Economy and Finance

The BBVA Group paid a record-breaking €8.46 billion in own taxes in 2024 in the countries where it operates, 10 percent more than the previous year, according to the Total Tax Contribution Report. In addition to this figure, BBVA collected €8.98 billion in taxes from third parties for a total of €17.44 billion–the Group’s highest tax contribution thus far. This means that for every €100 of income generated by BBVA in 2024, the bank contributed €49 to public coffers in taxes¹.

¹Ratio between BBVA’s financial contribution to public coffers in 2024 (€17.44 billion) and the bank’s gross margin for the year (€35.48 billion). BBVA’s tax contribution includes both its own taxes (corporate tax, VAT and specific levies on the financial sector, among others), as well as taxes collected by the BBVA Group on behalf of third parties, which are paid as a result of its presence and activity with employees, customers and suppliers in over 25 countries.

On Thursday, April 10, BBVA will pay a supplementary dividend of €0.41 per share. Added to the interim dividend paid in October, the total payout for 2024 rises to €0.70 per share, the bank’s highest since 2007. BBVA has also announced a €993 million share buyback.  Through dividends and the buyback, the bank will return a combined €5.03 billion to shareholders this year, half of its 2024 profit.

BBVA CEO Onur Genç emphasized on Thursday that the transaction with Banco Sabadell is focused on growth, bringing together the strengths of both institutions. “This is about preserving and expanding the excellent work Sabadell has done, and growing together in high-value segments, such as companies,” he explained. At an investor event organized by Bank of America, Genç underscored the attractiveness of the offer for Sabadell shareholders, not only due to the premium offered, but because of the value that will be created through synergies. As a result, they will be able to increase earnings per share compared to the standalone scenario. “BBVA is offering Sabadell shareholders the opportunity to become part of a stronger, more profitable, and more efficient bank,” he said.

On Friday, March 21st at 12:00 PM (CET), BBVA will hold its 2025 Annual General Meeting (AGM) at the Euskalduna Conference Center in Bilbao (Spain). BBVA is making it easier for its shareholders to participate in the AGM by offering a hybrid model, combining in-person attendance with the option of remote participation. To participate remotely, shareholders need to register in advance on the Remote Attendance Portal. Furthermore, the bank’s corporate website will broadcast the event via webcast.

The more a company grows and increases its profitability, the greater its positive impact on the economy and people. During the presentation of the 2024 results, BBVA Chair Carlos Torres Vila explained how the bank will allocate its revenue and profit, with a greater social impact.

The finance department plays a pivotal role in the transformation of an organization. Although the CFO (chief financial officer) has traditionally been viewed as the guardian of a company’s finances, they happen to play a much bigger role. They help to shape the strategic roadmap needed to embark on this transformation and allocate the resources to make it all happen. This is what Luisa Gómez Bravo, Global Head of Finance at BBVA, had to say in a recent interview published by Forbes magazine, together with Carmen de Pablo, Chief Financial, Strategy and Sustainability Officer at Moeve, and Laura Abasolo, Chief Financial and Control Officer at Telefónica.

On Tuesday, BBVA issued a contingent convertible (CoCo or AT1) bond in the amount of $1 billion dollars, with an early redemption option in seven years. The operation kicks off the 2025 debt market, making BBVA the first EU bank to issue debt in this format this year. With this transaction, the bank is reinforcing its ability to diversify sources of funding.

Garanti BBVA customers can now apply for a used vehicle loan through Garanti BBVA Mobile without ever having to visit a branch, allowing them to finance the purchase of any second-hand vehicle they may wish to purchase from a dealership or a private seller.

Juan Blasco, Global Head of Institutional Business at BBVA CIB, has been appointed Chair of the Board of the Association for Financial Markets in Europe (AFME). Blasco takes on this role with the goal of contributing to the strengthening of European capital markets, fostering their integration and enhancing their ability to meet the needs of businesses and investors.

BBVA Mexico has become the first financial institution in the country to manage 1.012 trillion pesos in investment funds, according to the latest report by the Asociación Mexicana de Instituciones Bursátiles (Mexican Association of Stock Market Institutions, or AMIB). Now, as part of the bank’s strategy to professionalize its team, BBVA Mexico has reached an agreement with the CFA Institute to allow 140 of the bank’s investment advisors to obtain certifications with a focus on socially responsible investing and data science.

BBVA has been awarded the Inhouse Team of the Year in the Banks & Financial Institutions category at the 2024 Iberian Lawyer Gold Awards, in recognition of the work of its legal team and their ability to address challenges within the financial sector.

The top sectors investing through BBVA Mexico's Nearshoring unit are manufacturing, automotive, electronics, technology, and logistics.

The US magazine also proclaimed BBVA the best bank in Mexico, Colombia and Argentina, three key markets for the Group in Latin America.

During BBVA’s earnings presentation for the third quarter of 2024, the bank’s CEO, Onur Genç was upbeat about the bank’s prospects looking forward, predicated on a clear strategy of profitable growth and sound risk management. Geographic diversification and the ability to adapt to changes in interest rates place BBVA in good stead to face the challenges on the near horizon. Genç also appeared confident that the combination with Banco Sabadell will ultimately go ahead and have a positive impact for Spanish businesses and for the country as a whole.

BBVA’s CEO Onur Genç remarked on Monday that the integration of BBVA and Banco Sabadell will be beneficial to Spain and its economy, and made a point of emphasizing the bank’s “firm commitment to SMEs.” According to Genç, this integration will enhance lending to small and mid-sized companies (SMEs). “We are doing this transaction to boost lending, particularly to SMEs,” he stated while taking part in the 15th Financial Forum organized by Spanish newspaper Expansión and KPMG. “It wouldn’t make sense to carry out this transaction to reduce the segment we value the most at Banco Sabadell,” he added.

BBVA shareholders will receive on Oct. 10 a gross dividend, against 2024 earnings, of €0.29 per share, 81 percent higher than a year earlier. This is the highest interim dividend to be paid by BBVA to date. The bank will thus distribute about €1.7 billion in cash to shareholders. Following this dividend, from 2021 BBVA will have distributed about €15 billion in dividends and share buybacks.

BBVA Chair Carlos Torres Vila spoke in Barcelona on Tuesday, emphasizing Catalonia's strong "future appeal" and the bank's commitment to supporting its growth. He stressed the region's importance to BBVA, noting that Catalonia is the largest contributor to the bank’s business in Spain, with one in four new SME customers coming from the region. The combination with Banco Sabadell, he added, will further strengthen BBVA’s commitment to Catalonia and its SMEs: “We aim to continue growing with Catalonia and the transaction with Banco Sabadell reflects that.” On the topic of post-merger concentration in the banking sector, the BBVA Chair stated that "this transaction will not create competition issues, as it will result in a smaller institution compared to previous mergers.”

BBVA Chair Carlos Torres Vila spoke on Tuesday at a conference hosted by the business confederation Cecot, where he shared with Catalan business owners his vision of the global context and the role played by companies in economic growth and job creation. In his speech, he underscored BBVA's commitment to SMEs, a business in which it wants to continue to grow with the integration of Banco Sabadell. Regarding competition, he pointed out that the decision rests with the Spanish Competition Commission (CNMC), for which BBVA has the utmost respect. “The transaction at no time exceeds the market share thresholds established in the competition analysis. Moreover, if we compare it with previous transactions, many of them are of similar size, so, applying the same methodology, we expect it to be approved with similar parameters," he added. Therefore, in the opinion of Carlos Torres Vila, “We do not see any competition issues in the transaction with Banco Sabadell.”

The bank expects to bring in investments from 65 companies in its first year. Mexico has more trade per year with Texas than with Asia.

BBVA’s strategy in Spain of targeting companies and SMEs has scooped three awards from Global Finance magazine at this year’s edition of its ‘Best Digital Bank Awards’: Most Innovative Bank, Best Mobile Banking App and Best Open Banking Strategy.

The ‘Sharing Knowledge’ project is a further show of BBVA’s commitment to small and medium-sized enterprises (SMEs). Through this initiative, the bank supports, teaches, inspires and transforms businesses and their management team by staging talks among industry experts and discussing specific SME success stories.

BBVA CEO Onur Genç discussed the transaction with Banco Sabadell during the earnings presentation for the first half of the year. Genç stressed that this combination creates value for both Sabadell and BBVA shareholders. “We both win in this transaction: we create value and we share it,” he said. Specifically, thanks to the substantial synergies created, Banco Sabadell shareholders would obtain 27 percent higher earnings per share (EPS) in the combined bank than if the bank continued as a separate entity¹, according to calculations based on analyst consensus for both banks.

Türkiye Garanti Bankası A.Ş. has released its financial statements for the period ending June 30, 2024. According to its consolidated statements, the bank’s net income in the first six months of the year came to TRY 44.59 billion. Total assets stood at TRY 2.6 trillion, while the bank’s contribution to the economy through cash and non-cash loans amounted to TRY 1.98 trillion.