Banco Bilbao Vizcaya Argentaria, S.A.

BBVA reported first-quarter net attributable profit of almost EUR 3 billion, up 10.8% year over year and 18% versus the prior quarter. EPS was EUR 0.51, up 12.5% year over year. Gross income grew 18.3% in constant euros and 14.2% in current euros, supported by NII growth of 20.2% year over year and fee growth of 15.5%. The efficiency ratio improved to 38%, and CET1 rose 13 bps to 12.83%. Cost of risk was 154 bps, and management said it would have been 147 bps excluding a roughly EUR 100 million post-model adjustment. Looking ahead, BBVA said Spain remains on track with its full-year guidance, Mexico has upward bias to loan growth and guidance is maintained, Turkey now has a downward bias to guidance, South America guidance for cost of risk stays below 250 bps, and Rest of Business 2026 guidance was upgraded to loan and gross revenue growth above 30% year over year while keeping cost of risk around 20 bps.

Onur Genç struck a confident tone overall, emphasizing that BBVA is delivering strong value creation, higher profitability, and continued capital generation. He highlighted the benefits of loan growth, pricing discipline, and the view that rates in Spain and Mexico are near the bottom of the cycle, which he said should support future NII. He also framed AI as a major strategic priority, saying BBVA wants to scale it across the group and that early results are promising.

Luisa Gomez Bravo focused on the quality of the quarter by region and on the drivers behind margins, costs, and risk. In Spain, she said net profit exceeded EUR 1 billion, gross income grew 5.4% year over year, and cost growth excluding the one-off redundancy charge was 4.8%; the savings are expected to be largely realized in 2026 and are already included in guidance. In Mexico, she cited net profit of EUR 1.45 billion, gross income up 10.3%, a cost-to-income ratio of 30.8%, and cost of risk at 345 bps, flat quarter over quarter and in line with guidance. She also noted Turkey’s cost of risk at 253 bps, with 238 bps excluding the PMA, and said the group continues to return excess capital above the top end of its CET1 target range.

Analysts pressed BBVA on Mexico credit cards, deposit costs, and whether higher loan growth can lift NII. Management said it sees no deterioration in credit cards, described Mexico cost of risk guidance as intact at 3.40%, and pointed to stronger pipelines, a 2.6% quarter-on-quarter loan balance increase, and improving activity tied to infrastructure and energy-related projects. On deposit pricing in Mexico, management said the higher cost of deposits reflected a deliberate move to pull in time deposits, especially from corporates, as rates approach a cycle bottom. Questions on Turkey focused on macro deterioration, NII, and buybacks; BBVA said Turkey’s weaker outlook reflects changed inflation and rate assumptions, not a change in underlying franchise quality, while reaffirming the third tranche of the buyback and excess-capital distribution above 12% CET1.