Business Context and Reporting Period
Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A. (BBVA)
Filing Type: Form 6-K (Report of Foreign Issuer)
Reporting Period: Second Quarter ended June 30, 2026 (2Q26)
Filing Date: July 30, 2026
BBVA reported strong financial performance for 2Q26, driven by exceptional activity growth in core markets (Spain and Mexico) and sustained profitability. The bank highlighted progress in its AI transformation strategy and maintained a solid capital position above its target range.
Key Financial Metrics
| Metric | 2Q26 (Current €M) | YoY Change (Constant €) | QoQ Change (Constant €) |
|---|---|---|---|
| Net Attributable Profit (NAP) | 3,062 | +11.4% | +2.4% |
| Earnings Per Share (EPS) | €0.53 | +15.2% | +4.0% |
| Gross Income | 10,506 | +20.6% | -1.4% |
| Net Interest Income (NII) | 7,627 | +22.9% | +1.2% |
| Net Fees and Commissions | 2,316 | +18.7% | +2.6% |
| Operating Expenses | (3,951) | +22.5% | -2.4% |
| Efficiency Ratio | 37.8% | - | - |
| Cost of Risk (YtD) | 1.35% | - | - |
| CET1 Ratio | 12.90% | +7 bps | +7 bps |
| ROTE (ex-SBB) | 22.2% | +5.4% | - |
Liquidity & Capital: The Liquidity Coverage Ratio (LCR) stood at 174% (Group) and Net Stable Funding Ratio (NSFR) at 125%. The CET1 ratio of 12.90% remains well above the SREP requirement of 8.98% and the target range of 11.5%-12.0%.
Material Changes vs. Prior Period
- Profit Growth: Net Attributable Profit increased by 11.4% year-over-year (constant currency) to €3.06 billion, driven by a 20.6% increase in Gross Income.
- Revenue Drivers: Net Interest Income grew 22.9% YoY, primarily fueled by loan growth in Spain (+7.4%) and Mexico (+10.3%). Net Fees and Commissions rose 18.7% YoY, supported by asset management and credit card fees.
- Trading Income Volatility: Net Trading Income declined 36.4% quarter-over-quarter to €582 million, attributed to normalized Global Markets results and FX hedge valuation impacts.
- Asset Quality: The Cost of Risk (YtD) remained stable at 1.35%. Non-Performing Loan (NPL) ratio decreased to 2.6%.
- Capital Generation: CET1 ratio improved by 7 basis points to 12.90%, supported by strong earnings and a new €2 billion share buyback program.
Guidance, Outlook, and Risks
Guidance and Outlook
- Group Goals: BBVA remains on track to achieve its 2025-2028 strategic goals, including a Return on Tangible Equity (ROTE) of approximately 21% and a Cost-to-Income ratio in the low 30s.
- Mexico 2026 Outlook: Updated guidance projects loan growth of around 10%, Net Interest Income growth in the high single digits, and a Cost of Risk below 335 bps.
- Turkey Guidance: Cost of Risk expected to be around 220 bps; Gross Income projected to grow in the high teens.
- Capital Distribution: A new €2 billion share buyback program was approved, with the first €1 billion tranche to be executed immediately. The bank expects to generate approximately €49 billion in CET1 capital between 2025 and 2028.
Risks and Contingencies
- Hyperinflation: Significant volatility in Turkey and Argentina due to high inflation rates (Turkey: 7.0% in 2Q26; Argentina: 6.8% in 2Q26). Reported figures include hyperinflation adjustments which impact Net Monetary Position (NMP) and re-expression of P&L items.
- Market Conditions: Risks include macroeconomic factors, interest rate fluctuations, and exchange rate movements affecting cross-border operations.
- Regulatory & ESG: Achievement of ESG targets (e.g., decarbonization) depends on third-party actions and regulatory developments.
Investor Verification Checklist
- Hyperinflation Adjustments: Verify the impact of hyperinflation accounting on Turkey and Argentina results, specifically the Net Monetary Position (NMP) losses and re-expression of P&L items.
- Share Buyback Execution: Confirm the timeline and terms for the execution of the remaining €1 billion of the new €2 billion buyback program.
- Turkey Regulatory Caps: Monitor the impact of regulatory loan growth caps in Turkey on future Net Interest Income expansion.
- Trading Income Normalization: Assess the sustainability of Net Trading Income given the QoQ decline and reliance on Global Markets performance.
- Cost of Risk Trends: Track the Cost of Risk in Mexico and Turkey to ensure they remain within the guided ranges (below 335 bps and around 220 bps, respectively).