Bank of Spain today notified BBVA about the new MREL requirement that the bank will need to comply with starting January 1, 2021. According to BBVA estimates, the current structure of own funds and eligible liabilities in its balance sheet is in line with this MREL requirement, as well as the new subordination requirement.
In recent months, the term MREL (which stands for Minimum Required Eligible Liabilities) has been appearing more and more frequently in business and economic news outlets. We see it being used repeatedly in bank-related reports, but what is behind this acronym?
The bank’s chief executive officer, Onur Genç, wants Spain's contribution to BBVA Group profit to continue to grow. "Our ambition for Spain is to have continued growth,” he stated in the 2019 Q3 results press conference.
BBVA’s 3Q19 earnings reveal how core revenues of the banking business –net interest income and net fees and commissions– keep growing steadily. BBVA CEO Onur Genç noted the impact that digital transformation is having on the business. “We’re leveraging digital transformation in everything we do to create a competitive advantage,” he pointed out.
BBVA earned €1.23 billion in the third quarter, +6.1 percent yoy, excluding capital gains from the sale of BBVA Chile and this franchise’s earnings in 2018. The net attributable profit for the first nine months of 2019 reached €3.67 billion, +1.2 percent yoy (+0.5 percent in constant euros), on a comparable basis. The result was driven mainly by growth in recurring revenues and containment in operating expenses.
As of September 2019, BBVA stood at the top of the Spanish financial and corporate bond issues league tables published by Bloomberg. “The secret to being involved in so many bond issues is the bond value chain and teamwork,” said Regina Gil, Global Head of Credit at BBVA.
Garanti BBVA today announced its third quarter earnings. The bank’s net income for the first nine months of the year was TL 4.998.460 bilion(approximately €786 million), with total assets at TL 411.161.696 billion (around €64.67 billion).
Financial institutions are preparing to present Q3 2019 earnings. This week, it will be the turn of most Spanish banks, among them BBVA.