Banco Bilbao Viscaya Argentaria Sa Stock Earnings Reports

Key points for investors: BBVA delivered a strong third quarter 2025 driven by exceptional core revenue growth (NII + fees), record cumulative 9M net profit (~€8.0bn, +4.7% YoY) and robust profitability (return on tangible equity ~19.7%; ROE 18.8% for 9M). Loan growth remains a major driver (16% YoY overall; Spain +7.8% YoY; Mexico ~9.8% YoY or 10.9% ex‑USD effects) supporting NII despite a lower rate environment. Capital is strong: CET1 improved to 13.42% (Q), with an expected positive regulatory tailwind of ~40–50 bps in Q4. Management is restarting shareholder returns immediately: a ~€1bn share buyback begins tomorrow and a record interim dividend of €0.32/share will be paid on Nov 7; a larger buyback is planned pending ECB approval. Asset quality trends are better than earlier guidance overall (cost of risk 135 bps group; improvements in NPL and coverage ratios), though Turkey and Argentina present country-specific pressures (Turkey affected by inflation dynamics; Argentina asset quality weakened amid very high real rates). Efficiency improved (cost growth contained vs. income; efficiency ratio ~38.2%) and management reaffirmed the 2025–2028 strategic targets and the ambition to continue organic capital generation and profitable growth including a scaling CIB/global cross‑border business. Near‑term headwinds: FX hedge effects from MXN appreciation reduced trading income this quarter, IFRS 9 annual recalibration temporarily affected impairments, and Argentina remains volatile. Overall tone: confident execution, returning capital to shareholders, and optimistic about revenue stability as rate cuts near terminal levels in key markets.