Thursday, February 2

BBVA repurchases 125 million shares for 643 million euros in two months

BBVA has acquired 125.82 million shares for 643.68 million euros within the framework of its share buyback program, which means having reached 43% of the maximum investment contemplated in the first tranche of the buyback in two months , according to information collected by Europa Press.

The bank gave kick-off on November 22 for the first tranche of the share buyback program, whose maximum amount will be 1,500 million euros and will not exceed 637,770,016 shares to be acquired.

According to the terms of the program, said first tranche will end between February 16 and April 5, 2022, when within that period the maximum monetary amount is reached or the maximum number of shares is acquired.

BBVA mandated JP Morgan to execute the first tranche externally and updates the market supervisor every week on the share purchase operations carried out.

This Friday BBVA has notified the National Securities Market Commission (CNMV) that, according to the information received by the US investment bank as manager, in the last week it has bought more than 6.86 million of its shares for an amount greater than 38.7 million euros.

Two months after the repurchase began, BBVA has acquired the sum of 125.82 million shares for a total amount of 643.68 million euros, about 43% of the 1,500 million cap that it will invest in the first tranche.

BBVA decided to undertake a relevant share repurchase as a means of rewarding its shareholders with the excess capital it maintains after the sale of its subsidiary in the United States to PNC.

The repurchase will be executed in several tranches over a maximum period of twelve months. Its maximum amount will amount to 3,500 million euros, making it one of the largest share buybacks in Europe to date.

In addition, in November the bank approved a new dividend policy that involves distributing annually between 40% and 50% of the consolidated ordinary profit for each year, compared to the 35%-40% range established by the previous policy.

The shareholder remuneration will be distributed through an interim dividend for the year, expectedly every October, and a complementary dividend, which would be paid once the year has ended and the application of the result has been approved, expectedly every April.

Cash distributions may be combined with share buybacks, although the 3.5 billion program is excluded from the dividend policy, which only applies to ordinary remuneration.

One of BBVA’s strategic priorities, unveiled during the ‘Investor Day’ on November 18, is to achieve an annual increase in the tangible book value per share plus dividends of 9% until 2024 at a compound annual rate.

BBVA’s share price rose by more than 30% throughout 2021, closing the trading year at 5.25 euros, also above the pre-pandemic level. BBVA shares closed yesterday’s trading session at a price of 5.75 euros.