Banco Bilbao Vizcaya Argentaria, S.A.

BBVA reported net attributable profit of EUR 3.062 billion in Q2 2026, up 11.4% year over year and 2.4% quarter over quarter. EPS increased 15.2% year over year. For the first half, net attributable profit was EUR 6.051 billion. Gross income rose 15.7% year over year, with NII up 17.8%, fees and commissions up 16.2%, and net trading income up 13% year over year. CET1 ended at 12.90%, up 7 basis points in the quarter. Management said cost of risk was 143 basis points for the first half, and the efficiency ratio was 37.8% for the group. Forward guidance: group 2026 return on tangible equity was upgraded to around 21%; Mexico full-year loan growth was raised to around 10%, NII growth to high single digit, and cost of risk to below 335 basis points; Turkey full-year cost of risk was lowered to around 220 basis points; South America gross revenues guidance was raised to high teens growth; BBVA reiterated its 11.5%-12% CET1 target range and said excess capital above 12% will be distributed.

Onur Genc framed the quarter as another example of BBVA’s business model delivering profitable growth, strong activity, and capital generation at the same time. He emphasized record earnings, industry-leading profitability, and the bank’s ability to grow loans without sacrificing returns, while pointing to the AI transformation agenda as a strategic priority. He also said BBVA is performing ahead of its original 2025-2028 plan assumptions and is staying focused on organic growth rather than M&A.

Luisa Gomez Bravo walked through strong country-level performance and highlighted the financial discipline behind it, including 37.8% group efficiency, 12.90% CET1, and EUR 6 billion-plus first-half profit. She said Spain’s first-half net profit was EUR 2.2 billion, Mexico’s first-half net attributable profit was EUR 3 billion, and Turkey, South America, and the rest of business all contributed solidly. On capital, she noted 6 basis points of CET1 SRT benefit in the quarter, 18 basis points in the first half, and over EUR 6 billion of RWAs released, while confirming the new buyback launch and continued capital generation.

Analysts focused on deposit costs in Spain, rest-of-business profitability and risk, the new CFO transition, ALCO strategy in Mexico and Spain, capital return beyond the new buyback, SRT usage, Turkey spreads, Mexico competition, and AI-related exposure. Management said Spain deposit costs are being managed through customer growth and transactionality, not by sacrificing lending, and that rest-of-business cost of risk is small and can move with a few names but should remain around 20 basis points. On capital return, BBVA reiterated that it targets 11.5%-12% CET1 and will distribute excess above 12%, while saying the CFO change does not imply any strategy shift. On Mexico and Turkey, management said Mexico remains positive on activity and spreads, while Turkey’s margins stay tied to a difficult macro and rate backdrop.