January-September 2013


Main highlights

As mentioned above, BBVA has reached an agreement with Grupo Aval for the sale of its business in Panama for an initial USD 646m, which will be adjusted according to the earnings obtained from June 1, 2013 to the date of final closing of the transaction, subject to obtaining the authorizations needed from the relevant authorities. BBVA Panama accounts for just under 0.3% of the Group’s total assets. It has 19 branches and 391 employees according to data as of the close of June 2013. Its small size (with a market share of around 3% as of December 31, 2012) limits the possibility of implementing the BBVA model, which aims for large markets and requires a bigger market share. This transaction will generate net capital gains of around €150m, and have a positive effect on the Group’s capital.

The sale of the stake in the Chilean company Administradora de Fondos de Pensiones Provida S.A. to MetLife, Inc. subsidiaries was completed on October 2, 2013. The capital gains net of tax amount to around €500m, and will be registered under earnings for the fourth quarter of 2013.

The most important awards and recognitions received during this quarter are as follows:

  • The magazine Euromoney has named BBVA ‘Best Bank in Latin America’ at the Euromoney Awards for Excellence 2013. The award recognizes BBVA’s leadership, soundness and solvency, and the growth in its customer base in the region.
  • In Peru, BBVA Continental has received the ‘Good Corporate Governance 2013’ award from the Lima Stock Exchange for appearing on the list of 10 companies with the best corporate governance policies for the sixth year in a row. It also received recognition for its 60 years in the stock market.
  • In Venezuela, BBVA Provincial has again been chosen ‘Best Internet Bank’ in 2013 by Global Finance. The bank has consolidated its use of multi-channel banking and is now one of the most innovative in the country, attracting an average of 5,000 new customers every month via the Internet.

Finally, South America continues to be very active in social responsibility initiatives. Outstanding in this respect in the quarter have been:

  • In Argentina new “Becas de Integración” (Integration Scholarships) have been awarded with the aim of helping students complete their secondary-level studies, improve financial literacy and boost essential values.
  • In Colombia, BBVA is continuing with its “Cuento Contigo” (I count on you) program in partnership with the Ministry of Education. Under the plan, customers and the bank itself make contributions toward the purchase of books for children without sufficient funds.