“A definitive solution must be found for non-viable entities based on strict economic efficiency criteria”

Top Quote The President and COO of BBVA, Ángel Cano, stated this morning in a speech given at the XIX Encuentro del Sector Financiero ABC-Deloitte, event in Madrid, that the reform of the financial system “will help build confidence, while giving Spanish entities greater access to the capital markets, reviving the property market and accelerating the process of restructuring”. End Quote
  • (1888PressRelease) April 13, 2012 - According to Mr Cano, “for this to happen, it must be made clear which entities are not viable and a definitive solution found for this problem”. He also stressed the need to “find incentives to fuel mergers and acquisitions based on strict criteria of economic efficiency”.

    During the first part of his speech, the President and COO of BBVA referred to the situation in Spain, saying that “we should be ambitious and uphold the spirit of reform although in many cases this will logically require that sacrifices be made”. He added that “the road will be long and the process uneven, especially in the peripheral economies”, and that “Spain’s priorities must be to build confidence, create jobs and achieve balanced growth”.

    Ángel Cano also pointed out that BBVA Research was estimating a 1.3% contraction in Spanish GDP for 2012, but that the reforms recently approved by the government “were a step in the right direction”. He reiterated the importance of compliance with Spain’s fiscal obligation, which is “a binding obligation that our country must meet in order to ensure credibility”.

    Referring to the international macroeconomic scenario, Mr. Cano pointed out that “2012 will be a multispeed year, with growth of between 3.5% and 4%, driven mainly by growth in the emerging markets and shaped by the development of the crisis in Europe”.

    Key aspects of the new financial industry

    The President and COO of BBVA identified three critical forces at play in the new financial industry. First, “an economy growing at various speeds within a complex macroeconomic and financial framework, marked by an uneven performance between developing and developed economies, but producing lower global economic growth”. According to Mr Cano, the second and most disruptive force in the current transformation is “globalization, technology and new ways of relating to customers”. The third force relates to “the new regulatory and supervisory requirements that are challenging the industry’s future growth and profitability”.

    Ángel Cano referred to “the damaged reputation of banks”, that has affected all entities equally, “without distinguishing between those which have acted in a responsible, prudent and principled manner, and those that have not. This has created a social pressure that cannot be ignored”.

    The President and COO went on to list the attributes that those entities which successfully weather this phase of the crisis will have in common. These will be diversification by geography, business area and customers; clear customer orientation; operational excellence focused on ensuring higher quality at lower cost in a stricter regulatory environment and taking advantage of the advantages offered by technology and transversality. Furthermore, a long term vision that implies prudence, anticipation, principles and, above all, people. These are all factors, that according to Ángel Cano, “BBVA has already fully incorporated because we have been working with this new global banking model for some time, and our aim is to play a leading role in a sector that will never be the same again".

    Contact:
    Corporate Communications
    Tel: +34 91 537 95 58
    comunicacion.corporativa ( @ ) grupobbva dot com

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    About BBVA

    BBVA is a customer-centric global financial services group founded in 1857. The Group has a solid leadership position in Spain, it is the largest financial institution in Mexico and it has leading franchises in South America and the Sunbelt Region of the United States. Its diversified business is biased to high-growth markets and it relies on technology as a key sustainable competitive advantage. BBVA ranks among the leading eurozone banks in terms of ROE and efficiency. Corporate responsibility is inherent to its business model, promotes inclusiveness and supports research and culture. BBVA operates with utmost integrity, long-term vision and best practices, and is included in the main sustainability indexes.

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