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BBVA

Analysis of BBVA share price

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Banking groups generally offer their shares on the stock market and it is even possible to buy and sell shares of this type directly online using a trading platform. Among the European bank shares that you can own in your portfolio or trade online, we are going to focus here on the BBVA group and explain how you can make a relevant analysis of its price.

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BBVA's revenue and market capitalization

16/11/2021 - 09h44

The BBVA banking group had a difficult year in 2020. Its business did not go well due to the coronavirus pandemic. As a result, the company's results fell for the year as a whole.

Elements that can influence the price of this asset:

Analysis N°1

Investments in China, Latin America and most of the emerging countries whose markets are real challenges for companies in the banking sector.

Analysis N°2

We will of course also keep a close eye on the achievement of the objectives that the group has set itself for 2020, particularly in terms of debt and the development of new products and services.

Analysis N°3

BBVA's digital transition, which has started well, will also undoubtedly allow the group to target new users and online customers and thus to face the increasingly strong competition from 100% online banks.

Analysis N°4

Uncertainty about the resumption of economic growth in the euro zone, which will determine the consumption needs of bank customers.

Analysis N°5

Increasing competition from online banks, particularly in the European market, which are taking market share from traditional banks.

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General presentation of BBVA

The BBVA group or Banco Bilbao Vizcaya Argentaria is a very well-known European banking group. It currently manages more than 300 billion euros of outstanding deposits and no less than 320 billion euros of outstanding loans. Its business is divided into three main areas, including of course retail banking and insurance, but also investment banking and market and private banking and asset management.

With more than 7,512 branches worldwide, the group's activity is not limited to Europe.

BBVA's share price is currently listed on the Mercado Continuo of the Spanish Mercado Continuo in Madrid. BBVA is also included in the European stock market index Eurostoxx 50 and is therefore one of the 50 largest European companies with the highest market capitalisation.

Analysis of BBVA share price
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The major competitors of BBVA

To understand how the BBVA group may evolve in the coming years and thus study its share price on the stock market, you need to be fully aware of the competition in this sector. Here is a presentation of BBVA's main rivals at the moment:

Santander 

First of all, the Santander group is the most important banking group in Spain in terms of assets. It is therefore not only the leading Spanish bank but also one of the largest in Europe. Based in the city of Santander in Cantabria, Santander's operational headquarters are in Madrid and more precisely in Boadilla del Monte.

CaixaBank

Another serious competitor to BBVA is the CaixaBank group, which is a Spanish financial company integrating the former banking and insurance activities of La Caixa. This group is 61% owned by La Caixa. It also holds stakes in some other groups formerly owned by Caixa while others have been transferred to the subsidiary Criteria CaixaHolding which is directly owned by Caixa.

Banco de Sabadell

Another of BBVA's major Spanish competitors is Banco Sadabell, which is one of Spain's leading private banking groups. However, this bank is made up of several banks, brands, subsidiaries and companies in which it holds shares and which affect all areas of finance. The Banco Sadabell banking group also has the particularity of reaching both the professional market and the market of private individuals with medium to high incomes. It has a branch network of 1,387 offices through which it employs 10,699 people. The company is of course listed on the Madrid Stock Exchange and is part of the Spanish Ibex 35 stock market index.

Bankia

Finally, the last serious competitor of the BBVA group is the banking group Bankia which is actually a Spanish banking conglomerate that was created in 2010 following the consolidation of the activities of 7 regional savings banks just after the real estate crisis of 2008 broke out. Because of this, the state was for a long time a majority shareholder of this company and held 45% of it at the time. Currently, the total volume of assets operated and held by Bankia is more than 328 billion euros, which makes it the fourth largest bank in the country after those mentioned above and BBVA.

The major partners of BBVA

BBVA, like most of its competitors, has been able to forge smart partnerships to gain market share. Here are the main alliances of this group over the last few years.

Volkswagen

In May 2015, the subsidiary in Argentina of the Spanish group BBVA joined Volkswagen as Volkswagen Credit Finance Company and holds 51% of the shares, which was still pending approval by the Central Bank of Argentina. The Volkswagen Group holds the remaining 49% of the shares in the joint venture.

BNP Paribas 

France's leading bank in the field of payment cards for businesses, joined forces in 2001 with several major banks, including BBVA, in a joint venture called GCPS LLC.

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Positive factors for BBVA shares
The factors in favour of a rise in the BBVA share price:

Firstly, the group's high level of customer satisfaction is a real asset, particularly thanks to the dedicated customer relationship management department.

BBVA can also rely on a solid and reliable distribution network that enables it to reach a large part of its targets and potential market directly. At the same time, BBVA has developed a strong culture among distributors and dealers who promote the group's products and invest in training sales teams to convince their customers.

The recent automation of BBVA's operations allows it to improve the quality of its products and services and to develop further in line with market demand conditions. At the same time, the group also places great emphasis on training and learning programs for its employees. As a result, its employees are more qualified and motivated and achieve more sales.

BBVA's recent mergers and acquisitions are also appreciated, allowing it to integrate companies that are complementary to its core business. This is particularly true of technology companies, which enable it to streamline its operations and guarantee a reliable supply chain.

BBVA is also working with banks in other countries, including China and emerging markets, which is contributing to its rather rapid international expansion. It has also demonstrated its ability to intelligently manage its costs and thus increase its margins.

BBVA is also very well positioned in its sector of activity at a national level as it is the second largest Spanish bank and the 7th largest financial institution in the West. Internationally, BBVA operates in more than 40 different countries and employs no less than 105,000 people worldwide with a particularly strong presence in Europe.

Negative factors for BBVA shares
The factors in favour of a drop in the BBVA share price:

Thus, the main flaw of this banking group concerns its international development. If its strong presence in Europe allows it to benefit from a great popularity in the West, it is not the same for the rest of the world. Indeed, BBVA is struggling to penetrate other geographical areas where most of the big competing banks are quickly making their mark.

It should also be noted that the recent financial crisis that affected Europe and the rest of the world has left some after-effects on this bank, which is still suffering the consequences. In this sense, we will keep an eye on the level of indebtedness and the distribution of assets of this banking group and the concordance of these figures with what is required by the recent European agreements.

In general, the banking sector is also highly competitive in Europe and the rest of the world, and while BBVA has managed to position itself as a leader in its home country, the same cannot be said for the rest of Europe, where it has not yet reached the top of the podium.

Therefore, you should take these few drawbacks into account before taking your positions on the BBVA share price.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

What holdings does the BBVA Group have?

The BBVA group does not generate its income from its activities alone. In fact, the group also generates part of its profits through the stakes it has acquired in various other companies over the years. For example, BBVA currently has a 6% stake in the Telefonica group, a 2.3% stake in the Endesa group, a 5% stake in the Iberdrola group and a 7.3% stake in the Iberia group.

On which financial markets are BBVA shares listed?

As is the case with some stocks whose companies have important international activities, BBVA's share price is quoted in several different financial centres. It is possible to trade on the New York Stock Exchange, the Madrid Stock Exchange or the Bolsa de Valores y Porductos de Asuncion. So be sure to check which market the stock is listed on when trading it.

How is BBVA positioned against its main competitors?

Currently, in terms of number of assets, the BBVA group ranks second in the Spanish banking groups. In fact, the Santander banking group occupies first place in this ranking. This group is also one of the largest in Europe. It is therefore particularly interesting to follow the communications of Santander to analyze this value.

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