The second largest banking group in Spain, BBVA, has reported that its net profit for Q1 grew by 25% against the same period a year ago, fueled by strong returns in Latin America and the US.
While performance on the far side of the Atlantic made the headlines, analysts noted that BBVA risks becoming overly dependent on this part of its business given that it has made little headway in M&A activity in Europe. Its Spanish business continues to deliver steady if unspectacular results.
BBVA’s Mexican, US and South American unit accounted for some E585 million in profit; around half the total earnings for the quarter of E1.02 billion. The bank reiterated that it was on the lookout for expansion opportunities, with the US a key market under scrutiny.
This may disappoint some analysts who feel BBVA should concentrate on issues closer to home and follow the lead of compatriot Banco Santander, which has made significant buys in Europe, including UK lender Abbey.