('''BBVA''') is a multinational
Spanish banking group. It was formed from a
Merger of
Banco Bilbao Vizcaya and
Argentaria in 1999, and is the smaller of Spain's two large banks. The bank has recently focused on overseas expansion, and now operates in 40 countries. Like many other Spanish companies, it enjoys a dominant position in Spanish-speaking Latin American countries. It also has a presence in many
Mediterranean countries, especially
Portugal and
Italy , and has announced its intention to expand into the
United States .
BBVA’s story began in 1857 when the Spanish Board of Trade sponsored the creation of Banco de Bilbao as a currency-issuing and discount bank. Until the 1890s it was practically the only bank in that part of Spain. In the second half of the 19th century Banco de Bilbao played a leading role in operations involving infrastructure projects and development of the
Steel Industry . In 1878 it lost the right to issue currency and reorganised as lending and discount bank. Banco de Vizcaya was set up in 1901. It carried out its first operations in
Bilbao and gradually extended throughout Spain. Apart from its activities as a
Commercial and general purpose bank, it intervened in the creation and development of a large part of Spanish industry. In 1902 Banco de Bilbao merged with Banco del Comercio although both continued to operate as separate entities. In 1909 Caja Postal was set up as a public entity and started operations in 1916, based on savings books. A consortium of bankers and manufacturers founded Banco de Crédito Industrial (BCI) in 1920 with the express aim of boosting the installation and consolidation of industry through long-term lending. Both Banco de Bilbao and Banco de Vizcaya formed part of this consortium. In 1923 the Servicio Nacional de Crédito Agrícola was created under the ministry of agriculture to provide loans to agricultural associations against the joint and several liability of their members. A combination of public and private interests set up Banco de Crédito Local (BCL) in 1925 in the form of a joint-stock company. Its purpose was to finance local authorities and other public institutions. Banco Exterior (BEX) was created in
1929 to encourage foreign trade, to seek new markets for Spanish products and to help local companies with
Imports and
Exports .
Against a background of economic development in the 1960s, Banco de Bilbao grew further, absorbing other banks. At the same time Banco de Vizcaya also expanded and began to emerge as an important financial group. Greater flexibility by the authorities regarding new branches allowed it to extend its network. Caja Postal added
Current Accounts , securities and specific credit lines to its existing services. The Banking Sector Reform Act 1962 nationalised BCI, BHE and BCL and converted the Servicio Nacional de Crédito Agrícola into Banco de Crédito Agrícola (BCA). All four thus became public entities. However in 1971 they were recast as joint stock companies and became official loan entities (under the Official Credit System Act).
During the 1980s Banco de Bilbao’s strategy was to attain sufficient size in order to participate in financial operations generated by advances in technology, deregulation, securitisation and the interrelationship between domestic and international markets. Banco de Vizcaya contributed to the refloating of banks affected by the economic crisis and pursued a policy of strong growth through acquisitions. This turned it into a large banking group. The most important operation was the acquisition of Banca Catalana in 1984. In the meantime the official credit entities expanded their business through market operations. In 1982 BEX lost the exclusive right to provide export finance. It refocused its goals on becoming a universal bank and on building a financial group. During this process it acquired Banco de Alicante in 1983. In 1988 Banco de Bilbao and Banco de Vizcaya merged to form BBV.
Corporación Bancaria de España (CBE) was set up in 1991 as a government corporation and credit entity with bank status. Argentaria started out with a federated banking model. However in 1998 Corporación Bancaria de España (already privatised via IPOs), BEX (which had merged with BCI), BHE and Caja Postal were merged into a single bank: Argentaria.
BBV and Argentaria announced their planned merger on October 19,
1999 . The new group had the advantages of significant size, a strong capital base, a considerable financial structure and appropriate geographic diversification of its business and risks. As a result there was a greater profit potential.
Customers now had access to a larger network and a wider range of products. They also enjoyed easier access to new channels and a considerable international presence. Employees also had more opportunity for career advancement. The smooth integration of BBVA was attributed to the following:
- the speed of strategic decisions
- the immediate definition of the new organisation and a framework agreement with employees
- the speed with which working groups were set up and plans were made for each area of activity
- the successful achievement of ambitious timetables
- the enthusiasm, commitment, effort and co-operative spirit
The integration process was given an important boost in January 2000 by the roll-out of the single BBVA
Brand . This helped the group generate an image that was strongly positioned in terms of identity and distinguishing characteristics.
The integration of the group’s
Retail businesses in Spain (BBV, Argentaria, Banca Catalana, Banco del Comercio and Banco de Alicante) led to the creation of a significant branch network under the BBVA banner. The efficiency of the BBVA integration was recognised by top financial publications. In 2000 it was chosen World’s Best Bank (
Forbes ) and Best Bank in Spain (The Banker). In 2001 it was Best Bank in
Latin America (Forbes) and Best
European Bank (Lafferty).
In 2005 BBVA Group accuired Laredo, Texas based Laredo National Bank
