Statement on BBVA 4Q20 earnings from Chairman Carlos Torres Vila
Carlos Torres Vila, Chairman:
- The year 2020 has been a special year due to the circumstances in which we live - with a pandemic that has had highly severe health and economic consequences.
- Since the very beginning, we have stepped up to support society. With health materials, helping more vulnerable groups, and especially providing our service to be there for families and businesses, with their financing needs.
- In this regard, we have granted payment deferrals for a total of €38 billion, and financing through government-backed programs for a total of €25 billion, this on top of other financing options.
- With all of this, we have helped a total of three million customers in a very complex year. I am very proud of the bank’s response, very proud of all the work of BBVA teams to make it possible.
- The pandemic has reaffirmed our strategic priorities. All of the past efforts to be leaders in digitization have borne fruit, allowing us to be there for our customers when they needed it most. In 2020, nearly two-thirds of the Group’s sales took place on digital channels.
- We have also made significant progress in our commitment to environmental and social sustainability. In this regard, BBVA was recognized as the most sustainable European bank by the Dow Jones Index.
- We are ahead of the game in our Pledge 2025, having mobilized more than €50 billion in just three years. And we are helping our clients in their transition to a sustainable and inclusive future.
- As for results, we posted a net attributable profit excluding one-offs of €3.08 billion in 2020, with operating income increasing by 11.7 percent.
- In addition to the results, in 2020 we announced a historic transaction for BBVA: the sale of our U.S. subsidiary. An operation that generates €8.5 billion in capital, putting us in an unparalleled position of strength in the sector.
- The Group’s capital ratio including this transaction is 14.6 percent, well above our capital target.
- As for shareholder distributions in 2020, we will pay an amount of €0.059 per share, and in 2021 , we expect to resume our distribution policy with a payout of 35-40 percent of profits.
- Additionally, our excess capital opens the door to extraordinary shareholder distribution mechanisms. Our goal is to target a buyback of about 10 percent of the Group’s shares following the closing of the sale of the U.S. subsidiary.
- All this subject to market conditions and the required approvals.
- Ultimately, at BBVA, we look to 2021 with the same commitment to our customers and society we had last year, and thanks to our tremendous strength, we will continue to support them throughout the pandemic, as well as in the recovery phase.