"BBVA activity in syndicated loans is being recognised internationally in a really complex environment" February 25, 2013
"BBVA activity in syndicated loans is being recognised internationally in a really complex environment"
Seventeen deals of syndicated loans in different European countries leaded by BBVA have been awarded by the trade magazine Euroweek. Javier Rodríguez-Arias, head of Global Lending at BBVA Corporate & Investment Banking, elaborates on this recognition and the leading position of BBVA in its core markets and also goes into the foreseeable market trends.
Q: What does it mean to have received these Euroweek Awards?
These awards are a very important recognition to our 2012 activity in a really complex market situation in which loans volume has fallen by 17% worldwide, with diverse geographical shares, and it has proved our model strength in those countries in which we have a bigger footprint. It's very remarkable, for example, the increase of our market share in Spain, where we have improved from 11.4% to 14.5% in a difficult environment.
Q: Is BBVA also a reference player in Latam?
BBVA is a reference player in Latin America, obviously in those countries in which its presence is bigger, as in Mexico. This year, Mexico has surpassed Brazil for the first time in its loans share in Latin America, reaching 34%, against 26% of Brazil. Our leadership in Mexico is really outstanding; we are number 1 in syndicated loans again as we have been for last three or four years.
Q: What are the market trends?
The market trends in 2012 were set by the regulatory requirements, which have produced a deleveraging in the banks market. This deleveraging, translated to the loans and bonds market, has produced a decrease of the loans market in regards to bonds in the companies corporate debt. In 2012, the percentage of loans has been 55%, against 68% in 2011. We estimate that this trend will continue in the future. In terms of pricing, we expect a compression of the spreads due to the improvement of the perception of sovereign risks and the higher access to the banks' capital markets.
Q: What are the competitive advantages of BBVA?
The competitive advantages of BBVA are clearly 3: the first one, the strength of our balance and our capital, which allows us to meet our customers' needs without having to deleverage, unlike the rest of the industry. The second one is our client-based approach with a multi product strategy in those countries in which we have a bigger footprint. The third one is a risk-taking discipline which has allowed us to maintain lower NPL ratios than others in the wholesale banking industry.