Spain · Delayed Price · Currency is EUR Banco Bilbao Vizcaya Argentaria Earnings Call Transcripts
Fiscal Year 2026
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Geopolitical tensions and AI are reshaping global growth, with Spain showing resilient domestic demand and services, Mexico benefiting from U.S. trade and digitalization, and Turkey maintaining macro stability through restrictive policies. Key risks include structural deficits, energy bottlenecks, and political pressures.
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Management remains confident in achieving a 22% average ROTE through 2028, driven by strong activity growth, margin resilience, and operational excellence. AI adoption is accelerating, with early productivity gains, while Spain and Mexico show robust client acquisition and market share growth. Capital returns and franchise value preservation remain priorities.
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Tangible book value per share plus dividends rose 14.7% year-on-year, with net profit up 10.8% and EPS up 12.5%. Robust loan and revenue growth across Spain, Mexico, Turkey, and South America drove strong profitability and efficiency, while capital ratios and risk metrics improved.
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Geopolitical risks are seen as short-term, with strong regional performance in Mexico, Spain, and Turkey. Digitalization and AI adoption drive growth, while capital returns and organic expansion are prioritized over M&A. CIB focuses on cross-border and sustainability opportunities.
Fiscal Year 2025
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Record net profit of EUR 10.5 billion in 2025, with strong loan growth, efficiency, and shareholder returns. Strategic focus on AI, digitalization, and profitable expansion drove outperformance in core markets, while capital and risk metrics remain robust.
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The group is focused on high-quality franchises, digital transformation, and sustainable growth, with strong performance in Spain, Mexico, and Turkey. Capital returns remain a priority, supported by robust profitability and strategic investments in CIB and digital banking.
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Strong core revenue and loan growth drove record profits and industry-leading returns, with robust capital and efficiency metrics. Shareholder distributions resume amid stable spreads and positive outlook, despite FX and macro risks in Turkey and Argentina.
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The conference highlighted the strategic rationale and high premium of the Sabadell offer, robust capital allocation discipline, and strong regional outlooks in Spain, Mexico, and Turkey. Investors see macro resilience and capital generation as key strengths, with Mexico expected to outperform.
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The merger will create a stronger, more balanced bank with significant cost and revenue synergies, offering a 25% EPS uplift for target shareholders and a 5% increase for acquirer shareholders. The offer is at a historic premium, with full synergy realization expected by 2029 and robust integration and regulatory plans in place.
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Tangible book value and profits reached record highs in Q2 2025, with strong loan growth and efficiency gains across all regions. Upgraded guidance and a new strategic plan target high profitability, robust capital generation, and significant shareholder distributions through 2028.
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Strong Q1 results with net profit up 23% year over year, robust growth in Spain and Mexico, and improved efficiency and asset quality. CET1 ratio rose to 13.09%, and guidance remains positive despite macro uncertainties and FX volatility.
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Maintaining top profitability and growth, the bank leverages digitalization and diversified low-leverage markets for sustained performance. The Sabadell acquisition is nearing completion with strong remedies, while digital and AI investments are set to drive future efficiency and value.
Fiscal Year 2024
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Record net profit above €10B, 17.2% growth in tangible book value, and 14.3% loan growth marked 2024, with strong digital and sustainable business momentum. 2025 guidance targets high-teens ROE, robust loan growth in key markets, and continued shareholder returns.
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Q3 2024 saw net profit up 26% year-over-year, with strong growth in Spain and Mexico, improved efficiency, and robust capital ratios. Guidance for 2024 and 2025 remains positive, with continued market share gains and proactive risk management.
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Strong growth and profitability are driven by unique franchises, digitalization, and scale, especially in Mexico and Turkey. The Sabadell bid aims to boost scale and synergies, with regulatory approval progressing as planned. Industry consolidation is seen as vital for European banking.
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Q2 2024 saw record net profit and EPS growth, with strong results across Spain, Mexico, Turkey, and South America. Efficiency and capital ratios remain robust, guidance is upgraded for Spain and Turkey, and the Sabadell acquisition process advances with significant expected synergies.
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Shareholders approved a major capital increase to fund the acquisition of Banco Sabadell, with 96% support. The merger aims to create a leading European bank, generate significant synergies, and maintain a strong commitment to employees and regional development, amid concerns from unions about job security and working conditions.
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Management emphasized capital optimization, digital leadership, and scale as key drivers of superior returns across core markets. Spain, Mexico, and Turkey are expected to sustain strong profitability, with digitalization and macro trends supporting growth.