What Banco Bilbao Vizcaya Argentaria (BBVA) Said on Its Q3 Earnings Call

Key Points

• BBVA delivered record profitability: Third-quarter attributable profit exceeded €3 billion, up 19.1% year over year, while nine-month profit reached €9.66 billion. Return on tangible equity was 22%, and management expects it to remain above 21% for the full group.
• Revenue and lending momentum remained strong: Third-quarter net interest income rose 16.5%, fees increased 12.4%, and lending grew more than 20% in current euros. Spain and Mexico were key contributors, with loans up 7.3% and 12%, respectively.
• Capital and risk were closely managed: CET1 stood at 12.21% after buybacks and strong lending growth, while asset quality remained broadly stable with a 2.6% nonperforming-loan ratio. BBVA is executing the second €1 billion buyback tranche and maintained its 11.5%-12% CET1 management target.

Banco Bilbao Vizcaya Argentaria NYSE: BBVA reported third-quarter net attributable profit of more than €3 billion, up 19.1% from a year earlier, as loan growth and net interest income accelerated across its main markets.

For the first nine months of 2026, BBVA generated record net attributable profit of €9.66 billion, a 13.6% year-over-year increase. CEO Onur Genç said tangible book value per share plus dividends rose 14.3% from a year earlier, or nearly 20% excluding the effect of share buybacks.

The bank reported a return on tangible equity of 22% and return on equity of 20.8% for the first nine months. Genç said BBVA expects its return on tangible equity to exceed 21% at the group level.

Core revenue and lending momentum

Net interest income rose 16.5% year over year and 5.7% quarter over quarter in constant currency during the third quarter. Net fees and commissions increased 12.4%, led by payments and asset-management activities, while net trading income increased 5.7% year over year. Gross income rose 15.7% from a year earlier.

BBVA said lending growth reached more than 20% year over year in current euros at the end of the quarter. In its two largest markets, loans increased 7.3% in Spain and 12% in Mexico. The bank said consumer loans, credit cards and enterprise lending were among the faster-growing and more profitable segments.

Genç said interest-rate headwinds were gradually fading in Spain and Mexico, where BBVA’s net interest income is positively correlated with rates. He said volume growth is expected to contribute more directly to earnings as margin pressure eases.

Expenses increased 16% in the first nine months, compared with a 16.3% increase in gross income. BBVA’s efficiency ratio improved 9 basis points from a year earlier to 37.9%. Excluding non-recurring effects, the bank said the improvement would have been 81 basis points.

Capital, asset quality and shareholder distributions

BBVA’s CET1 capital ratio fell to 12.21% at the end of the quarter from a pro forma 12.41% in June, after accounting for an ongoing €2 billion extraordinary share buyback. Strong earnings added 71 basis points of capital, but dividend accruals and AT1 coupons reduced capital by 38 basis points, while risk-weighted asset growth reduced it by 44 basis points.

Genç said the increase in risk-weighted assets reflected “exceptional lending activity” and capital deployment toward profitable growth. Market movements, including interest-rate curve and currency changes, had a 22-basis-point negative effect within the other capital category.

The company paid an interim dividend of €0.37 per share on Oct. 15 and is executing the second €1 billion tranche of its €2 billion extraordinary buyback program.

BBVA said asset-quality metrics remained broadly stable. The nonperforming loan ratio was 2.6%, the coverage ratio was 84%, and the cost of risk stood at 144 basis points for the first nine months.

During the question-and-answer session, Genç said the bank does not intend to raise its CET1 management target range of 11.5% to 12%, despite a higher supervisory requirement beginning in 2027. He said BBVA’s 2027 requirement would be 9.36%, leaving a 264-basis-point buffer to the upper end of its target range.

Spain and Mexico remain key earnings contributors

In Spain, quarterly net profit totaled €934 million, while nine-month profit reached €3.1 billion. BBVA said nine-month earnings were up 2.3% year over year when excluding VAT adjustments and an amnesty-related cost. Net interest income rose 3.4% year over year and 1.2% from the prior quarter, supported by lending growth.

Spain’s consumer and enterprise lending each grew by about 10%, while deposits rose 5.8%. CFO Gonzalo Rodríguez said higher deposit costs in the quarter primarily reflected quickly repriced wholesale and corporate deposits. Genç said retail and small-business deposit costs experienced limited pressure.

BBVA expects further support to Spanish customer spreads from mortgage repricing. Genç said 44% of loans in the Spain business unit are variable-rate, with the bank particularly sensitive to three- and six-month Euribor rates.

In Mexico, nine-month net profit was €4.5 billion, up 8.4% year over year in constant euros. Loan growth accelerated to 12%, driven by mid-sized corporate demand and continued retail momentum. Net interest income rose 8.5% year over year and 2.6% from the prior quarter.

Genç said BBVA expects to exceed its approximately 10% lending-growth guidance for Mexico, although he said the reported growth rate could moderate somewhat because of comparisons with the prior year. He added that the bank believes customer spreads in Mexico have reached their bottom as the central bank’s easing cycle has ended, with rates at 6.5%.

Turkey, South America and corporate banking

BBVA’s Turkish operation earned nearly €260 million in the third quarter and €789 million in the first nine months. Net interest income in Turkey rose 16.8% from the prior quarter, supported by improved lira customer spreads, funding-cost optimization and higher lending volumes.

However, the bank said retail credit risk remained under pressure from a prolonged high-rate environment. Turkey’s cost of risk rose to 255 basis points year to date, above BBVA’s 220-basis-point guidance. Management said it remained confident in achieving around €1 billion of full-year Turkish net profit, with a downward bias.

In South America, third-quarter profit was €265 million and nine-month profit was €821 million, up 42% year over year in current euros. Loan growth was close to 15% in constant euros, while improved customer spreads in Colombia and Peru supported revenue. The bank said cost of risk in the region could come slightly above guidance, depending mainly on asset-quality trends in Argentina.

BBVA’s rest-of-business unit, which includes its global corporate and investment banking operations, recorded quarterly profit of €291 million and nine-month profit of €800 million. Gross income increased nearly 12% from the prior quarter, while cost of risk declined to 11 basis points year to date.

Genç said close to 90% of corporate and investment banking revenue is client-driven and about 40% involves cross-border activity. He said the bank is selectively expanding in debt financing, advisory and project finance, including data-center financing, while maintaining that risks are controlled.

The bank also highlighted its artificial-intelligence initiatives, including a voice assistant that has achieved close to a 90% successful-resolution rate in pilot interactions. BBVA said some AI agents have reduced preparation time for certain enterprise risk financial programs by as much as 30%.

About Banco Bilbao Vizcaya Argentaria (NYSE:BBVA)

Banco Bilbao Vizcaya Argentaria, SA NYSE: BBVA is a global financial services group headquartered in Bilbao, Spain. The bank traces its origins to Banco de Bilbao, founded in 1857, and adopted the BBVA name in 1999 following the merger of Banco Bilbao Vizcaya and Argentaria.

BBVA provides retail and commercial banking services, including checking and savings accounts, consumer and mortgage lending, credit cards, payments, and digital banking. It also serves businesses and institutions through corporate and investment banking, transaction banking, capital markets, and advisory services.

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