Sign in

    Benjamin Toms • RBC Capital Markets

    Benjamin Toms's questions to Banco Bilbao Vizcaya Argentaria SA (BBVA) leadership

    Benjamin Toms's questions to Banco Bilbao Vizcaya Argentaria SA (BBVA) leadership • Q2 2025

    Question

    Benjamin Toms from RBC Capital Markets asked about the impact of using current forward FX rates on the bank's strategic objectives for RoTE and capital distribution, and requested more details on the 40-50 basis point capital benefit from model simplification, including regulatory approval status.

    Answer

    CEO Onur Genç clarified that the plan uses forward FX rates for most countries, with specific depreciation assumptions for Turkey and Argentina detailed in the appendix. He confirmed the 40-50 bps capital benefit has received formal, written approval from the ECB and stems from simplifying models for Mexico credit cards and wholesale portfolios in Spain and Mexico.

    Ask Fintool Equity Research AI

    Benjamin Toms's questions to Banco Bilbao Vizcaya Argentaria SA (BBVA) leadership • Q1 2025

    Question

    Benjamin Toms of RBC inquired about the resilience of the bank's high-teens ROTE guidance, asking what level of financial stress would be required to miss that target. He also requested the latest expected capital impact from the Sabadell transaction and a confirmation that the bank's capital target range will not be increased.

    Answer

    CEO Onur Genç reaffirmed the bank's commitment to its mid-teens tangible book value per share plus dividends growth target. Regarding capital, he stated the latest public figure for the Sabadell deal's CET1 impact is 51 basis points. He firmly stated 'no' to increasing the capital target range, arguing BBVA's buffer over regulatory requirements (287 bps) is already significantly higher than its European peer average (219 bps).

    Ask Fintool Equity Research AI

    Benjamin Toms's questions to Banco Bilbao Vizcaya Argentaria SA (BBVA) leadership • Q1 2025

    Question

    Benjamin Toms from RBC asked about the resilience of the bank's high-teens ROTE guidance amid global trade volatility. He also inquired about the capital target range and requested the latest expected capital impact from the Sabadell transaction.

    Answer

    CEO Onur Genç stated that the bank sticks with its mid-teens tangible book value per share plus dividends growth guidance, noting the strong 14% growth this quarter despite currency headwinds. Regarding the Sabadell deal, he cited the latest public disclosure of a 51 basis point CET1 impact for a 100% takeover. He confirmed there is no intention to increase the 11.5%-12% capital target range, highlighting that BBVA's buffer over regulatory requirements is already higher than its European peer average.

    Ask Fintool Equity Research AI

    Benjamin Toms's questions to Banco Bilbao Vizcaya Argentaria SA (BBVA) leadership • Q4 2024

    Question

    Benjamin Toms from RBC Capital Markets questioned why BBVA is maintaining a CET1 ratio of 12.88%, significantly above its 12% target, and asked about the intended use for this EUR 2 billion in excess capital.

    Answer

    Executive Onur Genç explained that BBVA prioritizes profitable growth and shareholder distributions. He noted that the Spanish market authority (CNMV) recently lifted restrictions on share buybacks, allowing the company to launch a new EUR 993 million program. Genç reiterated the commitment to eventually return to the 12% CET1 target, stating the excess capital belongs to shareholders and will be distributed in due time through measures like future buybacks.

    Ask Fintool Equity Research AI

    Benjamin Toms's questions to HSBC Holdings PLC (HSBC) leadership

    Benjamin Toms's questions to HSBC Holdings PLC (HSBC) leadership • Q2 2025

    Question

    Benjamin Toms of RBC Capital Markets asked for more detail on the HIBOR normalization assumptions within the $42 billion banking NII guidance and questioned if the cost of risk would likely remain in the upper half of its 30-40 bps range into FY 2026.

    Answer

    Group CFO Pam Kaur explained the NII guidance includes market expectations of HIBOR rising above 2% in Q3 and noted that while a 1% HIBOR costs $100 million per month, other factors like a weaker dollar are tailwinds. On Expected Credit Losses (ECLs), she confirmed they have been in the 30-40 bps range for a few years but declined to provide guidance beyond 2025.

    Ask Fintool Equity Research AI

    Benjamin Toms's questions to HSBC Holdings PLC (HSBC) leadership • Q2 2025

    Question

    Benjamin Toms of RBC Capital Markets inquired about the assumptions underlying HSBC's £42 billion banking Net Interest Income (NII) guidance, specifically the expected timeline for HIBOR normalization. He also asked if it's reasonable to assume the cost of risk will remain in the upper half of the 30-40 basis point guidance range into fiscal year 2026.

    Answer

    Group CFO Pam Kaur explained that the NII guidance incorporates market expectations for HIBOR to rise above 2% in Q3 and noted that a 1% HIBOR level impacts NII by $100 million per month. She stated that while HSBC has operated in the 30-40 basis point ECL range for several years, the bank is only providing guidance for 2025 at this time and would not comment on 2026.

    Ask Fintool Equity Research AI

    Benjamin Toms's questions to HSBC Holdings PLC (HSBC) leadership • Q1 2025

    Question

    Benjamin Toms asked about the strategic review of Malta, the potential for cost savings to exceed the current $1.5 billion target, and the sustainability of strong Q1 fee income, particularly the portion driven by market volatility.

    Answer

    Georges Elhedery, an executive, stated that the primary focus is delivering the committed $1.5 billion in simplification cost saves and $1.5 billion in strategic reallocations, not seeking further savings at this time. Manveen Kaur, an executive, added that while volatility boosted FX and markets revenue, the underlying growth in the Wealth franchise is structural and expected to persist, and Wholesale Transaction Banking remains a competitive advantage, though its performance may vary quarterly.

    Ask Fintool Equity Research AI

    Benjamin Toms's questions to Barclays PLC (BCS) leadership

    Benjamin Toms's questions to Barclays PLC (BCS) leadership • Q1 2025

    Question

    Benjamin Toms from RBC inquired about two regulatory topics: potential capital headwinds from the UK regulator's letter on Significant Risk Transfer (SRT) transactions and the materiality of a potential softening of the ring-fencing regime for Barclays.

    Answer

    Executive Angela Cross clarified that the regulator's letter on SRTs focused on financing, which Barclays does not do for its own programs, so no capital impact is expected. Executive Coimbatore Venkatakrishnan stated that Barclays opposes relaxing the ring-fencing regime, arguing it provides crucial long-term depositor protection and systemic stability, despite short-term costs.

    Ask Fintool Equity Research AI

    Benjamin Toms's questions to Banco Santander SA (SAN) leadership

    Benjamin Toms's questions to Banco Santander SA (SAN) leadership • Q1 2024

    Question

    Benjamin Toms of Royal Bank of Canada asked for an update on the bank's view of the potential impact from the FCA's review of motor finance in the U.K., noting a peer had taken a provision. He also questioned if Santander could improve its U.K. returns organically or if it would consider consolidation.

    Answer

    CEO Héctor Grisi stated that due to significant uncertainties, the bank is not yet in a position to disclose any potential impact from the U.K. motor finance review, though settlements so far have been better than expected. He also indicated that the bank is not currently considering playing a role in U.K. market consolidation.

    Ask Fintool Equity Research AI

    Benjamin Toms's questions to NatWest Group PLC (NWG) leadership

    Benjamin Toms's questions to NatWest Group PLC (NWG) leadership • Q1 2024

    Question

    Benjamin Toms of RBC asked about the structural hedge, questioning if the GBP 170 billion year-end notional target remains valid given recent deposit growth. He also sought clarification on the drivers behind management's confidence that the cost run-rate will decrease from the Q1 level.

    Answer

    CFO Katie Murray confirmed the GBP 170 billion structural hedge notional target for year-end 2024 is still a good number to work with, noting the hedge income is expected to grow into 2025 and 2026. Executive Paul Thwaite explained that Q1 costs were front-loaded with restructuring and property exit charges, which are typically weighted to the first half, reiterating the full-year guidance for broadly stable costs.

    Ask Fintool Equity Research AI