Business Context and Reporting Period
This Form 6-K filing covers the consolidated financial results of Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) for the period from January 1, 2025, to September 30, 2025. The report details the execution of the Group's 2025-2029 Strategic Plan, focusing on customer-centric differentiation, growth, and value creation through innovation and artificial intelligence. The filing includes consolidated figures, business area breakdowns (Spain, Mexico, Turkey, South America, Rest of Business), and pro forma data for Corporate & Investment Banking (CIB).
Key Financial Metrics
| Metric | Jan-Sep 2025 | Jan-Sep 2024 | YoY Change |
|---|---|---|---|
| Net Attributable Profit (€ millions) | 7,978 | 7,622 | +4.7% |
| Gross Income (€ millions) | 27,136 | 26,161 | +3.7% |
| Operating Income (€ millions) | 16,776 | 15,972 | +5.0% |
| Net Interest Income (€ millions) | 19,246 | 18,861 | +2.0% |
| Loans to Customers (Gross) (€ millions) | 447,901 | 397,891 | +12.6% |
| Customer Deposits (€ millions) | 471,364 | 437,834 | +7.7% |
| Total Assets (€ millions) | 813,063 | 769,341 | +5.7% |
| Efficiency Ratio | 38.2% | 38.9% | -70 bps |
| Cost of Risk | 1.35% | 1.42% | -7 bps |
| NPL Ratio | 2.8% | 3.3% | -50 bps |
| CET1 Ratio | 13.42% | 12.84% | +58 bps |
| ROE | 18.8% | 19.2% | -40 bps |
Note: At constant exchange rates, Net Attributable Profit grew by 19.8% and Gross Income by 16.2%.
Material Changes vs. Prior Period
- Profitability Growth: Net attributable profit increased by 4.7% at current exchange rates, driven by strong recurring revenues (Net Interest Income and Net Fees & Commissions). Excluding currency impacts, profit growth was 19.8%.
- Efficiency Improvement: The efficiency ratio improved to 38.2%, a reduction of 178 basis points compared to September 2024 at constant exchange rates, as gross income growth (16.2%) outpaced operating expense growth (11.0%).
- Asset Quality: The Non-Performing Loan (NPL) ratio improved to 2.8% from 3.3% in the prior year, supported by loan growth and NPL reductions, particularly in Spain. The NPL coverage ratio increased to 84%.
- Balance Sheet Expansion: Loans to customers grew 12.6% year-over-year, driven by the wholesale segment (+5.9% business loans) and consumer/mortgage loans. Customer funds grew 7.7%.
- Capital Strength: The CET1 ratio rose to 13.42%, maintaining a significant buffer above the regulatory requirement of 9.13% and the target range of 11.5%-12.0%.
Guidance, Outlook, and Risks
Management Commentary and Outlook
- Strategic Plan: BBVA is executing its 2025-2029 Strategic Plan, with financial objectives for 2025-2028 presented in July 2025. The focus remains on innovation, AI integration, and sustainable business channeling (targeting €700 billion by 2029; €97 billion channeled in the first nine months of 2025).
- Shareholder Returns: An interim dividend of €0.32 per share was approved for payment in November 2025. A share buyback program of €993 million is expected to commence in October 2025, with potential for additional buybacks pending ECB authorization.
- Macroeconomic View: BBVA Research forecasts global growth moderation to 3.0% in 2025. The Eurozone GDP forecast was revised up to 1.3%. The Fed is expected to cut rates further in 2025, while the ECB may hold rates steady if inflation remains contained.
Risks and Contingencies
- Geopolitical and Trade Risks: Uncertainty regarding US administration policies, trade tensions, and protectionist measures poses downside risks to the global economy.
- Hyperinflation: Argentina and Turkey remain subject to hyperinflation accounting. While the negative impact in Argentina was significantly lower in 2025 compared to 2024, exchange rate volatility (Argentine peso -31.9%, Turkish lira -24.8%) remains a key risk factor.
- Interest Rate Sensitivity: The Group maintains a limited risk profile but monitors the impact of diverging yield curves between the US and Europe.
- Failed Acquisition: The voluntary public tender offer for Banco de Sabadell announced in May 2024 was not completed as the minimum acceptance condition was not met by October 2025.
Investor Verification Checklist
- Constant Exchange Rate Impact: Verify the 19.8% profit growth at constant exchange rates to understand organic performance versus currency translation effects (notably the depreciation of the Turkish Lira and Argentine Peso).
- Cost of Risk Trajectory: Monitor the Cost of Risk (1.35%) and NPL coverage (84%) to ensure asset quality remains stable despite economic headwinds in key markets like Turkey and Argentina.
- Share Buyback Execution: Confirm the commencement and volume of the €993 million share buyback program starting October 31, 2025, and any additional buybacks authorized by the ECB.
- Hyperinflation Adjustments: Review the specific impact of hyperinflation accounting on the "Other operating income and expenses" line, particularly for Argentina, to assess volatility in non-recurring items.
- Regulatory Capital Buffers: Verify the CET1 ratio (13.42%) against the SREP requirement (9.13%) and the target range to confirm capacity for future dividends and buybacks.