BBVA's bet on emerging markets
The entity aspires to be a leader in all the markets in which it operates, regardless of the economic context of the moment or the potential problems that may arise.
BBVA, a Spanish bank, is betting heavily on emerging markets to become the largest in those regions, despite the volatility and instability that often characterize them. The bank's strategy is daring but has been yielding positive results so far. Countries like Mexico and the rest of Latin America, as well as Turkey, which is experiencing hyperinflation and monetary instability, have been particularly profitable for BBVA.
The bank aims to lead in all markets where it operates, irrespective of the economic context or potential challenges. BBVA's approach is based on scale, according to Onur Genç, a bank executive. He believes that creating and capitalizing on an emerging market's potential, while being a known player, can lead to substantial returns. The bank's success lies in its market position rather than the market itself, Genç asserts.
Despite the recent reduction in profits in Spain, BBVA's diversification strategy in geographic markets appears to be paying off. The success of this strategy remains to be seen, as time will determine whether BBVA's bold move pays off.
Written by urgent.news from Expansion ES's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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