BBVA'S 2022 MILESTONES
2022, the year that BBVA’s growth strategy gained momentumThe year 2022 has been packed with significant milestones for BBVA. The Group has proactively promoted its strategy for profitable growth. Proof of this is the fact that BBVA acquired 34 million new customers in four years. In 2022 alone, it expects to reach a new record of 11 million. Furthermore, BBVA increased its stake in Garanti BBVA, its Turkish franchise, to 86 percent in May following the end of the takeover bid that was launched at the close of 2021. In terms of shareholder distributions, in August, BBVA completed a share buyback program that began in 2021, and increased the October dividend by 50 percent compared to the same month a year earlier. BBVA also made progress in two other strategic priorities: innovation and sustainability. Regarding the former, the investment in the Brazilian digital bank Neon and the creation of Spark, an area of banking for innovative, high-growth companies, stand out. In terms of sustainability, BBVA once again raised its sustainable business target to €300 billion between 2018 - 2025, 50 percent higher than its previous goal.
By the end of 2021, there were over 11.7 million BBVA customers who use the bank’s financial health digital tools. This represents a 48 percent increase from the nearly eight million people who used these features the previous year.
BBVA will create 200 jobs in two years, with the launch of two technology centers in Bilbao. These facilities will have people with specialized backgrounds such as IT, telecommunications and systems engineers, industrial engineers, and mathematicians.
Founded in 2016, Neon provides access to financial services for individuals, the self-employed and small businesses in Brazil, and has 15 million registered accounts. This investment follows an unprecedented wave of technology disruption, with strong growth in digital and innovative models, especially in the financial sector. Along with a clear commitment to innovation, the investment gives BBVA exposure to the retail banking business in Brazil, one of the markets with the greatest potential in the world.
BBVA launched a donation campaign among its customers and employees in Spain to help alleviate the humanitarian crisis in Ukraine. The bank also set up free transfers from its retail customers to Ukraine.
BBVA invested $20 million in Lowercarbon Capital, one of the few venture capital funds specializing in innovative companies in the climate change and decarbonization fields. This investment will focus specifically on the carbon capture sector.
After launching a voluntary takeover bid for the 50.15 percent it did not already own of Garanti BBVA, the BBVA Group increased its stake in its Turkish subsidiary to 86 percent, for approximately €1.41 billion.
BBVA's Turkish franchise unveiled a pioneering new tool in its mobile app, which allows customers to measure their carbon footprint based on their spending on utilities and fuel. The bank thus seeks to contribute to a more sustainable world and combat the climate crisis.
The Frontiers of Knowledge Awards defend the power of knowledge as a compass in the face of global challenges
During his speech at the 14th BBVA Foundation Frontiers of Knowledge Awards ceremony, Carlos Torres Vila advocated for the power of research, innovation, and education to tackle the major challenges facing humanity, such as the Covid-19 pandemic and environmental degradation.
BBVA took another step towards gender equality by setting a target of 35 percent women in management positions by 2024. At the end of 2021, this percentage stood at 31.4 percent. This measure joins the series of initiatives that are helping to increase the number of women in leadership positions.
The bank launched BBVA Spark, a comprehensive financial services proposal to accompany the most innovative companies, such as startups, in their various stages of growth. Spark will allow them to cover all their financial needs in one place, and to have access to sophisticated financing products, such as venture debt or growth loans.
BBVA successfully concluded its framework share buyback program, which began in November 2021, bringing it to a 9.6 percent shareholding. This is one of the largest share buybacks in European banking to date. It is a way of remunerating the bank’s shareholders, whereby BBVA buys back its own shares and redeems or disposes of them. As there are fewer shares in circulation, each shareholder's stake increases.
BBVA's Turkish franchise achieved a new milestone in its commitment to sustainability: it is the leader in financing wind energy projects, with a market share of 22.5 percent. Garanti BBVA is one of the main drivers of this type of initiatives in the country. Since 2014, 100 percent of the portfolio of electricity generation projects it finances are renewable energies.
Carlos Torres Vila gave the opening presentation at the second BBVA Sustainability Forum. Spanish Prime Minister Pedro Sánchez was in attendance, as well as other business leaders and prominent figures, such as Nicholas Stern and Larry Fink. One of the main reflections from the forum was that in the current geopolitical situation, characterized by the war in Ukraine, the energy crisis and high inflation, all social players committing themselves to sustainable economic and industrial models is an even greater priority than ever before.
BBVA wants to support the energy sector in its transition and is committed to clean energy. Therefore, the bank announced that it will reduce emissions from its oil and gas portfolio by 30 percent by 2030. This commitment is in addition to the objectives set by BBVA in 2021 in four other CO2-intensive sectors and the decision to stop financing coal companies, in line with the Net-Zero Banking Alliance.
On October 11th, BBVA shareholders received a 2022 interim cash dividend of €0.12 gross per share, up 50 percent from the €0.08 that was paid in October 2021. The bank’s strong results in the first half of the year supported the dividend.
BBVA's Chair Carlos Torres Vila announced that the bank will increase its sustainable business target by 50 percent. He explained that the bank is channeling sustainable financing “at a very rapid pace,” surpassing in June the target it had originally set for 2025. As a result, the bank decided to raise the target once again to €300 billion for the 2018-2025 period.
BBVA obtained the highest score among the European banks analyzed by S&P in its Corporate Sustainability Assessment (CSA). For the third consecutive year, it is the most sustainable bank in Europe.
The Banker, the British publication that is part of the Financial Times Group, chose the BBVA Group as the best bank in the world this year. The Banker also recognized BBVA as the best bank in Western Europe, Spain, Peru, and Colombia. The magazine underscored the Group's solid financial fundamentals and its strategy for innovation and sustainability, which put it ahead of its competitors.
The BBVA Microfinance Foundation (FMBBVA) celebrated 15 years of helping millions of people improve their lives. For the third consecutive year, its work has made it the leading private organization in terms of its contribution to development in Latin America and second in the world, according to the Organization for Economic Cooperation and Development (OECD).