Company Overview

Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) is a prominent Spanish multinational financial services company headquartered in Bilbao, with significant operative offices in Madrid. It is recognized as one of the largest financial institutions globally, with a substantial presence across Spain, Portugal, Mexico, South America, Turkey, Italy, Romania, and Germany. The bank's origins trace back to the establishment of Banco de Bilbao on May 28, 1857, in Bilbao.

Market Position and Scale

As of December 31, 2024, BBVA held approximately €772 billion in assets, positioning it as the second-largest financial institution in Spain by volume of assets and the second-largest bank in Spain overall, following Banco Santander. Banco Bilbao Viscaya Argentaria SA (BBVA) is a key player in the global banking industry, boasting a market capitalization of $97 billion as of September 2025. The company is publicly traded on the Madrid Stock Exchange, the New York Stock Exchange, and the Mexican Stock Exchange, and is a constituent of major indices such as the IBEX 35 and the Dow Jones EURO STOXX 50.

Financial Performance

Q2 2025 Results

BBVA reported strong financial results for the second quarter of 2025:

- Net Attributable Profit: €2.75 billion, an increase of 18 percent year-over-year (YoY).

- First Half 2025 Profit: Record €5.45 billion, up 9 percent YoY (or 31 percent in constant euros), propelled by increased activity in Spain and Mexico.

- Profitability Metrics: Return on Tangible Equity (ROTE) stood at 20.4 percent, and Return on Equity (ROE) was 19.5 percent, surpassing many European peers.

- Capital Ratios: The bank reported a CET1 capital ratio of 13.34 percent, showing a 25 basis points improvement during the quarter.

Full Year 2024 Performance

For the full year 2024, BBVA achieved a record net attributable profit of €10.05 billion, marking a 33 percent increase from the previous year (25 percent in current euros). The bank's revenue for 2024 reached €31.57 billion, a 16.23% rise compared to €27.16 billion in 2023. Earnings also saw significant growth, with €9.67 billion reported, an increase of 25.96%.

Key Financial Metrics

- Q2 2025 Net Profit: €2.75 billion

- H1 2025 Net Profit: €5.45 billion

- FY 2024 Net Profit: €10.05 billion

- FY 2024 Revenue: €31.57 billion

- Market Capitalization: $97 Billion (September 2025)

- ROTE (Q2 2025): 20.4%

- CET1 Capital Ratio (Q2 2025): 13.34%

Business Operations and Geographic Presence

BBVA provides a comprehensive suite of services including retail banking, wholesale banking, and asset management, with a primary focus on Spain, Mexico, Turkey, South America, other European countries, the United States, and Asia.

Core Services

The bank offers a wide range of financial products and services:

- Deposits: Savings accounts, demand deposits, and time deposits.

- Lending: Residential mortgages, other household loans, credit card facilities, and loans for enterprises and the public sector, alongside consumer finance.

- Other Services: Insurance products, asset management, corporate and commercial banking, SME services, payment systems, retail banking, private and investment banking, pension and life insurance, leasing, factoring, and brokerage services.

Key Geographic Performance (Q2 2025)

- Spain: Net attributable profit reached €1,120 million (up 6.0% YoY). Lending grew by 6.3%, and customer funds increased by 5.1%.

- Mexico: A significant growth driver, with net attributable profit of €1,265 million (up 4.9% YoY). Lending increased by 11.7%, and customer funds rose by 15.0%.

- Turkey: Demonstrated resilience with net attributable profit rising 22.4% YoY to €254 million, despite challenging economic conditions.

Corporate Investment Banking (CIB) Division

BBVA's Corporate & Investment Banking (CIB) division achieved record revenues of €3.194 billion in the first half of 2025, marking a 28% increase compared to the same period in 2024 (in constant euros). All business units contributed with double-digit growth: Global Markets (GM) up 31% YoY, Global Transaction Banking (GTB) up 17%, and Investment Banking & Finance (IB&F) up 32%.

Sustainability Initiatives

BBVA views sustainability as a core business opportunity. Sustainable business channeling increased by 48% YoY to €63 billion in H1 2025. The bank channeled €99 billion in sustainable business in 2024, also a record. BBVA achieved its goal of mobilizing €300 billion in sustainable business during the 2018-2025 period, one year ahead of schedule.

Strategic Plan 2025-2028

BBVA has set ambitious strategic targets for the 2025-2028 period:

- Profitability: Expects to earn an accumulated net attributable profit of around €48 billion over four years.

- Shareholder Value: Plans to have €36 billion of highest-quality capital available for distribution to shareholders through 2028.

- Performance Metrics: Targets an average ROTE of around 22 percent and an improvement in the efficiency ratio to approximately 35 percent.

- Tangible Book Value: Aims for an increase in tangible book value per share plus dividends of approximately 15 percent (CAGR).

Risk Management and Capital Position

Risk indicators remained stable and favorable. The accumulated cost of risk in H1 2025 was 1.32 percent, with a Non-Performing Loan (NPL) ratio of 2.9 percent and a coverage ratio of 81 percent at the end of June 2025. BBVA maintains a robust capital position and employs disciplined risk management across its global operations, ensuring it is well-positioned for continued growth and shareholder value creation. The bank's digital transformation, artificial intelligence, and data analytics initiatives further enhance its competitive advantage in the evolving financial landscape.