Bilbao, (EFE) and volatility, the group faces 2023 with confidence.
Before beginning the entity’s meeting held at the Euskalduna Palace, the president of BBVA has been optimistic about the evolution of the bank in 2023.
Despite the uncertainties and volatility in the markets -after the fall of Silicon Valley Bank in the United States and the rescue of Credit Suisse-, Torres has insisted on the prospects for “profitable” growth of BBVA in its main markets.
In addition to Spain, BBVA is present in a large part of Latin America – it is the largest bank in Mexico – and also in Turkey.
High inflation, a challenge
However, the banker has recognized during his speech before the shareholders that high inflation is posing “an enormous challenge for families, reducing their purchasing power, especially that of the most vulnerable”.
To deal with rising prices, central banks have raised rates “with a speed unknown until now”, which means an additional burden on the family economy. At BBVA, “we are aware of this and we are looking for solutions”, such as alternatives to facilitate mortgage payments, he added.
He also explained that the rise in rates is having an impact on the financial markets, “causing episodes of volatility and uncertainty” like the ones this week, alluding to the Credit Suisse bailout and the fear of a new financial crisis.
However, Torres has highlighted the improvement in the economic outlook for 2023 in practically all the countries in which BBVA is present, which expects the Spanish economy to grow by 1.6% in 2023.
During his speech, the group’s president also mentioned the earthquakes in Turkey and Syria, before recalling the bank’s achievements in 2022, including the addition of more than 11 million customers to reach almost 70 million worldwide. .
More than 3,000 million in dividend
The meeting has served to approve the distribution of 3,015 million euros through the payment of a cash dividend of 43 cents per share -almost 40% more than in 2021-, of which 12 cents were already paid in October, and a new share buyback program of 422 million euros.
For his part, the CEO of BBVA, Onur Genç, emphasized the record attributable profit of 6,621 million euros, the best in the bank’s history, and “the growing trend in profits of the last ten years”, except for the year of the outbreak of the pandemic.
Women on the Board of Directors
The meeting has also served to give the go-ahead for the appointment of the Mexican Sonia Dulá as the entity’s new director, which broadens the international profile of the highest management body and maintains female representation at 40%.
In addition to the appointment of Dulá, who fills the vacancy on the board left by Susana Rodríguez, the shareholders have also given their support to the re-election of directors Raúl Galamba, Lourdes Máiz, Ana Revenga and Carlos Salazar.
In this way, the highest management body of BBVA increases the number of members with independent status to 73% (11 out of 15) and increases the international profile of the board. The representation of women continues at 40%, with six directors.
During the turn of the shareholders to speak at the meeting, the former president of Sacyr Luis del Rivero, a person in the Cenyt case that investigates the bank’s relationship with companies owned by former commissioner José Villarejo, demanded a renewal of the board so that there is no member of those who were in 2018.
He also requested, for yet another year, greater collaboration from BBVA with the courts.
Faced with these two demands, the BBVA Chairman explained that the renewal of directors is done following the best corporate governance practices and added that five new directors have been hired in the last three years. The secretary of the entity, for his part, ensured the full collaboration of the bank with justice.
Union complaints
Among the rest of the shareholders who took the floor, he highlighted the intervention of several union representatives who complained about the “precariousness” of bank employees, their loss of purchasing power and working conditions in which “many” would suffer stress and anxiety.
To all of them, jointly, the president of BBVA conveyed the idea that employees are the entity’s best asset, while recalling some of the bank’s decisions to improve working conditions, such as the promotion of a hybrid model of teleworking or salary increases in Spain.
And faced with the work scenario described by the unions, he cited a satisfaction survey in which more than 94% of the workforce participated to give a score of 4.39 out of 5, better every year.
In the turn of answers, Torres also recalled the bank’s commitment to care for the elderly and to the question of the president of Adicae, Manuel Pardos, as to why the remuneration of deposits is not raised, the banker replied that the liquidity of the sector continues being very high and there is a wide range of alternative products for those seeking more profitability. EFE