Luisa Gómez Bravo (BBVA): “We have an incredible bank in Mexico that will continue delivering solid returns”

Luisa Gómez Bravo emphasized the unique profile of BBVA and its diversification. She reminded that the Group operates in each country with leading franchises and with perspectives that remain solid.

Of the various factors that will underpin the positive evolution of the business, Gómez Bravo pointed to growth in lending in the Group’s biggest franchises, as well as proactive management of structural risks. BBVA has limited the sensitivity of net interest income to interest rates of four percent in Spain and 2.5 percent in Mexico, and maintains its currency hedging policies to counteract the impact of exchange rate volatility in the short term. Furthermore, she mentioned the evolution of risk indicators, especially the cost of risk, which will continue to support the income statement.

Positive outlook for Mexico

Luisa Gómez Bravo explained that there are two structural factors supporting the bank’s positive outlooks in Mexico. First, the strength of the bank in the country, with clear competitive advantages, such as a differentiated scale, high share of transaction volume and digital capabilities that surpass the competition, which also are reflected in terms of customer acquisition. Second, from a macroeconomic viewpoint, it is a very competitive market with the ability to attract capital thanks to its competitive situation regarding costs and its proximity to the United States (nearshoring), together with low levels of banking penetration and the leverage of the economy. The latter has allowed consistent economic growth throughout the years, which has translated into a greater growth of lending.

Growing activity in Spain

Concerning the business in Spain, Luisa Gómez Bravo underscored that it is an attractive market and the activity is surprisingly performing better with good dynamics in all segments: mortgages, consumer and businesses. In her opinion, a scenario of interest rate cuts would have a positive impact on loan growth and also on asset quality indicators. Likewise, deposits are showing a positive performance, in line with saving rates.

Beyond the macroeconomic outlooks and interest rate forecasts, Gómez Bravo emphasized that BBVA will continue to surpass its competitors in Spain, taking advantage of the bank’s strengths and strategic priorities: customer acquisition, the continuous focus on profitable growth and leadership in digital capabilities.

Türkiye, toward economic stabilization

Regarding Türkiye,  the BBVA CFO was moderately optimistic. In the medium term, she pointed to a clear opportunity for value, related to economic stabilization. Gómez Bravo recalled that Türkiye has a very dynamic and competitive economy, and that the new economic team has proven to have a clear commitment to halting inflation through orthodox policies. The economic normalization, however, will take some time.

“Garanti BBVA is probably the best bank in the country,” she said, and Türkiye is possibly the “European Mexico.” She added that it is an incredible franchise with proven capability to produce outstanding results, surpassing its competitors in a challenging environment. In a more normalized macroeconomic scenario, we can definitely expect to see Garanti BBVA contributing more to the Group.

Finally, when asked about BBVA’s plans to distribute its excess capital, the bank’s CFO underscored the bank’s demonstrated capacity to generate capital organically, which will be maintained in the future. Furthermore, she noted that the bank will continue to reinvest in its profitable growth and return excess capital to shareholders, as it has done so far.