BBVA Reduces Default by €1 Billion

3/04/2014 – Expansion

Ángel Cano, the CEO of BBVA, has announced that since September last year the bank managed to cut in unpaid credit amount by €1 billion. The improvement by 3% may be assigned to the fact that the number of loans becoming default is lower than the repaid number. (…) However, the bank´s chairman Francisco González prefers to approach the good news with a pinch of salt as still there might occur unexpected rebounds.

The results were a part of annual presentation of the bank at the 21st Financial Sector Meeting organized by Deloitte and ABC. (…)

Apart from the progress in loan recovery, Cano pointed out that new loans are being granted again, especially to companies. Not at large-scale yet, however that for sure will fuel growth in economy.

Still, there are many challenges to be faced, such as high deleveraging, not completed banking restructuring or stiff approach to reforms. (…).

BBVA admitted having a small office share in comparison to its total business share but their number will be increased. (…) Cano told that the bank has been improving its technological supply network for last 7 years and also grew extraordinarily in terms of access through mobile phones (+80%) and the Internet (+20%). (…).



Original article: Expansión (M. Romani/J. Zuloaga)

Translation: AURA REE