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    Hugo Moniz Marques Da Cruz • Keefe, Bruyette & Woods

    Hugo Moniz Marques Da Cruz's questions to Banco Bilbao Vizcaya Argentaria SA (BBVA) leadership

    Hugo Moniz Marques Da Cruz's questions to Banco Bilbao Vizcaya Argentaria SA (BBVA) leadership • Q1 2025

    Question

    Hugo Moniz Marques Da Cruz from KBW asked about the outlook for Net Interest Income (NII) in the eurozone, particularly Spain. He questioned whether a steepening yield curve could lead to higher NII in the medium term, even if short-term rates decline.

    Answer

    CEO Onur Genç acknowledged that yield curve steepness is helpful and that the bank capitalizes on it, for example by increasing its ALCO portfolio. However, he emphasized that the level of short-term rates remains critical for NII, as the vast majority of the Spanish loan book, including corporate and mortgage lending, is repriced based on short-term references like the 3-month and 12-month EURIBOR.

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    Hugo Moniz Marques Da Cruz's questions to Banco Bilbao Vizcaya Argentaria SA (BBVA) leadership • Q1 2025

    Question

    Hugo Moniz Marques Da Cruz from KBW inquired about the long-term outlook for Net Interest Income (NII) in the eurozone, particularly Spain. He asked if a steepening yield curve could lead to higher NII in 2-3 years, even as short-term rates fall.

    Answer

    CEO Onur Genç acknowledged that yield curve steepness helps, noting the bank increased its ALCO book by €5 billion in Spain to capitalize on higher long-end yields in March. However, he emphasized that the level of short-term rates remains critical, as most of the Spanish lending book, including corporate loans and mortgages, is repriced based on short-term references like 3-month and 12-month Euribor. Therefore, the NII outlook depends on the entire curve, not just its steepness.

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    Hugo Moniz Marques Da Cruz's questions to Banco Bilbao Vizcaya Argentaria SA (BBVA) leadership • Q4 2024

    Question

    Hugo Moniz Marques Da Cruz asked if the guided increase in Mexico's cost of risk was driven by a shift in business mix or by management's caution regarding the macroeconomic and political environment.

    Answer

    Onur Genç (Executive) clarified that the expected increase in the cost of risk for Mexico is primarily driven by a shift in the business mix, as the bank continues to grow more in the retail segment, which inherently carries a different risk profile.

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