BBVA issues inflation statement for Turkey: 'Surprisingly'
While Banco Bilbao Vizcaya Argentaria (BBVA) reported earnings above expectations driven by interest income, it announced a loss in Turkey "due to hyperinflation accounting."
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The net profit of the bank, the main partner of Garanti BBVA, increased by 13 percent annually in the third quarter to 2.08 billion euros. The bank's net interest income rose by 23 percent.
According to Bloomberg HT, analysts had expected a net profit of 2.02 billion euros for Spain's second-largest bank. While BBVA's profit in Spain exceeded expectations, its profit in Mexico came in line with analyst forecasts.
SURPRISE LOSS IN TURKEY
On the other hand, BBVA recorded a surprise loss in Turkey due to adjustments stemming from inflation accounting and tax increases.
BBVA benefited from rising borrowing costs in Europe and Mexico. The bank, which also recently launched a share buyback program, has returned up to 1 billion euros to its investors.
BBVA shares have rallied 33 percent this year, outperforming the Stoxx 600 Banks index, which rose 8 percent.