Our purpose, our reason for being, is to bring the age of opportunity to everyone. That is because we consider ourselves to be more than a bank: we are a driving force for opportunities and we also aim to have a positive impact on people's lives and to build relationships of trust.
BBVA is aware that the biggest impact it generates is that from its main activity. In its role as a financial intermediary, BBVA gathers the funds of families, companies and other agents and channels those savings efficiently through credit for personal, business and public projects that can contribute to improve our present and our future as individuals and as a society. The difference between what the Bank pays for deposits and the interest it obtains from loans, i.e. the net interest income, is its main source of income.
BBVA seeks to achieve a positive impact on the lives of people and societies across its global footprint
customers in 35 countries
in customer deposits
in customer loans
However, our role today is to be more than a bank. We have the capacity to make an enormous impact on people and businesses. So, at BBVA:
shareholders received €1,013.7M of remuneration in cash
employees receive €5.047M in salaries and wages
suppliers were paid €8,442M
in taxes accrued and collected from BBVA's business activity
of economic value generated, which accounts for 0.5% of the GDP of the economies in which BBVA operates
economic studies by BBVA Research have been made available to the public. BBVA invested €4.6M in this activity
people hired in Spain by 6,048 SMEs and self-employed workers thanks to Yo soy empleo
SMEs, micro-enterprises and self-employed workers
of finance granted to SMEs, micro-enterprises and self-employed workers
people have particiapated in financial literacy programs
of product leaflets with TCR criteria
in which BBVA is the first recommended bank out of the 10 in which it operates
customers in the financial inclusion segment
beneficiaries of the BBVA Microfinance Foundation
in microloans granted to 1.7 Mill. micro-entrepreneurs by the BBVA Microfinance Foundation
customers manage their finances digitally
homes financed by BBVA worth of €125,872M
in pension plans managed by BBVA with more than 3.2 Mill. customers
As well as the impact we generate through the business, we develop social programs through our own initiatives in education or through our foundations that generate a positive impact on society and benefit a variety of groups.
allocated to social programs, 3.9% of the net attributable profit
children and young people with integration grants
allocated to BBVA Foundation initiatives
We also try to minimize the negative impacts that could result from our activity by implementing initiatives that help mitigate or even eliminate such effects.
Specifically, since the start of the crisis in Spain, we have been aware of the difficult situation faced by our customers who find it difficult to pay their mortgage loans, so we have adopted measures that make up a social housing policy.
refinancings in 2015, granted to customers with difficulties in making their mortgage loan payments
debts discharged by surrendering the property since the start of the crisis in 2009
families have taken part in the employment program run with the Adecco Foundation, of whom 55% have found a job
We have a Global Eco-efficiency Plan in place to minimize our environmental impact
reduction in water consumption
of employees working in certified buildings
of installed capacity in renewable energy projects financed during 2015, 17% more than in 2014
In addition to TCR communication and financial literacy, the BBVA Group's Responsible Business Plan has a third pillar: the "high social impact products". The goal is to integrate differential social attributes within products and initiatives that are part of the Bank's day-to-day business. In this way, in addition to the social impact generated by the regular activity, products and services with a higher social impact can be designed.
These products are grouped into four large blocks: those that promote financial inclusion; others designed for SMEs; products for individuals with special needs; and, lastly, socially responsible investment.
Today, according to the latest World Bank figures, 39% of the world's population over the age of 15 still does not have access to banking services. Despite the huge success achieved, with 700 million new adults using banking services since 2011, universal access to an account and to financial services continues to be a priority not only for the World Bank and United Nations (UN), but also for the financial industry, the G20 and emerging countries.
Financial inclusion (FI) enables people to manage their risks by providing them with a safe place to save, means of payments, as well as access to financial services, such as loans and insurance, and to a regulated system and, thus, consumer protection mechanisms.
In recent years we have witnessed a boom in electronic money, enabling people, particularly those on lower incomes who only have basic devices, to carry their bank on their smartphone inexpensively and securely using simple products designed especially for these people on very low incomes.
For all these reasons, BBVA has worked since 2008 on a global FI strategy to provide the lower-income population in the emerging countries in which we operate access to financial services through alternative solutions to the traditional branch model. To meet this need, we are developing low-cost digital products and channels and easy-to-use products that enable these people to complete their transactions quickly, while guaranteeing security, availability and proximity. We also use big data and non-traditional methodologies to assess risks and create standard customer experiences across all the channels.
The synergy with other organizations involved in FI has also been fundamental to the development of our model. For example, BBVA Group has developed in recent years a Secondment Program in which two members of the Group's management team have participated, seconded temporarily to the Institute of International Finance (IIF) and to the Inter-American Development Bank (IDB). A strategic agreement was also signed in 2015 with Alliance for Financial Inclusion (AFI), a network of regulatory bodies from 96 countries that promotes access for the most disadvantaged people to the financial system.
BBVA's global financial inclusion strategy is focused on making it easier for the lower-income population to access financial services through alternative solutions to the traditional banking model
The Group's significant commitment to FI is also reflected in the existence of a specific FI unit within the management of BBVA Research that has been widely recognized around the world. There have been many studies, analyses and indices related to FI that are constantly referred to and used by the World Bank, the International Monetary Fund and the main think tanks that work on FI, such as the Center for Financial Inclusion and the Center for Global Development.
As part of its commitment to financial inclusion, in 2007 BBVA set up the BBVA Microfinance Foundation(1), which has the goal of promoting sustainable and inclusive economic and social development for the most underprivileged people in society through responsible productive finance. To do so, it provides access to financial products and services, advice, training and support that generate positive impacts on the economic activities of entrepreneurs and also contribute to help their children to remain within the education system, while improving health indicators and the infrastructure of their homes.
BBVA Microfinance Foundation. Basic data
|Number of customers||1,712,801||1,544,929||1,493,709|
|Social impact (million people)(1)||6.9||6.2||6|
|Number of employees||7,910||7,472||7,069|
|Number of branches||509||488||481|
|Total microloan volume (million euros)(2)||936||907||861|
|Average microloan (euros)(3)||1,046||1,026||994|
|Number of countries where BBVA operates||7||7||7|
(1) Calculated by multiplying the number of customers by the average ratio for family unit.
(2) Made up of current portfolio, defaulted portfolio and interest.
(3) Weighted by accumulated number of transactions.
Since its creation, it has granted loans for €6.591 billion, in cumulative terms, to more than 5 million low-income entrepreneurs to help them carry out their productive activities (2007-2015), in addition to providing them with advice and training. Now, this initiative has an indirect impact on 6.9 million people and is one of the main microfinance operators in number of customers, using an individual methodology, in Latin America.
At the end of 2015, the BBVA Microfinance Foundation was serving 1,712,801 entrepreneurs, 83% of them in a situation of vulnerability, with a total of €936m granted in loans.
(1) The BBVA Microfinance Foundation was created as a response to BBVA Group’s corporate responsibility, but as a non-profit institution it is independent of the Group in both governance and management. This is why BBVA Group makes it clear that the BBVA Microfinance Foundation is not part of the BBVA financial group. For this reason, BBVA Group neither manages nor is responsible for the activity undertaken by the Foundation or by those financial institutions that the Foundation may acquire in pursuit of its goals.
The BBVA Microfinance Foundation aims to promote development through responsible productive finance
BBVA Microfinance Foundation. Data by microfinance institution
|Financiera Confianza (Peru)||435,879||2,168||153||408,413||2,225||155||506,595||2,381||164|
|Emprende Microfinanzas (Chile)||10,568||159||21||13,641||145||26||15,324||166||28|
|Fondo Esperanza (Chile)||102,141||514||52||92,605||499||53||80,275||436||46|
|Corp. para las Microfinanzas (P. Rico)||1,112||20||1||883||24||1||597||19||1|
|Contigo Microfinanzas (Argentina)||170||4||1||224||4||1||1,417||17||1|
|ADOPEM (Dom. Republic)||361,722||1,238||70||316,324||1,085||56||272,049||946||52|
Over half of entrepreneurs who access the financial system thanks to the work carried out by the BBVA Microfinance Foundation are women, thus directly helping to reduce gender inequality.
The Foundation publishes an annual Performance Report entitled “Measuring What Really Matters", giving the main figures that summarize the impact of its activity on the life of its customers, at the aggregate level in the region and in each geographical area in which it operates. This social measuring system has been highlighted by the UN and is a benchmark for the sector.
BBVA Microfinance Foundation. Loan portfolio data by microfinance institution
|Average loan amount (euros)(1)||NPL ratio (%)||Loan Portfolio Volume (thousand euros)||Average loan amount (euros)||NPL ratio (%)||Loan Portfolio Volume (thousand euros)||Average loan amount (euros)||NPL ratio (%)||Loan Portfolio Volume (thousand euros)|
|Financiera Confianza (Peru)||1,820||2.24||419,894||1,709||3||383,776||1,575||2.8||357,054|
|Emprende Microfinanzas (Chile)||909||4.87||10,473||828||7.4||10,672||744||7.8||10,810|
|Fondo Esperanza (Chile)||566||0.66||46,895||492||0.8||35,885||462||0.7||29,927|
|Corp. para las Microfinanzas (P. Rico)||2,147||13.66||1,795||1,728||14.5||1,190||1,802||24||700|
|Contigo Microfinanzas (Argentina)||1,412||2.76||192||1,340||14.8||184||878||18.7||900|
|ADOPEM (Rep. Dominicana)||584||3.48||104,809||486||3.2||80,557||406||2.4||61,425|
(1) This average is calculated by dividing the average amount placed in the months of the current year, divided by the number of accumulated operations over the same period. Loan portfolio volume: profitable portfolio + expired portfolio + accrued interests.
In addition, the BBVA Microfinance Foundation has been recognized this year by the UN Sustainable Development Goals Fund (SDG-F) as one of the 13 private institutions worldwide that are members of its Private Sector Advisory Panel.
It has also signed a partnership agreement with the United Nations Entity for Gender Equality and the Empowerment of Women with the aim of promoting the huge entrepreneurship potential of women and their ability to have an impact on reducing poverty and become a driving force for prosperity. It also participates in the Microfinance for Ecosystem-based Adaptation to Climate Change project of the United Nations Environment Program, to ensure rural low-income customers can adapt their crops to climate change.
BBVA Microfinance Foundation. Customer data from the gender perspective by microfinance institution
|Number of female customers||Female customers / total customers
|Number of female customers||Female customers / total customers
|Number of female customers||Female customers / total customers (%)|
|Financiera Confianza (Peru)||213,740||49||198,620||49||250,685||49|
|Emprende Microfinanzas (Chile)||6,386||60||8,548||63||9,675||63|
|Fondo Esperanza (Chile)||85,549||84||78,210||84||68,397||85|
|Corp. para las Microfinanzas (P. Rico)||498||45||436||49||277||46|
|Contigo Microfinanzas (Argentina)||115||68||148||66||834||59|
|ADOPEM (Rep. Dominicana)||244,577||68||218,959||69||193,185||71|
(1) The percentage of women includes both deposit and loan customers (in net terms).
For 2016, the aim is to increase the scale and scope of its work with an extended value proposition that allows entrepreneurs to develop and progress through technology-based solutions, while improving the efficiency, processes and use of synergy in the Group.
A significant part of the efforts for FI have been concentrated in Mexico, because BBVA Bancomer has 6.9 million customers in the country's low-income segment, which accounts for 74% of these customers in Latin America.
This year, BBVA Bancomer has launched mPos Flap, a user-friendly POS to be used in combination with a mobile device, which is designed for small low-revenue retail outlets. It was launched in Mexico in October and over 100,000 terminals are expected to be in operation by the end of 2016. Also in Mexico, Cuenta Express is an easy to open and 100% non-branch account, either via banking correspondents or electronic means (ATMs, mobile banking, third-party electronic platforms and the Internet). It makes it easier for customers to access more points of contact, which allows them to operate and control their spending and saving. At the end of 2015 there were more than 3.5 million active accounts.
BBVA Bancomer is developing other projects as well: Juntos Finanzas (Finance Together) is a financial training and two-way communication tool that builds customized conversations via text message, with practical advice on the use of accounts and topics of interest, which has contacted 72,134 customers, of which 96% accepted the program; Adelanto Express (Express Advance) provides additional support through payroll microloans via text message and ATM, with 34,000 loans approved and 400,000 pre-approved in the second half of 2015; Seguro Express (Express Insurance) provides insurance against basic low-cost risks and with adequate cover, with 3 million potential customers; and cash-recycling ATMs, which benefit both Bancomer (with 75% less for activities of valuables transport companies, 95% of cash out being recycled and 64% of savings compared to traditional remote ATMs) and corporate customers (by eliminating the cost of cash transport, anti-theft insurance and online deposits).
Spain, Portugal, Mexico and South America. Customers in the Financial inclusion segment
|Number of customers||10,325,749||9,536,477||10,309,705|
In Peru, BBVA Continental has worked during the year with the Association of Banks of Peru (ASBANC) on the development of a low-cost account that can be used on a professional mobile payment platform. Its pilot will be launched in the first half of 2016.
In Colombia, new services will be developed next year for this channel, such as the dispersion of mass payments. As in Mexico, cash-recycling ATMs are also being installed to expand banking coverage, and microloans are being developed for the segment.
Mobile banking is another channel that BBVA is developing in Mexico, Colombia and Peru to reach out to people who do not have access to basic financial services and as an additional model for people who already use banking services. This banking model allows people to check activity, make payments and transfers and set up transaction alerts via text message with any telephone provider. There are already more than 300,000 active services in Mexico.
Banking correspondents are retailers and institutions with which BBVA enters into a business relationship (retail chains, pharmacies or supermarkets) to act on the Bank's behalf and where customers can carry out simple bank transactions, as well as being places to deposit and withdraw money for its mobile banking model.
In Mexico, we have the largest network in the country with over 25,000 correspondents. Through them, nearly 40million transactions were completed in 2015.
In Colombia, the banking correspondent network continued to record sustained growth in 2015, reaching 7,136 points of contact and 978,244 transactions during the year.
In Peru, BBVA Banco Continental has set up "Agentes Bancarios" (Bank Agents) as banking correspondents, with a total of 8,993 points of contact that completed 32,689,000 transactions in 2015. There is a plan to expand this transactional network in 2016.
In Argentina, the BBVA Francés banking correspondent network totals 4,000 points of contact where customers can make payments with their credit cards, with more than 990,000 transactions completed this year.
South America and Mexico. Banking correspondents by country
|Number of points||Number of transactions||Number of points||Number of transaction||Number of points|
Remittances are an effective way of boosting access to banking services and credit for the recipient families in Mexico. Over 10.3 million transactions are made each year through Bancomer Transfer Services (BTS). Money can be withdrawn at a variety of establishments, such as Elektra, Coppel stores, pharmacies, supermarkets, etc. The platform generates unique passwords to be sent by text message to the cell phone of the recipient residing in Mexico, and they can be used at BBVA Bancomer ATMs with no need to go to a branch.
Yo Soy Empleo, which has provided comprehensive support to SMEs and self-employed workers in their key social role of job creation, offered three types of aid:
The final figures of Yo soy Empleo are:
Yo Soy Empleo, launched by BBVA in February 2013, achieved in September 2015 its target of supporting the creation of 10,000 jobs in Spain
The Yo Soy PyME blog is a collective space created in 2010 to meet the business advice needs of small and medium-sized companies, offering valuable information for growing their business. This digital community seeks to bring entrepreneurs and SMEs together.
At the end of November 2015, the segmented platform had an audience of 52% men and 48% women, with followers across Latin America and the United States and contents focused on an audience aged 18 to 44. In 2015, the portal had around 250,000 visits. In addition, 5,500 companies interested in buying BBVA Bancomer products and services for growing their businesses registered in Yo Soy PyME.
In 2016, there are plans to redesign the Yo Soy PyME blog into a portal that works as a business network. The goal is for companies to interconnect and interact to share information, products and services, thus fostering the creation of an entrepreneurship ecosystem.
In Spain, 24,464 operations with ICO financing were completed for a total of €534m.
In addition to ICO lines, BBVA Spain's SMEs unit launched a campaign in the third quarter of 2014 to boost investment for SME customers, called Plan Impulso Pymes (Plan to Promote SMEs). This is an offering with no arrangement fees for loan and leasing products. The Plan continued in 2015 with very good results in finance.
Yo Soy PyME, a digital community to bring entrepreneurs and SMEs together
The European Investment Bank, the World Bank Group, the IDB, Corporación Andina de Fomento and other local agencies, such as Instituto de Crédito Oficial or Proparco, are some of these institutions with which BBVA maintains a long-standing relationship.
This activity covers many products and geographical areas, including international trade finance, project co-financing, financial intermediation transactions, debt issuance on local capital markets, and transactional and treasury operations.
In 2015, this strategic relationship has been strengthened through the organization of several high-level institutional meetings. In particular, worth mentioning are the meetings held during the Annual Assembly of the International Monetary Fund and the World Bank in October in Peru and its representation on panels at the Annual Seminar of Public Investors and Issuers organized by BBVA in March of the same year.
BBVA maintains an extensive institutional and business relationship with multilateral institutions worldwide
The main areas of shared activity between BBVA Group and the multilateral institutions are summarized below:
Several initiatives were launched in 2015 aimed at promoting entrepreneurship.
Worth mentioning in Argentina is the Banco Francés Agricultural Entrepreneur Award, aimed at entrepreneurs, producers and professionals who have improved their profitability thanks to innovation.
BBVA Group companies in Chile continued to support innovation and entrepreneurship through Meetlatam BBVA-El Mercurio, an event that brought together personalities to promote the entrepreneurial mindset and turn ideas with a high impact potential into real businesses.
BBVA also promotes entrepreneurship across its global footprint
In addition, in 2015 BBVA has maintained its commitment to the entrepreneurs of Mexico, participating actively in the program organized by the Mexican Institute for Entrepreneurs (INADEM). At the end of November, a total of 215 projects had been funded, for an amount of over MXN 57 million. Also in Mexico, BBVA Bancomer participates in the Crédito Joven (Credit for Young People) program, granting funding for projects by young people aged 18 to 30, with preferential conditions in terms of interest rates and repayment periods. At the end of November 2015, over MXN 15m had been allocated to this program.
In Turkey, one of Garanti's priorities is to support women entrepreneurs as a way of contributing to the country's economic growth. In addition to the initiatives related to training, Garanti organizes the Turkey’s Woman Entrepreneur Competition in cooperation with Ekonomist magazine and KAGIDER and offers the ŞirketKur program, which supports entrepreneurs when they set up their businesses. Various events are also organized for entrepreneurs, such as the Garanti Anatolian Meetings, Women Entrepreneurs Meetings and the KOBİLGİ SME Informative Meetings, aimed at fostering the development of SMEs. Garanti also offers the Garanti Partners service in partnership with Boğaziçi University Business Angels (BUBA), which is open to anyone who passes the evaluation process, whether they are bank customers or not. Its main goal is to act as an accelerator for projects using the experience and knowledge provided by Garanti and Boğaziçi University. To this end, it provides support by helping to define strategies for projects and draft business plans. A total of 530 entrepreneurs have applied, 180 have been interviewed and 11 have finally joined the program since 2014.
In 2015, BBVA joined the Global Entrepreneurship Week (GEW), a week devoted solely and exclusively to entrepreneurs worldwide. During those days, the focus was training and mentoring of entrepreneurs at the Innovation Centers, getting the participants in touch with potential partners. The GEW ended at BBVA with a Startup League, where 16 entrepreneurs defended their projects before a panel in a battle of pitches.
In Spain, the comprehensive plan to help families in difficulties which BBVA has applied since the start of the crisis has been consolidated under BBVA's Social Housing Policy. The main aim is for customers to be able to keep their home and it is focused on three areas:
BBVA supports individuals and families with special needs across its global footprint
BBVA abides by the Code of Good Practice, proactively gives information on the benefits of the Act 1/2013 and has contributed nearly 900 houses to the Social Housing Scheme (FSV), with an average rental price of €93. In 2015, the number of FSV homes was increased by 461 to a total of 1,361.
At BBVA we look at every refinancing option available in accordance with the customers' ability to pay, with the main aim for them to be able to keep their homes. We have done this for 67,050 customers so far. Any situation can be referred to the Committee for the Protection of Mortgage Debtors for review. It analyzes every case in which the customer or their family faces the risk of exclusion without legal protection, providing individual solutions in accordance with each family's specific circumstances. These solutions include refinancing, debt remission, dation in payment, rented social housing in the debtor's own home or the Bank's available houses.
In 2013, BBVA also implemented the BBVA Adecco Foundation Plan, which aims to help those customers who, after January 1, 2013, lose their first and only home as a result of mortgage foreclosure processes initiated by the Bank. This plan is based on two elements:
These two types of aid are complementary and eligible applicants can benefit from both or only from labor-market integration.
The Plan ended in July 2015, with a total of 1,484 beneficiaries.
|Type of plan||Beneficiaries||Percentage of beneficiaries who have found a job|
|Labor-market integration only||1,181||57%|
(1) Phase 1 of the plan completed in June 2014.
(2) Phase 2 of the plan completed in July 2015.
BBVA is also aware of the situation of families who are not customers of BBVA. That is why it is implementing other measures that demonstrate our social responsibility. In 2014, the Group signed a first agreement with Cáritas Barcelona, with the initial assignment of 50 homes over a five-year period.
To consolidate this policy, a specific department exclusively devoted to these matters has been set up in 2015.
In housing, BBVA is sensitive to the situation of families, whether they are Bank customers or not. The Bank looks at every option available with the final aim of helping customers keep their homes. It has also developed initiatives for non-customers in this area
Outside Spain, in Uruguay customers are offered mortgage loans with a guarantee fund, in accordance with Act 18,795, which promotes private investment in affordable housing based on the granting of tax exemptions. This Act is part of a wider program aimed at making it easier for low and medium-low income sectors to buy or rent homes. The program also includes a number of benefits for private investors (tax exemptions) and the creation of a new Guarantee Fund for Real-Estate Developments (FOGADI). Six banks, including BBVA, offer the service, which finances up to 90% of the value of the home, with rates in indexed units (UI) at effective annual rate of 7.25% for up to 25 years, as long as the eligibility requirements are met.
In Turkey, Garanti offers its customers "gold" accounts. In a typically inflationary economy, where it is estimated that the gold in the hands of customers amounts to around US$ 150 to 200 billion, Garanti offers the possibility of acting as custodian of that gold, registering it in the banking system and thus in the economy. Customers can make transactions based on the gold they own in current currency, either in Turkish liras or US$, and access those funds through branch offices or ATMs. Interest-earning savings accounts can also be created.
In Mexico, the comprehensive Mejora Mutualista recovery model continues in effect. It is applied in housing developments where mortgage loans are now highly impaired. Their recovery requires them to be intervened by applying a comprehensive recovery scheme with three parallel elements:
In 2015, and after 14 months of application of the Mejora Mutualista model, these are the achievements so far:
1. Financial recovery: Restructuring of 115 active loans.
3. Physical recovery
In addition to these achievements, partnerships have been formed with governmental organizations and institutions, such as the Tijuana town council, Instituto del Fondo Nacional de la Vivienda para los Trabajadores (Institute of the Mexican Housing Fund for Workers - Infonavit), the Citizen Coexistence Program of the United States Agency for International Development (USAID), CETYS University, the Secretariat for Municipal Social Development and many other associations.
In 2015, in the United States, BBVA Compass continued to make major efforts to comply with the Community Reinvestment Act (CRA). This is federal legislation designed to guarantee that financial institutions meet the credit needs of the communities to which they provide a service. BBVA Compass has undertaken to offer US$ 11 billion in loans, investments and services to help individuals and communities on low or moderate incomes. The figures at the close of 2015 are:
In 2015, BBVA Compass continued with its efforts to achieve better compliance with the CRA in terms of workforce, strategy and governance. Specific training for the different BBVA Compass departments, collecting information on the needs of local communities and the creation of a specific reporting portal are some of the initiatives implemented during the year.
BBVA assumed its Socially Responsible Investment (SRI) commitment in 2008 when it joined the United Nations Principles for Responsible Investment (PRI) through the employee pension plan and one of the Group's major asset managers, Gestión de Previsión y Pensiones. Two years later, it became a founding member of the Spanish Responsible Investment Forum (Spainsif), in the financial institutions and asset managers sections.
The goal back then was to start building its own SRI model from the ground. From the start, implementation reached across the whole employment funds business and has gradually extended through the BBVA Asset Management area (BBVA AM).
In 2015, we have continued to work in order to expand and enhance the SRI solutions offered to our customers through a variety of channels:
The strategies implemented by BBVA AM's SRI model are as follows:
ESG (environmental, social and corporate governance) criteria were included by developing an internal model that incorporates extra-financial criteria into a model portfolio constructed according to fundamental analysis. The model was initially implemented for equity and later for fixed income.
An internal ESG rating has also been developed that directly affects the specific management decision-making process, which is communicated periodically to customers in the management reports of the affected portfolios.
The analysis and inclusion of these criteria in the management models enhances the information that our managers compile about the pool of investable companies and countries, enabling them to evaluate more accurately any possible risks in portfolios.
Lastly, with the aim of having more reliable and specialized information available, the Bank makes use of the services of an independent external agent that regularly provides us with information on each company and country in our investable pool.
The Rules of Conduct in Defense apply to all BBVA Group units and subsidiaries, including the asset managers of Employment Pension Funds.
For their application, BBVA uses exclusion lists of companies and countries, which are drafted and updated on a regular basis with the help of an independent expert adviser. The list considers companies and countries related to defense materiel, military, police and security armaments, ammunition, explosives, etc., which are automatically excluded from the list of companies in which BBVA can invest. This exclusion also applies to all the financial vehicles managed by BBVA AM.
As the model expands, third-party investment funds held in the portfolio, and their respective asset managers, gradually undergo a thorough due diligence process. This analysis includes questions about their SRI actions and their status as signatories of the United Nations PRI.
BBVA AM's SRI model uses for the 100% of its investment the exclusion through the Rules of Conduct in Defense, including the integration of ESG criteria into the investment process and into the analysis of third-party funds, and engagement and the exercise of voting rights
Since the weight of these vehicles has increased in the employment pension plan portfolios, a further step in this process was taken in 2015 to ensure the consistency between BBVA's SRI policy and the one implemented by the aforementioned funds.
Thus, after verifying compliance by the asset managers with the United Nations PRI, the study has focused on the exclusions they apply, as well as on the voting policies implemented. Both matters are now mandatory elements for being eligible to take part in the employment pension fund portfolios managed.
BBVA AM's responsibility as an asset manager is not limited to the management function itself. It also exercises the right to vote at all the annual general meetings of shareholders of European and Spanish companies when the portfolio positions make such exercise possible.
This is not limited to employment pension funds that have delegated this responsibility to the asset manager. It applies to the same extent to all individual pension funds, investment funds and SICAVs managed by BBVA AM. The services of an independent external adviser are used for this purpose, whose opinion complements that of BBVA AM's own analysts.
In 2015, a total of 203 AGMs were attended, 39 of Spanish companies and 164 of European companies with holdings in the portfolios of the various investment vehicles managed by BBVA AM, and the vote was against some item on the agenda at 40% of the meetings.
BBVA Asset Management: Assets under SRI management by investment vehicle
|Investment funds||Pension plans and individual EPSVs||Pension plans and employee EPSVs|
|Total assets managed (million euros)||36,643||13,103||7,820|
|Integration||0.12% (1)||5.44% (2)||36.42% (3)|
Nota: EPSVs refer to Voluntary Social Welfare Entities.
(1) It refers to BBVA Desarrollo Sostenible fund, which is totally managed under the integration strategy.
(2) The integration strategy is applied in those portfolios directly managed by BBVA AM. The 72% of those assets are managed under the integration strategy.
(3) The integration strategy is applied in those portfolios directly managed by BBVA AM. The 78% of those assets are managed under the integration strategy.
BBVA currently manages the following solidarity funds:
Lastly, Garanti Asset Management signed the United Nations PRI in 2011 and has worked since then within the framework of this initiative, in line with BBVA Group's commitment.
BBVA Asset Management: Quantity donated, volume and members of solidarity funds
|Quantity donated (euros)||Volume (million euros)||Members and beneficiaries|
|BBVA Bolsa Desarrollo Sostenible||15,000||47||5,115|
|BBVA Leer es estar adelante||2,933||18.4||175|
During 2015, €103.6m have been allocated to social programs. This figure accounts for 3.9% of the net attributable profit.
Investment in social programs in relation to the net attributable profit
With this investment, we have continued with our commitment to support education (38% of the total investment).
Investment in social programs by strategic priority
|Education for society||26%|
|Financial literacy and training for SMEs||12%|
|Support for social entities||7%|
103.6 million euros allocated to social initiatives, which accounts for 3.9% of net attributable profit
BBVA Group and its Foundations. Investment in social programs by strategic priority
|Financial and business literacy||12,449||12%|
|High social impact products||6,519||6%|
|Education for society||27,192||26%|
|Other strategic lines||57,446||55%|
BBVA Group. Investment in social programs by geographical area and Foundation
|Social investment by geographical area and Foundation||2015||2014||2013|
|Spain and corporate areas||22,230||21%||39,993||37%||38,694||40%|
|South America (1)||7,586||7%||11,300||11%||11,294||12%|
|BBVA Microfinance Foundation||5,307||5%||5,119||5%||4,989||5%|
(1) In 2015, the investment of Venezuela accounts for 240,589 euros when using the average exchange rate. If we use the exchange rate from 2014, this amount would increase to €7,643,064. That is why the investment decreased.
(2) The investment of Garanti (Turkey) is included for the first time in 2015.
n/a = not applicable.
At BBVA, the focus of social programs is education to promote social integration and training in values for children and young people. In 2015, a total of 290,116 people benefited directly from our social and educational programs.
Main indicators of the social and educational programs
|Preschool and primdary education||83,720||71,599||102,919|
|Training for adults||152,945||244,893||15,276|
The following programs are aimed at primary and secondary students:
The "Niños Adelante" (Forward, children) integration scholarships program was set up in 2007 to promote access to quality education for underprivileged children and young people in South America and Mexico. In 2015, 12,799,086 euros was allocated to the program, which benefited 64,807 children. The program is adapted to the reality of each country, and thus benefits a variety of groups. In Mexico, it helps children of parents who emigrate to the United States in search of a better future, through the "Por los que se quedan" (For those left behind) program; in Colombia, children in deprived areas; and in Peru, children with poor reading skills, through the "Leer es estar adelante" (Reading Means Keeping Ahead) program.
In 2015, initiatives continued to increase third-party commitment to the program, with the participation of volunteer employees acting as sponsors, and donations from customers through ATMs, online banking and financial instruments.
In addition, the Olimpiada del Conocimiento Infantil (Children’s Knowledge Olympics), which has been supported since 2002 in Mexico, is a national competition organized by the Department of Public Education. Each year, prizes are awarded to the top students in the sixth year of elementary school. Federal and state teaching staff and authorities take part in the student selection process across the country. It is divided into 3 stages: by area; by region, sector, supervisory area authority or equivalent; and by each institution. Every year, 1,000 children receive scholarships allowing them to continue their studies.
In 2012, Garanti began a partnership with UNICEF to support the implementation of the "Standards for Elementary Educational Institutions" in preschool and elementary schools. A process is currently in place to improve the ability for self-assessment and development planning in 4 schools in Ankara and Istanbul.
The education is the main focus of social programs in BBVA
With Scholastic Inc. in the United States, reading among underprivileged children has been encouraged through the "Reading counts" initiative. 85 volunteers from BBVA Compass have taken part in reading sessions in schools, with more than 5,500 books donated in 2015. Through the alliance with NBA Cares, which includes financial literacy training, the aim is to improve the lives of people with limited resources through initiatives such as "12 Days of Brightness". For 12 days, goodwill actions were organized in 12 markets with the public treated to surprises and support provided for social institutions and disadvantaged people. This has been done with 50 volunteers from BBVA Compass, who together with Carlos Torres, CEO of BBVA, local dignitaries and NBA legends such as James Harden, gave out toys to children in schools located in low-income areas.
The following programs are of note in education for young people: Ruta BBVA, a training program sponsored and organized by BBVA since 1993, whose bases are social entrepreneurship and education in values associated with effort, equal opportunities, mutual respect and overcoming of inequality. In 2015, it traveled to Spain and Colombia, where the expedition members could discover the world of emeralds and study the work of the winner of the Nobel Prize for Literature, Gabriel García Márquez. As well as cultural exchange activities, the 176 participants from 21 countries have received training on entrepreneurial skills through Ruta BBVA's Social Entrepreneurship Program. In 2015, the young people collaborated in the resolution of social problems in their own communities that have to do with four sectors: Health, Environmental Sustainability, Collaborative Economy and Education.
Garanti's Community Volunteers Foundation (TOG) is another program that focuses on training for young people. Operating in Turkey since 2002, it encourages volunteer work among young people so they can channel their energy to the good of society. Some of the projects that receive the support of Garanti in this area are: Voluntary Education Support, which contributes to the personal development of students in disadvantaged areas; Seasonal Summer Projects, which support education and social activities in summer at national and international level; and 5 Key Training Activities, which aims to make young people aware of basic concepts such as civil society and volunteer work.
Lastly, in Mexico, the partnership with the State Government of Chiapas and the Ver Bien para Aprender Mejor Foundation in 2015 has provided 116 high-school students in 75 schools from 6 municipalities with customized glasses for those identified by optometrists as having problems with their eyesight.
To improve the quality of education, BBVA provides teachers with resources through a variety of initiatives. We have worked with the Organization of Ibero-American States (OIS) for science and culture since 2008 to improve the quality of education provided in early childhood in Latin America and guarantee that teachers have sufficient training. This is currently done through target 7 of the project "Metas educativas 2021: La educación que queremos para la generación de los bicentenarios" (Educational targets for 2021: the education we want for the bicentennial generation).
This year we have also renewed our pledge and over 2015 and 2016 we will support the creation and development of the OIS Ibero-American Institute for Early Childhood, the implementation of a pilot phase of "Becas Paulo Freire" (Paulo Freire Scholarships) aimed at promoting the mobility of university undergraduates and postgraduates who are taking courses that lead to a teaching profession, as well as a pilot program in Uruguay that boosts Financial Literacy in the country, benefiting 1,200 students.
FAD, UNESCO and BBVA have been running their "Acción Magistral" (Teacher Action) project since 2012 to provide support for the daily work done by preschool, elementary and high-school teachers who carry out or want to carry out classroom educational projects supporting social values in Spain. The project offers online and in-person teacher training, resources for classroom teaching and forums for debate, as well as other support. In 2015, 4,327 teachers participated through the platform and over 355 teachers attended the 4 face-to-face meetings that have taken place to promote innovation in education. Since its launch in 2012, 667 teachers have been trained through the more than 40 courses offered.
BBVA also works in partnership with Teach for America in the United States, an organization that works to eliminate educational imbalances for students with limited incomes. The organization recruits, trains and supports people with talent who agree to give classes in schools with limited resources for 2 years. In 2015, 1,560 people benefited from this program.
Lastly, in Turkey, Garanti has "The Teachers Academy Foundation" (ÖRAV), created in 2009. Its aim is to contribute to the personal and professional development of teachers, who are the fundamental pillars for the growth of the new generations. ÖRAV, the first and only NGO in Turkey that focuses on this area, supported more than 90,000 teachers in 81 cities. The program has a platform for the continuous training and exchange of information accessed by over 80,000 users. It helps develop face-to-face training programs.
In 2015, the BBVA Foundation strengthened its commitment to boost scientific knowledge and culture and disseminate it in society, while extending its support for the community of researchers and creators in Spain with grants for innovative projects with a social impact.
The annual BBVA Foundation Grants for Research and Creation have enabled 87 individual and team projects to be set up in 2015. Recipients were selected through three highly competitive public invitations for applications aimed at individual researchers, innovators and cultural creators in eleven different areas of science and culture; research teams in four scientific areas with a high social impact; and audiovisual artists for creation in video art.
As it is the case with all its activities, the BBVA Foundation has been supported by specific high-level committees of experts for each area included in the invitation for applications and has operated with complete independence.
The grants awarded have been selected from among a large number of applications: 1,949 applications for individual grants and 608 from teams made up of over 7,600 researchers in all.
In 2015, the BBVA Foundation continued to support scientific knowledge and culture, as well as its dissemination in society
In the case of grants for individuals, the extensive and diverse range of areas of activity included (eleven fields of research and creation), the profile of recipients (at an intermediate stage in their studies and with highly creative activities) and the flexibility offered in the use of funds are distinctive features of the invitation for applications. In all, 63 grants for individuals were awarded in 2015.
With respect to research teams, the grants were awarded to 15 applied research projects in areas of preferential interest for the BBVA Foundation: biomedicine, with special emphasis on oncology, cardiology and neurodegenerative diseases; ecology and conservation biology, with projects involving collaboration with conservation organizations; and digital humanities.
Together with these grants, the dissemination of research and creation has continued to be one of the key cross-cutting elements of the BBVA Foundation's activity, with series of conferences, the production of audiovisual materials, and concerts and publications.
In 2015, the Foundation continued with the fourth series of conferences on astrophysics and cosmology La ciencia del cosmos, la ciencia en el cosmos, of great interest to the public and with researchers of global prestige taking part.
Elsewhere, CERN (European Organization for Nuclear Research) has continued to cooperate with the BBVA Foundation with a new series of conferences on the research program developed by the two of them. The new general manager of the CERN, Professor Fabiola Gianotti, took part in this series. The BBVA Foundation's president, Francisco González, visited the CERN facilities, where he held several meetings and renewed the agreement for the joint organization of another series in 2016. The conferences of both cycles are available in Spanish and English on the BBVA Foundation website.
On the occasion of the centennial of the General Theory of Relativity, the BBVA Foundation has organized a conference by the academic José Manuel Sánchez Ron and, along with the publishing house Crítica, has published the book Albert Einstein, su vida, su obra, su mundo, the most systematic monograph on Einstein yet published in Spanish.
The different families of awards that the BBVA Foundation organizes exclusively or in partnership with other institutions have continued to give visibility and recognition to people who contribute significantly to scientific and technological and cultural progress. This goal can be seen in its highest form at the BBVA Foundation Frontiers of Knowledge Awards, which are outstanding for the number of categories, the profile of the nominees and the recipients chosen by committees of top-level experts and researchers. Angus Deaton, a winner at the BBVA Foundation Frontiers of Knowledge Awards in 2011, received the Nobel Prize in Economics in 2015. This brings to five the number of winners of the BBVA Foundation Frontiers of Knowledge Awards who have gone on to receive the Nobel Prize, including the last three winners of the Nobel Prize in Economics.
The tenth edition of the BBVA Foundation Awards for Biodiversity Conservation (with three categories: actions in Spain and Latin America, Dissemination and Awareness) was held this year, with a ceremony that became a meeting point for Spanish conservationists. Those attending included the heads of the main public institutions, organizations and communicators in this sector.
The Spanish Royal Society of Physics collaborates on a number of prizes with the Foundation (including the Physics Medal, the Physics, Innovation and Technology Awards and the New Researchers Awards in the Theoretical Physics and Experimental Physics categories); and in 2015, the Vicent Caselles Mathematical Research Awards were awarded for the first time by the BBVA Foundation along with the Royal Spanish Mathematical Society to recognize six young mathematicians. A three-year scholarship has also been set up to fund the work of the young researcher who has been awarded the José Luis Rubio de Francia Prize.
In culture, in 2015 the BBVA Foundation continued with the program of major annual exhibitions in partnership with leading museums such as the Prado Museum (The Divine Morales), the Guggenheim Bilbao (Jeff Koons: a retrospective) and Fundació Miró (Miró and the Object). In addition to these exhibitions, the BBVA Foundation is partnering the Thyssen Bornemisza Museum on the electronic front, with the launch of new digital publications and apps this year.
Of note in this area is also the joint production with the Spanish National Radio (RNE) of a new radio version of Don Quixote, with a script by the academic Francisco Rico and a cast of famous actors such as José María Pou, José Luis Gómez, Javier Cámara and Michelle Jenner. It was premiered last November 20 and will be broadcast over a period of 20 weeks every Friday as part of the program El ojo crítico. The partnership with RNE has also resulted in the program Punto de fuga.
The multidimensional support for contemporary music also involved a wide-ranging program this year, with commissions for works from groups and orchestras specializing in music of the 20th century and our time. Noteworthy is also the support for some of the major institutions in the country: the Teatro Real in Madrid, the Bilbao Association of Friends of the Opera (ABAO), the Teatro de la Real Maestranza in Seville and the Gran Teatre del Liceu in Barcelona.
There has also been an innovative series of theatrical concerts El mundo de ayer, designed and directed by the composer José Ramón Encinar and which were premiered at the Teatros del Canal.
In 2015, there were two milestones in the BBVA Foundation's collaboration with regional symphony orchestras: the creation of the BBVA Foundation-ORCAM Camerata Infantil children’s orchestra which performed for the first time at the Symphony Hall of the National Music Auditorium; and the launch, together with the Spanish Association of Symphony Orchestras (AEOS), of the project Mosaico de sonidos, which aims to support the integration of people with disabilities through music.
In the area of social economics, as part of the recurring collaboration between the BBVA Foundation and the Valencia Institute of Economic Research (Ivie), a new monthly series of short informative documents called Esenciales was launched with the aim of disseminating the main results of the economic research program developed jointly. The topics being addressed include training, employment and social inclusion, human and technological capital, the financial situation of economies, determining factors in social welfare, changes in the productive model, etc. In addition, a number of reports have been presented as part of the joint effort to generate and spread objective knowledge on fundamental aspects of Spain's economic growth, the distribution of wealth and the development of social welfare. They include the study Crisis económica, confianza y capital social (Economic crisis, confidence and social capital).
Moreover, BBVA has continued its major support for culture in a number of countries across its global footprint.
In Chile, BBVA has assisted the production of a number of books: Historia del Golf en Chile, which promotes golf in the country and fosters the values inherent to the sport, such as fair play, teamwork and the spirit of achievement; La mia cucina, by the famed chef Massimo Funari, which seeks to spread knowledge of international cuisine in the country; and Patrimonio del Museo Marítimo Nacional, promoting the preservation and dissemination of the country's collective memory.
In the case of the BBVA Bancomer Foundation in Mexico, the "Fomento Cultural" (Cultural Promotion) program supported more than ten art exhibitions, musical festivals, theater workshops and film projects through various grants and initiatives.
The Bancomer Grant for the Arts has become a unique cultural promotion platform in Mexico. It makes use of private initiative to drive the production of avant-garde cultural projects of excellence in all art disciplines and invests with commitment and enthusiasm in the professionalization and development of the artistic community.
The Bancomer-MACG (Carrillo Gil Art Museum) program is a biannual initiative whose objective is the professionalization of ten visual artists under the age of 35. This is achieved through the constant support of specialist Mexican and foreign advisers, who participate in the implementation of a personalized training program for the artists and a schedule of meetings and group dynamics, aimed at expanding their knowledge and artistic practice. They are provided with exhibition platforms at prestigious museums that include a bilingual publication summarizing the process of the program.
The exhibition program aims to disseminate and capitalize on the symbolic value of the Group's artistic heritage and other quality projects, with a view to making them available to our stakeholders and to society in general. It also offers a wide-ranging program of educational activities.
In Turkey, Garanti has focused its efforts on bringing to life society's need to have cultural environments suitable for research and production and on creating a truly independent cultural institution that develops through interaction with its users. This vision led to the reconstruction of the Platform Garanti Current Art Center, Ottoman Bank Museum and Garanti Gallery, which operated as part of the bank and achieved great success, as a single independent institution called SALT in 2011. Since its creation, SALT has hosted 64 exhibitions and 1.7 million people have visited its buildings.
BBVA also makes available to shareholders, investors and the public in general a wide range of reports, analyses and studies on developments in the economy, the financial sector and the markets, both nationally and internationally, particularly across the Group's global footprint. Since this year, Turkey is also included among the areas of study. The BBVA Research Department prepares in-depth studies, macroeconomic forecasts, research work, economic analyses (macroeconomic, regional, on central banks, digital economy, geostrategy, migration, financial inclusion, country risk and various sectors, many of them closely related to finances, such as consumption), analyses on regulation and financial systems and, lastly, opinions. In 2015, BBVA Research has drafted more than 4,000 economic publications.
The above is done through a number of formats and documents: flashes, computer graphics, presentations, working papers, books, observatories and magazines, published with a varying frequency, from daily to quarterly and annual.
Specific articles are also prepared on different topics, such as the coming into effect of new regulations.
BBVA Research has won increasing prestige through its work. In fact, its forecasts and analyses are regarded as a credible alternative to official statistics, as can be seen by the frequent mentions of its forecasts in the media and among analysts. As a result, it has become a de facto opinion leader.
All this information is available and constantly updated on the website www.bbvaresearch.com and the social media, through which it participates very actively.
Lastly, BBVA Research has a global reach, as reflected in the languages in which the documents are available. Spanish and English account for over 95% of the total, but documents have also been written in Catalan, Basque and Portuguese.
In 2015, the BBVA Board of Directors approved the “Corporate principles in BBVA’s tax and fiscal strategy”.
The strategy is framed within BBVA’s corporate governance system and establishes the policies, principles and values that must guide the way BBVA behaves as a tax payer. It has a global scope and affects everyone working in BBVA Group. Compliance with this strategy is very important due to the relevance and impact of the contribution of a big multinational company as BBVA to the economies of all the jurisdictions in which it operates.
Effective compliance with the fiscal strategy will be properly monitored and supervised by BBVA’s governing bodies.
Accordingly, BBVA’s fiscal strategy is built on the following items:
BBVA is committed to providing transparency about tax payments and this is why, since 2011, we voluntarily disclose all major tax payments in the countries in which we have a significant presence.
The BBVA Group’s total tax contribution (Total Tax Contribution – TTC), which uses a method created by PricewaterhouseCooper (PwC), includes own and third-party payments of corporate taxes, VAT, local taxes and fees, PIT, Social Security payments, as well as those made during the year due to tax litigation in relation to the aforementioned taxes. It includes both the taxes borne by BBVA Group’s companies (those taxes which are a cost to the companies and affect their results) and taxes they collect on behalf of third parties. The Total Tax Contribution Report gives to all our stakeholders an opportunity to understand our tax payments and represents a forward-thinking approach and commitment to corporate responsibility, assuming a leading role in tax transparency.
BBVA Group. Global tax contribution
|Total tax contribution||8,157||8,179||9,848|
BBVA was the first Spanish company to disclose its total tax contribution. This information is becoming more common across the world for both reasons of corporate social responsibility of companies and of reporting transparency