Unique banking model
Unique banking model
BBVA has a banking model based on four pillars that makes us different:
1. Diversification and leadership. A well-diversified portfolio supported by leading and high quality franchises
Geographic Diversification
Gross income breakdown (1)
2015 (percentage)
| Mexico | 29.6 |
| Spain | 28.4 |
| The United States | 11.1 |
| Turkey | 10.2 |
| South America | 18.7 |
| Rest of Eurasia | 2.0 |
(1) Excludes Corporate Center. Spain includes banking activity and real-estate activity.
Market Share and Ranking
Detail by country (2)
| Loans | Deposits | |||
|---|---|---|---|---|
| Share (%) | rnk | Share (%) | rnk | |
| Mexico | 23.4 | 1st | 23.2 | 1st |
| Spain | 14.4 | 2nd | 14.7 | 3rd |
| Turkey | 11.8 | 2nd | 11.6 | 2nd |
| South America (ex Brazil) | 10.4 | n/a | 10.4 | n/a |
| The United States (Sunbelt) | n/a | n/a | 6.3 | 4th |
(2) Pro-forma calculation including a 39.9% stake in Garanti. Figures exclude Corporate Centre. Spain: Other domestic sector and public sector data as of November, 2015 (BBVA+CX); Mexico: data as of December, 2015; South America: data as of October, 2015; The United States: data as of June, 2015, market share and ranking by deposits considering only Texas and Alabama; Turkey: BRSA data for commercial banks as of December, 2015.
2. A management model based on prudence and proactivity
1.
Structural
Risk
Financially independent subsidiaries
Optimized balance sheet structure
2.
Credit
Risk
Defined asset allocation
Risk-adjusted
growth
Identified, measurable and limited risks
3.
Capital
Management
Focus on organic capital generation
Commitment to shareholders
4.
M&A
Strategy
Creating value through selective acquisitions
Sale of non-strategic businesses
resulting in:
1.
Strong Liquidity
Position
Well-balanced “Funding Mix”
Limited financial needs
Enough collateral to face hypothetical shocks
2.
Outstanding Risk
Management
Risk indicators among the best in the markets with presence
3.
Strong Capital
Position
Capital & Leverage ratios above the minimum required by regulators
First issuing AT1 instruments with capacity to absorb losses
4.
Well-diversified
Portfolio
Greater resistance to economic cycles
3. A business model of return adjusted to principles, that places people at the center of our business
These principles inspiring our activity are integrity, prudence and transparency. Integrity as a manifestation of ethics in our actions and in all our relations with stakeholders. Prudence, understood as precaution in assuming risk. Transparency as a principle offering access to clear and truthful information within the limits of the law.
Our activity's consistency with these principles is reflected in our corporate governance and regulatory compliance systems, in risk management, and in the business model. This means managing our business by assuming the responsibility for our impacts on people's lives and on society.
Responsible Business
We manage our business assuming the responsibility of our impacts on people's lives and on society
Transparency, clarity and responsibility in the relationship with our customers
Long-term value generation for all the stakeholders
Social and environmental risks and opportunities integration
4. A customer-centric business approach
(1) Figures as of December 2015 including Garanti.
(2) Client Revenues / gross margin.
Our business model is customer oriented, offering a differential service with a very ambitious goal: to be leaders in customer satisfaction across our global footprint.
