BBVA reported a 10.8% year‑over‑year increase in net attributable profit, reaching €2,989 million, and an earnings‑per‑share of $0.5892, beating the consensus estimate of $0.57 by 3.37%. The profit lift was driven by a 20.2% rise in net interest income to €7.537 billion and a 17.8% increase in total revenue to €7.54 billion, both supported by stronger loan growth and fee income.
Revenue, however, fell short of expectations, coming in at $8.71 billion versus the $11.66 billion forecast, a 25.3% miss. The shortfall was largely due to lower fee income in the bank’s core markets, offset by a modest rise in interest income. Analysts noted that the revenue miss reflects a slowdown in fee‑based activity, while the earnings beat underscores the bank’s cost‑control and pricing power in its core segments.
Mexico remained a key contributor, adding €1,453 million to net profit, up 4.5% year‑over‑year on a constant‑currency basis. The bank’s Spanish operations also delivered solid growth, with loan expansion and fee income offsetting higher impairment charges. The combined performance of these markets helped lift overall profitability despite the revenue shortfall.
Management upgraded its 2026 guidance, raising the expected return on tangible equity (ROTE) to above 20% with an upward bias. BBVA also announced a total of €4 billion in share buybacks, with the latest tranche of €1.5 billion scheduled to begin in early May. The dividend for 2025 was raised to €0.92 per share, a 31% increase from the previous year, reflecting the bank’s confidence in its capital position and cash‑flow generation.
CEO Onur Genç said, "Our results this quarter indicate that we are making progress in the execution of our Strategic Plan and are on track to achieve the goals set for 2028. All this in a complex geopolitical context, demonstrating the strength of our business model and diversification." He also described the quarter as "excellent," driven by strong growth in core revenues, improved profitability ratios, and continued capital generation. Genç added that the share buybacks were carried out "at a premium to book value," which he said "clearly create value for our shareholders."
Investors noted the EPS beat and revenue miss, highlighting the bank’s ability to generate earnings while facing headwinds in fee‑based activity. The mixed results underscore the importance of continued cost discipline and strategic focus on high‑margin segments.
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