Reportedly, soaring loan-loss provisions in domestic market, Mexico and the US, and heavy writedowns on the value of the US business and Spanish property dented Banco Bilbao Vizcaya Argentaria’s financial results.
Banco Bilbao Vizcaya Argentaria reported a 16% fall in net profits from EUR5.02bn in 2008 to EUR4.21bn in 2009. Francisco Gonzalez, chairman of BBVA, said that in addition to Spain and Latin America, the US and Asia are important pillars of the bank’s operations.
Over the next three years, BBVA aniticpates the US share of its profits to increase from 11% to approximately 15% and Asia’s share to double from 4% to 8% during the same period. Reportedly, in December 2009, BBVA raised its stake in China Ciltic Bank to 15% by spending EUR1bn. It is also expanding its corporate banking operations across Asia.
Mr Gonzalez said: “I’m very comfortable that at the minimum we will reach that level [of 8 per cent]. In 10 years, Asia will be a very, very relevant part of BBVA.”