FINANCIALS: BBVA (A3/A/A-) 4Q results
Credit neutral. Sharply higher expenses, blamed on inflationary macroeconomic environment, cause net income to fall despite healthy revenues. Expectations even slightly lower however, so impact should be minimal.
- Net interest income rose by 9.2% vs Q3 to €6,406m for the quarter.
- Fees & commissions also grew 16.8% QoQ to €2,234m, other income was down €258m to €680m as trading income slowed slightly.
- Expense growth was high , increasing by 20% or €683mn QoQ to €4,093m
- Provisions were stable at €1,466m, putting the cost of risk 1bp higher at 1.43%. NPL's did fall 30bps to 3% though.
- As a result operating income was actually -2.7% lower at €3,761m and Net income -7.8% to €2,332
- CET1 was up 4bps QoQ to 12.88%. +64bps earnings, -35bps distributions, -18bps RWA moves.
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SILVER TECHS: Bearish Cycle Remains Intact
- RES 4: $34.903 - High Oct 23 and the bull trigger
- RES 3: $33.125 - High Nov 1
- RES 2: $32.338 - High Dec 12 and a key resistance
- RES 1: $30.676 - 50-day EMA
- PRICE: $28.945 @ 07:58 GMT Dec 31
- SUP 1: $28.748 - Low Dec 19
- SUP 2: $28.446 - 76.4% retracement of the Aug 8 - Oct 23 bull cycle
- SUP 3: $27.686 - Low Sep 6
- SUP 4: $26.451 - Low Aug 8
A bear cycle in Silver that started Oct 23 remains in play. The metal has recently breached support at $29.642, the Nov 28 low. The break lower opens $28.446, a Fibonacci retracement. Note that moving average studies are in a bear-mode position highlighting a dominant downtrend. Key resistance has been defined at $32.338, the Dec 12 high. A break of this level would signal a reversal.
