Banco Bilbao Vizcaya Argentaria Stock

Banco Bilbao Vizcaya Argentaria, S.A. operates as a financial services company worldwide.

The company engages in the traditional banking businesses of retail banking, asset management and wholesale banking.

Segments

The company operates through five operating segments: Spain, Mexico, Turkey, South America, and Rest of Business.

Spain

This segment includes all of the company’s banking and non-banking businesses in Spain, other than those included in the Corporate Center. The primary business units included in this operating segment are:

Spanish Retail Network: This business unit includes individual customers, private banking, small companies and businesses in the domestic market.

Corporate and Business Banking: This business unit manages small and medium sized enterprises (SMEs), companies and corporations, and public institutions.

Corporate and Investment Banking: This business unit is responsible for business with large corporations and multinational groups and the trading floor and distribution business in Spain.

Other units: Other units include the insurance business unit in Spain (BBVA Seguros, S.A. de Seguros y Reaseguros), as well as the company’s shareholding in the bancassurance joint venture with Allianz, Compañía de Seguros y Reaseguros, S.A., the Asset Management unit (which manages Spanish mutual funds and pension funds), lending to real estate developers and foreclosed real estate assets in Spain, as well as certain proprietary portfolios and certain funding and structural interest-rate positions of the euro balance sheet which are not included in the Corporate Center.

Mexico

This segment includes the banking, insurance and asset management business conducted in Mexico by BBVA Mexico. It also includes BBVA Mexico’s agency in Houston.

Turkey

This operating segment comprises the activities carried out by Türkiye Garanti Bankasi A.S. as an integrated financial services group operating in the banking, insurance and asset management business in Turkey, including corporate, commercial, SME, payment systems, retail, private and investment banking, together with its subsidiaries in pension and life insurance, leasing, factoring, brokerage and asset management, as well as its international subsidiaries in Romania and the Netherlands.

South America

The South America operating segment includes the company’s banking, finance, insurance and asset management business mainly in Argentina, Chile, Colombia, Peru, Uruguay and Venezuela. It also includes representative offices in Sao Paulo (Brazil) and in Santiago (Chile).

The main business units included in the South America operating segment are:

Retail and Corporate Banking: This business unit includes banks in Argentina, Colombia, Peru, Uruguay and Venezuela.

Insurance: This business unit includes insurance businesses in Argentina, Colombia and Venezuela.

Rest of Business

This operating segment mainly includes the wholesale activity carried out by the company in Europe (excluding Spain), the United States and (through the company’s branches located therein) Asia.

Insurance Activity

The company has insurance subsidiaries mainly in Spain and Latin America (mostly in Mexico). The main products offered by the insurance subsidiaries are life insurance to cover the risk of death and life-savings insurance. Within life and accident insurance, a distinction is made between freely sold products and those offered to customers who have taken mortgage or consumer loans, which cover the principal of those loans in the event of the customer’s death.

The company has insurance subsidiaries mainly in Spain and Latin America (mostly in Mexico). The main products offered by the insurance subsidiaries are life insurance to cover the risk of death and life-savings insurance. Within life and accident insurance, a distinction is made between freely sold products and those offered to customers who have taken mortgage or consumer loans, which cover the principal of those loans in the event of the customer’s death.

The company offers, in general, two types of savings products: individual insurance, which seeks to provide the customer with savings for retirement or other events, and collective insurance, which is taken out by employers to cover their commitments to their employees.

Deposits

As of December 31, 2022, the company’s deposits included demand (domestic and foreign), time (domestic and foreign), and other deposits (domestic and foreign).

Securities Portfolio

As of December 31, 2022, the company’s securities portfolio included Spanish government and other government agencies debt securities; Mexican government and other government agency debt securities; U.S. Treasury and other government agencies debt securities; Turkey government and other government agencies debt securities; securities of other foreign governments; and other debt securities.

Supervision and Regulation

The company’s ‘home’ supervisor is the European Central Bank (ECB) at the European level and the Bank of Spain at the national level, both authorities being part of the Single Supervisory Mechanism (SSM).

The company is also subject to supervision by a wide variety of other local authorities given its global presence, which are considered to be ‘host’ supervisors given the company’s foreign origin. These include authorities in countries, such as the United States (the Federal Reserve Bank of New York (FRBNY) has the primary supervisory responsibility for the company’s New York branch, with input from other Federal and State authorities that have supervisory responsibilities for the company’s various entities operating in the United States), Mexico, Turkey and the whole of its footprint in South America.

The company’s New York branch is supervised by the Federal Reserve through the Federal Reserve Bank of New York, as well as licensed and supervised by the New York State Department of Financial Services. BBVA Bancomer, S.A.’s agency office in Houston, Texas is a non-FDIC insured agency office of BBVA Bancomer, S.A., an indirect subsidiary of the company, which is licensed under the laws of the state of Texas and supervised by the Texas Department of Banking and the Federal Reserve.

The company continues to be a foreign banking organization and a bank holding company within the meaning of the U.S. Bank Holding Company Act of 1956, as amended (the BHC Act) and the International Banking Act of 1978, as amended (the IBA), and as a result, the company is subject to regulation and supervision by the Board of Governors of the Federal Reserve System (the Federal Reserve).

Sections 23A and 23B of Federal Reserve Act and Regulation W place various qualitative and quantitative restrictions on transactions between the company’s U.S. branches and agencies and its U.S. broker-dealer subsidiary with regard to extensions of credit, credit exposures arising from derivative transactions, and securities borrowing and lending transactions from the U.S. branches and agencies or engaging in certain other transactions involving the U.S. branches and agencies.

Under Title I of the Dodd-Frank Act and implementing regulations issued by the Federal Reserve and the FDIC, the company must prepare and submit a plan for the orderly resolution of its U.S. subsidiaries and the U.S. operations in the event of future material financial distress or failure (the Title I Resolution Plan).

The company is provisionally registered as a ‘swap dealer’ as defined in the Commodity Exchange Act and the regulations promulgated thereunder with the U.S. Commodity Futures Trading Commission (the CFTC), which subjects the company to regulation and supervision by the CFTC and the National Futures Association.

The company’s worldwide swap activities are also subject to regulations adopted by the European Commission pursuant to the European Market Infrastructure Regulation (EMIR) and the European Union’s Markets in Financial Instruments Directive (MiFID) and other European regulations and directives.

The company’s direct U.S. broker-dealer subsidiary, BBVA Securities Inc. (BSI), is subject to regulation and supervision by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) with respect to its securities activities, as well as various U.S. state regulatory authorities. In addition, the securities underwriting and dealing activities of BSI are subject to regulation and supervision by the Federal Reserve.

The activities of the company’s U.S. investment adviser affiliates are regulated and supervised by the SEC. The company’s U.S. insurance agency affiliate is subject to regulation and supervision by various U.S. state insurance regulatory authorities.

History

Banco Bilbao Vizcaya Argentaria, S.A. was founded in 1857. The company was incorporated in Spain in 1988.