Market cap

* For banks, enterprise value is substituted with market cap. Source: Bloomberg Finance L.P.

Performance of the brand

Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) Spanish bank, offering individual and corporate customers a wide range of financial and non-financial products and services. The internationally diversified financial group conducts its business through branches and offices located throughout Spain and as a leading franchise in South America. Furthermore, it represents the largest financial institution in Mexico, is one of the 15 largest U.S. commercial banks and one of the few large international groups operating in China and Turkey. Today, BBVA employs 104,000 people in over 30 countries worldwide and has over 47 million customers and 900,000 shareholders. BBVA consists of three distinct business areas: Business in Spain and Portugal comprising the retail banking business and company and business banking in these countries, Wholesale Banking & Asset Management, and Finance, Risk, Innovation & Technology.

Ranked 20^th within The BrandFinance^® Banking 500 2011 league table, BBVA is Spain’s second most valuable bank brand. Measured by BBVA’s gross income, Spain, Mexico and South America account for the highest percentages with 33%, 27% and 20% respectively.

In the early 2000s, BBVA recognised the need to differentiate itself from its competitors within the banking sector and launched an internal branding project called the “BBVA Experience”. The aim of the initiative was to create a unique customer experience by strengthening the company’s intangible assets such as the brand itself and its corporate culture and reputation. The aim of the brand management was to serve as the transformation force to align employee behaviour to deliver a service experience for consumers aligned with the promise of the brand. After defining a corporate vision (“BBVA, we work for a better future for people”), special brand engagement training was implemented for all managers and employees with the goal of increasing employees’ identification with the company which they could pass on to the customer. In the end, BBVA successfully managed to integrate the brand, culture and reputation into its strategy plans and business model, giving it a distinct competitive advantage over its rivals.

Yet, in the second half of 2011, banks especially found themselves struggling in a recurring financial crisis, spurred by weak structural growth within the Euro zone, the deterioration of the European capital markets and by Greece’s everlasting insolvency problem. Consequently, bank brands in the Global 100 have lost a total of $25.9 billion from their total brand value (7%) since January 2011. Also BBVA’s financial performance deteriorated within the second quarter of 2011 (2Q11), where the bank reported a decrease of 7.6% in net attributable profits over the 2Q10 results, now totalling €1,189 million. Net interest income also fell by 9.5% to €3,215 million in 2Q11 with costs increasing simultaneously from €2,262 million in 2Q10 to €2,479 million in 2Q11 (10%).

As a result of the tough economic climate, BBVA had to face a striking 22% decrease in brand value, down to $8,758 million in 2011. At the same time, enterprise value fell from $69,133 million in 2010 to $41,555 million in 2011 (40%), although the company still managed to improve its brand rating from AA- to AA. With a recovering economy and continuing strong growth in the emerging markets over the next months, BBVA might be able to improve its brand value again within the 2012 league tables.

League tables

BBVA appears in the following brand league tables:

Rank 27 in the Banking 500 2012.
Rank 79 in the Global 500 2011.
Rank 20 in the Banking 500 2011.
Rank 17 in the Banking 500 2010.
Rank 67 in the Global 500 2010.
Rank 2 in the Spain 100 2010.
Rank 19 in the Banking 500 2009.
Rank 106 in the Global 500 2009.
Rank 17 in the Banking 500 2008.
Rank 92 in the Global 500 2008.
Rank 98 in the Global 250 2007.
Rank 19 in the Banking 500 2007.
Rank 19 in the Banking 100 2007.