Carlos Torres Vila: “The decision about (the integration with BBVA) now lies with Banco Sabadell shareholders”

During his presentation, the BBVA Chair advocated for “a stronger, more cohesive Europe that is capable of responding to current challenges with agility.” From his standpoint, geopolitical fragmentation, armed conflicts, technological advancements and global competition are forcing Europe to bolster its position as a region. In this regard, he called for greater unity and ambition in Europe to promote key sectors, like the finance industry.

“While Europe continues to be an economic powerhouse, it has lost relative ground in strategic fields. One of them is banking,” he recalled. While other regions have consolidated large institutions, European banks, which finance over 90 percent of commercial loans, are missing from the ranking of the largest banks in the world in terms of market capitalization.

All this at a time when Europe must make historic investments in energy transformation, digitization and reindustrialization of over €800 billion per year, according to the European Commission. Moreover, that figure needs to add the defense spending.

Carlos Torres Vila added that in this context, “the proposed integration with Banco Sabadell makes perfect sense. This transaction represents much more than the sum of two banks. It’s a firm commitment to Europe, Spain and Catalonia. It allows us to create a more robust bank with a greater ability to finance growth, support companies and contribute to regional development.”

“Europe needs to become a more attractive investment destination, and to achieve this, it is essential to have clear and simplified regulation, as well as consistent enforcement of the rules to generate long-term trust,” he said. He also pointed out that it is crucial to move toward greater cross-border integration and to develop deeper capital markets. Ultimately, “it is about building a true Union of Savings and Investment. And more than ever, Europe needs banks with scale, and capable of financing the major projects that will shape the future of our economies. Without such institutions, Europe will be less autonomous and less competitive,” Carlos Torres Vila warned.

In his opinion, “moving forward with the banking consolidation is not only desirable: it is urgent. We need to eliminate the barriers hampering the financial system, both at national and European levels.”

Carlos Torres Vila asserted that, in this context, “the proposed integration with Banco Sabadell makes even more sense. It is just about the sum of two banks. It is a firm commitment to Europa. To Spain. And to Catalonia. This transaction allows us to create a more robust bank, more competitive, with a greater ability to finance growth, support companies and contribute to regional development.”

He also recalled that it is a proposal with clear benefits for all stakeholders: customers, employees, shareholders and society as a whole. “It will give us greater scale to increase lending and support the growth of businesses, especially SMEs and the self-employed. It will also strengthen our ability to support our customers -individuals, companies and institutions- in tow of the major transitions defining our time: the digital transformation and the shift toward a more sustainable economy,” he said. Torres Vila also stressed that this transaction reinforces BBVA’s commitment to economic development, innovation and territorial cohesion.

The BBVA Chair also stressed that for customers, this integration will mean “more options, better services and the support of a global bank, but with strong local roots.” For the employees of both banks, it will bring “new opportunities for development in a more diverse, stronger organization with international presence.” And for shareholders, it will translate into “profitable growth and sustainable value creation over time.”

In his view, “what is at stake is the possibility to build a bank that is better prepared for the future - a stronger, more approachable bank that is more committed to everyone’s progress.”

Taking stock of  Spain’s 40 years in the European Union

Carlos Torres Vila noted that the 40th anniversary of Spain joining the European Union poses an opportunity to look back at the country’s enormous progress since 1985. In his speech, he gave an overview of the past four decades, emphasizing that Spain “is a successful example of the transformative power of European integration.” The fruits of this historic decision are clear today. Over the past 40 years, Spain has made progress in economic convergence, labor market modernization, international openness and social well-being. For example, GDP per capita has multiplied by 2.5, and has come significantly closer to the EU average. Furthermore,  growth  of the Spanish economy has surpassed the eurozone since 2022, a trend that BBVA Research expects to continue in the coming years.

In parallel, the labor market has undergone a profound transformation. The number of employed people has risen from 11 million in 1985 to over 21 million. In this regard, the BBVA Chair underscored the role of progress in equality. “Women have gone from representing just 29 percent of the workforce to 47 percent at present.” Spain is currently a more diverse society: in 1985 less than 1 percent of the population was of foreign origin. Today, one out five people was born elsewhere. “This diversity is already a source of economic momentum, cultural heritage and social cohesion,” he explained.

Progress in wellbeing is also notable.  Per capita consumption has multiplied by 2.4; and life expectancy has increased by nearly eight years to 84 - the highest in the EU. In addition, the country remains stable in inequality indexes compared to the declines observed in other advanced economies.

Carlos Torres Vila noted that despite the advances, challenges remain that require an agenda of structural reform. “The most urgent challenge is very clear: to improve productivity. Only by boosting productivity, will we be able to generate higher income, create more quality jobs and ensure long-term sustainability of our welfare system,” he said. In his opinion, it is a priority for the country to increase investment in infrastructure, R+D and human capital, with education as a key lever. He also mentioned the need to develop a more dynamic and inclusive labor market and strengthen the quality of the country’s institutions.

In the words of the BBVA Chair, “Having an efficient public administration, simple legal frameworks and independent institutions and predictable enforcement of the rules is essential to build trust. That trust is the foundation for decisions related to investment, entrepreneurship and innovation.”

Carlos Torres Vila then emphasized that at this moment in time: “Europe offers us a historic opportunity in the face of these challenges. Adapting to change is not enough. We need to lead it.”

Therefore, he feels that having a strong financial system is critical. In this path, financial institutions play a crucial role, ensuring that the resources reach those who need them most: companies, the self-employed and families,” he said.

On a similar note, he reiterated BBVA’s commitment to society: “Since our origins, we have stood by individuals, businesses and institutions, contributing to the economic and social progress of the countries where we operate.”  The bank has evolved since it was first established in the merger of Banco de Bilbao, Banco de Vizcaya and Argentaria, becoming a global financial group with a presence in over 25 countries, and leading franchises in markets like Mexico, Türkiye and several countries in South America, and Spain.

“The more our business and customer base grow, the greater our ability to generate economic, social and environmental well-being,” he said. In this regard, he reiterated BBVA’s purpose: ‘Support your drive to go further.’