BBVA banking model

Portfolio model

First, a portfolio model distinguished by a well-balanced diversification regarding geographic units, business units and customers, with leading franchises in all markets in which it operates.

Business model

Secondly, a customer-centric business model, not only for retail banking but also for the wholesale sector, based on its long-term and stable relations with nearly 50 million customers. This is a business model based on an extensive and highly efficient distribution network, a core asset for retail banks. And finally, it is a business model committed to incorporating technology in all its processes: its size and scale allow BBVA to make sizable global investments, especially in transformation and innovation.

Management model

The third cornerstone is a management model in which decision making is supported by two governing principles: prudence and anticipation. The bank’s prudence shows in its successful structural and credit risks management, capital management and corporate transactions. On the other hand, BBVA’s ability to anticipate relevant changes is obvious in its decisions anticipating substantial changes in the industry, competition and customers, with medium-term effects.

Governance model

And finally, a governance model based on integrity, prudence and transparency, with the overriding aim of generating shareholder value, all of which leads to internal standards of conduct, regulatory compliance and sound corporate governance systems. For BBVA, giving principles priority within the Group’s governance is in itself a means of differentiation.

The combination creates competitive advantages

The combination of these four pillars makes BBVA’s banking model unique, creating two competitive advantages: recurrence and structural robustness.

• Recurrence: year after year, BBVA has demonstrated its capacity to generate recurrent and sustainable earnings.
• Structural robustness:The Group has a healthy, balanced and well capitalized balance sheet, with all risks recognized and controlled, with an appropriate financing structure in place.

This model has seen BBVA record a standout performance during the economic crisis and puts it in an excellent starting point from which to successfully face future challenges.