Spanish lender BBVA is looking to distribute over €7bn to shareholders between 2021 and 2022, its chairman Carlos Torres has revealed.
The sum is equivalent to almost 20% of the existing market capitalisation of BBVA.
Go deeper with GlobalData
It includes the €3.5bn share buyback that the bank has announced.
The first tranche of €1.5bn is underway and Torres said that the bank has already executed a substantial part of it.
It also includes the expected dividends for the two years, applying the ‘pay out’ policy of 40-50% of profit as per the bank’s policy.
In November 2021, BBVA launched a voluntary offer to take full control of Turkey-based Garanti BBVA for up to €2.25bn ($2.58bn).
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataUpon completion of the share buyback and acquisition of Garanti, BBVA expects to have surplus capital of over €2bn.
Torres further stated that the bank is open to making additional distributions to shareholders and plans to invest in growing its franchises.
Commenting on the Garanti deal, Torres said: “Turkey is a strategic country for BBVA, and we see a country with huge long-term potential because of its size (85 million people), its youth, its demographics (average age is 32), its trade partners and its geographical position: It has very strong ties with Europe.
“All this leads to a very high potential growth of 3.5%, which compares with less than 1.5 % in Europe. In addition, banking penetration is very low, so there is additional potential growth.”
In October 2021, BBVA announced plans for a digital retail banking unit in Italy.
