Dear team:

I am writing to you in relation to the recent pieces of news that are affecting us so much. Everyone at BBVA is shocked by the information reported which started on January 9. These pieces of news link BBVA to the monitoring or intervention of private communications. If true, it would be undoubtedly extremely serious, deplorable behavior, radically opposed to what we are and what we stand for, and, ultimately, to the values ​​of BBVA that move us every day.

Carlos Torres Vila is, first and foremost, a great strategist. He’s capable of looking at any issue, delving into it until he unravels its complexity and understands all the details. He can then translate his insights into something that’s easy to understand. Once he’s made up his mind, he makes a decision and concentrates on executing on his idea. He fully relies on his teams: He makes sure that everyone who is seated at the table – regardless of seniority, responsibility or age – takes part in the conversation. He encourages everyone to share their opinions, and he values bright ideas.

Francisco González was greeted warmly by the auditorium at Ciudad BBVA in Madrid where he was bid farewell with applause and a standing ovation. The bank’s executive chairman was interviewed by his successor, Carlos Torres Vila, in a memorable conversation that the Group employees could follow from more than 30 countries. After 22 years at the helm of the bank that has become BBVA, Francisco González declared that “with much effort,” the legacy he leaves behind is “a bank in solid financial shape, an extraordinary project, and an absolutely exceptional team.”

BBVA has received all the required administrative authorizations from the European Central Bank (ECB) for the resolutions approved by the Board of Directors of BBVA at its meeting held on Dec. 20, 2018, to come into full effect.

Carlos Torres Vila took part in the ‘14th Banking Industry Meeting’ organized by IESE and EY in Madrid. BBVA’s CEO spoke about how digital transformation reflects on the outside, but originates inside organizations. In the current environment, he believes that banks need to harness the potential of new technologies to create opportunities for their customers. “We think big, not only in the sense of being ambitious, but of being innovative, breaking molds and surprising the customer,” he said.

BBVA’s CEO recently spoke at the DeustoForum in Bilbao. Carlos Torres Vila discussed BBVA’s transformation strategy in front of an audience of the Basque business community and current Deusto University students and alumni. “In today’s world opportunities are digital. That’s why we focus on the digitization of our customers, providing channels that are always available and a simple, agile experience,” he maintained.

At a press conference Carlos Torres Vila released BBVA’s earnings for the January-September 2018 period. The forthcoming decision on who should pay the levy on documenting mortgages loans – banks or the customers – which is due to be made by Spain’s Supreme Court on November 5, was raised during the presentation. In regard to the possibility of the ruling being retroactive, he stated “You can’t penalize those who have followed the law. This is precisely what the principle of legal certainty embodies, which protects us all.”

BBVA today presented its earnings for the January-September 2018 period. What stands out in the bank’s quarterly financials? In the words of BBVA CEO Carlos Torres Vila: “In spite of a challenging situation in Turkey and Argentina, the results we are presenting today reveal the strength of our business model and geographic diversification.”

• Transformation: Digital and mobile customers as well as digital sales continued to grow across all geographies, with a positive impact on efficiency. Digital customers now account for 49% of the total, very close to the year-end target of having half of the customers banking through digital channels
• Income: Operating income improved (+5.8 percent at constant exchange rates), driven by a positive trend in recurring revenues and containment in operating expenses. BBVA’s ROE between January and September was 12.2 percent, with ROTE standing at 14.8 percent
• Risks: The NPL ratio was 4.1 percent in September (4.4 percent in June). Coverage ratio reached 73 percent
• Capital: Despite a complex environment, the fully-loaded CET1 ratio stood at 11.34 percent. During the first nine months of the year, the tangible book value per share plus dividends grew 7.2 percent to €5.95

BBVA’s CEO, Carlos Torres Vila, has spoken of the great impact entrepreneurs bring to society at the opening of Spain’s biggest startup conference.

After ten years with BBVA Group, the last three and a half as CEO, Carlos Torres Vila is expected to replace Francisco González as the bank’s executive chairman on January 1, 2019. We spoke with Carlos about his vision and future plans for the Group.

On December 31, 2018, Francisco González will step down as BBVA Group Executive Chairman, after 18 years at the helm of the bank and almost four more as Chairman of Argentaria. Following the Board’s announcement regarding the approval of the chairman’s succession plan, we sit down with him for an hour to talk about the meaning of his decision.

The Board of Directors of BBVA approved the succession plan for the company’s chairman. The plan establishes that CEO Carlos Torres Vila is to replace Francisco González as group executive chairman when he leaves his post, which is expected to take place on Dec. 31st, 2018. The succession ensures the continuity of the transformation process which has placed BBVA at the forefront of the global financial industry.

In the presentation of its results to the media, BBVA’s CEO Carlos Torres Vila emphasized the bank’s “strong push to business digitization not only drives sales but is fundamental to cost control.” This “digital push” is driving total revenues while keeping costs down. As a whole, this allows efficiency to continue to improve. In fact, the efficiency ratio stood at 49.2 percent as of June, 82 basis points below the figure for 2017 at constant exchange rates.

• Transformation: At the end of June, BBVA’s digital customer base stood at 25.1 million (+26 percent yoy). Of these, 20.7 million were mobile customers (+43 percent yoy). Digital sales increased in H1-18 and now account for 39 percent of total sales. All this contributed to strengthen recurring banking revenues and to keep efficiency at 49.2 percent
• Income: Solid trends in recurring revenues and cost containment efforts drove operating income growth in the first six months of 2018 (+6.8 percent in constant terms). Profitability has also improved significantly. ROE stood at 11.7 percent, while ROTE was 14.3 percent
• Risks: Risk indicators continued to perform robustly. At the end of June, the NPL ratio stood at 4.4 percent, with coverage of 71 percent
• Capital: A pro-forma fully-loaded CET ratio of 11.40 percent was reached in June. It includes the sale of BBVA Chile (finalized in July) and the Cerberus agreement to reduce its exposure to the real estate business. The tangible book value per share grew in the quarter

BBVA’s Board of Directors held this wednesday its monthly meeting in Barcelona. The previous day was taken up by a series of working meetings on the bank’s digital transformation. The Board also went over developments in its franchise in Catalonia and agreed to modify the composition of its committees.

BBVA CEO Carlos Torres Vila said this morning that “the opportunities for both BBVA and our customers are in the digital world.” The Group’s chief executive participated in the 25th Finance Sector Meeting organized annually by Deloitte and Spanish daily ABC.

BBVA CEO Carlos Torres Vila said this morning in Mexico that “digitization is having a huge impact on customer satisfaction,” resulting in higher levels of engagement. “Digitization is helping customers interact more with us, and they are more satisfied and loyal. This new way of interacting is a powerful lever that is transforming our value proposal, allowing us to help our clients with their lives and businesses in a deeper way,” he added.

BBVA’s results for the first three months of 2018 surpassed market estimates by a wide margin. Banking analysts reacted positively to the results of both the Group and its regional franchises, which outperformed consensus forecasts. On the whole, analyst reports focused on the bank’s revenue strength, cost containment efforts, and impairment losses below expected levels.

BBVA’s strategy to bolster digitization translates into more digital sales, which are the main driver of total sales thanks to their impact on customer satisfaction and efficiency. These were some of the key insights shared by BBVA CEO Carlos Torres Vila during the bank’s Q1-18 conference call: “Digitization helps us improve efficiency while driving profit growth,” he said.

BBVA kicked off 2018 with a strong performance. First-quarter earnings confirm the positive trends seen in the previous quarters. “We had a very solid start of the year, with solid and recurring results. The significant progress in the transformation highlights the success of our strategy,” said BBVA CEO Carlos Torres Vila.

These are the keys to BBVA’s results in the first quarter of this year:

• Transformation: Digital sales grew in all regions and accounted for 37 percent of total in Q1-18. Clients banking through digital channels rose 25 percent yoy, while those using mobile devices grew 43 percent. Such exponential growth contributed to the strength of recurring revenues, and the efficiency ratio reached its best reading since June 2012
• Income: Driven by strong recurring revenues and cost containment efforts, the operating income grew 5.1 percent yoy in constant terms
• Risks: Risk indicators continued to perform positively. At the end of March, the NPL ratio stood at 4.4 percent, with coverage of 73 percent
• Capital: BBVA’s pro forma fully-loaded CET1 ratio -including the already announced agreements of BBVA Chile and Cerberus, which are to be concluded later this year- stood at 11.47 percent at the end of March

In an interview with Spanish daily ‘El País’ from Silicon Valley, BBVA Chief Executive Officer says that “data belongs to customers and can only be used with their consent.” In comments to ‘El País’ Carlos Torres Vila also advances that BBVA is exploring the use of blockchain in corporate loans. This technology has the potential “to add a lot of transparency, efficiency and immutability, and offers a wide array of other possible uses.”

“Our way is to help our customers take the best decisions.” In an in-depth interview with Actualidad Económica magazine,  BBVA CEO Carlos Torres Vila explained the profound transformation that BBVA is undergoing. This is a process that is materializing in customized solutions to help the bank’s customers and clients achieve their vital goals, he added.

January 2017 saw a new era begin for BBVA Compass, the U.S. subsidiary of BBVA, when Onur Genç took the reigns as the bank’s CEO and country manager.

• Good results: In 2017, the BBVA Group posted a net attributable profit of €3.52 billion (+1.3%). Excluding the accounting adjustment of Telefónica and the capital gains from extraordinary corporate operations, net profit in 2017 was €4.29 billion, up 23.3% from a year earlier. The main drivers behind this result were a positive performance of recurring revenue, cost containment efforts in operating expenses and an effective risk management strategy
• Group Executive Chairman: Total remuneration of BBVA Executive Chairman for 2017 was €5.8 million, up 18% from 2016. The Chairman’s variable compensation rose 12% compared to the previous year. The deferred variable remuneration is subject to multi-annual indicators, based on which remuneration can be reduced or taken to zero, never increased. It also includes a Malus clause that could limit or prevent its collection, and clawback clauses intended to reduce or reclaim already paid amounts
• CEO: Carlos Torres Vila’s total remuneration was €4.9 million in 2017. HIs variable compensation is also subject to the same deferral period and conditions as that of the Chairman

BBVA is continuing to deliver impressive results in its digital transformation, the Group has revealed in its full year 2017 results.

BBVA’s digital customers are increasing in number, are more satisfied and interact more with the bank. In fact, the bank has reached its digital tipping point, at which more than 50 percent of its customers are using the bank’s digital channels in six countries (Spain, the United States, Turkey, Argentina, Chile and Venezuela). It’s a milestone that foreseeably will be reached this year by more of the countries where BBVA operates. Indeed in Davos last week, BBVA Group Executive Chairman Francisco González predicted the Group’s customer base as a whole will pass the 50 percent tipping point in 2018.

Carlos Torres Vila, CEO of BBVA, last week participated in the World Economic Forum (WEF) at Davos, Switzerland. In this article, he explains how artificial intelligence and the global debate over the use of data took up a good part of the debates and discussions at this year’s meeting.

This year, the World Economic Forum at Davos is attracting plenty of attention. From the long-awaited speech by U.S. President Donald Trump to the criticisms of American protectionism and support for global cooperation expressed by German Chancellor Angela Merkel and French President Emmanuel Macron, no leader misses their moment in the spotlight to send messages to the world community.

UK based Atom Bank has announced that its Chairman and Founder, Anthony Thomson, is to step down from his position with the company.

U.S. President Donald Trump has confirmed his attendance at this year’s annual World Economic Forum, which will kick off on January 23 at Davos, Switzerland. President Trump will share the spotlight with some 60 heads of state and government, and an ensemble of business leaders, scholars, artists and prominent figures from civil society. Together, they will seek to deliver on the meeting’s theme: “Creating a shared future in a fractured world.’ Indian Prime Minister Narendra Modi and President Trump will deliver the event’s opening and closing speeches, respectively.

Carlos Torres Vila, BBVA’s Chief Executive Officer, this morning said open innovation is one of the key elements of the bank´s transformation to adapt financial services to customers’ new needs. “Keeping up with the rapid pace of change that companies are undergoing, including the financial services sector, the connection with the innovation ecosystem and entrepreneurs is essential,” he said.

BBVA aims to become the bank that customers trust, the one that helps them make the best financial decisions by offering them tailored advice.  Data is the essential raw material for making those decisions. In this regard, customer consent is necessary and to obtain it, “it will be essential to create a circle of trust with the customer,” said BBVA CEO Carlos Torres Vila. He spoke during a breakfast meeting in Madrid organized by the Association for Management Progress (APD – Asociación para el Progreso de la Dirección) and sponsored by AXIS, on the challenges facing the financial sector.

In April 2010, when smartphone penetration was still very low in Argentina, BBVA Francés launched an innovative communication channel to be closer to its customers. FrancésGo was the first mobile channel in the financial sector. It allowed customers to obtain information about BBVA Francés card promotions by text message (SMS that all types of devices could receive), segmented by area, type and brand. At the time, customers had to send the word “GO” to a four-digit number. And that’s how it all started.

BBVA today announced an agreement with a subsidiary of Cerberus Capital Management, L.P. (Cerberus) to create a joint venture (JV) for its real estate business in Spain, reducing almost entirely its exposure to non core real estate assets. On the closing of the operation, BBVA will sell an 80% stake in the JV to Cerberus for about €4 billion. The transaction marks a milestone in BBVA Group’s strategy.

BBVA received a binding offer from The Bank of Nova Scotia (Scotiabank) for its 68.19% stake in BBVA Chile and other related businesses such as the life insurance arm for about $2.2 billion (1.85 billion euros)¹. The offer does not include the automobile financing activity of Grupo Forum, that will continue to be 100% owned by BBVA.

BBVA is close to passing another important online target as it continues to build out its digital banking capabilities.

One of the things about huge conferences like Money 20/20 in Las Vegas is that you get to see the ideas that will shape the future of the banking sector.

BBVA today signed a global strategic agreement with Telefónica that will allow the bank to optimize its communications, increase the capacity of its technological network and facilitate operations in the “cloud.”

Every quarter, BBVA rolls out new products and functionalities, delivering new amazing experiences for its mobile and online customers to enjoy. By year end, the bank expects that about 92% of its current product portfolio will be available on its digital channels in Spain, as well as to be able to continue making progress in its other franchises. BBVA CEO Carlos Torres Vila explained how this effort is having an “impressive impact”, as evidenced by the exponential rate at which digital sales are growing. Digital sales account for about one fourth of the bank’s total, with more than 3.5 million units sold between July and September.

Today BBVA announced financial results for the nine first months of 2017. “Quarter after quarter, BBVA keeps posting solid, recurring and sustainable results,” said CEO Carlos Torres Vila. What figures explain this solidity? Here are the six more noteworthy: