Banco Bilbao Vizcaya Argentaria Sa reports 35.0% Net Income decline in 2019 while 4.4% Revenue growth
31 Jan 2020 • About Banco Bilbao Vizcaya Argentaria Sa (
$BVA) • By InTwits
Banco Bilbao Vizcaya Argentaria Sa reported 2019 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Banco Bilbao Vizcaya Argentaria Sa has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's a lot of higher than industry average of 1.8%.
- CAPEX is quite volatile: €852m in 2019, €943m in 2018, €777m in 2017, €1,312m in 2016, €2,171m in 2015
- The company has potentially unprofitable business model: ROIC is 3.1%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.2x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 4.4%. During the last 5 years Revenue growth bottomed in 2018 at -7.3%.
Net Income margin decreased on 5.3 pp from 14.1% to 8.8% in 2019.
Investments (CAPEX, working capital and M&A)
In 2019 the company had CAPEX/Revenue of 2.1%. The company showed small CAPEX/Revenue decline of 1.2 pp from 3.3% in 2016 to 2.1% in 2019. For the last three years the average CAPEX/Revenue was 2.2%.
Return on investment
The company operates at low ROIC (3.1%) and ROE (7.3%). ROIC showed almost no change in 2019. ROE decreased on 4.2 pp from 11.6% to 7.3% in 2019. ROIC grew at 0.25 pp per annum in the last 5 years. During 2015-2019 ROE topped in 2018 at 11.6%.
Leverage (Debt)
Debt increased on 2.7% while cash dropped on 23.9%.
Banco Bilbao Vizcaya Argentaria Sa has short term refinancing risk: cash is only 36.0% of short term debt.
Management team
Banco Bilbao Vizcaya Argentaria Sa's CEO is Onur Genc. Onur Genc is a founder and has 1 year tenure with the company. Jaime Saenz De Tejada Pulido is a the company's CFO. Jaime Saenz De Tejada Pulido has spent 1 year at the company.
Financial and operational results
FY ended 31 Dec 2019
Banco Bilbao Vizcaya Argentaria Sa ($BVA) key annual financial indicators| mln. € | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 35,962 | 39,491 | 41,256 | 38,248 | 39,932 | 4.4% |
| Tax | | | | 2,219 | | |
| Net Income | 2,642 | 3,475 | 3,519 | 5,400 | 3,512 | -35.0% |
Balance Sheet
|
|---|
| Cash | 29,282 | 40,039 | 42,680 | 58,196 | 44,303 | -23.9% |
| Inventory | | | | 635 | | |
| Short Term Debt | 133,824 | 122,926 | 149,602 | 121,062 | 123,073 | 1.7% |
| Long Term Debt | 81,980 | 76,375 | 63,915 | 61,112 | 63,963 | 4.7% |
Cash flow
|
|---|
| Capex | 2,171 | 1,312 | 777 | 943 | 852 | -9.7% |
| Dividends | | | | 2,107 | | |
Ratios
|
|---|
| Revenue growth | 14.0% | 9.8% | 4.5% | -7.3% | 4.4% | |
|
|---|
| Net Income Margin | 7.3% | 8.8% | 8.5% | 14.1% | 8.8% | -5.3% |
| CAPEX, % of revenue | 6.0% | 3.3% | 1.9% | 2.5% | 2.1% | -0.3% |
|
|---|
| ROIC | 2.2% | 2.4% | 2.6% | 3.0% | 3.1% | 0.1% |
| ROE | 5.5% | 7.3% | 7.5% | 11.6% | 7.3% | -4.2% |
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 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Bank Muscat ($BKM) | | 6.9% | 8.2% | 5,513.3% | 19.2% |
| Yapi Ve Kredi Bankasi As ($YKBD) | 25.3% | 17.8% | 18.8% | 51.8% | |
| Turkiye Garanti Bankasi ($39IS) | | 20.4% | 18.6% | 50.6% | 7.9% |
| Finansbank ($FBKD) | | 16.8% | 19.0% | 50.1% | 13.9% |
| Turk Ekonomi Bankasi As ($TURA) | 14.6% | 18.1% | 2.6% | 44.8% | |
| |
|---|
| Median (19 companies) | 4.2% | 3.4% | 4.5% | 12.9% | 7.9% |
|---|
| Banco Bilbao Vizcaya Argentaria Sa ($BVA) | | 9.8% | 4.5% | -7.3% | 4.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Banco Santander Sa ($BNC) | 10.2% | 9.1% | 10.0% | 14.7% | |
| Bcb Hldgs Ltd ($BCBW) | 2.5% | 3.0% | 7.3% | 5.9% | |
| Barclays ($BARC) | 7.1% | 6.3% | 5.4% | 4.9% | |
| Royal Bank Of Scotland Group ($RBS) | 4.6% | 5.6% | 7.1% | 3.7% | |
| Turkiye Garanti Bankasi ($39IS) | 2.4% | 3.6% | 2.4% | 3.5% | 1.1% |
| |
|---|
| Median (16 companies) | 2.5% | 2.0% | 1.8% | 1.3% | 1.2% |
|---|
| Banco Bilbao Vizcaya Argentaria Sa ($BVA) | 6.0% | 3.3% | 1.9% | 2.5% | 2.1% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Bcb Hldgs Ltd ($BCBW) | -8.7% | 5.7% | 5.0% | 34.6% | |
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 30.3% | 28.0% | 25.3% | 25.4% | |
| Komercni Banka ($KMCA) | 7.4% | 8.0% | 9.1% | 8.7% | |
| Turkiye Garanti Bankasi ($39IS) | 4.3% | 5.5% | 6.5% | 6.5% | 6.3% |
| Finansbank ($FBKD) | 3.1% | 4.3% | 4.6% | 5.4% | 4.7% |
| |
|---|
| Median (34 companies) | 3.5% | 4.6% | 4.6% | 4.5% | 4.6% |
|---|
| Banco Bilbao Vizcaya Argentaria Sa ($BVA) | 2.2% | 2.4% | 2.6% | 3.0% | 3.1% |
