Company: BBVXF
Filing Date: 2025-02-21
Form Type: 20-F
Source: 0000842180-25-000010
Chunk: 115

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-21
Form: 20-F
Item: Item 4
Chunk 115
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% during such period. Banorte and Inbursa also experimented an increase in their market share in the same period (0.2% and 0.7%, respectively), while Santander, Banamex, Scotiabank and HSBC lost market share. The expected slowdown of economic activity in 2025 may reduce the pace of expansion of credit balances in the short and medium terms.
As for deposits, the G7 group market share declined between December 2023 and November 2024 (from 78.4% to 77.4%), with six of the G7 banks losing share (BBVA Mexico’s fell from 23.1% to 22.0%). Banamex was the bank with the largest gain in the system, increasing its participation in total deposits from 11.7% to 12.4%. An expected period of declining interest rates coupled with weaker economic activity are expected to limit the dynamism of deposits in 2025.
For information on COFECE’s investigation regarding competition in the card payments’ market, see “―Business Overview―Supervision and Regulation—Principal Markets—Mexico”.
Turkey
In Turkey, where we operate through Garanti BBVA, the three public deposit banks that operate in the country accounted for 37% of the total loans of financial institutions as of December 29, 2024, whereas private deposit banks (including Garanti BBVA) accounted for 48%. Development banks and participation banks (banks that operate under the ethos of Islamic banking) together accounted for 15% of the total.
The loose monetary policy implementation that started in September 2021 continued in the first half of 2023 and resulted in a sharp depreciation of the Turkish lira and a substantial increase in the inflation rate. In June 2023, with the appointment of a new economic team, the CBRT started to take steps towards normalization and monetary tightening. In March 2024, the policy rate (the one-week repo auction rate) was raised from 8.5% to 50.0%. The CBRT also adjusted the monetary policy operational framework by setting the CBRT overnight borrowing and lending rates 300 basis points below and above the one-week repo auction rate, respectively. The CBRT has maintained its tight monetary stance since March 2024, and kept the policy rate unchanged (at 50%) until December 2024. Based on the leading indicators pointing to a decline in the underlying inflation trend in December 2024,