BBVA and Sabadell will create a giant with assets of more than one trillion euros

To reach a successful port potential merger of BBVA and Sabadellwill create gbanking giant with assets exceeding one trillion euros: 800.690 million euros from the group led by Carlos Torres plus 236.135 million organization chaired by Josep Oliu.

Between two entities they would have almost 600,000 million deposits, almost 560,000 million customer loans, total annual income about 40,000 million (percentage margin) and net profit of approximately 10,000 million euros. In Spain alone, the value of its assets would exceed $640 billion.

The combined market share will be approximately 22.5%.according to Alantra analysts, who calculate Potential operating savings will amount to 1,000 million euros.

BBVA recorded a return on equity (Rote) of 17.7%. in the first quarter of the year. When Sabadell, return on capital was 12.2%. during the period from January to March.

Except, The combined market value of BBVA and Sabadell will exceed $70,000 million.. BBVA’s capitalization is around 60,000 million euros and the market value of Sabadell is around 10,000 million euros.

This union of banks will follow on the heels of Santander in terms of capitalization, whose market value is about $73 billion. But This will happen with a smaller volume of assets – about 800 billion euros.

By market capitalization, The merger will create the third largest company in the eurozone after Santander and BNP Paribas and will enter top 10 European.

BBVA-Sabadell will have 3,084 offices in Spain. (1881 from BBVA and 1203 from Sabadell) and 41,634 employees. The combined group will employ 140,776 people worldwide and have 7,326 offices worldwide.

Additional

A potential merger between BBVA and Sabadell would combine the two “additional” entitiesaccording to various financial sources with knowledge of the transaction.

BBVA is a bank with corresponding market shares in this segment. retail and large companies. Instead of, Sabadell stands out more in its SME business. From a strategic point of view, “the fit is huge,” experts explain.

For BBVA, the planting of Sabadella also complements geographic diversification. From sale of retail business in the USA, The relative weight of developed countries in BBVA’s structure has fallen to about a third of revenue.

Thanks to the Sabadell integration, The group will represent a more balanced business between emerging and developed markets.

Floors

According to sector sources, there are few overlaps in this operation, but some are significant. This is the case network of offices in Cataloniaa market in which both companies have corresponding market shares.

BBVA has about 23% of the Catalan market, with Sabadell another 17%. The merger will not only result in a total share of about 40%, but will also make the resulting bank the most powerful in this autonomous community, surpassing CaixaBank.which controls about 36% of the market.

high direction And central services These are other areas where duplication may lead to adjustments.

International

V foreign subsidiaries, Sabadell has a bank in the UK (TSB), specializes in the mortgage segment and BBVA is the main shareholder of Atombank. The neobank is also aimed at retail clients.

Mexico This is another market where both groups are present, although BBVA is the undisputed market leader, but Sabadell is preparing its entry with a digital commercial banking offering to complement its company-focused business.

The operation arrives in a time when integration operations in the market seem to be gaining popularity. “As we slowly approach possible rate cuts by the ECB and the Bank of England, “Consolidation across the sector will become important”“, says Filippo Maria Alloatti, head of financial lending at Federated Hermes.

IN Great BritainFor example, two acquisitions have already been announced. This is the case Virgin Money and nationwideand Coventry Building Society and Co-operative Bank.