BBVA closed 2016 with an excellent achievement in terms of its loan business. The Bank acted as Bookrunner (the top role of any institution in a syndicated operation) in 60% of the transactions in which it was involved. Also, it increased its market share from 8.2% in 2015 to 14.8% in 2016.
The political upheaval that marred and engulfed the country’s public life during the first five years of the 1930s, ended leading Spain right towards where some visionaries’ had predicted it irretrievable would: a full-blown civil war. The succession of controversial events that plagued the first half of 1936 contributed to turn Spanish society into a tinderbox under a stifling political climate. On July 18, General Francisco Franco issued an official statement, announcing the beginning of his uprising against the Second Republic’s current legality.
On Wednesday, BBVA signed a green loan in favor of Iberdrola for 500 million euros. In addition to being the first operation of this type for an energy sector company, this agreement involves the highest sum as of this date.
- Changes: The new executive director compensation policy for the next three years envisages 1) an increase in the amounts to be deferred and the deferral period for the variable compensation. 60% of the variable compensation will be subject to a 5-year deferral period; 2) share-based remuneration increase: 60% of the deferred amount to be paid in BBVA shares, the remaining 40% in cash; and 3) variable compensation to be subject to reduction and clawback clauses
- Group Executive Chairman: Total remuneration of BBVA’s Group Executive Chairman for 2016 was €4.9 million, down 12% from 2015. The Chairman’s variable compensation dropped 18% with respect to 2015, mainly as a result of the impact on BBVA Group’s profit of the provision related to ‘floor clauses’ in Spain and exchange rate trends. The deferred variable remuneration is subject to the retribution policy in force in 2016, with multi-annual indicators based on which said remuneration can be reduced or even taken to zero, never increased, as well as malus clauses that could limit or even prevent its collection
- Chief Executive Officer: CEO Carlos Torres Vila’s remuneration was €4.4 million, and his variable remuneration is also subject to the same deferral period and conditions as that of the Chairman
The Board of Directors has approved a new Executive Director compensation policy for 2017, 2018 and 2019 to adapt to the new regulation related to compensation (Bank of Spain Circular 2/2016 and the European Banking Authority’s guidelines on sound adequate remuneration policies.) This new policy will be submitted for approval in the upcoming Annual General Meeting, on March 17.
A bank’s markets division, also known as its Treasury, is part of its wholesale banking business. It is a highly specialized area that seeks to meet institutional and corporate customers’ investment and risk coverage needs. The retail banking area serves individual customers and also receives support from the markets area to design and manage products and manage the associated risks.
The usual “known unknowns” continue to be alive and new ones could join this year. In the short term, the anti ISIS offensive continues and still far from being solved. Meanwhile the long lasting conflict between Russia and Ukraine looks to escalate. North Africa and the Middle East will continue to be the main hot spots in 2017, but higher political and geopolitical uncertainties could arise all over the world. The rise of populism and constrains to the flows of people (anti-immigration) and trade (protectionism) will challenge the international rules and globalisation. The new agenda by the US administration and the response of China, Russia and the Middle East, as well as uncertainties in Europe (elections and the Brexit) will continue to shape the dynamics of the geopolitics of the coming years.
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Speaking at BBVA’s 2016 results presentation, Francisco González said that after 10 years of working on the Group's transformation, progress is becoming increasingly evident for the bank’s customers. And how is that showing? In new digital services and products with a better user experience.