Following the relevant event released on November 16, 2020, BBVA announces on another relevant event filed with Spanish regulator CNMV that the conversations in relation to a potential merger transaction with Banco de Sabadell have come to an end without any agreement.

BBVA has agreed to sell to PNC its subsidiary in the U.S. for $11.6 billion (€9.7 billion¹) in cash, an amount that represents 19.7 times the unit’s 2019 earnings², and that is almost 50% of BBVA’s current market capitalization, creating significant value for shareholders. The transaction will have a positive impact on BBVA’s fully loaded CET1 ratio of c.300 basis points, or €8.5 billion of CET1 generation.

BBVA´s CEO presented this year´s third quarter results on Friday, October 30. At the press conference, Onur Genç affirmed that BBVA’s leadership in transformation has a “true competitive advantage” and reiterated the institution´s focus on organic growth. In the first nine months of 2020, “we have attracted 350,000 clients in Spain”, something that is especially relevant in the current context marked by the COVID-19 crisis. “We have shown that we can grow using digital channels in Spain,” he said.

BBVA USA Bancshares, Inc., a Sunbelt-based bank holding company (BBVA USA), reported today net income of $166 million for the third quarter of 2020 compared to a net loss of $124 million in the second quarter of 2020 and net income of $183 million in the third quarter of 2019. Return on average assets and return on average tangible equity(1) for the third quarter of 2020 were 0.63 percent and 7.32 percent, respectively.

The BBVA Group’s results have been improving throughout 2020. The bank earned €1.14 billion in the third quarter (-6.8 percent in current euros, +4.1 percent at constant rates). This result is 79.5 percent higher than this year’s second quarter results in current euros (+83.4 percent at constant rates).  In addition, the strength of recurring revenues and cost containment efforts helped to boost operating income compared to the third quarter of 2019. “Net attributable profit grew significantly in the third quarter compared to previous quarters. This positive performance was the result of our resilient recurrent income, coupled with our focus on cost control and a better evolution of impairments, thanks to the significant provisioning effort in the first half of the year,” said BBVA CEO Onur Genç.

BBVA earned €1.14 billion in the third quarter of 2020. It is the best quarterly result of the year and far exceeds the figure for 2Q20 (+79.5 percent in current euros, +83.4 percent at constant rates). Compared to the same period a year earlier, the 3Q20 result is 6.8 percent lower (+4.1 percent at constant rates). The strength of recurring revenues and cost containment efforts drove quarterly operating income to grow 13.5 percent yoy at constant exchange rates. In a challenging context marked by the pandemic, BBVA has shown a solid capacity to generate capital, with risk indicators having a positive performance. BBVA’s quarterly results also beat market expectations by 48 percent, as analysts’ consensus expected a result of €773 million.

Onur Genç, BBVA CEO:

The judge underlines that BBVA has contributed all relevant results for the preliminary investigation, accepts the bank’s offer to make documents available and dismisses all requests from other parties.

BBVA is a customer-centric global financial services group founded in 1857. The Group operates in more than 30 countries and has a strong leadership position in the Spanish market, is the largest financial institution in Mexico, it has leading franchises in South America. It is also the leading shareholder in Turkey’s Garanti BBVA.

In a presentation for investors organized by Bank of America (BoFA) and in which BBVA CEO took part this morning, BBVA raised the Group’s guidance for 2020, thanks mostly to an improvement in its business activity in Mexico. At Group level, recurring revenues in constant euros will grow in 2H20 compared to the previous half of the year thanks to a recovery in new retail loan production and focus on price management. Furthermore, BBVA expects to beat its expectations regarding cost reductions for 2020, and improves its cost of risk expectations for 2020, to a range between 1.5 and 1.6 percent in cumulative terms for the year, thanks to a better performance in Mexico. The Group plans to close 2020 with a fully-loaded CET1 capital ratio above the target range. BBVA’s intention is to resume dividend payments once the existing supervisory recommendation is eliminated and COVID-19 uncertainties dissipate.

BBVA placed on Thursday a $2-billion issue of senior preferred debt filed with the U.S. SEC. The issue consists of two tranches, with a maturity of three and five years: The three-year tranche accounted for $1.2 billion, while the five-year one reached $800 million. Demand topped a maximum of $5 billion, with 210 orders, and the book closed with orders of $4.5 billion: $2.5 billion for the three-year tranche and $2 billion for the five-year tranche. Investors’ appetite allowed for the starting price to be set lower. The interest rate has been set at the U.S. Treasury rate plus 75 basis points spread for the three-year tranche (versus a starting spread of 100 bps) and a 100 bps spread for the five-year tranche (vs. a starting spread of 125 bps).

As companies across the globe struggle to find a balance between protecting the health and safety of employees and maintaining an efficient and effective workforce, BBVA is using its highly visible leadership team to meet that challenge with frequent transparent updates.

BBVA USA Bancshares, Inc., a Sunbelt-based bank holding company (BBVA USA), reported today a net loss of $124 million for the second quarter of 2020 compared to earnings of $160 million in the second quarter of 2019. Included in the second quarter 2020 results is a substantial increase in provision for credit losses, well in excess of net-charge-offs, that reflects the ongoing adverse macroeconomic environment and corresponding forecasts given the COVID-19 pandemic and subsequent impact to certain segments of the loan portfolio.

The BBVA Group earned €636 million in the first half of the year – more than double the results from January through March, excluding the impact of the goodwill adjustment in the U.S. This was possible thanks to the bank’s efforts to anticipate impairments related to the COVID-19 crisis in the first quarter of the year. In a highly complex context due to the pandemic, the BBVA Group has demonstrated the strength of its profit before provisions in the second quarter of 2020, with operating income up 17.6 percent year-on-year in constant euros. “We are facing this crisis from a position of strength, thanks to the resilience of our revenues, our diversified business model and our digital capabilities. Likewise, our solid capital generation stood out during the quarter,” said BBVA CEO Onur Genç.

Thanks to the bank’s efforts to anticipate impairments related to the COVID-19 in 1Q20, BBVA earned €636 million in the second quarter, doubling the underlying profit from the first quarter. This quarterly figure is on top of extraordinary provisions of €644 million due to the pandemic. In a complex environment, BBVA has once again demonstrated the strength of its operating income, which grew 17.6 percent at constant exchange rates, and its outstanding ability to generate capital. In the first half of the year, net attributable profit excluding one-offs was €928 million (-57.8 percent yoy in constant euros). Including the U.S. goodwill adjustment –recorded in 1Q20– the bank swung to a €-1.16 billion loss between January and June.

Simple, a subsidiary of BBVA USA, today announced the addition of Carrie Roso to the company’s corporate leadership team. Roso will serve as Director of Marketing for the fintech.

How does BBVA manage the evolution of the pandemic across its footprint? After monitoring the news report began emerging earlier this year about a new virus, on March 9, the bank’s Corporate Continuity Committee decided to create a global war room, led by Ricardo Forcano and Carlos Casas, the heads of Engineering & Organization and Talent & Culture, respectively. War room is a military term that is increasingly used in the business world to describe a group of people who are totally dedicated to tackling a crisis, to make timely and agile decisions.

Dircom, the Spanish Association of Communication Executives, announced the names of the winners of this year’s edition of its Ramón de Corral Awards. BBVA took home two awards, one for ‘One BBVA’ named ‘Best integrated campaign for organizational change’ and the other with ‘El Sentido del Cacao’, named ‘Best external campaign for services’ category. Also, BBVA’s ‘Values ​​Day’ event was one of the finalists in the ‘Best in-house event involving over 500 workers’ category.

Analysts praised BBVA’s foresight as the group booked €1.43 billion in provisions during the first quarter to cover the expected impact of COVID-19 on its business. The Group’s capital ratio was another one of the quarter’s standouts.  The reports published by analysts also focused on BBVA’s strong top-line growth and the soundness of the messages conveyed by the bank’s management, particularly in connection with its expectations regarding provisions and capital generation.

Carlos Torres Vila, BBVA Group executive chairman and Onur Genç, BBVA CEO, presented the results for the first quarter of 2020 at an online press conference from their homes. Carlos Torres Vila stressed that now, “The most important thing is to look ahead and return to activity” to foster the economic recovery. This reopening should prioritize health, but “reactivate our productive network and employment.” In this sense, “everyone’s collaboration – governments, the private sector and society in general – will be fundamental to overcoming this crisis.” A recession that he predicts will last “for a limited time”.

BBVA USA Bancshares, Inc., a Sunbelt-based bank holding company (BBVA USA), reported today a net loss of $2.2 billion for the first quarter of 2020. Included in first quarter 2020 results is goodwill impairment (non-cash charge) totaling $2.2 billion reflecting the drastic change in macroeconomic conditions and forecasts brought about by the COVID-19 pandemic. Excluding the impact of this non-cash charge, the adjusted net loss¹ for the quarter was $52 million, further reflecting the abrupt decline in interest rates and higher provision expense necessary to reflect the economic and business disruption caused by the pandemic.

BBVA’s recurring revenues (net interest income and net fees and commissions) grew strongly during the first quarter and the operating income was the highest of the past ten years. Also, the attributable profit absorbed the provisions established to anticipate the impact of the COVID-19 crisis. According to BBVA Group Executive Chairman Carlos Torres Vila, “the recurrence of our profits before provisions and our solid capital and liquidity position allow us to face the crisis from a position of strength and to front-load in this first quarter the provisions to hedge against the impact of the pandemic”.

BBVA posted a recurring profit of €1.26 billion in 1Q20 (+6.4 percent yoy), driven by the highest operating income in ten years (+14.1 percent), and boosted by a good performance of revenues and a containment in operating expenses. Following front-loaded provisions of €1.43 billion related to the COVID-19 crisis, BBVA earned €292 million in the first three months of the year. Including the goodwill adjustment at the U.S. unit, the bank registered a €1.79 billion loss in the quarter.

Carlos Torres Vila, Group Executive Chairman:

BBVA USA today announced it will be one of the first banks in the U.S. to begin processing customer applications for the Paycheck Protection Program, a key small business relief component of the recently passed CARES Act and administered through the Small Business Administration (SBA).

BBVA USA today announced that it would be closing most of its 637 branch lobbies and instead serving customers through its drive-thrus as a proactive measure to protect the health and well-being of customers, employees and communities, as well as do its part to limit the spread of the coronavirus COVID-19.

BBVA USA is offering special assistance to consumer and small business  customers impacted by the ongoing COVID-19 pandemic, including penalty-free withdrawals from applicable CDs, ATM fee refunds, and payment deferrals, extensions and waivers on existing loans and lines of credit, among other offers.

BBVA shareholders meet today in Bilbao (northern Spain), where the bank will hold its Annual General Meeting. Starting at noon, Group executive chairman Carlos Torres Vila and CEO Onur Genç will present the bank’s shareholders with the most significant 2019 accomplishments and the outlook for 2020.

In light of the situation resulting from the coronavirus, BBVA recommends not attending the Annual General Meeting in person whenever possible. The AGM is to be held on March 13th, 2020, at the Euskalduna Conference Center in Bilbao. Additionally, in order to allow shareholders to exercise the remote vote, BBVA has extended the deadline to do so until Thursday, March 12, 2020, at 08:00 pm.

BBVA’s 2020 Annual General Shareholders’ Meeting (AGM) is scheduled to be held next March 13, 2020, on first call, at the Euskalduna Conference Center in Bilbao. BBVA wishes and promotes the participation of its shareholders in such an important event for the company. For that reason, the bank has made available to its shareholders the appropriate channels to enable the exercise of their rights remotely, which are described in the Annual General Meeting section on the corporate website.

BBVA is operating as normal after activating additional measures on Tuesday following the recommendations made by the Ministry of Health and the Madrid and Basque regional governments, and after an employee at the bank’s Madrid headquarters tested positive for coronavirus (COVID-19). Following this positive case, the bank has closed the area where the employee worked, as well as some common spaces as a preventive measure. The rest of the bank’s facilities are operating as normal.

Following a selection process that began last November and involved large international firms in advertising communication, BBVA has awarded tenders for media management and the digital ecosystem to WPP Group and Accenture Interactive, respectively.

BBVA’s Turkish unit broke new ground in the country, issuing Turkey’s first integrated annual report based on artificial intelligence. A leader in harnessing the power of technology in its products and services, the bank issued its 2019 Integrated Annual Report entitled ‘The Next Decade’.

Following the lifting of the secrecy order, BBVA wishes to reiterate the main messages regarding its actions in recent months.

In response to a statement released by three Spanish press associations, BBVA states that it deeply respects the work of the media and their important role in society, and therefore, it rejects any practice that infringes their fundamental rights, the freedom of information and the freedom of speech.

BBVA is now offering its shareholders the possibility of exercising their right to vote or the delegation of this right through three channels: the websites bbva.es and bbva.com, and the bank’s mobile banking app. These voting and delegation options are available from February 19th through March 12th. BBVA’s Annual General Meeting is planned for March 13th in Bilbao.

 Pillar No. 1

BBVA believes that banks play a key role in the future of society, particularly in how they address the social and environmental challenges we all face.

BBVA has named Mario Pardo Bayona the new CEO of BBVA in Colombia. He will replace Óscar Cabrera, who is leaving the Group to take on new personal and professional challenges, following a successful career in both Spain and Latin America.

BBVA today released its 2019 annual compensation report for its board members, the first that includes sustainability as a non-financial indicator in the variable compensation for the executive chairman. In 2020, the CEO will also have an indicator that will measure the bank’s strategic commitment to climate change and sustainable development. The 2019 compensation policy (applicable for 2019, 2020 and 2021) was already announced last year. It was approved with 94.8 percent of the votes at the Annual General Meeting in March last year.

BBVA is to propose at the Annual General Meeting the appointments of Ana Revenga, Raúl Galamba and Carlos Salazar as new board members. With this announcement, BBVA fosters diversity of its highest decision-making governing body in several areas: female board members will now account for a third of the Board, meeting the goal set for 2020; and foreign board members will represent 40 percent. Areas of knowledge as relevant as sustainability will also be reinforced, especially from a social and aid development standpoint, as well as the global financial system and the Mexican financial sector, in particular. Following these changes, the Board will have two thirds of independent members.

BBVA USA President and CEO Javier Rodríguez Soler recently presented the bank’s new 5-year strategic plan to 250 leaders from across the more than 10,000 person-strong financial institution.

BBVA USA Bancshares, Inc., a Sunbelt-based bank holding company (BBVA USA), reported today a net loss of $331 million for the fourth quarter of 2019. Included in fourth quarter 2019 results is goodwill impairment (non-cash charge) totaling $470 million. Excluding the impact of this non-cash charge, adjusted net income¹ for the quarter was $139 million, a 29 percent decrease from the $196 million earned in the fourth quarter of 2018. Return on average assets and return on average tangible equity¹ for the fourth quarter of 2019 were (1.37) percent and (14.46) percent, respectively. On an adjusted basis, return on average assets¹ was 0.58 percent and return on average tangible equity¹ was 6.09 percent.

Recurring revenues (net interest income and net fees and commissions) continue growing robustly, reaching a record high in 2019. According to BBVA Group executive chairman Carlos Torres Vila, the bank obtained outstanding results despite a macroeconomic environment that was more complex than expected. “Looking toward the future, at BBVA, our goal will be to dig deeper into our strategy, integrating the interests of customers, employees, shareholders and society as a whole, balancing economic, social and environmental perspectives in everything we do,” he indicated.

BBVA Group earned €4.83 billion excluding one-time items in 2019 (+2.7 percent from the previous year), the highest figure since 2009. The results were driven by an increase in recurring revenue and the containment in operating expenses. Including the impact of the goodwill adjustment at its U.S. franchise in 4Q19 and the capital gains from the sale of BBVA Chile in 2018, the net attributable profit declined 35 percent yoy, to €3.51 billion. The bank is to propose for the consideration of the competent governing bodies a gross cash dividend of €0.16 per share to be paid in April 2020, maintaining the same amount as the previous year.

Today, BBVA placed €1 billion of Tier 2 subordinated debt on the market. The debt, maturing on January 16, 2030 has an interest rate of mid-swap plus 127 basis points, 28 basis points below the initial interest rate (mid-swap plus 155 points) and a 1% coupon. Demand for the issuance reached €4.2 billion, exceeding the opening offer by four times.

BBVA USA today announced the appointment of Carin Marcy Barth as the newest member of BBVA USA Bancshares, Inc. Board of Directors.

BBVA has appointed Peio Belausteguigoitia as head of BBVA Spain, replacing Cristina de Parias, who leaves her executive duties after a successful career of more than three decades both inside and outside BBVA. Cristina de Parias will remain involved with the Group as she will join the board of BBVA’s subsidiary in Mexico, once the necessary approvals have been obtained.

BBVA has signed the sale of a written-off loan portfolio (mostly consumer loans) worth a gross total of €2.5 billion. The transaction is BBVA’s biggest ever of this kind to date.