In 2019 BBVA Corporate & Investment Banking took a decision to boost its equities business for institutional and corporate clients. Since then the bank has been working on two vectors: on one hand, developing its equity investment products factory; and on the other, revamping its digital solutions for product distribution. In this line, and to further advance in its growth plan, the BBVA global equities business opens two trading and sales hubs in Hong Kong and in New York.
BBVA is back in the Euro Stoxx 50, Eurozone's main index. Just one year after its exit, the bank's recent good performance on the stock market has allowed it to return to the index, a milestone -exit and re-enter the following year- which at least in the last decade had never happened before. Normally, it takes longer for companies that exit the index to recover their position and re-enter.
On July 30 BBVA reported a €1.29 billion profit in the 2Q of 2021, excluding non-recurring impacts. This figure is 35 percent higher than consensus estimates by analysts, who view the strong set of results and forecast improvements, particularly for CoR in main business areas, as upbeat.
Sending money from one side of the globe to the other is apparently very simple, but cross-border payments pose a real challenge. Making international transfers quickly and safely requires a complex structure in which relationships with other financial institutions are essential. The International Financial Institutions area at BBVA has a team of bankers that promotes the creation of a global network of banks that provides customers with the possibility of making international investments and transactions.
During the results presentation for the first half of 2021 BBVA CEO Onur Genç stated that: "We have begun to take the necessary steps for our up to 10 percent share buyback." The bank plans to “start the programs in the fourth quarter,” subject to market conditions and regulatory approvals.
BBVA has once again stood out in the latest stress test carried out by the European Banking Authority (EBA). In the adverse scenario BBVA’s fully-loaded CET1 capital ratio at the end of the assessment period (2021-2023) would be reduced on 303 basis points (bps), an impact considerably lower than the 50 European banks average analyzed on the stress test (485 bps). BBVA is the bank with the second lowest impact on capital among comparable European peers. In the baseline scenario, BBVA would generate 128 bps of capital, to reach a fully-loaded CET1 capital ratio of 13 percent in 2023.
World Finance magazine awarded Garanti BBVA as the best retail bank in Turkey for the seventh consecutive year in its 2021 awards. The publication also found BBVA's Turkish subsidiary to be the best bank in Europe, an award it has won for the fourth year.
BBVA has been named the world´s best bank for corporate clients for the second time by Global Finance magazine in its annual awards. Awards that have become a trusted standard of excellence for the financial industry.
To measure and understand a banking entity's credit quality, several metrics must be considered as an interrelated whole. One indicator in isolation cannot give a full picture of credit risk. The three most widely used metrics are the NPL ratio, the coverage ratio and the cost of risk. These metrics enable us to analyze the volume of non-performing assets in relation to the size of an entity's loan portfolio, the provisions recognized to cover future default losses and the annual cost of generating this buffer of provisions.