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...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|