Banco Bilbao Vizcaya Argentaria (BBVA) investor relations material

Strategic transaction and investment case

• Emphasized the in-market consolidation benefits of the Banco Sabadell tender offer, highlighting €900 million in expected synergies and a 42% premium over the undisturbed price, which is significantly higher than comparable deals.

• Stressed the complementary strengths in SMEs, retail, and corporate banking, projecting a 25% EPS upgrade for Sabadell shareholders if the deal proceeds.

• Outlined a robust standalone plan with €36 billion in excess capital return over four years if the deal does not materialize.

Capital allocation and financial discipline

• Maintains a CET1 ratio of 13.3% and plans to distribute €36 billion between 2025 and 2028, prioritizing organic growth, share buybacks, and selective M&A.

• Capital deployment is guided by strict return-on-equity criteria, with initiatives competing for capital based on profitability.

• Achieved the highest return on tangible equity among major European banks, with a focus on delivering shareholder value through disciplined execution.

Regional performance and outlook

• In Spain, expects low to mid-single digit revenue growth, supported by robust GDP growth, EU funding, and a service-based economy.

• In Mexico, strong franchise advantages and low banking penetration underpin high single-digit growth, with resilience to macro headwinds and positive cost of risk trends.

• Turkey is expected to contribute 10-12% of group net profit, with confidence in the current economic team and a leading market position mitigating risks from macro volatility.