BBVA leans in to Latam
BBVA is relying more on its Latin America business. And the countries in that region are relying more and more on the global bank in turn. BBVA’s global head of country monitoring, Jorge Sáenz-Azcúnaga, explains how he expects this symbiosis to evolve.
BBVA’s sale of its US business to PNC in 2020 was a transformational move for the bank. At a stroke it solidified its capital position – instantly neutralizing a perennial weakness. It also provided, perhaps, operational flexibility for future acquisitions in its Spanish home market.
But with the US contribution to profits (around 10% of the annual total) about to disappear and with a subdued Spanish business, BBVA is now tilting further towards Latin America.
Euromoney wonders whether this increased exposure to emerging markets (EM), and to Latin America in particular, should be of concern.
“It’s a question that some investors ask us, but it’s not a concern for us,” says Jorge Sáenz-Azcúnaga, global head of country monitoring at BBVA. “Internally we never talk about DM [developed markets] against EM.