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Banco Bilbao (BBVA)
NYSE:BBVA
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Banco Bilbao
(NYSE:BBVA)
Rating:75Outperform
Price Target:
$21.50
â–²(16.47% Upside)
Positive Factors
Earnings
Net profit is 8% ahead of consensus.
Market Position
BBVA is defined as a compounder with high-quality franchise businesses, sustainable revenues, dominant market positions, and pricing power.
Negative Factors
Expenses
Costs were a 10% higher vs. consensus.
Valuation
BBVA trades at a steep discount to peers despite a c.19% ROTE.
Banco Bilbao (BBVA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$103.48B
Dividend Yield4.35%
Average Volume (3M)1.63M
Price to Earnings (P/E)9.2
Beta (1Y)0.70
Revenue Growth7.86%
EPS Growth17.13%
CountryUS
Employees124,741
SectorFinancial
Sector Strength75
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.53
Shares Outstanding5,763,285,600
10 Day Avg. Volume1,455,355
30 Day Avg. Volume1,630,521
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.11
Enterprise Value/Revenue4.91
Enterprise Value/Gross Profit6.85
Enterprise Value/Ebitda12.26
Forecast
1Y Price Target
$21.50Price Target Upside16.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Banco Bilbao Business Overview & Revenue Model
Company DescriptionBanco Bilbao Vizcaya Argentaria, S.A., together with its subsidiaries, provides retail banking, wholesale banking, and asset management services. It offers current accounts; and demand, savings, overnight, time, term, and subordinated deposits. The company also provides loan products; deals in securities; and manages pension and investment funds. In addition, it offers credit cards; corporate and investment banking services; insurance products and services; and real estate services. The company provides its products through online and mobile channels. As of December 31, 2021, it operated through a network of 6,083 branches and 29,148 ATMs. It operates in Spain, Mexico, South America, the United States, Turkey, Asia, and rest of Europe. Banco Bilbao Vizcaya Argentaria, S.A. was founded in 1857 and is headquartered in Bilbao, Spain.
How the Company Makes MoneyBBVA generates revenue through various key streams, primarily from interest income, fees, and commissions. The bank earns interest income by lending money to customers at higher rates than the interest it pays on deposits. This interest rate spread is a major contributor to its profitability. Additionally, BBVA charges fees for services such as account maintenance, transactions, and investment services, which add to its revenue. The bank also engages in investment banking activities, including underwriting and advisory services, which provide further income. Significant partnerships, especially in the fintech sector, enhance BBVA's technological capabilities and customer reach, contributing to its earnings through innovative financial products and services. Furthermore, the bank's focus on digital transformation and customer-centric services has positioned it to capture a broader market share and increase profitability.
Banco Bilbao Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance in terms of profitability, capital ratios, and strategic progress in customer acquisition and sustainability. However, challenges such as the negative impact of currency fluctuations and slower-than-expected progress in Turkey were noted. Overall, the positive aspects significantly outweigh the lowlights, indicating strong momentum and strategic execution.Q2-2025 Updates
Positive Updates
Strong Tangible Book Value and Profitability Growth
Tangible book value per share plus dividends increased by 14.6% year-over-year and 2.9% in the quarter. Return on tangible equity reached 20.4% and return on equity was 19.5% for the first six months of 2025.
Record Net Attributable Profit
Net attributable profit reached EUR 2.749 billion despite currency headwinds, with a positive impact from tax audits and VAT reviews contributing approximately EUR 150 million.
CET1 Capital Ratio Improvement
CET1 capital ratio increased by 25 basis points during the quarter, reaching 13.34%.
Loan Growth and Core Revenue Increase
Loan growth at the group level was 16% year-over-year, with strong core revenue growth in Spain and Mexico, which increased by 2.2% and 9.6% year-over-year, respectively.
Strategic Progress in Sustainability and Customer Acquisition
Achieved EUR 63 billion in sustainable finance channeling in the first six months and acquired 5.7 million new customers.
Revised Upward Guidance for Spain and Mexico
Improved full-year guidance for Spain and Mexico, expecting loan growth, and cost of risk to remain below 35 and 350 basis points, respectively.
Negative Updates
Negative Impact from U.S. Dollar Hedges
The negative impact from U.S. dollar hedges on net trading income was around EUR 100 million due to U.S. dollar depreciation against the euro.
Challenges in Turkey
Turkey's performance was slower than initially expected, with a cost of risk standing at 164 basis points and an uncertain macro environment.
Pressure from Declining Rates in Core Markets
Falling rates in core markets negatively impacted results, despite efforts to sustain record profit levels.
Company Guidance
During BBVA's second quarter 2025 earnings webcast, the company highlighted several key financial metrics and announced its medium-term strategic objectives. The tangible book value per share plus dividends increased by 14.6% year-over-year and 2.9% quarter-over-quarter. The return on tangible equity reached 20.4%, while the return on equity stood at 19.5% for the first half of 2025. Net attributable profit was EUR 2.749 billion despite currency headwinds and falling rates, with extraordinary items contributing approximately EUR 150 million positively. The CET1 capital ratio improved by 25 basis points to 13.34%. Loan growth was exceptional at 16% year-over-year, with significant gains in Spain and Mexico. The efficiency ratio improved to 37.6%, and asset quality metrics were stable with a cost of risk at 132 basis points. BBVA also outlined a strategic plan targeting a 22% average return on tangible equity from 2025 to 2028, with tangible book value growth in the mid-teens and a cumulative net attributable profit of EUR 48 billion over the period.Banco Bilbao Financial Statement Overview
Summary
BBVA demonstrates strong growth and profitability in its income statement, supported by efficient operations and cost management. However, the balance sheet reflects high leverage typical of the banking sector, with a notable return on equity. The cash flow situation is concerning due to significant negative cash flows, which may impact liquidity. Overall, BBVA exhibits strong financial performance with areas needing attention in cash management.Income Statement
The income statement shows strong revenue growth with a 37.5% increase in revenue year-over-year from 2024 to TTM. The gross profit margin stands at 76.9% for TTM, demonstrating high profitability. The net profit margin is also impressive at 24.3%, indicating efficient cost management. EBIT and EBITDA margins are healthy at 40.1% and 41.1%, respectively, which reflect robust operational efficiency. Overall, the income statement reflects strong revenue and profit growth, a key strength for BBVA.85
Very Positive
Balance Sheet
BBVA's balance sheet shows a relatively high debt-to-equity ratio of 1.96 for TTM, indicating significant leverage, which is typical for banks but presents potential risk. However, the return on equity is strong at 19.2%, showcasing effective use of shareholder capital. The equity ratio is 7.1%, slightly on the lower side, suggesting a lower proportion of equity financing. The balance sheet reflects a stable financial position with some leverage risk.70
Positive
Cash Flow
The cash flow statement reveals a challenging situation with negative operating cash flow of -30.98 billion and free cash flow of -32.2 billion for TTM. The free cash flow to net income ratio is negative, indicating cash flow issues compared to profitability. Despite a significant free cash flow growth rate of 66.2% from 2024 to TTM, the overall negative cash flow is a concern. The cash flow analysis highlights liquidity challenges that need addressing.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 44.52B | 75.63B | 27.16B | 22.98B | 22.82B | 23.11B |
| Gross Profit | 31.93B | 33.63B | 28.97B | 22.98B | 22.82B | 23.11B |
| EBITDA | 17.83B | 16.94B | 13.82B | 11.60B | 8.48B | 6.54B |
| Net Income | 10.55B | 10.05B | 8.02B | 6.36B | 4.65B | 1.30B |
Balance Sheet | ||||||
| Total Assets | 772.86B | 772.40B | 775.56B | 712.09B | 662.88B | 733.80B |
| Cash, Cash Equivalents and Short-Term Investments | 151.20B | 250.00B | 256.84B | 225.41B | 228.87B | 208.37B |
| Total Debt | 107.72B | 144.43B | 179.11B | 114.64B | 116.09B | 110.80B |
| Total Liabilities | 713.60B | 712.39B | 720.29B | 661.57B | 614.13B | 683.78B |
| Stockholders Equity | 55.08B | 55.65B | 51.70B | 46.90B | 43.91B | 44.55B |
Cash Flow | ||||||
| Free Cash Flow | -32.20B | -19.39B | -2.54B | 21.28B | -2.19B | 38.23B |
| Operating Cash Flow | -30.98B | -18.19B | -721.00M | 23.72B | -1.24B | 39.35B |
| Investing Cash Flow | -1.32B | -1.42B | -1.42B | -3.91B | -1.63B | -37.00M |
| Financing Cash Flow | -3.21B | -2.57B | -1.84B | -7.56B | -4.35B | -2.07B |
Banco Bilbao Technical Analysis
Positive
18.46
Price Trends
16.76
Positive
15.68
Positive
13.47
Positive
Market Momentum
0.39
Positive
59.44
Neutral
26.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBVA, the sentiment is Positive. The current price of 18.46 is below the 20-day moving average (MA) of 18.58, above the 50-day MA of 16.76, and above the 200-day MA of 13.47, indicating a neutral trend. The MACD of 0.39 indicates Positive momentum. The RSI at 59.44 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BBVA.
Banco Bilbao Risk Analysis
Banco Bilbao disclosed 23 risk factors in its most recent earnings report. Banco Bilbao reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Banco Bilbao Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $67.82B | 8.98 | 9.83% | 2.20% | 16.06% | 64.31% | |
75 Outperform | $103.48B | 9.17 | 18.32% | 4.35% | 7.86% | 17.13% | |
75 Outperform | $70.97B | 11.05 | 12.08% | 4.85% | 1.13% | -1.14% | |
74 Outperform | $173.55B | 14.26 | 9.43% | 2.34% | 0.82% | 28.48% | |
74 Outperform | $141.66B | 9.80 | 12.85% | 2.43% | -14.74% | 17.03% | |
73 Outperform | $174.48B | 14.01 | 6.64% | 2.35% | 0.52% | 89.25% | |
68 Neutral | $18.05B | 11.73 | 10.24% | 3.73% | 9.66% | 1.70% |
* Financial Sector Average
Performance Comparison
BBVA
Banco Bilbao
18.46
8.88
92.69%
BCS
Barclays
20.11
8.30
70.28%
C
Citigroup
97.08
38.26
65.05%
ING
ING Groep
24.35
7.44
44.00%
MUFG
Mitsubishi UFJ
15.38
5.29
52.43%
SAN
Banco Santander SA
9.58
4.84
102.11%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.