BBVA Portugal today announced the sacking 187 workers and the closure of a further 26 branches, leaving the ailing business with just 12 branches from which to run its retail banking operation.
BBVA Portugal management says today’s moves are part of a cost cutting programme with the aim of "allowing BBVA Portugal to continue its business growth strategy with its customers, ensuring a more focused relationship model in service, grounded in technology through the ‘BBVA Consigo’ online service."
This PR spin hides the reality that the bank is failing fast, as only in November last year the bank announced a plan to cut jobs and close half of its branches in Portugal.
At that time the closure of 43 of the 81 branches and the dismissal of 177 workers was thought to mark an end of cuts and the start of a resurgence under Castro e Almeida.
The branches closed but only 146 jobs were lost and after today’s announcement the bank will reduce the bank’s presence in Portugal to the level of ‘neglibile.
The Spanish owned bank, led in Portugal Luís Castro e Almeida, claims that the intention is to continue to operate in the country.
BBVA Portugal "will always maintain its presence in the country because it is a market of great inter-relationship with Spain, the main geographical focus of the group," waffled an unconvincing spokesman.
In the past four years, BBVA has at least been consistent, making losses in each of them.
In 2014 the loss was over €60 million. For 2015 the loss should be less, but still a loss despite all the past restructuring to 'get the business into shape.'
The first half loss this year was €11.4 million so it is unlikely to suddenly report a profit.
