Banco Bilbao Vizcaya Argentaria Sa Net Income surged on 53.5% while Revenue decreased on 7.3%
01 Feb 2019 • About Banco Bilbao Vizcaya Argentaria Sa (
$BVA) • By InTwits
Banco Bilbao Vizcaya Argentaria Sa reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Banco Bilbao Vizcaya Argentaria Sa has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's a lot of higher than industry average of 2.8%.
- CAPEX is quite volatile: €943m in 2018, €777m in 2017, €1,312m in 2016, €2,171m in 2015, €1,419m in 2014
- The company has potentially unprofitable business model: ROIC is 3.0%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.8x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased on 7.3%. During the last 5 years Revenue growth topped in 2015 at 14.0% and was decelerating since that time.
Net Income margin increased on 5.6 pp from 8.5% to 14.1% in 2018. The efficient tax rate was 29.1% in 2018.
Investments (CAPEX, working capital and M&A)
In 2018 the company had CAPEX/Revenue of 2.5%. The company showed decline in CAPEX/Revenue of 3.6 pp from 6.0% in 2015 to 2.5% in 2018. Average CAPEX/Revenue for the last three years was 2.6%.
Return on investment
The company operates at low ROIC (3.0%) and ROE (11.6%). ROIC showed almost no change in 2018. ROE increased on 4.0 pp from 7.5% to 11.6% in 2018. ROIC grew at 0.31 pp per annum in 2014-2018. ROE stuck to a growing trend at 1.4 pp per annum in 2014-2018.
Leverage (Debt)
Debt dropped on 14.7% while cash jumped on 36.4%.
Banco Bilbao Vizcaya Argentaria Sa has short term refinancing risk: cash is only 48.1% of short term debt.
The company paid 39.0% of Net Income as dividends in 2018.
Management team
Onur Genc is a Banco Bilbao Vizcaya Argentaria Sa's CEO. Onur Genc has spent 1 year with the company. CEO total compensation was €3,210,000 in 2018 which included €1,965,000 salary and €562,000 annual bonus. Banco Bilbao Vizcaya Argentaria Sa's CFO Jaime Saenz De Tejada Pulido has spent 1 year with the company.
Insider ownership is 0.11%.
The company has 129,336 employees. Average revenue per employee in 2018 was €295,726.
Financial and operational results
FY ended 31 Dec 2018
Banco Bilbao Vizcaya Argentaria Sa ($BVA) key annual financial indicators| mln. € | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 31,543 | 35,962 | 39,491 | 41,256 | 38,248 | -7.3% |
| Tax | | | | | 2,219 | |
| Net Income | 2,618 | 2,642 | 3,475 | 3,519 | 5,400 | 53.5% |
Balance Sheet
|
|---|
| Cash | 31,430 | 29,282 | 40,039 | 42,680 | 58,196 | 36.4% |
| Inventory | | | | | 635 | |
| Short Term Debt | 112,396 | 133,824 | 122,926 | 149,602 | 121,062 | -19.1% |
| Long Term Debt | 72,191 | 81,980 | 76,375 | 63,915 | 61,112 | -4.4% |
Cash flow
|
|---|
| Capex | 1,419 | 2,171 | 1,312 | 777 | 943 | 21.4% |
| Dividends | | | | | 2,107 | |
Ratios
|
|---|
| Revenue growth | -3.5% | 14.0% | 9.8% | 4.5% | -7.3% | |
|
|---|
| Net Income Margin | 8.3% | 7.3% | 8.8% | 8.5% | 14.1% | 5.6% |
| CAPEX, % of revenue | 4.5% | 6.0% | 3.3% | 1.9% | 2.5% | 0.6% |
|
|---|
| ROIC | 1.7% | 2.2% | 2.4% | 2.6% | 3.0% | 0.5% |
| ROE | 5.7% | 5.5% | 7.3% | 7.5% | 11.6% | 4.0% |
People
|
|---|
| Insider ownership | | | | | 0.1% | |
| Employees | | | | | 129,336 | |
| Revenue/Employee, th. € | | | | | 296 | |
Peers in Banks
Below you can find Banco Bilbao Vizcaya Argentaria Sa benchmarking vs. other companies in Banks industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| European Islamic Investment Bank ($EIIB) | 42.3% | -4.1% | -63.9% | 232.5% | |
| Halyk Savings Bank Of Kazakhstn JSC ($HSBK) | 16.3% | 19.5% | 16.4% | 59.5% | |
| Zenith Bank ($ZENB) | | 6.8% | 17.9% | 46.7% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 18.9% | 26.8% | 27.0% | 46.4% | |
| TCS Group Holding ($TCS) | 11.5% | 10.6% | 34.0% | 33.7% | |
| |
|---|
| Median (43 companies) | 13.6% | 3.5% | 3.4% | 4.5% | 12.2% |
|---|
| Banco Bilbao Vizcaya Argentaria Sa ($BVA) | | 14.0% | 9.8% | 4.5% | -7.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Lloyds Banking Group ($LLPC) | 13.1% | 13.6% | 14.5% | 14.5% | |
| Banco Santander Sa ($BNC) | 8.9% | 10.2% | 9.1% | 10.0% | 14.7% |
| Bcb Hldgs Ltd ($BCBW) | 5.4% | 2.5% | 3.0% | 7.3% | 5.9% |
| Royal Bank Of Scotland Group ($RBS) | 4.1% | 4.6% | 5.6% | 7.1% | |
| Diamond Bank ($DBPA) | 6.0% | 6.7% | 6.2% | 7.0% | |
| |
|---|
| Median (39 companies) | 2.0% | 2.5% | 2.0% | 1.8% | 1.3% |
|---|
| Banco Bilbao Vizcaya Argentaria Sa ($BVA) | 4.5% | 6.0% | 3.3% | 1.9% | 2.5% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| TCS Group Holding ($TCS) | 6.7% | 3.4% | 22.5% | 31.8% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 30.1% | 30.3% | 28.0% | 25.3% | |
| Guaranty Trust Bank ($GRTB) | 17.8% | 16.0% | 17.4% | 18.3% | |
| Sberbank Of Russia ($SBER) | 4.8% | 4.0% | 9.4% | 13.0% | |
| Zenith Bank ($ZENB) | 15.0% | 11.2% | 11.1% | 11.4% | |
| |
|---|
| Median (43 companies) | 4.4% | 3.5% | 4.6% | 4.6% | 4.5% |
|---|
| Banco Bilbao Vizcaya Argentaria Sa ($BVA) | 1.7% | 2.2% | 2.4% | 2.6% | 3.0% |
