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The bank plans to purchase approximately 564.6 million shares during the buyback, which is set to conclude no later than September 21, 2024. This decision comes after the European Central Bank approved the buyback plan that BBVA had disclosed earlier in July this year.
This marks the third extraordinary share buyback by BBVA over the past two years. The bank completed a €422 million buyback in April this year and a significantly larger €3.16 billion buyback in August 2022.
The latest share repurchase initiative from BBVA adds to the growing trend of financial institutions returning capital to shareholders through buybacks, following regulatory approvals. This strategy is often used by companies aiming to utilize excess capital and potentially boost their stock price by reducing the number of shares outstanding.
BBVA’s share buyback announcement comes at a time when the bank is enjoying a robust financial performance. According to InvestingPro data, BBVA has a market capitalization of $48.71 billion and a P/E ratio of 6.57, indicating it is trading at a low earnings multiple. The bank has also seen substantial revenue growth, with a 23.85% increase in the last twelve months (LTM2023.Q2). These strong financial metrics affirm BBVA’s position as a prominent player in the banking industry, one of the InvestingPro Tips provided for BBVA.
BBVA’s commitment to returning capital to shareholders is also evident in its dividend history. The bank has maintained dividend payments for 33 consecutive years, a fact highlighted in the InvestingPro Tips. Moreover, the bank’s dividend yield stands at 3.39%, and it has seen a significant dividend growth of 35.85% in the last twelve months (LTM2023.Q2).
BBVA’s stock price has also been performing well, with a 1-year price total return of 92.09%, and it is currently trading near its 52-week high, another InvestingPro Tip for the company. The bank’s strong stock performance and consistent dividend payments underline its ability to generate high returns for stockholders.
For more insights and tips on BBVA, consider accessing the InvestingPro product that includes additional tips and real-time metrics. InvestingPro currently lists 12 more tips for BBVA, providing in-depth analysis for potential investors.
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