Banco Bilbao Vizcaya Argentaria SA (ADR)(NYSE:BBVA) reported that it is planning a management revamp for a second time in last 14 months. This requirement of management reorganization is a result of company’s Chairman, Francisco Gonzalez, focus shift on digital banking.
The highlights
Under the new structure, units in the U.S., Turkey, Mexico and Spain will report to CEO, Carlos Torres, with the other units headed by Jorge Saenz-Azcunaga. Banco Bilbao is making attempts to offer more services and products online and via cell phones as Gonzalez, expects few banks will survive fierce competition from big technology firms. The management is evaluating the prospect of job cuts across the organization. Also, there is a high probability that the bank may minimize its branch network in Spain.
Gonzalez replaced Banco Bilbao’s COO with Torres and replaced other senior managers last year to promote digital transformation. However, this move has brought no appreciation for bank’s stock which has declined nearly 41% in last one year. The latest revamp decision is intended to build a more agile framework and to accelerate company’s transformation.
The changes
Banco Bilbao has proposed Ricardo Forcano to lead Talent & Culture unit, replacing Donna De Angelis. In addition, its other unit, the Customer Solutions, headed by Derek White, will get new responsibilities including consumer finance, asset management and global wealth. These changes may result in Banco Bilbao’s digital transformation as the bank is currently ahead of its peers in implanting a new mechanism of doing businesses. The transformation is more or less the outcome of White’s efforts who has more authority within the bank to promote the digital revolution in a deeper and faster way.
Banco Bilbao stock was down 2% in yesterday’s trading session. The stock closed at $5.64 with the total traded share volume at nearly $2.42 million. BBVA stock has plunged nearly 24% in this year.
