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WIKI ANALYSIS
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Since 2004, BBVA has invested almost 8.0 billion in acquisitions that have fulfilled the two basic principles for non-organic growth: value creation and strategic consistency. These purchases included: (1) the 2004 acquisitions of the remaining 41% stake in Mexico's Bancomer that it did not already own, Valley Bank in California, and Hipotecaria Nacional in Mexico (2) the 2005 purchases of Laredo National Bancshares in Texas and Granahorrar in Colombia and (3) the 2006 acquisitions of Texas Regional Bancshares and State National Bancshares in Texas and Forum in Chile, as well as a strategic alliance with the Citic Group, which will provide access to the markets in mainland China and Hong Kong. In 2007, BBVA announced its largest acquisition the 6.7 billion (US$9.1 billion) purchase of Compass Bancshares, a bank holding company headquartered in Birmingham, Alabama with 417 branches and $34,200 million in total assets.
BBVA's strategies vary by business segment. In Spain and Portugal, BBVA plans to consolidate the new structure of its branch networks, bolster revenues (on the back of a good performance by both operations and spreads), and continue to improve efficiency. In Global Businesses, BBVA's aim is to strengthen the customer franchise and make further progress towards a more global organisation. In Mexico, the company will continue extending the customer base, particularly in the medium-to-low income brackets. In the United States, BBVA plans to merge its US operations into one entity, to produce greater operating efficiencies. In South America, BBVA expects to expand access to credit for unbanked segments, and boost growth in the mortgage business and SME banking.
The bank's operations are divided into four business areas Mexico and the United States (accounting for 35% of net income in 2006), Retail Banking in Spain and Portugal (30%), Wholesale Businesses (25%), and South America (10%). In 2006, net interest income contributed 55% to net revenues (total revenues less interest expense) and noninterest income (primarily fee income, trading income, and insurance) accounted for the remaining 45%. BBVA enjoys long-term debt ratings of AA- from S&P and Fitch and Aa1 from Moody's.
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