BBVA chairman says banking tax is damaging economy and confirms 40-50% payout

BBVABBVA 9months net profit up 46% yr-on-yr

Link Securities| The chairman of BBVA (BBVA), Carlos Torres, said that the bank tax damages the Spanish economy and should not exist, because it negatively affects the volume of loans and reduces GDP growth, in an interview with the newspaper Expansión, on the occasion of the World Economic Forum in Davos (Switzerland). The executive defends that the Spanish banking sector is efficient and competitive and does not enjoy extraordinary profits. Torres assured that BBVA will improve its results in 2023 and confirmed that they will distribute between 40% and 50% of the profit as a payout.

Torres also stated that banking is a key sector in the economy and must generate profits to attract investment. He also pointed out that banking makes a fair and equitable contribution to public revenue without the need for an extra tax. In addition, Torres advocated that Spain should generate confidence in private investors, for which institutional quality, regulatory stability and reforms in favour of competitiveness are essential.

The Next Generation funds (a €750 billion aid programme for its member states) are a good opportunity to support economic recovery and modernise the Spanish economy, Torres said. In his opinion, however, in order to maximise their impact, it is necessary to reduce the administrative bottlenecks that prevent a more agile implementation, as well as to focus on ambitious reforms and projects.

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