Banco Bilbao Viscaya Argentaria ((BBVA)) has held its Q3 earnings call. Read on for the main highlights of the call.
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In the latest earnings call, Banco Bilbao Viscaya Argentaria (BBVA) expressed a strong sentiment of growth and resilience. Despite facing challenges in regions like Turkey and Argentina, the bank’s overall performance remained robust, driven by strategic growth in core revenues and efficiency improvements. The call highlighted BBVA’s commitment to sustainable business efforts and its ability to maintain profitability in a complex economic environment.
Strong Tangible Book Value Growth
BBVA reported a remarkable 17% year-over-year increase in tangible book value per share plus dividends, with a 4.5% increase in the quarter. This growth underscores the bank’s solid financial foundation and its ability to deliver value to shareholders.
High Profitability Ratios
The bank maintained industry-leading profitability ratios, with a return on tangible equity of 19.7% and a return on equity of 18.8% for the first nine months of 2025. These figures highlight BBVA’s efficient capital management and strong earnings capacity.
Record Net Attributable Profit
BBVA achieved a net attributable profit of EUR 8 billion for the first nine months of 2025, representing a 4.7% increase year-over-year. This record profit reflects the bank’s successful operational strategies and revenue growth.
CET1 Capital Ratio Improvement
The CET1 capital ratio improved by 8 basis points during the quarter, reaching 13.42%. This enhancement in capital strength allows BBVA to offer better shareholder remuneration and reinforces its financial stability.
Positive Revenue Growth
Core revenues saw significant growth, with net interest income and fees increasing by 18% and 15% year-over-year, respectively. This positive trend in revenue generation is a testament to BBVA’s effective business strategies and market positioning.
Impressive Loan Growth
Loan growth was maintained at 16% year-over-year, supporting a strong net interest income performance. This growth was particularly notable in Spain and Mexico, where lending rose by 7.8% and 9.8%, respectively.
Efficiency Ratio Improvement
The efficiency ratio improved to 38.2%, reflecting better cost management and revenue performance. This improvement indicates BBVA’s focus on operational efficiency and cost control.
Sustainable Business Growth
BBVA channeled a record EUR 97 billion in sustainable business for the first nine months of 2025. This commitment to sustainability is a key component of the bank’s long-term growth strategy.
Net Attributable Profit Decline
Despite the overall positive performance, the net attributable profit decreased compared to the previous quarter due to higher inflation in Turkey and one-off positive impacts in the second quarter.
Impact of Mexican Peso Appreciation
The appreciation of the Mexican peso negatively affected the FX hedges of the net trading income line, impacting quarterly results. This currency fluctuation posed a challenge to BBVA’s financial outcomes.
Asset Quality Concerns in Turkey
The cost of risk in Turkey slightly increased to 176 basis points for the first nine months, with ongoing high provisioning needs in retail. This reflects the challenging economic conditions in the region.
Challenges in Argentina
Argentina showed deterioration in asset quality due to high real interest rates, affecting the retail portfolios. This situation highlights the macroeconomic challenges faced by BBVA in the country.
Forward-Looking Guidance
Looking ahead, BBVA remains optimistic about its financial performance, with several key metrics highlighted. The bank expects continued growth in tangible book value and profitability, supported by strong capital ratios and revenue growth. Despite the challenging macroeconomic environment, BBVA plans to enhance shareholder returns through a share buyback program and a record interim dividend.
In conclusion, BBVA’s earnings call conveyed a positive outlook, emphasizing strong growth in profitability and sustainable business efforts. The bank’s strategic focus on core revenues and efficiency improvements has positioned it well to navigate challenges in specific regions. Investors can look forward to continued robust performance and shareholder returns.