20th Dec 2006 07:00
Banco Bilbao Vizcaya Argentaria SA19 December 2006 Board meeting in Bilbao (Spain) 19 December 2006 BBVA moves closer to its goal of becoming a global services group with acorporate structure focused on growth Francisco Gonzalez says, "This team must lead the way in converting BBVA into atop international banking group" - Jose Ignacio Goirigolzarri says, "We have to push ahead with growth andinnovation - two key concepts for BBVA's present and future" - BBVA creates an important business area, to be known as Business Banking inSpain and Portugal. It includes retail banking, SMEs and corporate customers(CBB), consumer finance and insurance, and will be headed by Jaime Guardiola - The group is also setting up a Global Businesses Area, which covers globalmarkets and distribution, the asset management and private banking unit, globalcustomers in Europe and the Americas, Asia and investment banking, plus realestate and business projects, under the control of Jose Barreiro - Mexico will be managed by Ignacio Deschamps who, until now, had been themanager of commercial banking at BBVA Bancomer. He has extensive experience inthe Mexican market - BBVA is creating an innovation committee at top level to lead the drivetowards greater understanding and identification with consumer needs. BBVA's chairman, Francisco Gonzalez, and the chief operating officer, JoseIgnacio Goirigolzarri, today presented a new management structure to the boardof directors at a board meeting in Bilbao. The purpose of the new organisationis to drive innovation and the bank's transformation into a large global groupthrough growth. "This team", said Mr Gonzalez, "must lead the way in convertingBBVA into a top international financial group within the next two or threeyears. "We have nearly 100,000 staff worldwide and in 2007 they are going tofocus on growth, transformation and innovation". The changes announced today are part of the Group's defined strategy of movingtowards a global structure that will be more in line with its geographicpresence and with its current profound process of transformation and innovation.Thus these changes are clearly in accordance with the principles of managementstructure approved in December 2005 and with the modifications made last July inretail banking, and SMEs and corporate banking. The Group is retaining three types of unit: business units, support units andthe chairman's office. The first two are the direct responsibility of the COOand the third comes under the chairman. The business units are defined as "value-creation centres" with direct responsibility for market approach, growthand their own income statement. This is part of the empowerment plan forbusiness units and forms part of BBVA's corporate culture. "These changes", Mr Gonzalez explained, "will help us accelerate the Group'sorganic growth in 2007. They will lead to more powerful structures, servingcustomers in each market, and will boost innovation and transformation - thecentral principles of BBVA's strategy. "We are creating a scalable structure that favours growth. It is a lateralorganisation and a matrix that supports the Group's global development.Transparency will be improved in all areas, facilitating communication andmaking processes faster and more flexible. "Once again, BBVA is anticipating developments by adopting a global organisationthat is more flexible, more innovative and more focused on growth in eachindividual market. And you are going to see this from now on because in 2007BBVA is going to concentrate its efforts on growth." In summary, Mr Gonzalez said the goal of the new structure is to help the Groupdevelop on three fronts: 1. To get closer to customers. Transformation and innovation will be the toolsthat will provide more people in more markets, with more appropriate and moreprofitable solutions. 2. To facilitate the creation of business units that are more capable ofoperating and taking decisions in an autonomous manner. They will be responsiblefor their own growth strategy within the strategic parameters set by the Group. 3. A management structure that allows every unit to maximise the advantages ofbeing part of a global group with a first-class brand and highly diversifiedrisk, that is sound, profitable and efficient. Mr Goirigolzarri emphasised that the changes have two aims: growth andinnovation. "In recent years we developed a business model based on value and arelationship between business units and the central organisation that few otherbanks possess", he said. "This allows us to run the Group like a portfolio of businesses, assigningresources to those of greater risk-weighted profitability. It has helped us toinvest nearly $10 billion in an efficient manner. "But we have to continue advancing in growth and innovation - two key conceptsfor BBVA's present and future. "On one hand the new organisation permits us to continue understanding globalbusiness and local business, and the relationship between the two. This way wecan develop synergy and interrelated business in a more efficient manner. "Furthermore, we have our own definition of innovation: making our businessmodel and products accessible to an ever-increasing number of consumers. And, atthe same time, we are building a model that allows us to transcend theconventional boundaries of financial business. "We will adapt our methods of management and data-mining of customers, studyingtrends and behaviour, because what distinguishes a modern company with globalambitions is its ability to listen. And this is, above all, a launching pad forinnovation." Spain and Portugal in one large business area The new BBVA organisation includes important changes to the Group's businessareas. These mainly affect Retail Banking in Spain and Portugal, and WholesaleBusinesses. The previous managers of these areas, Vitalino Nafria and Jose MariaAbril, are leaving their executive responsibilities after important careers inthe BBVA Group. There are also changes in Mexico but no changes are being madeto the other business areas: South America and the USA. One of the main features is the creation of a large business area for Spain andPortugal, which will be managed by Jaime Guardiola (previously deputy chairmanand general manager of BBVA Bancomer in Mexico). From here on, the new area will include SME and corporate banking (CBB) as wellretail banking. This creates a large unit handling all business with privateindividuals, SMEs, small businesses, companies and institutions, together withconsumer finance, Seguros Europa (insurance) and BBVA Portugal. The creation of this area is a further step in the transformation commenced inJuly with the two big networks in Spain (retail banking and CBB). The aim is tocreate a more autonomous and decentralised structure, strengthening the role ofthe branches and business officers, and increasing proximity to customers. The new area, Business Banking in Spain and Portugal, comprises: • Commercial Banking, under Vicente Rodero • Innovation and Business Development, under Javier Bernal • SME and Corporate Banking, under Juan Asua • Consumer Finance, under Xavier Argente • Seguros Europa, under Rosa Alegria • BBVA Portugal, under Jose Manuel Doiztua A global area for global customers and businesses The second new feature of the organisation is an area containing all the globalbusinesses managed by Jose Barreiro. This area includes the asset management andprivate banking unit, managed by Daniel de Fernando, which will now have aglobal scope. In addition, the Global Businesses Area is taking over all theunits that were part of Wholesale Businesses, except SMEs and corporate banking(CBB), which will now be part of Business Banking in Spain and Portugal. This area is, in effect, one of great importance from the point of view ofgrowth and expansion in new geographic markets and for new Group activities atinternational level. It comprises all market and global customer activities inEurope, the Americas and Asia, as well as business and real estate projects andinvestment banking. This area consists of: • Global Markets and Distribution, under Ricardo Laiseca • The asset management and private banking unit, under Daniel de Fernando • Global Customers Europe • Global Customers America, under Tomas Ehrenberg • Asia, under Manuel Galatas • Business and real estate projects, under Javier Alarco • Investment Banking, under Francisco Esteve Mexico - a third phase of growth The other big business area affected by the changes is Mexico, which is one theGroup's principal sources of growth. This is facing its third phase of growthsince BBVA became the main shareholder. From now on, Ignacio Deschamps becomes the deputy chairman and general managerof BBVA Bancomer and the top executive for all business in that market. MrDeschamps, who replaces Jaime Guardiola, previously managed commercial bankingin Mexico. He has extensive experience in that market and he is Mexican. Pioneer innovation committee From now on, BBVA will have a top-level innovation committee to drive theGroup's innovation and transformation strategy. This is a pioneering move in thebanking sector and it signifies a further step in getting closer to customersthrough greater and better understanding of their present and future needs. The Group's innovation and development manager, Manuel Castro, will head theinnovation committee and, at the same time, he will set up two new units relatedto innovation. These are the customer and market analysis unit and thebranch-business development unit. The innovation committee consists of the chairman, the COO, Javier Ayuso(corporate communications), Javier Bernal (innovation and business developmentin Spain), Angel Cano (HR, IT & Operations), Manuel Castro (innovation andcorporate development), Ignacio Deschamps (Mexico), Fernando Gutierrez(chairman's office), Jaime Guardiola (Spain and Portugal), Ricardo Moreno(transformation and productivity), Ramon Monell (technology and operations),Ignacio Sanchez-Asiain (South America) and Jose Sevilla (risk). Continuity in the management committee Another important feature of the new organisation is the adaptation of the riskarea to match the new, more global configuration of the Group. Manuel Mendez delRio, who has done an excellent job in placing BBVA in the vanguard of largebanking groups at global level in terms of risk management and its adaptation tohighly demanding systems, will leave his executive duties and be replaced byJose Sevilla (previously manager of the chairman's area). Therefore, with the reorganisation, the management committee will consist of 16members instead of the current 18, following the exit of Vitalino Nafria, JoseMaria Abril and Manuel Mendez del Rio. The only addition is Ignacio Deschamps asthe new general manager in Mexico. The risk area will be adapted to suit the new organisation and will serviceSpain, Global Businesses and other areas. Its main challenge in 2007 is to makefurther progress in the Basel II requirements. As a result of this change, there are some modifications to the units in thechairman's office. Legal services, under Eduardo Arbizu, will become legal, tax,audit and compliance services. It will cover all legal services, tax advice andmanagement, internal audit and regulatory compliance. The accounting and consolidation area under Javier Malagon, which was previouslypart of the chairman's office, will report directly to the Group chairman,Francisco Gonzalez. Lastly, the shareholder management unit (private individuals), under TomasBlasco, will be part of the chairman's area under Fernando Gutierrez. The transformation and productivity unit, created a year ago, will henceforth bemanaged by Ricardo Moreno as part of the HR, IT & Operations Area under AngelCano. This move is caused by the changes to the transformation and productivityunit, which becomes independent in order to boost change and transformation,improving the Group's efficiency and service. It is joined by other units in theHR, IT & operations area (human resources, technology and operations,purchasing, buildings and services, and corporate security). This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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