BBVA has increased the import of its October dividend by 33%, the first charged to the 2023 results. Specifically, the BBVA Board of Directors has agreed to pay an amount with a gross import of 0.16 euros per share in cash, while a year ago it was 0.12 euros. In total, the bank will distribute 954.4 million in cash to its shareholders.
Once the tax withholding is deducted, the net import per share will be 0.1296 euros. The last day of trading for BBVA shares with the right to participate in the distribution will be October 6, 2023, while the first day of BBVA shares without the right to participate in the distribution (ex-dividend date) will be October 9. October 2023. Regarding payment, it will be made on October 11.
With this announcement, the entity maintains its commitment to maintaining a shareholder remuneration policy that includes a ‘payout’, the percentage of the profit that goes to shareholders, of between 40% and 50% of the profit. The implementation of this policy is carried out through two payments (one on account, usually in October, and one complementary, usually in April).
Already at the beginning of the year, the president of BBVA, Carlos Torres, announced that the entity would distribute the largest dividend in its history in April of this same year, improving the 31 cents per share distributed against the results of 2021. For 2022, The dividend payment amounted to 43 cents per share, but within the bank’s dividend improvement program, the market estimated that shareholder remuneration could reach up to 50 cents per share.
Likewise, the entity announced in July of this year, coinciding with the presentation of the second quarter results, a share repurchase plan for an import of 1,000 million euros. Precisely, the CEO of the entity, Onunr Genç, explained to JP Morgan analysts that the bank’s intention is to continue creating value for shareholders, including new programs to buy back its own securities.
Behind this distribution are the estimates that the entity will obtain a net profit at the end of the record year. Analysts estimate that profits could exceed 7 billion euros, driven by the business in Mexico and the improvement in interest margin in Spain, which would benefit from the rise in interest rates by the ECB.
In the first six months, the bank earned 3,878 million euros, which represented an increase of 31% compared to the same period in 2022 and 45.2% at constant exchange rates.