BBVA
Spanish bank BBVA wins this year’s award for regional bank in Latin America on the back of its successful policy. Not only did its Mexican bank, BBVA Bancomer, post record results as the Spanish bank increased its stake, but BBVA also showed maturity in its regional strategy by selling its Brazil stake. Early in 2004, BBVA announced a public tender offer to acquire the shares in BBVA Bancomer it did not own. BBVA now owns 99.6% of the total capital of the largest bank in Mexico by assets. It has improved Bancomer’s performance and increased its own exposure to a growing economy that is ever more closely integrated with the US. The ability to cut one’s losses is as much a part of a successful bank strategy as acquisitions. Too often, this is ignored by analysts and investors. BBVA sold its Brazilian bank, BBV Brasil, to Banco Bradesco in return for a 4.5% stake in the largest private bank in Brazil. BBV Brasil was too small to make a difference in the market, while exposing the Spanish bank to the ups and downs of the Brazilian economy. Now, it has a stake in the largest private bank in Brazil, a better use of capital. In addition, within its new management model, which increased the executive team to 1690 employees throughout its global operations, one-third of the new team comes from Latin America.
