BBVA Plans to Launch Buyback
By Pietro Lombardi
Banco Bilbao Vizcaya Argentaria SA plans to launch a buyback of about 10% of its shares as it makes returns to shareholders a key focus this year.
The Spanish bank has agreed to sell its U.S. business, which should give it roughly 8.5 billion euros ($10.30 billion) in capital that will be used to foster growth and remunerate shareholders. The bank is also proposing a cash dividend of EUR0.059 a share for 2020 and plans to return to its shareholder remuneration policy this year, it said Friday.
BBVA raised its capital target, now targeting a core tier 1 ratio–a key measure of capital strength–of between 11.5% and 12%, from the previous 10.84% to 11.34%.
The bank’s core tier 1 ratio was 11.73% at the end of December from 11.52% in September.
The lender posted fourth-quarter net profit of EUR1.32 billion compared with a loss of EUR155 million a year earlier.
For the whole of 2020, profit fell roughly 63% to EUR1.31 billion.
Write to Pietro Lombardi at email@example.com; @pietrolombard10
(END) Dow Jones Newswires
January 29, 2021 01:49 ET (06:49 GMT)
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