BBVA Chairman Torres on Sabadell Bid, M&A Plans, Continuity

Core Insights - The outcome of the Sabadell deal was not as anticipated, leading to a need for analysis and speculation on what went wrong [1][2][3] - The decision by Sabadell's shareholders is final, and the company is focused on moving forward positively [2][4] Shareholder Dynamics - Retail shareholders' expectations, particularly regarding a potential cash offer, may have influenced their behavior during the tender process [2][7] - Institutional investors showed some conversion, but their reactions remain speculative [5][6] BBVA's Strategic Direction - BBVA aims to address shareholder concerns and emerging market exposure now that the Sabadell acquisition is off the table [8] - The bank has reported a 30% annual growth rate in net profit over the past three years and a 6% growth in its loan book over the last 12 months [9][10] Future Goals and Shareholder Returns - BBVA has set ambitious goals for the next five years, targeting a 22% return on tangible equity and a 15% annual increase in tangible book value [11] - The lapse of the Sabadell takeover bid allows BBVA to accelerate shareholder distributions, including a €1 billion share buyback and an interim dividend totaling €2.8 billion [12][13] Market Reaction and M&A Outlook - Following the announcement of shareholder returns, BBVA's ADR surged by approximately 7% in the US market [14] - The focus will remain on organic growth and returning excess capital to shareholders rather than pursuing M&A opportunities [16][17] Leadership Stability - The chairman of BBVA confirmed intentions to remain in position, with full backing from the board, emphasizing a focus on performance and results [18][19]