BBVA maintains the same conditions that it offered to the board of Sabadell (SAB) and that the latter rejected, so now “the ball is in the court” of the shareholders of Sabadell (SAB), who will determine whether the operation goes ahead or not. BBVA shares received the news with declines of 5% while those of Sabadell (SAB) rose 4%. As Jefferies pointed out in its analysis of the offer, “Despite…
Banco Sabadell (SAB) has rejected the offer that BBVA (BBVA) had made last week to merge the two entities, considering that it will generate more value on its own, the bank has informed the National Securities Market Commission (CNMV). Sabadell’s board, which met on Monday to assess the offer, based its decision on the opinion that it could create greater shareholder value by remaining alone. BBVA’s proposal was for a…
Jefferies | BBVA (Buy) submitted an offer for Sabadell (Restricted) less than 24 hours after BBVA’s interest was leaked to the press. The deal implies c4% EPS enhancement and a 30bps capital cost for BBVA, in line with our baseline published yesterday (3% and -20bps respectively) as the higher premium (30%) is offset by larger cost synergies (€850m vs. our €550m estimate). Deal logic is sufficiently clear and valid for…
Jefferies | A press leak earlier this morning seems to have unveiled renewed merger talks between BBVA (Buy) and Sabadell (Restricted). We provide some food for thought and outputs under different scenarios. We can see the merits for such a deal from the vantage of BBVA, but we remain expectant on whether both parties can agree on sensible terms. Our baseline scenario suggests 3.5% EPS accretion on just 20bps CET1…
Jefferies | BBVA reported a solid 1Q24 print, with a 10% PAT beat versus consensus, driven by strong revenues, partly offset by costs. The quarter confirmed solid dynamics across most geographies, with beats coming from both Spain and Mexico. The FY24 outlook for revenues is improving on the back of better NII dynamics in Spain, and NAP for the group now guided to grow double-digit versus FY23 (consensus at 7%…
Link Securities| The financial institution has reported the completion of the execution of its share buyback programme, having reached the maximum monetary amount of €781 million. With the acquisition of the last shares referenced below, the total number of shares acquired in execution of the Buyback Programme is 74,654,915 treasury shares, representing approximately 1.28% of BBVA’s share capital at this date. As indicated by BBVA, the purpose of the Buyback…
Link Securities| The chairman of BBVA (BBVA), Carlos Torres, said that the bank tax damages the Spanish economy and should not exist, because it negatively affects the volume of loans and reduces GDP growth, in an interview with the newspaper Expansión, on the occasion of the World Economic Forum in Davos (Switzerland). The executive defends that the Spanish banking sector is efficient and competitive and does not enjoy extraordinary profits….
Link Securities | BBVA (BBVA) and Banco Santander (SAN) have reached agreements with Geely and GAC Motor to finance nearly 30,000 vehicles in the Mexican market in one year, a market that both entities consider strategic, according to Expansión newspaper on Friday. BBVA and Geely have signed an agreement whereby the bank will be the exclusive financier of the Asian brand in the country through the launch of Geely Financial…
Norbolsa | The bank has approved the distribution of a dividend of 16 cents/share, +33% vs 2022. The news came a day after Santander’s dividend announcement (+39% vs 2022), although in this case the dividend will be 100% in cash. Thus, the bank’s payout remains in the 40-50% range of its strategy and in line with the objective of remunerating shareholders, supported by the bank’s good results. Shareholders will receive…
CdM | The new Green and Social Bonds Report 2022 published by BBVA (BBVA) highlights that in the last year the bank doubled the number of green bonds issued. Since 2018, the financial institution has issued eight green bonds for a total amount of €4,723 million, half of these issues occurred last year for a value of €1,688 million. The report states that by the end of 2022, BBVA’s parent…