Banco Bilbao Vizcaya Argentaria
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Banco Bilbao Vizcaya Argentaria, S.A. (Spanish pronunciation: [ˈbaŋko βilˈβao βiθˈkaʝa aɾxenˈtaɾja]), better known by its initialism BBVA, is a multinational Spanish banking group based in Madrid and Bilbao. It was formed from a merger of Banco Bilbao Vizcaya and Argentaria in 1999, and is the second largest bank in Spain. The company is a constituent of the IBEX 35 and Euro Stoxx 50 stock market index. In 2007, the firm started an initiative to digitally transform the bank. Following implementation, it saw a 19% year-on-year increase in new customers. As of 2015, the total number of these clients stood at 14.8 million.
|Traded as||BMAD: BBVA|
|Carlos Torres Vila|
(Group Executive Chairman)
|Services||Banking, insurance, asset management|
|Revenue||€23.680 billion (2015)|
|€6.81 billion (2015)|
|€2.642 billion (2015)|
|Total assets||€750.07 billion (2015)|
|Total equity||€55.43 billion (2015)|
Number of employees
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BBVA was formed in 1988 with the merger of Banco de Bilbao (founded 1857) and Banco de Vizcaya (formed 1901) to form Banco Bilbao Vizcaya (BBV). In 1999, it merged with Banco Argentaria, itself the product of a group of credit institutions dating to 1901, to form BBVA.
As of October 2018, BBVA had the following debt ratings with the four major rating agencies:
|Rating Agency||Long Term Rating||Short Term Rating|
|S&P||A- (Outlook: Negative)||A-2|
|Moody's||A3 (Outlook: Stable)||P-2|
|Fitch||A- (Outlook: Stable)||F-2|
|DBRS||A (high) (Outlook: Stable)||R-1 (middle)|
Mergers and acquisitionsEdit
In February 2014, BBVA acquired Simple, a then four-year-old direct bank for $117 million. In its push towards a digital future BBVA has also acquired such companies as Madiva, a big-data company, Spring Studio, a digital-design specialist, digital banks in America and Finland, and 29.5% of Atom, a British online bank.
BBVA executive chairman, Francisco González, explained why banks must get with the technology program: "Some bankers and analysts think that Google, Facebook, Amazon or the like will not fully enter a highly regulated, low-margin business such as banking. I disagree. What is more, I think banks that are not prepared for such new competitors face certain death." The banking industry recognizes BBVA to be more pro-technology than many of its competitors.
In 2016, BBVA acquired Finnish online banking startup Holvi, based in Helsinki, Finland. Holvi was founded by Kristoffer Lawson and Tuomas Toivonen in 2011, and provides entrepreneurs, small and medium-sized businesses with a range of business services as well as traditional banking through its online platform. According to Maaseudun Tulevaisuus, Holvi offers SMEs an alternative to traditional banks, with a business account, a payment card, a bookkeeping tool, a billing application and an online store. Card access can be managed via a smartphone app, which also includes notifications of any charge on the card.
BBVA building in Madrid.
Presence on stock market indexesEdit
The BBVA is included in the IBEX 35, the official index of the Spanish Continuous Market composed of the 35 most liquid stocks traded on continuous market. The BBVA has a market capitalization of about 51,882 million euros with a share value between 5 and 8 euros.
U.S. sports market presenceEdit
On 13 September 2010 BBVA became an official sponsor of the NBA. From 2011 to 2014, BBVA sponsored the Birmingham Bowl, a postseason college football game played in Birmingham, Alabama, during which time the game was known as the BBVA Compass Bowl. For the first three editions under the sponsorship contract, the game featured teams from the Big East Conference and Southeastern Conference. Following the 2013 split of the Big East along football lines, the former Big East berth was inherited by that conference's football-sponsoring offshoot, the American Athletic Conference. On 12 May 2012, BBVA Compass Stadium opened in downtown Houston, Texas. It was built as the home for the Houston Dynamo soccer team, and from its opening has also hosted the Texas Southern University football team. Since 2014, the stadium has also hosted home games of the Houston Dash, a team in the National Women's Soccer League that is owned and operated by the Dynamo.
Emerging and growth-leading economies (EAGLEs)Edit
Emerging and growth-leading economies (EAGLEs) are a grouping of key emerging markets developed by BBVA Research. The EAGLE economies are expected to lead global growth in the next 10 years, and to provide important opportunities for investors.
EAGLEs is a grouping acronym created in late 2010 by BBVA Research to identify all emerging economies, whose contribution to world economic growth in the next ten years is expected to be larger than the average of the G6 economies (G7 excluding the U.S.). This is a dynamic concept where country members can change over time according to their forecasted performance relative to developed economies. The membership of the EAGLEs is subjected to a yearly revision and can change according to their forecasted economic performances relative to developed economies.
As part of the EAGLEs proposal, the EAGLEs’ Nest is a second set of countries with expected Incremental GDP in the next decade to be lower than the average of the G6 economies (G7 excluding the U.S.) but higher than Italy’s (G6 Minimum), the country which is anticipated to contribute least to global growth within the G7. The membership of the EAGLEs’ Nest is subject to a yearly revision and can change according to forecasted economic performances.
On September 9, 2011, Dow Jones and BBVA launched two equity indexes that allow investing in leading companies traded in Emerging and Growth-Leading Economies (EAGLEs). There are two indexes, “Dow Jones BBVA EAGLEs” and “Dow Jones BBVA EAGLEs Optimized”, both composed of a set of 50 companies.
The allocation by country is macro driven according to the contribution each EAGLE is going to make to incremental GDP within the group, in the next ten years. It is a dynamic index which changes its composition along with macro forecasts; hence it is an adaptive index when compared with other static peers. Revisions are made annually in March to update the indices compositions according to the latest macroeconomic forecasts. It is also a liquid index which provides a diversified exposure to Emerging Markets. In order to facilitate index replication by foreign investment firms, the sample of 50 companies is chosen from the Dow Jones Global Total Stock Market Index, plus HK and US listed Chinese companies.
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-  Who are the EAGLEs? Driving Global Growth for the Next Ten Years (14 February 2011)
- [permanent dead link] EAGLEs_Outlook_Annual_Report_2012 (20 February 2012)
-  EAGLES Economic Outlook. Annual Report 2013 (11 March 2013)
-  EAGLES Economic Outlook. Annual Report 2014 (29 March 2014)
-  EAGLES Economic Outlook. Annual Report 2015 (13 April 2015)
-  EAGLES Economic Outlook. Annual Report 2016 (May 2016)
-  Dow Jones BBVA EAGLEs Index Methodology
-  Dow Jones BBVA EAGLEs Optimized Index