Loading...
01/10 02:45
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary indicates strong financial performance with a significant increase in tangible value per share and profitability metrics. The customer acquisition numbers are impressive, and the sustainability initiative shows forward-thinking strategy. The Q&A section reveals positive management sentiment, with formal approval of capital benefits and plans for substantial capital distribution. Despite some uncertainties like Turkey's slower profit development and Sabadell integration details, the overall sentiment is positive, with expected growth in Mexico and a robust plan for shareholder returns.
Tangible book value per share plus dividends Increased 14.6% year-over-year and 2.9% in the quarter, despite high currency depreciations.
Return on tangible equity (ROTE) Improved to 20.4% in the first 6 months of 2025, showcasing strong profitability.
Net attributable profit Reached EUR 2.749 billion in Q2 2025, despite falling rates in core markets and currency headwinds. Includes EUR 150 million positive extraordinary impacts from tax audit and VAT adjustments.
CET1 capital ratio Improved by 25 basis points during the quarter, reaching 13.34%, supported by one-offs and organic capital accumulation.
First half profits Increased to EUR 5.447 billion in 2025, a 9.1% year-over-year increase, marking a new record.
Net interest income and fees Grew 11% and 18% year-over-year, respectively, in constant euros, with 4% growth quarter-over-quarter.
Gross income Increased 20% year-over-year in constant euros, driven by strong core revenue growth and limited impairments.
Loan growth Increased 16% year-over-year at the group level, with Spain at 6.3% and Mexico at 11.7%, driven by profitable growth strategies.
Efficiency ratio Improved to 37.6%, or 38.6% excluding VAT-related impacts, reflecting strong cost control and revenue growth.
Cost of risk Stood at 132 basis points, stable compared to the previous quarter and better than year-end estimates.
Sustainable finance channeling Achieved EUR 63 billion in the first 6 months of 2025, contributing to a long-term goal of EUR 700 billion by 2029.
Spain net profit Reached EUR 1.1 billion in Q2 2025, supported by strong loan growth, improved deposit mix, and lower operating expenses.
Mexico net profit Nearly EUR 1.3 billion in Q2 2025, driven by strong lending activity, improved deposit trends, and stable customer spreads.
Turkey net profit EUR 412 million in Q2 2025, a 17% year-over-year increase, supported by improved customer spreads and lower deposit costs.
South America net profit EUR 421 million in the first half of 2025, a 33% year-over-year increase, driven by sound lending trends and improved deposit mix.
New customer acquisition: BBVA achieved a record 5.7 million new customers in the first half of 2025, leveraging its digital competitive advantage.
Sustainability initiatives: The bank channeled EUR 63 billion in sustainable finance in the first six months of 2025, progressing towards its goal of EUR 700 billion by 2029.
Loan growth: Loan growth at the group level increased by 16% year-over-year, with Spain growing at 6.3% and Mexico at 11.7%. This growth was achieved profitably, with improved guidance for both geographies.
Market share gains: BBVA plans to grow slightly above market rates, focusing on enterprise segments and leveraging recent customer acquisitions to ensure continued market share gains.
Efficiency ratio: The group achieved an efficiency ratio of 37.6% in Q2 2025, improving to 38.6% excluding VAT-related impacts, reflecting strong cost control and operational efficiency.
Cost control: Costs grew at 10%, below the group's footprint average inflation, demonstrating disciplined expense management.
Strategic priorities: BBVA outlined six strategic priorities, including enhancing customer satisfaction, focusing on sustainability and enterprise growth, leveraging AI and innovation, and maintaining cost and risk discipline.
Capital distribution: The bank expects to generate EUR 49 billion in CET1 capital during 2025-2028, with EUR 36 billion available for distribution, including EUR 24 billion for regular payouts and EUR 12 billion as excess capital.
Currency Depreciation: The company faced high currency depreciations in the quarter, which negatively impacted results and created headwinds for profitability.
Falling Interest Rates: Falling rates in core markets negatively impacted net interest income and overall results, posing a challenge to sustaining record profit levels.
U.S. Dollar Hedging Impact: The negative impact of U.S. dollar hedges on net trading income due to U.S. dollar depreciation against the euro was significant, though future hedges will be accounted for under capital rather than P&L.
Macroeconomic Sensitivity: The company remains rate-sensitive in key markets like Spain and Mexico, where declining market rates could compress spreads and impact revenue growth.
Turkey and Argentina Hyperinflation: Both countries are expected to remain under hyperinflationary accounting until 2028, which could continue to pressure financial performance and operational stability.
Impairments in Mexico: Increased impairments in Mexico, driven by IFRS 9 macro adjustments, reflect ongoing macroeconomic uncertainties and could impact profitability.
Cost of Risk in Turkey: Provisioning needs in Turkey's retail portfolios remain high, with cost of risk expected to increase to 200 basis points, reflecting ongoing macroeconomic rebalancing.
Regulatory and Tax Adjustments: Adjustments such as tax audits and VAT payment revisions in Spain have created both positive and negative impacts on financial metrics, adding complexity to financial management.
Economic Growth in Mexico: Low GDP growth in Mexico, with forecasts below 2% annually, could limit lending and revenue growth opportunities.
Asset Quality in South America: While improving, asset quality in South America remains a concern, with cost of risk guidance still relatively high at 230 basis points.
Strategic Priorities: BBVA aims to embed a radical client perspective, set industry-leading customer service standards, and focus on growth levers such as sustainability and enterprises. The bank plans to unlock AI and innovation potential and invest in its teams to achieve strategic goals.
Macroeconomic Assumptions: BBVA expects relative stability in economic growth and inflation globally. Nominal credit growth is projected to stay slightly above GDP growth. Interest rates in Spain, Mexico, and Peru are expected to bottom out in 2025 or 2026, with currency depreciation moderating.
Market Share and Profitability: BBVA plans to grow slightly above market, gaining market share with a focus on enterprise segments. Core countries are expected to improve profitability levels, supported by activity growth and lower cost of risk. Margin compression is expected to stop with rate stability.
Capital and Efficiency: The bank aims to maintain a focus on costs and efficiency, targeting an efficiency ratio of around 35% by 2028. BBVA plans to actively rotate its balance sheet to boost value creation and leverage new technologies to improve productivity.
Country-Specific Goals: Spain: Mid-single digit loan growth, low to mid-single digit revenue growth, and a cost-to-income ratio in the low 30s by 2028. Mexico: High single-digit loan growth, high single-digit revenue growth, and a cost-to-income ratio around 30% by 2028. Turkey: High teens revenue growth, low 30s efficiency ratio, and improved profitability. South America: High single-digit revenue growth, below 40% efficiency ratio, and improved profitability.
Group-Level Financial Goals: BBVA targets an average return on tangible equity (ROTE) of around 22% for 2025-2028, mid-teens CAGR in tangible book value growth including dividends, and a cumulative net attributable profit of EUR 48 billion over the period.
Capital Distribution: The bank expects to generate EUR 49 billion of CET1 capital during 2025-2028, with EUR 36 billion available for distribution. EUR 24 billion will be distributed through regular payouts, and EUR 12 billion will be available as excess capital for additional distributions.
Loan Growth and Revenue: BBVA projects mid-single digit loan growth in Spain, high single-digit growth in Mexico, and above-inflation growth in Turkey. Revenue growth is expected to be low to mid-single digits in Spain, high single digits in Mexico, and high teens in Turkey.
Cost and Risk Management: The bank aims to maintain strict cost discipline and improve efficiency ratios across all regions. Cost of risk is expected to remain stable or improve, with specific targets for each region.
Strategic Investments: BBVA plans to invest EUR 13 billion in business growth, focusing on high-return segments and leveraging AI and innovation to enhance productivity and customer experience.
Tangible book value per share plus dividends: Increased 14.6% year-over-year and 2.9% in the quarter.
Dividend accrual and AT1 coupons: 37 basis points deduction from CET1 ratio.
Expected regular payout from 2025 results: More than EUR 5 billion.
Excess capital available for distribution: Around EUR 13 billion expected in the short term.
Capital available for distribution during 2025-2028: EUR 36 billion, with EUR 24 billion through regular payout and EUR 12 billion as excess capital.
Share buyback program: Nearly EUR 1 billion pending to be executed.
The earnings call summary highlights strong financial performance across regions, improved efficiency, and strategic growth in corporate loans. Net profit increases in key markets and disciplined cost management are positive indicators. The Q&A section reveals robust growth ambitions and a commitment to shareholder returns, despite some uncertainties in Mexico and Turkey. Management's proactive strategies and optimistic guidance, along with planned share buybacks, suggest a positive outlook for the stock price.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
