Luisa Gómez Bravo, on Bloomberg: “It’s about delivering amazing profitability for shareholders while continuing to invest”

The show also addresses BBVA’s strategy and performance in recent years. For Onur Genç, BBVA’s CEO, the best measure of a bank’s success is how its performance holds up when compared with its competitors: “In that context, among the 15 largest banks in Europe—which form our peer group—we rank number one in profitability, measured as the return on tangible equity, and we’re also first in lending growth. A large part of that growth now comes from the bank’s digital channels, which has been made possible thanks to some smart strategic shifts in the past,” he notes, referring to the decision to make mobile banking the main channel for customer interaction and to transform BBVA into a digital bank, rather than creating a separate digital entity. Luisa Gómez Bravo agrees on the importance of innovation and digitization as a core pillar of BBVA’s strategy: “They go to the heart of our strategy. For us, innovation doesn’t stem from an ‘app’, it’s our mindset.”

Turning her attention to the banking sector, BBVA’s Global Head of Finance notes that European banks are still trading below their U.S. peers, despite having significantly improved their profitability levels. More precisely, they still have low stock market valuations, despite share buybacks and dividend payments. How can this be reversed? “It’s all about achieving amazing profitability and using it to reward shareholders, while continuing to invest in our franchises,” she says.

One of the challenges facing the sector in Europe is the need for large, strong, and profitable banks. According to Onur Genç, “In Europe, unless we solve this issue of scale, we cannot really compete as Europe and we cannot really grow as Europe.” The CEO explains that “unlike the United States, 75 percent of corporate borrowing in Europe comes from the banking system, whereas in the U.S. it’s only 25 percent. The rest comes from capital markets. In Europe, unfortunately, capital markets are too small.” For this reason, the continent needs bigger banks to finance its growth projects and enable it to compete globally; and it is precisely for this reason that BBVA has presented its takeover bid to Banco Sabadell’s shareholders. Bloomberg notes in the show that BBVA’s deal with Sabadell may pave the way for other consolidation operations in the banking industry within Europe. On this transaction, Luisa Gómez Bravo states: “It’s about gaining market share, acquiring customers digitally, and continuing to become more efficient.”

For BBVA, digitization is also a path to growth in Europe: “It’s hard for banks to gain scale in Europe, where high entry barriers in each country persist. BBVA’s digital experience is one of the keys to overcoming those obstacles,” explains Gómez Bravo. The bank’s presence in Italy through digital banking, and soon in Germany, demonstrates the path BBVA is taking. “It’s about leveraging the presence we have in Spain and, at a marginal cost, being able to offer a complete suite of banking services.”

During the interview, Luisa Gómez Bravo also points to the advantages of the BBVA Group’s geographic diversification: “It gives us a competitive edge and tangible results. It’s a unique value proposition in the banking industry, combining growth with profitability and generating value for shareholders.”

She also highlights Mexico’s contribution to the bank’s earnings: “For BBVA, it’s a source of income resilience, and it generates synergistic diversification thanks to our presence in the country.”

Asked about the challenge facing BBVA over the next 10 years, Luisa Gómez Bravo says: “I think that many growth opportunities lie ahead. The challenge is to truly place the customer at the centre of everything and better support them in achieving their goals.”