Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Strong Operations In Mexico Buying Time For BBVA In Spain

Diversification has paid off for BBVA (NYSE:BBVA). While Spain's economy continues to struggle, operations in Mexico, the U.S., and South American countries like Chile, Peru, and Colombia have continued to generate much-needed profits from their capital base. Although there may be too much optimism about a pronounced near-term turnaround in Spain, BBVA is nevertheless positioned to benefit from consolidation, better consumer conditions, and long-term credit repair.

A Multinational Player

Unlike other European banks (like UniCredit and BNP Paribas) that have looked east for diversification, BBVA has taken the same strategy as Santander (NYSE:SAN) in expanding into numerous Spanish-speaking countries in the Western Hemisphere. Where many European banks have "deworsified" by these expansion efforts, I argue...

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