The COVID-19 crisis is pushing vulnerable groups – those bearing the economic brunt of the crisis – to the limit. Leora Klapper, lead economist of the World Bank’s Development Research Group and member of the Advisory Board of the BBVA Center for Financial Education and Capability, analyzes the key factors to boosting these groups’ economic resilience and promoting their financial inclusion.
BBVA and the Korean energy company, SK Innovation, have signed a working capital loan of €100 million to expand the company’s electric vehicle battery manufacturing facilities in Europe. This transaction is the first working capital loan certified by BBVA in Asia in compliance with its sustainable transaction banking framework.
BBVA Group Executive Chairman Carlos Torres Vila participated in the Plenary Session of the Spanish Chamber of Commerce, where he emphasized that the recovery in Spain may open up an opportunity to “quickly embrace” a more digital economy. For this, he considers that digitization should be a priority for businesses – especially SMEs – and any progress in this sense will greatly depend on public investments and the amplification effect derived from private initiatives. He also noted that “the role of banks has been pivotal, not only amplifying the impact of public money, but also aligning targets.”
The mortgage scene can be a complex one. During normal times, consumers find themselves with a lot of questions that need to be answered in order to make an informed decision on one of the biggest milestones in their lifetimes.
In what has been a steady flow of awards from Greenwich Associates, BBVA USA was recently recognized by the financial industry research firm for its response to the COVID-19 pandemic.
Analyst firm reports for the most part agree that BBVA presented solid numbers for the second quarter of 2020 and particularly stress the positive quarterly performance of its capital ratio.
BBVA’s chief executive officer presented the media with 2020’s second quarter results. Onur Genç expects the bank to “certainly beat our capital target by the end of the year,” given that in June the bank had already hit the high end of its target range. He therefore believes that “in 2021, we will return to paying dividends,” as per recommendations the supervisory authority may make.
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.