The BBVA Group closed today the sale of its U.S. subsidiary to The PNC Financial Services Group, Inc., announced in November 2020. BBVA will continue operating in the U.S. through its broker-dealer BBVA Securities and the New York branch – from which it will provide wholesale banking services –, as well as the fintech investment fund Propel Venture Partners.
Starting Jan. 1, 2022, BBVA will be required to meet a volume of own funds and eligible liabilities (MREL) of 24.78 percent of its risk-weighted assets (RWAs), in line with expectations. As of March 31, 2021, the bank already complies with this requirement, reaching 29.23 percent, as well as with the new subordination requirement.
ALCO portfolios are one of the main tools available to banks to manage some of the structural risks on balance sheets (liquidity risk and interest rate risk) and, as a secondary objective, to contribute to the stability of earnings generation. They are a portfolio of financial assets, mainly composed of government bonds, which is governed by the bank's Assets and Liabilities Committee (ALCO).
BBVA USA today announced the opening of 11 new branches across five Texas markets, marking a major milestone in an endeavor first announced in June 2020.
The branches, opened in early May, feature updated branch models aligned with the bank’s vision of integrating both a digital and face-to-face branch banking experience for customers. The bank’s new set of branches can be found in the Houston, Austin, San Antonio, Fort Worth and Dallas markets.
The supply chain is the set of elements that allows companies to deliver a product or service in order to satisfy the needs of the end customer. The COVID-19 crisis has put the resilience and adaptability of these essential business systems to the test, increasing the urgency to adopt measures and make them more resilient to potential future threats.
Public and private issuers and investors came together at the 10th edition of BBVA’s Latin America Conference, a forum where they were able to identify business opportunities and share their vision of economic development, the social and geopolitical impact of COVID-19 and the ESG outlook in the region. This annual event, which was held virtually, had record-breaking attendance with nearly 1,000 professionals from over 400 institutions and 39 countries.
BBVA USA Bancshares, Inc., a Sunbelt-based bank holding company (BBVA USA), reported today net income of $385 million for the first quarter of 2021 compared to net income of $334 million in the fourth quarter of 2020 and net loss of $2.2 billion in the first quarter of 2020. Return on average assets and return on average tangible equity(1) for the first quarter of 2021 were 1.49 percent and 16.57 percent, respectively.
The BBVA Group obtained a net attributable profit of €1.21 billion in the first quarter of 2021 - a figure that shows a return to levels prior to the outbreak of the COVID pandemic. These results were achieved thanks to strong recurring revenue - despite the complex environment - and lower impairments and provisions compared to those made in the first quarter of 2020 in anticipation of the crisis. “In the first quarter of 2021, we produced positive results in an environment that continues to be very challenging. In a context of profound change in our sector, we continue to move forward in key areas of our strategy: sustainability and digital transformation,” said Onur Genç, CEO of BBVA.
The BBVA Group earned €1.21 billion in 1Q21, in line with quarterly earnings prior to the pandemic. In the year ago period, BBVA posted a €1.79 billion loss when it recorded a goodwill adjustment in its U.S. subsidiary and higher impairments. This quarter’s result was driven by strong recurring revenue and lower impairments and provisions than in 1Q20. Thanks to these earnings, BBVA generated 15 basis points of capital in the January-March period.
BBVA’s goal is to make the opportunities of this new era available to everyone. Being connected and having operational capabilities from anywhere in the world is more important than ever given the circumstances. The correspondent banking team, also known as International Financial Institutions (IFI), is a key part of this endeavor.