According to the Financial Times, BBVA, Spain's second largest bank, is considering to further expand its geographical presence into the US, by offering a range of financial products to US consumers through its branches.
Cited in the Financial Times, Francisco Gonzalez, BBVA’s chairman and chief executive, said: It is important to assess if we can develop that model in the US. If that is true we will have a huge advantage in buying more banks and upgrading the franchise.
The banking group has recently invested $2.6 billion in purchasing two regional banks in Texas, which will pilot the bank’s proposed expansion strategy. If successful, BBVA will seek other opportunities in other US states, said Reuters.
The shift into the US market follows the group’s failure to find sufficient opportunities for expansion in Europe. In 2005, the bank was thwarted in its attempt to acquire Italian lender Banca Nazionale del Lavoro, losing out to French rival BNP Paribas.
However, Mr Gonzalez stated to the Financial Times that BBVA would not contemplate a merger with another European institution as they are too complicated to manage.