Banco Bilbao Vizcaya Argentaria, S.A. (BBVA): history, ownership, mission, how it works & makes money

A Brief History of Banco Bilbao Vizcaya Argentaria, S.A. (BBVA)

Foundation and Early Years

Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) was formed in 1999 through the merger of Banco Bilbao Vizcaya and Argentaria. Banco Bilbao was established in 1857 in Bilbao, Spain, while Argentaria was formed in 1991 through the merger of several savings banks.

Key Milestones

• 1999: Formation of BBVA through the merger of Banco Bilbao Vizcaya and Argentaria.
• 2000: BBVA becomes the second largest financial institution in Spain.
• 2004: BBVA acquires the Mexican bank Grupo Financiero Bancomer, creating a significant presence in Latin America.
• 2008: BBVA completed the acquisition of Compass Bancshares in the United States, expanding its footprint in North America.
• 2017: BBVA announces its strategic plan focusing on digital transformation and innovation.

Financial Performance

As of the end of 2022, BBVA reported a net profit of €6.4 billion, a year-on-year increase of 25.4%. The bank's total assets amounted to €726 billion, reflecting a growth in its balance sheet.

International Expansion

BBVA operates in over 30 countries globally, with a particularly strong presence in Spain, Mexico, and the United States. The bank serves approximately 70 million customers worldwide.

Digital Transformation

In 2022, BBVA invested €1.6 billion in technology, focusing on enhancing its digital banking capabilities. The bank registered over 19 million mobile banking customers, marking a significant increase in digital engagement.

Corporate Social Responsibility

• BBVA has committed to achieving net-zero emissions in its portfolio by 2050.
• The bank allocated €26 billion for green financing initiatives from 2018 to 2021.
• BBVA launched the "BBVA Microfinance Foundation," supporting over 4 million low-income individuals in Latin America.

Recent Developments

In early 2023, BBVA announced partnerships with technology companies to further enhance its digital offerings, particularly in the field of artificial intelligence and data analytics.

Market Position

As of December 2022, BBVA held a market capitalization of approximately €45 billion. The bank's stock is traded on the Madrid Stock Exchange.

A Who Owns Banco Bilbao Vizcaya Argentaria, S.A. (BBVA)

Major Shareholders

Banco Bilbao Vizcaya Argentaria, S.A. (BBVA), one of the largest financial institutions in Spain and a leading bank in the global market, has a diverse set of shareholders. As of the latest data from July 2023, the ownership structure is as follows:

Board of Directors

The governance of BBVA is overseen by a diverse Board of Directors, which includes members from various backgrounds:

Market Capitalization

As of October 2023, BBVA has reached a market capitalization valued at approximately:

€41.65 billion

Recent Financial Performance

In the second quarter of 2023, BBVA reported a net attributable profit of:

€1.43 billion

Additionally, the bank's total assets stood at:

€711 billion

Geographical Distribution of Shareholders

The ownership of BBVA spans several countries, reflecting its international presence:

Recent Shareholder Changes

In 2023, BBVA witnessed notable changes in its shareholder composition with the following transactions:

• BlackRock increased its stake from 5.5% to 6.1%.
• The Vanguard Group acquired an additional 0.5% in Q2 2023.
• Retail investors collectively increased their stake by 2% over the last year.

Dividend Policy

BBVA has maintained a consistent dividend payout ratio, with recent dividends declared as:

€0.31 per share for the fiscal year 2022.

Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) Mission Statement

Overview

Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) is a multinational financial services company headquartered in Madrid, Spain. The organization is dedicated to providing financial solutions that cater to the needs of individuals, businesses, and communities. The mission statement encapsulates their commitment to customer-centricity, innovation, and sustainable growth.

Mission Statement

BBVA's mission is to “bring the age of opportunity to everyone.” This reflects a focus on leveraging technology to enhance customer experience while ensuring financial inclusion and accessibility.

Core Values

• Customer Orientation: Prioritizing customer needs in every aspect of banking.
• Integrity: Conducting business honestly and transparently.
• Innovation: Embracing technology and innovation to improve services.
• Teamwork: Promoting collaboration among staff to achieve common goals.
• Diversity: Valuing different perspectives and fostering an inclusive environment.

Financial Performance

As of June 30, 2023, BBVA reported the following financial metrics:

Global Presence

BBVA operates in multiple countries, enhancing its international reach and local adaptability. The breakdown of its regional presence is as follows:

Technological Innovation

BBVA has invested heavily in technology to improve banking services, with a focus on digital transformation. As of 2023, BBVA’s digital customer base reached:

Sustainability Initiatives

BBVA is committed to sustainability and social responsibility, aligning with the United Nations Sustainable Development Goals (SDGs). As part of its mission, the bank has allocated funding for various sustainable projects:

How Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) Works

Business Segments

BBVA operates mainly through the following business segments:

• Retail Banking
• Corporate and Investment Banking
• Asset Management
• Private Banking

Geographic Presence

BBVA has a significant presence in various countries:

• Spain
• Mexico
• USA
• Turkey
• South America

Financial Performance

As of the third quarter of 2023, BBVA reported the following financial metrics:

Core Banking Products

BBVA offers a variety of banking products, including:

• Checking and savings accounts
• Personal loans
• Mortgages
• Credit cards
• Investment services

Digital Transformation

BBVA has heavily invested in digital banking, with:

• Over 30 million active digital users
• Digital sales accounting for 60% of total sales
• Investment of approximately 3.5 billion EUR in technology and innovation from 2018 to 2023

Credit Ratings

As of October 2023, BBVA has the following credit ratings:

Social Responsibility and Sustainability

BBVA is committed to sustainability:

• Investment of 100 billion EUR in sustainable projects by 2025
• Reduction of operational carbon footprint by 68% by 2025
• Involvement in the UN Principles for Responsible Banking

Employee Statistics

As of 2023, BBVA employs:

Recent Acquisitions

BBVA has been active in acquisitions to enhance its services:

• Acquisition of Simple (2014)
• Acquisition of Holvi (2020)
• Acquisition of Guaranty Trust Bank (2021)

How Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) Makes Money

Revenue Streams

Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) generates revenue through diverse channels. The main sources include:

• Net interest income
• Fees and commissions
• Income from trading activities
• Asset management income
• Insurance underwriting and premiums
• International business operations

Net Interest Income

Net interest income is a significant component of BBVA's revenue. For the year 2022, BBVA reported a net interest income of approximately €9.67 billion.

The net interest margin stood at 3.40% for the same year, reflecting the efficiency of the bank's interest-bearing assets and liabilities.

Fees and Commissions

BBVA earns a substantial portion of its income from fees and commissions. In 2022, fees and commissions amounted to around €5.01 billion.

This income stems from various services such as:

• Account maintenance fees
• Transaction fees
• Investment advisory fees
• Loan origination fees

Trading and Securities Income

In addition to traditional banking, BBVA engages in trading activities. The trading income for 2022 was reported at around €1.27 billion.

This includes gains from:

• Foreign exchange trading
• Equity trading
• Debt securities

Asset Management

BBVA's asset management division contributed approximately €0.95 billion to its revenue in 2022. This segment includes:

• Mutual funds
• Pension funds
• Wealth management services

Insurance Operations

The bank also generates income through its insurance operations. For 2022, BBVA reported insurance income of approximately €1.23 billion. This involves:

• Life insurance premiums
• Property and casualty insurance
• Health insurance products

Geographical Diversification

BBVA operates in multiple countries, which aids in revenue generation. The breakdown of revenue by region in 2022 was as follows:

Cost Management

Effective cost management is pivotal in BBVA's profitability strategy. The bank reported an operating expenses figure of €6.12 billion for 2022. Key expense categories include:

• Personnel costs
• Administrative expenses
• Technology investments

Return on Equity (ROE)

BBVA's return on equity, a critical indicator of profitability, was approximately 10.2% for the full year 2022.

Conclusion of Financial Performance

The consolidated net profit for BBVA in 2022 amounted to around €5.12 billion, demonstrating the bank's robust financial performance across its diversified revenue streams.