Renta 4 | According to press reports, BBVA is considering selling its business in Romania, where ING could be the main candidate to take it over.
BBVA operates in Romania through Garanti BBVA, a subsidiary of the Turkish bank Garanti BBVA, ranking among the top ten entities in the country with a market share of 2%.
BBVA already attempted to sell this business in 2020, with the process at an advanced stage of bidding, but it had to be suspended due to Covid.
This is a small business. In 2024, the Romanian subsidiary obtained a net profit of approximately €128 million and had a loan portfolio of around €2.18 billion, representing 1.2% and 0.5% of the Group’s net profit and loan portfolio, respectively.
Assessment: The sale is in line with BBVA’s strategy of simplifying its structure and optimising its international presence, which has led it to explore the sale of this subsidiary after consolidating its position in key markets such as Turkey, Mexico and Spain.
We do not believe that the news will have an impact until the sale is completed and the impact of the transaction, which the market estimates could reach €400 million, is known.
UNDERWEIGHT. Target price: €17.45/share.
