BBVA CEO: “If Inflation Isn’t Solved, Nothing Is Solved”

BBVA CEO Onur Genç issued a stark warning regarding the economic crisis in Türkiye during a press briefing at the bank’s headquarters in Madrid. Addressing Turkish journalists, Genç identified inflation as the single most critical barrier to the country’s economic stability, asserting that structural fixes to other sectors will remain ineffective as long as price volatility persists.

Inflation vs. Geopolitics: The Long-Term View

While global attention is focused on the conflicts in the Middle East and the upcoming US elections in November, Genç categorized these geopolitical complications as “temporary.” In contrast, he described the economic crisis in Türkiye—specifically entrenched inflation—as a “permanent problem” that requires absolute priority.

“War and its complications are temporary,” Genç stated. “Inflation is the biggest issue; if it isn’t solved, nothing is solved.” He also highlighted the unique regulatory environment in Türkiye, noting that the country faces a significantly higher volume of credit and credit card regulations compared to other global markets where BBVA operates.

Regulations and the Rise of Credit Card Use

Garanti BBVA General Manager Mahmut Akten, who accompanied Genç, provided local context on the shift in consumer behavior. He noted that the reliance on credit cards in Türkiye has surged from 40% pre-pandemic to over 60% today, driven largely by the expansion of e-commerce.

Regarding upcoming government measures to curb consumption and limit credit card spending, Akten noted that the bank is preparing for a new regulatory framework expected to take effect as early as May 1, 2026. “We are working as if the regulation will pass on May 1,” he stated, signaling that banks are bracing for tighter liquidity controls.

Financial Performance and the Crypto Boom

Despite the challenging macro environment, Türkiye remains a significant contributor to BBVA’s global portfolio:

• Global Profit: BBVA reported a net profit of 10.5 billion Euros for 2025.

• Türkiye Contribution: Operations in Türkiye generated 805 million Euros, accounting for 7% of the bank’s total profit.

• Profitability Leaders: Spain (36%) and Mexico (45%) lead the group, while BBVA remains the most profitable bank among Europe’s top 15 with a 19.3% return on equity.

Interestingly, the report highlighted a correlation between Türkiye’s economic crisis and digital asset adoption. Türkiye leads the BBVA group in digital asset interest, with 400,000 customers on the Garanti BBVA Crypto platform. Genç observed that countries with high inflation and low purchasing power—specifically Türkiye and Argentina—show the highest levels of engagement with cryptocurrencies, as investors seek to protect their capital.