BBVA highlights growth trajectory, focus on sustainability and optimism towards the UK at inaugural Institutional Conference in London

BBVA showcased its growth opportunities and business priorities to a group of clients and institutional investors in London. The Bank gave prominence to sustainability as a core business lever for its Corporate & Investment Banking (CIB) unit, presenting its capabilities to help clients navigate their decarbonisation journeys. Senior leaders from the Bank also outlined plans to expand its footprint in the UK, highlighting the role of the British economy in the energy transition.

On September 19, BBVA hosted its inaugural Institutional Conference at Mansion House in the City of London, aimed at corporate clients and institutional investors in the UK, bringing together almost 300 attendees. In his opening remarks, Anselmo Andrade, Head of BBVA Corporate & Investment Banking (CIB) UK, referred to London as a “vital nerve centre for trade, investment and international finance.” BBVA’s presence in London spans over a century, and today, its UK operations are centred on wholesale banking. With its strategic location and vast network of financial institutions, BBVA intends to expand its footprint in London’s financial sphere, tapping into the UK’s highly skilled workforce and its leadership in sustainable investment.

Andrade reinforced BBVA’s commitment to growing its UK footprint, “a sound and strategic decision.” He identified opportunities for alignment with the unit’s strategic pillars, finding that “the characteristics of the British market fit perfectly with the global strategy for our CIB area.” The UK is the fastest-growing economy in the G7 and leads global initiatives to transition to a low-carbon economy, such as carbon capture.

The conference was supported by esteemed speakers including Lord Mervyn King, former Governor of the Bank of England, and the Rt Hon George Osborne, former Chancellor of the Exchequer. The audience was also addressed by BBVA's CEO, Onur Genç; the Global Head of Sustainability and CIB, Javier Rodríguez Soler; and the Global Head of Institutional Business, Juan Blasco. 

European banking sector outlook by Onur Genç

BBVA's CEO Onur Genç described the current scenario as “relatively positive,” with decreasing inflation and interest rates, coupled with GDP growth. Factors such as an aging global population and the growth of the service-based economy over the product-based economy suggest inflationary pressures may remain higher over the coming years than they were prior to 2024. Nonetheless, Genç told attendees that globally and within Europe, “the banking sector is presenting its best profitability metrics of the last decade, and delivering higher shareholder value than non-bank listed companies.”

As in any sector, banking is faced with challenges, and with them come opportunities for growth and differentiation against competitors. Within wholesale banking, strong competition from US-based investment banks and non-bank lenders demonstrates the imperative for European banks to maintain momentum. For BBVA, this means continuing to invest in sustainability, which Genç described as a “core business lever.”

Sustainability as a business opportunity

“The world is living in an era of unprecedented change, and sustainability is a significant and long-term opportunity. This transformation will only be possible if the investment makes economic sense and if society as a whole gets involved,” said Rodríguez Soler.

In order to achieve net-zero emissions by 2050, $275 trillion is needed in global investment. The market for ESG-specific funds reached $3 trillion in 2023, with these funds showing stronger performance than traditional strategies. Having foreseen this growth and opportunity, BBVA has implemented sustainability as a core part of its strategy since 2019. Between 2018 and June 2024, the Bank has channelled €252 billion in sustainable business, and is on track to reach its target of €300 billion by 2025. In 2018, the initial target set was €100 billion, and this has since been revised and tripled.

In his presentation, Javier Rodríguez Soler identified two types of clients – those who are already engaging in the energy transition, and those who have not yet defined their transition strategy. He noted that BBVA is already collaborating with many corporate and institutional clients in the UK on their sustainable initiatives; and for those it hasn’t yet engaged with, the bank is well-positioned to begin supporting them: “Banks’ role is to help corporate clients across sectors transition and navigate the challenges they may face,” including technological risks and regulatory divergence across markets. The Bank’s sector specialisation model, as well as its global-local approach, allows it to provide adequate decarbonisation advice to clients across industries and markets, ranging from oil and gas to electricity. Global head of Institutional Business Juan Blasco supported this, saying BBVA’s focus on sustainability “requires partnership from stakeholders and institutional clients to make it happen.”

BBVA is a proud member of UKSIF, the UK Sustainable Investment and Finance Association, and has built relationships with institutional partners in the UK, leveraging the market’s position as a global leader in the transition to a low-carbon economy. In his closing remarks, Juan Blasco said “We are confident in the path we are embarking on from now, and we hope that the inaugural conference in London marks the beginning of a journey towards the economic capital investment needed to grow our institutional business.”