Turkey’s instability caused BBVA. Onur Genk’s stability as CEO of

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Turkey’s hot potatoes have complicated Onur Genk’s career as CEO of BBVA. A personal bet from the current CEO, which, along with a recap of this year’s accounts, has been settled for the time being, by activating accounting under hyperinflation in June, signing a negative impact of 324 million. The weakness of the lira, runaway inflation in the country, its proximity to President Erdogan and the region’s general instability, along with the European Central Bank’s (ECB) missteps, are causing internal movements in an already potential situation. Departure of Genç. And it is that the CEO of the entity is in a complicated position to be highly attached to his native and Turkish circles, and the names of his successors are already sounding in the creation of ‘SAIL’. Internal sources at the bank indicate that the favorites to occupy that position in the event of Genk’s sacking are Luisa Gómez Bravo and Javier Rodriguez. an exit that finds an answer to the misunderstandings that existed on the board of directors regarding Genk; A part of the administrative body is looking for alternatives. Consulting the bank for this newsletter, he assured that BBVA board chairman Carlos Torres supports his CEO and that any speculation about a possible change of CEO is completely false. Gomez Bravo is the current Global Head of Corporate and Investment Banking. A woman who fully represents what a person of the household is. He is in BBVA since last century where he has developed almost his entire career and where he has held various positions of responsibility. Always in a management position and now with global command over such an important area for the unit since 2018. A man whom President Carlos Torres would rely on to be his CEO, but with the ability to stand in for him if necessary, according to internal sources. , Meanwhile, Rodriguez is now the Global Head of Sustainability. A recently created position, almost prepared for him as he came from leading a subsidiary in the United States, sold at the end of 2020. A man with extensive experience in the house, over a decade, and a good relationship with President Towers. Furthermore, it is the stake of that part of the board of directors that doubts Genk’s order. However, nothing has been decided, nothing is closed, but at the moment the maneuvers are taking place only internally in the council, which also reaches the layers of senior management. Thus, Turkey, from where they operate with their subsidiary Guaranty, is a market where there is a huge gap of bank penetration and BBVA has always seen that the country has great potential and can contribute to the group. . In fact, it is only the second market after Mexico in contributing to the entity’s attributable profit. However, that country gives a lime and a sand. And now the main problems there are in the weakness of its currency and prices. The unit’s president, Carlos Torres, backs its CEO and assures that all speculation about the change is completely false, months after similar figures showed inflation in Turkey exceeding 80% last month. This compelled the BBVA to activate an accounting under hyperinflation in June for the purpose of showing them “in the restatement of the financial statements, not shown in nominal terms, and thus in the income statement and balances”. A more faithful comparison of sheets is allowed. unit at different moments in time”, as indicated by the unit. This has a positive impact on capital by 19 basis points and a negative impact on profit of EUR 324 million. Similarly, it should be remembered that the summer before BBVA increased its stake in its Turkish subsidiary to 86% through a takeover bid. According to sources close to the organization, this is all combined with the misunderstandings that exist in the ECB, regarding Genk’s relationship with Turkish President Erdogan. Even more similar is the position that Erdogan himself has taken in Russia’s war in Ukraine. Furthermore, observers have never looked favorably in such a firm commitment to a market like Turkey.



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