Peio Belausteguigoitia: "The combined entity will increase lending to families and businesses by €5 billion per year"
Peio Belausteguigoitia, BBVA’s Country Manager in Spain, stated on Friday that the combination of the two banks will have greater capacity to offer financing to families and businesses, estimated at €5 billion per year. Speaking at the ‘S’Agaró 2024 Business Forum,’ he also added that BBVA will continue to collaborate with the Spanish regulator CNMC to get the green light to the transaction.
BBVA Spain’s Country Manager emphasized that the deal represents a strong commitment to SMEs and companies, particularly in Catalonia, whose economy is thriving. As for financial support for businesses, Peio Belausteguigoitia stressed that the transaction will not reduce credit availability to businesses. On the contrary, BBVA’s goal is to drive growth and leverage Banco Sabadell’s strengths in this segment.
Regarding the analysis of the transaction by the Spanish competition authority, Belausteguigoitia explained that the CNMC has carried out a comprehensive and thorough analysis over the past six months, concluding that there are three very specific areas where it needs to take a closer look. In this sense, he underlined that BBVA “will continue to collaborate in this second phase to work on the commitments related to those three aspects and obtain the authorization.”
Business offices will remain in place
BBVA’s proposals to the CNMC include keeping all Banco Sabadell business banking branches across the country and preserving commercial terms and conditions in postal codes served by fewer than four financial institutions. For SMEs in these postal codes, the cost of new lending will not exceed the national average.
BBVA has also offered to keep in place working capital facilities for all SMEs for 18 months, and to preserve the current volume of total credit for SMEs that bank exclusively with BBVA and Banco Sabadell. These measures directly address the CNMC’s concerns, which focus heavily on specific territories.
Additionally, BBVA has pledged not to close branches where neither it nor Banco Sabadell has another location within 300 meters and to retain its presence in any locality where it is the sole bank. For customers from both banks, the combination will offer significantly improved access to branches. Banco Sabadell clients, in particular, will gain access to more than twice as many branches as they currently have.
In his talk, the CEO of BBVA in Spain discussed the economic outlook for both Spain and Catalonia. He emphasized that Spain is leading growth in Europe, with a 2.9 percent increase projected for this year and 2.5 percent for 2025. Catalonia is expected to grow by 3 percent this year and 2.6 percent in 2025. He pointed out that Catalonia leads Spain in exports, accounting for 36 percent of its GDP, compared to a 25 percent national average.
Regarding the European financial context, BBVA Spain’s Country Manager noted that Europe requires strong, robust institutions to remain competitive. Scale, he argued, is vital for enhancing efficiency, innovation, and competitiveness.