MercoPress. South Atlantic News Agency

Major reshuffle in Spanish bank with strong interests in Latinamerica

Francisco González, BBVA strongman

Spain's second-largest bank BBVA announced on Tuesday it was replacing its widely-respected CEO but confirmed that its powerful chairman Francisco Gonzalez was staying in place.

Angel Cano, until now director of human resources, IT and operations, will take over from Ignacio Goirigolzarri, whose reputation has been enhanced by BBVA solid performance during the world financial crisis.

BBVA quoted Goirigolzarri as saying he had decided to step down after working for more than 30 years with the banking group, which has extensive holdings in Latin America as well as Spain.

But power in the bank has long been seen as lying with Gonzalez, a former computer programmer and stock broker who joined BBVA after it was formed via a merger between BBV and Argentaria.

The news caught traders off guard in Madrid, who had respected Goirigolzarri for what they saw as solid stewardship in difficult times. Like its larger Spanish rival Santander, BBVA avoided major mishap during the crisis, thanks in its case to a conservative business model, and last month bought the assets of failed US lender Guaranty Bank.

The bank has also moved to strengthen its capital base, raising 2 billion Euros from a bond issue, and selling property assets last week for 1.15 billion Euros.

BBVA share price has almost tripled since its low point in the darkest days of the crisis in March, in line with the European banking sector.

Spanish banks have mostly avoided serious problems from the global financial crisis, but collapsed construction and property industries and soaring unemployment has forced many to boost provisions against rising bad debt.