Banco Bilbao Vizcaya Argentaria (BBVA) investor relations material

Strategic outlook and sustainability

• Achieved 22.2% return on tangible equity in H1, aligning with 2025–2028 targets and emphasizing both profitability and growth as sustainable due to diversified operations, low leverage, local scale, technology focus, and capital discipline.

• Lending book grew 62% since 2021, far outpacing European peers, driven by operations in low-leverage countries and leading positions in core markets.

• Growth and shareholder distributions are seen as mutually reinforcing, with dividend per share tripling from 2021 to 2025, underpinned by profitable capital deployment.

Geographic performance and competitive landscape

• Mexico remains a key profit contributor, benefiting from nearshoring, strong US trade ties, low leverage, and robust domestic investment plans like Plan Mexico, supporting positive macro and sector outlook.

• In Mexico, maintains a unique franchise with 26% market share, high transactionality, digital leadership, and strong customer satisfaction, successfully competing with fintechs and growing digital customer acquisition.

• Spain shows strong macro and sector growth, with 7% loan growth and market share gains in enterprise and consumer loans, while maintaining pricing discipline and high returns.

• Turkey faces short-term headwinds from higher inflation and rates, delaying exit from hyperinflation accounting beyond 2028, but long-term outlook remains positive if orthodox policies persist.

Business segments and risk management

• Rest of business segment grew over 50% year-on-year from a low base, driven by cross-border client opportunities, especially in CIB, with a 23.4% return on capital (excluding Turkey) and a conservative risk profile.

• Exposure to hyperscalers is managed conservatively, with client-driven revenues and focus on above-cost-of-equity returns.