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Onur Genç: BBVA is focused on organic growth, efficiency and transactionality

BBVA CEO Onur Genç said on Monday that the bank is focused on organic growth, efficiency and transactionality, all leveraged by digitization. “We are focused on these three levers to ensure we provide the best value,” he said at the 10th Expansión-KPMG Financial Meeting in Madrid. He also recalled that “we have been pioneering the digital transformation.”

In an interview with Expansión’s banking editor Nicolás Menéndez Sarriés, Onur Genç noted the relevance of the digital transformation in the future of the banking sector. “We have been pioneering the digital transformation”, which, in his opinion, “is a competitive advantage.” For Genç, “The next step is to monetize our transformation”, something the bank is achieving through three strategic levers: Growth, efficiency and transactionality, all this with the aim “to be closer to our customers,” ha added.

Together with digitization, he pointed to two other factors that place BBVA as one of the most attractive financial projects at present. First, it has a diversified business model, with leading franchises in key markets, which produce positive results even in environments marked by uncertainty. As examples he added that BBVA leads the European financial industry in terms of profitability (with a ROTE of 12 percent as of June 2019, compared to a 9 percent average for its group of comparable peers), showing a clear and positive distinction”, with the rest of banks.

Secondly, he underscored the fact that BBVA is an organization driven by a purpose: To bring the age of opportunity to everyone. The purpose inspires the organization’s culture and values,” he explained.

BBVA CEO Onur Genç.

Commitment to Turkey and Mexico

Asked about the economic situation in Turkey, the CEO, who is from Turkey, stated that the country’s GDP has grown for the past two quarters in a row and inflation has declined significantly. Although he indicated the need to be cautious, he noted that despite the environment, the country has been “the biggest positive surprise of 2019.”

Regarding Mexico, Genç recalled that BBVA has one of the Group’s leading franchises in the country, with the highest profitability and market share. In his opinion, “Mexico is such a solid country” that, despite a reduction in growth forecast for 2019, BBVA has been capable of increasing its loan portfolio in Mexico at a rate well above the country’s growth in recent years. The low level of bankarization (banking penetration) is an opportunity for BBVA to continue growing in Mexico.

Regarding the Cenyt case, Onur Genç reiterated BBVA’s firm commitment to clarifying the facts and complying with the law. “We have to be fully cooperating with authorities,” he said.

BBVA CEO Onur Genç at the 10th Expansión-KPMG Financial Meeting in Madrid.