BBVA's Official Statement: Shows All Its Cards to the Amazement of Customers

BBVA has recently made a clear exercise in transparency. Its clients and shareholders have been able to learn many details that until now might have been unknown to many. The entity has revealed how it distributes the profit obtained in 2024.

During the presentation of last year's results, its president, Carlos Torres Vila, explained in detail how the caused income is allocated. This clear division has left many surprised, especially by showing precisely how the bank's finances are managed and the benefits it provides to different areas of the economy.

According to the provided figures, almost 60% of BBVA's income is allocated to three key concepts: employees, suppliers, and credit costs.

This is how BBVA distributes its income

The first destination of BBVA's income is the payment to its employees, as well as the taxes associated with social contributions. Specifically, 22% of what the bank earns, about 7.7 billion euros, is allocated to these purposes.

The second major block is the provisioning for the risk of banking activity. This is especially related to the credit the bank provides to its clients. As is known, credit always carries a risk, so the entity must reserve a part of its profits to cover possible defaults or similar situations.

In this case, 22% of BBVA's income, equivalent to about 7.9 billion euros, is allocated to these provisions. Additionally, expenses related to asset amortization are also considered, which increases the burden of these expenses.

The third important aspect of income distribution is related to general expenses. Most of these correspond to payments to suppliers, especially the payment for the premises they establish. This also demonstrates the support the bank provides to the local economy.

This concept represents 14% of its income, which is equivalent to about 5 billion euros. This part of the resources is allocated to maintaining the bank's daily operations and ensuring the continuity of its market operations.

BBVA explains what happens with the rest of the money

Once these three major concepts are deducted, the rest of the income obtained by BBVA constitutes the profit before taxes. It reaches a little more than 40% of the income. This profit is allocated to three key purposes:

- One-third of this profit, around 4.8 billion euros, is allocated to tax payments.

- Another third, approximately 5 billion euros, is reinvested in the bank to ensure its growth and expansion in the future.

- The last third, also about 5 billion euros, is allocated to remunerate BBVA's more than 700,000 shareholders.