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% sequentially. 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; net interest income rose 20.2% year over year and fees and commissions rose 15.5%. The efficiency ratio improved to 38%, cost of risk was 154 bps, and CET1 increased 13 bps to 12.83%. Looking ahead, management said Mexico’s cost of risk guidance remains at 3.40%, with an upward bias to loan growth; Turkey’s cost of risk guidance remains around 200 bps for the year but with a downward bias due to macro changes; South America cost of risk guidance remains below 250 bps; and the Rest of business 2026 guidance was upgraded to loan and gross revenue growth above 30% year over year while maintaining cost of risk around 20 bps.

Onur Genç framed the quarter as evidence that BBVA is executing well across growth, profitability, efficiency, and capital. He highlighted tangible book value growth, industry-leading returns, strong capital generation, and continued buybacks, while also stressing that BBVA is investing in organic growth and AI transformation. His tone was confident on the core franchises, especially Mexico and the group’s long-term strategic plan, but he stayed cautious on Turkey because of macro and geopolitical uncertainty.

Luisa Gomez Bravo emphasized that Spain, Mexico, Turkey, South America, and the Rest of business all delivered strong or solid underlying performance, with profit growth supported by revenue momentum and positive jaws. She noted the EUR 125 million restructuring charge tied to voluntary redundancies, with around 750 employees affected, mostly in Corporate Center and Spain, and said the savings are already included in guidance. She also pointed to the PMA of around EUR 100 million this quarter, the CET1 ratio at 12.83%, and the third tranche of the nearly EUR 4 billion buyback starting on 6 May with about EUR 1.5 billion remaining.

Analysts focused heavily on Mexico, asking about credit card asset quality, NII versus loan growth, deposit costs, and the implications of USMCA uncertainty. Management said it sees no deterioration in Mexico credit cards, reiterated confidence in the 3.40% cost of risk guidance, and argued that activity, pipelines, and Plan Mexico should support growth even if NII grows slightly below loan growth because spreads will remain supportive. Other questions centered on Turkey’s more cautious outlook, capital returns, SRT capacity, Spain loan growth, and the restructuring plan; management said Turkey’s guidance change reflects macro assumptions, not a deterioration in underlying bank performance, and reaffirmed excess-capital distributions above the top of the CET1 target range.