The Turkish lira received yesterday with a rise of around 1.5% against the euro the result of the municipal elections in Turkey, in which President Recep Tayyip Erdogan suffered a resounding defeat.
The opposition party, the social democratic CHP, has won in the country’s main cities: Istanbul, Ankara and Izmir. “This is not an end, but a turning point,” said Erdogan, recalling that there are four years left until the next general elections.
The Turkish currency, which has lost 8.4% so far this year and is still close to the historical lows signed on March 20, recovered the initial losses after Erdogan assured after the electoral setback that he will give more time to his economical team to achieve results. The great challenge is to stop the strong inflation that Türkiye suffers, which is around 65% year-on-year.
“We believe that Turkey’s current 50% interest rate rate is high enough to facilitate the desired rebalancing of the economy,” say Deutsche Bank analysts.
In this scenario, BBVA, which last year generated an attributable profit of 528 million euros in Turkey, 5% more than in 2022 in current euros, will be one of the values under the spotlight on the stock market when stock market operations resume today. after the last holidays. BBVA’s ADRs were quoted yesterday at closing on Wall Street with a 0.84% cut.
The value faces the impact of the electoral results at historical highs. Last Thursday it surpassed the 11 euro level for the first time and is already up 34% in 2024. It is the best Spanish bank of the year on the stock market and the fourth among large European financial entities. At the end of the first quarter of the year, only the Italian BPER banking, Unicredit and Banca Monte del Paschi Siena are ahead.
With a market capitalization of almost 64.5 billion euros, BBVA is also one of the big stars of the Ibex 35 this year. Only Indra and Rovi earn more. However, analysts believe that at current levels there is no longer any way forward. They give it an average target price of 10.5 euros, 4% above the current level on the stock market.
BBVA’s records on the Stock Market come before the dividend payment. On April 10, the entity will distribute 0.39 euros gross per share as a complementary payment. A year before, the disbursement was 0.31 euros.
To be entitled to the payment you must be a BBVA shareholder at the close of the session next Friday, April 5. On Monday the 8th the share will discount the price by 0.39 euros. The total dividend yield is 4.3%.
