Business Context and Reporting Period
Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A. (BBVA)
Filing Type: Form 6-K (Report of Foreign Issuer)
Reporting Period: First nine months of 2025 (January 1 – September 30, 2025)
Filing Date: October 30, 2025
BBVA is a global financial services group with a strong leadership position in Spain, the largest franchise in Mexico, and leading positions in South America and Türkiye. The bank operates in over 25 countries.
Key Financial Metrics
| Metric | Value (Jan–Sep 2025) | YoY Change (Constant Euros) |
|---|---|---|
| Net Attributable Profit | €7.98 billion | +19.8% |
| Gross Income | €27.14 billion | +16.2% |
| Core Revenues (NII + Fees) | €25.32 billion | +13.5% |
| Net Interest Income (NII) | €19.25 billion | +12.6% |
| Net Fees and Commissions | €6.07 billion | +16.6% |
| Operating Expenses | €10.36 billion | +11.0% |
| Operating Income | €16.78 billion | +19.7% |
| Efficiency Ratio | 38.2% | Improved 178 bps |
| ROTE (Return on Tangible Equity) | 19.7% | N/A |
| ROE (Return on Equity) | 18.8% | N/A |
| CET1 Capital Ratio | 13.42% | +8 bps (QoQ) |
| Cost of Risk | 135 bps | -7 bps |
| NPL Ratio | 2.8% | Improved from 3.3% |
| Coverage Ratio | 84% | Improved from 75% |
Material Changes vs. Prior Period
- Profitability Surge: Net attributable profit reached a record €7.98 billion, driven by a 16% increase in lending activity and a 13.5% rise in core revenues.
- Customer Growth: The Group added a record 8.7 million new customers (66% via digital channels), pushing the active customer base above 80 million.
- Expense Management: Operating expenses rose 11%, slightly below the average inflation rate of 11.4% in the Group's footprint, resulting in an improved efficiency ratio.
- Risk Profile: The NPL ratio improved to 2.8% from 3.3% a year ago, while the coverage ratio increased to 84% from 75%.
- Non-Trading Income: Net trading income (NTI) decreased 25.6% to €1.96 billion, primarily due to lower results in Türkiye and reduced FX hedging contributions following the appreciation of the Mexican peso.
Guidance, Outlook, and Shareholder Returns
Shareholder Remuneration: Due to a strong CET1 capital ratio (13.42%), BBVA is accelerating its shareholder return plan:
- Share Buyback: Execution of a pending €993 million buyback begins October 31, 2025.
- Dividend: The highest interim dividend ever (€0.32 per share, totaling €1.84 billion) will be paid on November 7, 2025.
- Future Buyback: A significant additional share buyback program will launch upon receiving authorization from the European Central Bank (ECB).
Strategic Outlook: BBVA remains fully committed to its 2025-2028 Strategic Plan. The bank has received authorization to release an additional 40-50 basis points of CET1 capital by the end of 2025. Sustainable business momentum continues, with €97 billion in environmental or social impact transactions through September, up 48% year-over-year.
Regional Highlights:
- Spain: Loans grew 7.8%; profit reached a record €3.14 billion.
- Mexico: Lending grew 9.8%; profit rose 4.5% to €3.88 billion.
- Türkiye: Profit improved significantly to €648 million due to lower hyperinflation impacts.
- Rest of Business: Loan portfolio grew 34.4%, driven by project finance and corporate lending.
Investor Verification Checklist
- Regulatory Approvals: Verify the status of the ECB authorization required for the additional share buyback program.
- FX Sensitivity: Monitor the impact of the Mexican peso appreciation on future Net Trading Income (NTI) and hedging strategies.
- Cost of Risk Trends: Track the cumulative cost of risk in Mexico (3.27%) and South America (2.43%) to ensure they remain within expected ranges despite economic volatility.
- Capital Release: Confirm the timeline and execution of the planned 40-50 bps CET1 capital release by year-end 2025.
- Tax Accruals: Review the impact of the new tax on NII and fees in Spain (approx. €224 million for the first nine months) on future net income.