BBVA Creates Structuring Unit as Bank Reorganizes Debt Business

Banco Bilbao Vizcaya Argentaria SA is reorganizing its debt businesses and creating a structuring unit within a new division as regulators push for higher capital buffers.

Ricardo Laiseca, chief operating officer of BBVA’s corporate and investment bank, will run global finance, which will include managing bond sales and loans, as well as the trading of debt and the structuring business, according to an internal memo seen by Bloomberg News. A spokeswoman for BBVA confirmed the memo’s contents.

European banks are seeking new ways to allocate capital as regulatory demands for greater buffers make some debt businesses more costly. Investors are urging the region’s biggest firm including Deutsche Bank AG and Credit Suisse Group AG to scale back from some fixed-income businesses.

The structuring unit will report into global finance and global markets, as will the bond syndicate teams, according to the memo.

Operating income at the corporate and investment bank at dropped 3 percent in the first quarter from a year earlier to 533 million euros ($580 million). Net profit at the unit was 322 million euros, down 4 percent from a year earlier.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE