16 Jul 2018
Investment in infrastructure is crucial for sustainable growth and development inclusion. However, in Latin America there is a gap between supply and demand for such projects, both in terms of physical and digital infrastructure. To offset this lack of investment, private financing needs to be encouraged.
15 Feb 2018
José Manuel González-Páramo, BBVA’s Executive Director Responsible for Global Economics, Regulation & Public Affairs, will chair the recently created Spain-Peru Council Foundation, a non-profit body set up with the aim of fostering relations between the two countries.
07 Feb 2018
BBVA took part in the first seminar organized by the Institute of Compliance Officers (IOC). Executives of Spanish multinationals addressed the main challenges facing the profession in applying current regulations within a company. They underscored the fundamental role of the compliance officer in companies committed to transparency and good corporate governance.
26 Dec 2017
The beginning of the normalization of monetary policy in 2018 should bring greater profitability for banks, a larger investor appetite and a positive outlook for the stock market. However, what is perhaps more important, the new policy will enable banks to meet one of their principal goals: supporting economic growth by financing companies and private individuals.
16 Dec 2017
A chronic deficit in infrastructure for telecommunications and logistics has hindered Argentina’s competitiveness in the tourism industry. Even so, since 2015 the country has moved up seven positions in the World Economic Forum’s biannual report on Latin America.
Argentina’s mega-deposit of non-conventional hydrocarbons is attracting investor attention at home and abroad. With pricing and labor costs now settled, investment figures are starting to arrive: President Macri has announced $5 billion, private companies estimate $8 billion and the total figure for the coming years stands at $120 billion.
24 Nov 2017
The European Investment Bank (EIB) and BBVA have joined forces to help provide Spanish SMEs the funding they need to implement their digitization and innovation strategies. EIB Vice President Román Escolano, and the Head of BBVA Spain, Cristina de Parias, signed an agreement today in Madrid through which the EIB will provide BBVA €150 million to finance SME investment projects related to innovation and digitization. BBVA will provide an additional €150 million of its own resources to fund this new line of credit.
22 Nov 2017
20 Nov 2017
The refugee crisis, political events and the social reaction to them, natural disasters such as Hurricane Harvey or Hurricane Irma, the sentiments of people or central banks… there is an ever-increasing number of events whose economic impact, in a world of growing risk and uncertainty, is hard to gauge using traditional methods. That’s where ‘Big Data’ and ‘Data Science’ techniques come in, helping to quantify these trends from micro to macro level.
13 Nov 2017
The European Commission (EC) and the European Banking Authority (EBA) have published their work plans for 2018. The documents describe the specific activities and tasks the organizations plan to carry out next year. Both proposals place increasing importance on the fintech sector, since it could bring about a radical change the financial industry.
02 Nov 2017
The revolution in the automobile industry isn’t just about driverless cars. Blockchain technology will also have an impact on the sector, especially on the internal processes of companies.
17 Oct 2017
Sex, religion, and politics, along with harmony and trust, gave birth to money. At first, there was barter. Later came coins and bills, which have now given way to the network age, a world in which space and time have disappeared and transactions are conducted in bits. In order to understand the present and predict the future, Chris Skinner reflects on the history of money in his book, ‘The Next Step: Exponential Life’, which can be downloaded online free of charge as part of BBVA’s OpenMind project.
29 Sep 2017
After seven years of negotiations, the Canada-Europe Trade Agreement, CETA, has entered into force provisionally. Under this bilateral agreement, the most ambitious signed to date by Brussels, most custom duties levied on trade flows between both countries will be scrapped.
26 Sep 2017
Speaking this morning at the 22nd annual meeting organized by Bank of America Merrill Lynch in London, Chief Financial Officer Jaime Sáenz de Tejada explained some of the key aspects BBVA’s strategy to investors. “BBVA is well positioned for the new growth cycle”, thanks to a solid balance sheet and capital position, as a result of the company’s efforts in recent years, its geographic diversification and forward-looking transformation strategy.
24 Aug 2017
Jackson Hole is a town of only 9,000 inhabitants located in a valley in the middle of the Rocky Mountains in the US State of Wyoming. Apparently, there is nothing newsworthy about it, and, so, why have we been reading and hearing its name so often in the media lately?
11 Aug 2017
Garanti Bank believes that for any economy to achieve further growth, the participation of women in the labor force is crucial. Women must be encouraged to be entrepreneurs, and women- owned businesses must be supported. Garanti took action in 2006, becoming the first private bank to define women entrepreneurs as a separate client segment. “To empower women entrepreneurs”, Garanti Bank has had a sustainable Women Entrepreneurs program over a decade. In this respect, the activities focus on four core areas; access to finance, encouragement, education and penetrating new markets.
27 Jul 2017
If you ask scientists in the field of artificial intelligence when they expect fiction to become reality and robots’ intelligence to exceed that of humans, they would likely say it’s right around the corner, sometime between 2030 and 2050.
20 Jul 2017
The Pacific Alliance, made up of Chile, Colombia, Mexico and Peru, is a regional economic and comercial powerhouse. This area grows more than the average in Latin America. BBVA Research expects GDP growth of 1.6% and 2.3% in 2017 and 2018, respectively. “The Pacific Alliance is a success story in integration. And not by chance. It shares an ambition and a set of values behind this policy, on how prosperity should be reached,” said Jose Manuel González-Páramo, executive director of BBVA in Santander.
07 Jul 2017
22 Jun 2017
31 May 2017
BBVA is one of the founding members of the recently announced Lyra Network, Spain’s first multisectoral consortium, founded to combine efforts in the creation of a cross-cutting, open-code and neutral platform based on the ‘blockchain’ and distributed ledger technologies (DLT).
11 May 2017
Free Wi-Fi, reservations by mobile phone or requesting a massage via WhatsApp. Travelers today are digital and hotels cannot ignore the needs of their guests – even though new concepts are appearing where disconnecting is in vogue, such as Digital Detox. Modern travelers can choose the option that best suits their needs.
04 May 2017
For two days, the corporate community of the G20 – the Business 20, or B20 – met in Berlin to discuss how to create a sustainable global economy in the future. At the end of the summit, the B20 presented its 20 recommendations for the G20 political leaders to German Chancellor Angela Merkel. BBVA played an important role in the meeting.
28 Mar 2017
BBVA today became an official member of Hyperledger, an open-source collaborative effort to advance the use of blockchain in different economic and corporate sectors. Hosted by the Linux Foundation, this international initiative brings together a large group of companies working in finance, technology, manufacturing and the Internet of Things. By joining Hyperledger, BBVA also became a member of The Linux Foundation.
10 Mar 2017
While ISIS lost ground in Syria and Iraq, Al-Qaeda resumed its offensive operations. Meanwhile, tensions between Russia and Ukraine stabilized after last month’s sharp conflict escalation. Geopolitical tensions in China could intensify as uncertainties regarding the US policy stance in the region remained and North Korea remains testing.
For more information, please visit BBVA Research’s website
22 Feb 2017
01 Feb 2017
– Income: Net interest income increased 3.9% in 2016 (+14.9% stripping out the impact of currencies). The fourth quarter was the year’s highest (€4.39 billion). Cost-containment efforts improved the efficiency ratio (51.9% in 2016)
– Risks: BBVA Group’s NPL ratio improved to 4.9% in December (from 5.4% at the end of 2015), with coverage ratio of 70%
– Capital: BBVA reached a fully-loaded CET1 ratio of 10.90%, after generating 58 basis points in the year. The Group maintains its 11% target for 2017
– Transformation: At the end of December 2016, BBVA’s digital customer base stood at 18.4 million (+20% y-o-y). Mobile customers grew 38% to 12.4 million
– Dividend: BBVA plans to implement the shareholder remuneration policy announced in 2013, which aims to distribute between 35% and 40% of profits to dividend payouts, with a 100% cash dividend
24 Jan 2017
The BBVA Global Markets Research team presented the conclusions of its 2017 strategic equity report. According to BBVA analysts, the positive cyclical momentum is set to continue, with the metal & mining, oil & gas, construction materials, healthcare and telecommunications sectors becoming the best performing industries in Europe. In Spain, the Real Estate sector is expected to be the most dynamic in 2017.
17 Jan 2017
46 years ago, in 1971, a group of business leaders reunited under the patronage of the European Comission and some industrial associations. The economist Klaus Schwab chaired the first meeting, with 440 attendants from more than 30 countries in Davos, Switzerland. In this reunion, the European Economic Forum was founded as a non-profit organization with its headquarters in Geneva.
Ever since then, thousands of political and business leaders, artists and enterpreneurs have met in the anual Davos-Kloster meeting. The following 15 milestones are only some of the main events that have marked the history of the World Economic Forum.
16 Jan 2017
The World Economic Forum was founded in 1971 following a proposal by Klaus Schwab, a Swiss business professor, to create a space to analyze and find solutions to global problems. Year after year, political leaders, business personalities and intellectuals have picked up the gauntlet. The World Economic Forum Annual Meeting has become one of the world’s most important centers of social and economic debate. In 2018, the WEF wants to take another step and establish itself as a space for “Creating a Shared Future in a Fractured World,” as its theme says.
01 Dec 2016
In the last five years, Paraguay’s economy grew at an annual average rate of around 5% – one of the highest in the region. This economic performance is especially remarkable considering it occurred in a rather volatile international environment, characterized by turbulent international financial markets, lower capital inflows to emerging economies and falling prices for metals and agricultural products. The Paraguayan economy was also affected by declining activity of some the region’s most significant trade partners.
21 Nov 2016
The fall of Lehman Brothers made it clear that the size of a bank can be important. Its collapse demonstrated the impact that an institution’s bankruptcy could have on the whole financial system and its repercussions for a country’s entire real economy. As a result, the G20 authorities sought to protect financial stability. Their first step was to identify other systemic banks.
28 Oct 2016
Market analysts reacted positively to the results disclosed by BBVA, which in many cases outperformed their forecasts. Reports cite both the bank’s solid set of results and strong capital generation capacity as the factors that have allowed it to achieve its 11% fully loaded CET1 ratio goal ahead of its proposed 2017 date.
27 Oct 2016
BBVA today reported financial results for the first nine months of 2016. According to BBVA CEO Carlos Torres Vila, “it has been a good quarter, with solid growth in recurring revenues, cost control, and stability in risk indicators. Furthermore, we have already achieved the capital goal we had set for 2017.”
These are the 5 keys to understanding BBVA’s results:
Following the publication of the third quarter results, BBVA CEO Carlos Torres Vila said today that the Group hit an important milestone in capital generation: a CET1 fully-loaded capital ratio of 11%, a goal originally set for 2017. “We have had solid growth in recurring revenues, cost control and stability in risk indicators,” he indicated prior to the press conference with Spanish media.
-Income: Positive trends in recurring revenues (NII plus fees and commissions) continued between January and September, boosting gross income to €18.43 billion (+5.1% y-o-y)
-Risks: The Group’s NPL ratio remained stable and stood at 5.1% at the end of September, the same level as in December 2012, while the coverage ratio was 72%
-Capital: BBVA achieved its 2017 capital goal ahead of schedule. The fully-loaded CET1 ratio stood at 11%, with a capital generation of 29 basis points in the quarter
-Transformation: BBVA’s digital customer base stood at 17.2 million (+20% in the past year). Of these, 11 million are mobile customers (+41%)
The BBVA Group earned €2.8 billion between January and September 2016, up 64.3% from the same period a year earlier. Stripping out the impact of corporate operations and currency fluctuations, growth reached 15.0%. Net attributable profit rose to €965 million in the third quarter.
19 Oct 2016
The core activity of a bank is financial intermediation. This function entails using resources from customers (liabilities) to offer financing to the same or other bank customers (assets). Therefore, it is essential to be able to understand a bank’s balance sheet and each line linked directly to customers.
14 Oct 2016
This article is the first of a series that will focus on BBVA’s long history. Over a number of chapters, bbva.com wants to recap some of the highlights of the bank’s almost 160 years of activity, thanks to which it has become one of the most renowned institutions throughout the 19th, 20th and 21st centuries.
06 Oct 2016
As part of the IMF’s annual meeting in Washington, José Manuel González-Páramo participated yesterday in the B-20 meeting, the international business equivalent of the G20. BBVA’s Executive Director used the opportunity to urge the G20 to develop a clear regulatory framework that complement growth economic measures.
29 Sep 2016
The BBVA Group’s Chief Financial Officer participated in Bank of America Merrill Lynch’s Annual Financials CEO Conference in London today. The event is one of the most important banking forums in the world and includes only qualified investors. Jaime Sáenz de Tejada used his presentation to underscore BBVA’s main competitive advantages.
22 Sep 2016
In March this year, the European Central Bank announced the second TLTRO program (targeted long-term refinancing operations). These long-term financing operations aim to stimulate lending in the euro zone. The program is comprised of four auctions and the results of the second one were published today. The amount of additional liquidity asked has been 34bn euros.
14 Sep 2016
Europe hopes to end the tax breaks that some countries in the region offer to major corporations. The New York times published an overview of all the battle fronts in the current crusade led by Denmark’s Margrethe Vestager, European Commissioner for Competition.
The auto industry is one of the industries with the greatest growth in the Mexican economy because everything from autoparts production to car assembly and its connection to the international market have performed well.
In previous years, we observed growth in this industry and estimated that vehicle production would increase 1,5% in 2016 compared to the previous year, despite a tough start to the year with 3,1% declines in the first half of the year. This represents an increase of approximately 51.000 units. Next year, production could increase to just over 4 million units, which would mean a 17,4% jump in 2017. This would once again put the industry at the forefront of the Mexican economy.
06 Sep 2016
Just as in previous years, the G20 summit – held in China this year – has drawn worldwide attention. But the leaders of the 20 major economies were not the only ones to meet in Hangzhou. In parallel, business leaders from these same economies presented their proposals in the Business 20 event.
22 Aug 2016
The history of banking is a story that must be told in stages. It starts with its birth after the 1929 Wall Street Crash with the Glass-Steagall Law, and continues to present day with the Dodd-Frank Law Barack Obama signed after the 2008 financial crisis.
02 Aug 2016
The recent report, The Business of Financial Inclusion: Insights from Banks in Emerging Markets represents a new endeavor for the Institute of International Finance (IIF). It is based on the insights of 24 executives in charge of financial inclusion, a topic of growing interest.
01 Aug 2016
There is a sea of acronyms to measure profitability. Some are more widely known in the industry, such as ROE, ROTE or ROA. However, the more r’s they have, the more complicated things get (RORWA, RAROC, RORAC, RARORAC). But, which ratio is the most reliable to measure a bank’s profitability? Let’s go over each one of them to understand their meaning and apply the most appropriate one in each case.
21 Jul 2016
The U.K. unexpectedly voting to leave the EU in the referendum (Brexit) increases uncertainty in the global economy, according to a BBVA Research report published on July 5th. The negative bias could subtract approximately -0.2% from global GDP growth, previously expected to be 3.4% in 2017 until now.