BBVA CEO Affirms Bank’s Financial Sustainability and Future Earnings Potential
BBVA CEO Onur Genç spoke at the 14th Financial Meeting, where he emphasized the bank’s financial sustainability and outlined key drivers for future earnings growth. Genç attributed BBVA’s success to innovative practices, strong sustainability efforts, and a focused digitization strategy.
Strong Franchises and Strategic Presence in High-Growth Markets
BBVA’s profitable franchises and strategic presence in high-growth markets were highlighted by Genç as crucial factors for the bank’s future earnings increase. He expressed confidence in BBVA’s future, emphasizing its structural advantages such as digital innovation and sustainability. Genç pointed out that BBVA outperforms its peers in Europe with a Return on Tangible Equity (ROTE) of 16.9%, surpassing the average of 13.5%. Furthermore, the bank has delivered a total shareholder return of 113% since January 2019.
Promising Markets and Shareholder Remuneration
BBVA’s primary markets, Spain and Mexico, are showing promise. Mexico is benefiting from nearshoring and the positive impacts of the U.S.’s Inflation Reduction Act. Turkey, another significant market for BBVA, is also making economic adjustments in response to macroeconomic imbalances.
BBVA’s shareholder remuneration policy allows for 40-50% of profit distribution in dividends and possible share buybacks. The bank has already distributed 40% of last year’s profit through cash dividends. In 2022, BBVA completed a €3.16 billion extraordinary share buyback. Since 2021, it has distributed €8.2 billion to shareholders through dividends and share buybacks.
Digital Transformation and Turkish Franchise
BBVA’s digital transformation is attracting new customers, particularly in Mexico and Spain. Genç also mentioned the successful takeover bid for BBVA’s Turkish franchise—Garanti—in 2021. Despite currency depreciation, Garanti has seen its market capitalization double.
Positive Asset Quality Metrics and Customer Satisfaction
Genç praised BBVA’s role in assisting specific groups, including rural Spain, and highlighted the bank’s ranking as number one in profitability, efficiency, and loan portfolio growth among Europe’s top 15 banks last year. He also mentioned an increase in customer satisfaction.
This article provides an overview of BBVA’s CEO Onur Genç’s remarks at the 14th Financial Meeting, emphasizing the bank’s financial sustainability, future earnings potential, and key drivers for growth. BBVA’s strong franchises, strategic presence in high-growth markets, and focus on digital innovation and sustainability position the bank for success. The article highlights the positive economic outlook in Spain, Mexico, and Turkey, as well as BBVA’s shareholder remuneration policy. BBVA’s digital transformation efforts and the success of its Turkish franchise are also discussed. Overall, Genç’s remarks showcase BBVA’s strong performance and optimistic outlook for the future.
