Economy

BBVA Research is forecasting GDP growth of 2.6 percent for Catalonia in 2024, outpacing the average for Spain (2.5 percent). It also reckons that GDP will grow by 2.1 percent in 2025, supported by a wider economic improvement across Europe, albeit shackled by tourism, which is nearing maximum capacity in peak season. If these forecasts are met, in 2025 the GDP of the Catalan economy would be 7 points above the 2019 level. This growth comes on the back of a strong services sector, coupled with a recent improvement in industry, which are managing to offset weak exports of goods. For the third year running, Catalonia has outperformed Spain when it comes to GDP growth, as reflected in the creation of new jobs, with more sizable increases seen in Barcelona and Girona. In addition, the unemployment rate might well fall to 8.3 percent in 2025 and 192,000 new jobs could be created by the end of 2025. According to these forecasts, Catalonia is expected to create the most new jobs over this year and the next.

BBVA has completed the sale of a portfolio of unsecured non-performing loans valued at approximately €270 million. This transaction is expected to positively impact the bank's non-performing loan (NPL) ratio in Spain, which was 4.11 percent at the close of the first quarter of 2024.

The Spanish Prime Minister, Pedro Sánchez; the President of Türkiye, Recep Tayyip Erdoğan; and Carlos Torres Vila, Chair of BBVA and Co-Chairman of the Spanish-Turkish Business Council, opened the Spain -Türkiye Business Meeting, which was held on Thursday at Ciudad BBVA in Madrid.

The contingent convertible capital instruments (CoCos) also known as Additional Tier 1 bonds are  hybrid bonds that combines debt and equity elements. Its defining characteristic is that it may be converted into shares if the CET1 capital ratio drops below a specific level.

BBVA contributed a record €7,668 million in own taxes in 2023 across all the countries in which it operates.  A further €5,950 million was also collected from third parties, making a grand total of €13,618 million in taxes, the highest tax contribution ever recorded by the bank. In Spain alone, BBVA paid a total of €1,191 million in its own taxes. With third-party taxes included, the bank contributed €3,384 million to the public treasury. This effort reflects BBVA's commitment to the social and economic well-being of the countries within its footprint and its strong support for local economies.

In the past two years, BBVA added 7,187 professionals in the data and technology field to its workforce - a figure it plans to increase in 2024 with 2,700 new hires. Of this amount, 1,225 will take place in Spain for the bank’s headquarters in Madrid, Bilbao and Barcelona. Technology talent has become a key aspect of the Group’s digital strategy.

BBVA, together with Bank of America Securities and Citigroup Capital Markets, led Ecopetrol’s new issuance of corporate debt in the U.S. market in the amount of $1.85 billion. This placement consolidates BBVA’s role as one of the top financial institutions in the structuring, placement and sale of corporate bonds.

BBVA Mexico manages a portfolio in excess of 50 billion pesos and now finances one out of every four automobiles in Mexico, making it the leader within the sector with a 25% market share.

Shareholders are the owners of the securities issued by an enterprise that has been organized as a corporation. BBVA has more than 750,000 retail shareholders. As individual savers, they are one of the bank's key stakeholders. BBVA is firmly committed to creating value for all of them.

BBVA´s CEO in Türkiye, Recep Baştuğ, spoke recently to national news outlet Anadolu Agency on the country’s economy, the banking industry, his own bank’s performance in 2023 and what he expects for next year.

This is the first agribusiness deal where one of the signatories refers its own suppliers to the bank as candidate borrowers.

BBVA has updated the Group's Tax Strategy, last published in 2015. The bank thereby addresses rising interest among analysts, investors and wider society in corporate decisions with an impact on environmental, social and good governance issues. The new strategy strengthens the governance, oversight and control structure by creating a specific tax compliance body and integrating ESG criteria in tax decision-making.

BBVA is the Spanish company with the largest number of employees with the Chartered Financial Analyst (CFA) accreditation granted by the CFA Institute, the global association of investment professionals. More than 170 of the Group's employees in Europe, Mexico and other geographies hold this U.S. based accreditation. In addition, more than 50 BBVA professionals hold the Certificate in ESG Investing accreditation, also from the CFA Institute, which focuses on sustainable investment.

The British magazine, part of the Financial Times group, also recognized BBVA as the Best Bank in Mexico, one of its biggest markets, as well as the franchise in Peru. For The Banker, BBVA is a “leading bank in Latin America, standing out from its peers in various markets in the region.”

BBVA clinched the title of the best digital bank for businesses in Spain in 2023, according to Global Finance magazine, a US publication specializing in financial markets and investment banking. This recognition was part of the '2023 Best Digital Bank Awards,' where BBVA not only claimed the top spot for digital banking but also received accolades for having the premier mobile banking app for businesses in Spain and Western Europe.

BBVA in Colombia granted 3.8 billion pesos in sustainable lending between January and August 2023, with $2.4 billion going to inclusive growth projects and $1.4 billion for climate action pursuits. These figures are already up on last year’s total figure and 66% higher than in August 2022.

BBVA’s Turkish franchise is strategically reinforcing its commitment to enhance customer accessibility by extending remote banking services to corporate clients.

BBVA CEO Onur Genç delivered the closing address at a business event held on Monday by the Spanish Confederation of Business Organizations (CEOE) and the Turkish Embassy in Spain to commemorate the centenary of the Republic of Türkiye. During his speech, Genç underscored the growth potential of Spain and Türkiye, two key partners that stand to benefit from their bilateral cooperation.

BBVA’s Turkish unit has taken a step forward in its strategy to boost automotive sales over digital channels with the launch of a new digital loan for Renault and Dacia brand vehicle purchases. Now on offer to businesses and the self-employed via Garanti BBVA’s website and the smartphone app, the bank’s new financial product provides an end-to-end digital experience.

BBVA has signed the sale of a portfolio of unsecured non-performing loans. This portfolio has an approximate gross value of €500 million. The sale will have a positive impact on the bank’s NPL ratio in Spain.

BBVA Mexico congratulates SHCP—the Mexican Treasury—on issuing a new sustainable bond known as 'BonoS.' With a fixed rate and a 12-year term, the bond is denominated in local currency. The issue attracted total demand of MXN 39,443 million, an oversubscription of 1.71 times. Both domestic and foreign investors placed orders.

BBVA has given a new boost to its Wealth Management unit within the Private Banking area in Spain to enhance its range of services for individuals with a net worth of over €2 million. With a view to more personalized support for customers, BBVA Private Banking has recruited 28 new bankers (an increase of 38%), bringing the total team to 101 professionals. Of these new entrants, 13 will focus on the Ultra High Net Worth segment (net worth of more than €10 million).

The BBVA Chair gave the opening presentation this Monday at the 40th edition of the APIE Seminar in Santander. Carlos Torres Vila stressed the contribution of the banking sector to Spain’s social and economic progress over the four decades commemorated by the course. He specifically indicated that: “Over the last 40 years, and despite the great economic crisis from a decade ago, credit granted by banks in Spain as part of their main business activity, in other words, channeling deposits toward loans, has added 20 percentage points to GDP per capita,” according to an estimate by BBVA Research. This activity has also had a very positive impact on productivity per hour of work (+31 percent), investment (+27 percent), and private consumption (+11 percent).

The 2023 ‘Reunión Nacional de Consejeros Regionales’ (National Meeting of Regional Advisors, or RNCR) brings together over 300 people from the business community across the country to analyze the social and economic challenges Mexico is facing. It also demonstrates the contributions made by BBVA Mexico to propel the development of projects and find solutions that foster growth and well-being in the different regions of the country.

Deferred tax assets, or DTAs, are a company's claim against the tax authorities. DTAs arise mainly in two ways: through losses that can be offset against future profits or through prepayments of taxes recoverable in the future.

BBVA has successfully completed the share buyback program announced on March 20, 2023, for a total of €422 million. This program is part of the distributions to shareholders for the year 2022. In total, BBVA devoted €3.02 billion to its shareholders, including a cash dividend of €0.43 (gross) per share and this share buyback plan.

The Allianz and BBVA bancassurance joint venture is now one of the largest home insurance companies in Spain, with more than one million insured households and €276 million in premiums for this range of insurance products.