Banco Bilbao Vizcaya Argentaria (BBVA) Q1 2025 earnings summary

Executive summary

• Net attributable profit reached €2,698 million in 1Q25, up 46% year-over-year (22.7% reported, 46.3% at constant FX), with strong capital generation and profitability metrics.

• Core revenues grew robustly, driven by net interest income (+8.5% YoY) and net fees and commissions (+19% YoY), while efficiency ratio improved to 38.2%.

• CET1 ratio increased to 13.09%, above the target range, reflecting a robust capital position and prudent risk management.

• Record customer acquisition of 2.9 million in 1Q25, 66% via digital channels, and digital sales accounted for 78.6% of total sales YTD.

• New sustainable business target set at €700bn for 2025-2029, with €29bn channeled in 1Q25, up 55% year-over-year.

Financial highlights

• Net interest income: €6,398m (+8.5% YoY), net fees and commissions: €2,060m (+19% YoY), net trading income: €948m (+40% YoY).

• Gross income: €9,324m (+28% YoY), operating income: €5,762m (+39% YoY), EPS: €0.45 (+22.9% YoY).

• Loans and advances to customers grew 1.2% quarter-on-quarter; customer funds up 1.9%.

• Efficiency ratio improved to 38.2% (down 469 bps YoY); cost of risk at 1.30% YTD, NPL ratio at 2.9%.

• Market capitalization reached €72.3bn (+12.2% YoY).

Outlook and guidance

• Management expects continued growth in core revenues, strong profitability, and efficiency, with a focus on sustainable business and digital transformation.

• Asset quality metrics are ahead of expectations, with cost of risk and NPL ratios expected to remain stable.

• CET1 ratio is expected to remain above the target range, supporting future capital allocation flexibility.

• Macroeconomic uncertainty remains due to US policy shifts, potential inflation rebound, and geopolitical risks.

• Interest rate cuts in the Eurozone are possible, while US rate cuts may be delayed until 2026.