Onur Genç: “The integration of BBVA and Sabadell is a transaction for growth”
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.
Onur Genç stated that the transaction represents a clear opportunity to gain scale in Spain and to generate long-term value for all stakeholders. “With the integration with Banco Sabadell, we want to grow in Spain. This is a transaction for growth”, he said. In fact, BBVA estimates that the combined entity could unlock around €5 billion in additional annual credit for the economy.
The BBVA CEO recalled that the offer includes a 30 percent premium over the undisturbed share price as of April 29, and a 50 percent premium over the three-month average: “This is a great opportunity for Banco Sabadell shareholders. The premium is significantly higher than what we’ve seen in other recent transactions in Europe”, he noted. But beyond the premium, Onur Genç reiterated, “significant value will be generated through synergies”, especially by integrating technological systems. These synergies could increase earnings per share versus the standalone alternative: “The economic rationale for the transaction is undeniable. BBVA is offering Banco Sabadell shareholders the opportunity to join a stronger, more profitable and more efficient bank,” he said.
Regarding regulatory approvals, he noted that BBVA is already in the final stage of the authorization process with the Spanish National Commission on Markets and Competition (CNMC). “We have presented unprecedented remedies that go beyond competition issues to also address the government’s concerns,” he said. “We hope that Banco Sabadell shareholders–the rightful owners–can soon have the opportunity to decide whether they want to join BBVA”, he said.
As he explained, this transaction cannot be compared to other recent transactions in the sector for three reasons: the main focus is on growth; both banks have already undergone significant restructuring processes; and most of the synergies are technology-driven. “From the outset, our intent has been for a full integration of both institutions—and that remains our plan,” he said.
He also emphasized that BBVA’s geographically diverse business model has allowed it to obtain better, more stable results over time than the average of its European competitors.
Positive outlook across BBVA’s core markets
The CEO emphasized the Group’s “unique profile” within the European banking sector, combining growth and profitability. Onur Genç spoke highly of the Group’s profitability outlook in 2025 and over the long-term. In this regard, he recalled some of the factors that allow BBVA to maintain these positive outlooks, such as its leading franchises in the main markets where BBVA operates: “Being in the top three in all countries makes a difference;” and its leadership in digitization, which at the same time, drives customer acquisition.
Despite some short-term uncertainty, the CEO remains optimistic about BBVA’s franchise in Mexico. Onur Genç reiterated Mexico’s highly significant advantage in terms of production costs, which will allow it to absorb the potential impact of tariffs. In his opinion, the recent announcement on tariffs “confirms the relevance of Mexico as a strategic partner for the U.S.” In the medium-term, he feels that “economic logic points to greater integration of both countries.” In terms of BBVA’s performance in Mexico in the coming years, he is predicting steady business growth and sustained profitability levels, exceeding its competitors. “BBVA’s franchise in Mexico is unique,” he said.
Furthermore, the BBVA CEO also reiterated that lending growth prospects in Spain are improving in a context of GDP growth above the European average. BBVA’s priority remains profitable growth, underpinned by a disciplined pricing strategy. With this perspective, BBVA expects to maintain the country’s current profitability levels.
Regarding Turkey, he reaffirmed that it is an economy with strong potential and “represents a strategic value option for BBVA.” Despite short-term market volatility, he noted that the country maintains its underlying structural trends and has a competitive advantage due to its proximity to the European Union. He is confident that Turkey will continue advancing toward a more orthodox monetary and regulatory framework, reinforcing confidence in its economic evolution. In this context, he expects the country’s contribution to BBVA results to gradually strengthen over the coming years, in line with expectations for inflation, interest rates, and FX dynamics. “We have the best bank in the country,” he stressed.