BANCO BILBAO VIZCAYA ARGENTARIA, S.A. current report, Q1 FY2026

Business Context and Reporting Period

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A. (BBVA)
Filing Type: Form 6-K (Report of Foreign Issuer)
Reporting Period: Full Year 2025 (ended December 31, 2025)
Filing Date: February 5, 2026

BBVA reported record financial results for 2025, highlighting "outstanding profitable growth" and progress toward its 2025-2028 long-term strategic goals. The bank emphasized a unique combination of growth and profitability, driven by digital customer acquisition, AI integration, and superior revenue growth across selected business areas.

Key Financial Metrics

Metric 2025 Value Change vs. 2024
Net Attributable Profit €10.51 Billion +19.2% (Current €)
Return on Tangible Equity (ROTE) 19.3% +12.8% vs. 2024
Gross Income €36.93 Billion +16.3% (Current €) / +4.1% (Constant €)
Net Interest Income €26.28 Billion +13.9% (Current €) / +4.0% (Constant €)
Net Fees and Commissions €8.22 Billion +14.6% (Current €) / +2.8% (Constant €)
Operating Expenses €14.33 Billion +10.5% (Current €) / +1.0% (Constant €)
Efficiency Ratio 38.8% -206 bps vs. 2024
Cost of Risk 1.39% -4 bps vs. 2024
CET1 Ratio 12.70% Above 11.5%-12.0% Target Range
Total Loans Growth +4.1% YoY (Constant €)
Shareholder Distributions €5.2 Billion Includes €4.0Bn Extraordinary SBB

Material Changes vs. Prior Period

  • Profitability Surge: Net Attributable Profit reached a record €10.51 billion, driven by a 20.4% increase in Operating Income and a 5.3% increase in Income Before Tax.
  • Revenue Mix: Net Interest Income grew 13.9% (current) and Net Fees grew 14.6% (current), outpacing expense growth of 10.5%, resulting in "positive jaws" (revenue growth exceeding expense growth).
  • Efficiency Gains: The Efficiency Ratio improved significantly to 38.8%, down 206 basis points from 2024, reflecting disciplined cost management despite inflationary pressures.
  • Asset Quality: The Cost of Risk decreased to 1.39% (down 4 bps), while the NPL Coverage Ratio improved to 85%.
  • Capital Deployment: The bank announced an extraordinary Share Buyback (SBB) program of €4.0 billion, with the first tranche of €1.5 billion currently being executed.

Guidance, Outlook, and Risks

2026 Outlook

  • Group Growth: Mid-single digit growth in loans and high-single digit growth in Net Interest Income and Fees.
  • Efficiency: Targeting an Efficiency Ratio below 35%.
  • Cost of Risk: Expected to remain in the low 30s basis points range.
  • Profitability: ROTE expected to remain in the high teens.

Management Commentary

Management highlighted the successful execution of the 2025-2028 strategy, citing leadership in customer satisfaction (#1 in three of four largest markets) and the early positive impact of AI initiatives. The bank is on track to achieve its long-term goals, with a focus on value creation through capital distribution and organic growth.

Risks and Contingencies

  • Macroeconomic Factors: Exposure to market conditions, inflation, interest rates, and exchange rate fluctuations (notably in Turkey and Argentina).
  • Regulatory Environment: Changes in regulatory guidelines, capital buffers, and ESG obligations.
  • Geopolitical & Climate: Risks related to military conflicts, natural disasters, and climate change impacts.
  • Forward-Looking Statements: The filing includes standard disclaimers that actual results may differ materially from forecasts due to these uncertainties.

Investor Verification Checklist

  • Dividend Approval: Verify the final approval of the €60 cents (gross) dividend per share to be paid in April 2026 by the governing bodies.
  • Share Buyback Execution: Monitor the progress of the remaining €2.5 billion of the €4.0 billion extraordinary SBB program.
  • Hyperinflation Adjustments: Review the specific impact of hyperinflation adjustments on reported figures for Turkey and Argentina (e.g., Net Monetary Position losses).
  • Regulatory Capital Buffers: Confirm the application of the updated countercyclical capital buffer for Spain exposures effective October 1, 2025, and the SREP requirement reduction to 8.97% effective January 1, 2026.
  • AI ROI: Assess the tangible financial impact of the eight strategic AI initiatives mentioned in the strategy execution section.