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Banco Bilbao (BBVA)
NYSE:BBVA
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Banco Bilbao
(NYSE:BBVA)
Rating:82Outperform
Price Target:
$17.50
â–²(13.64%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
$85.18B
Dividend Yield5.08%
Average Volume (3M)2.86M
Price to Earnings (P/E)7.7
Beta (1Y)0.73
Revenue Growth19.48%
EPS Growth26.26%
CountryUS
Employees124,741
SectorFinancial
Sector Strength74
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.51
Shares Outstanding5,763,285,600
10 Day Avg. Volume2,666,724
30 Day Avg. Volume2,863,229
Financial Highlights & Ratios
PEG Ratio1.35
Price to Book (P/B)1.39
Price to Sales (P/S)0.00
P/FCF Ratio15.38
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.50Price Target Upside13.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Banco Bilbao Business Overview & Revenue Model
Company DescriptionBanco Bilbao Vizcaya Argentaria (BBVA) is a multinational financial services company headquartered in Spain. It is one of the largest banks in the world and operates in a diverse range of sectors, including retail banking, corporate and investment banking, asset management, and insurance. BBVA provides a wide array of products and services such as loans, credit cards, mortgages, investment solutions, and digital banking services to individual customers, small and medium enterprises, and large corporations across its global footprint.
How the Company Makes MoneyBBVA makes money primarily through interest income, which is generated from the loans and credit it provides to customers. The bank earns interest on the principal amount lent to individuals and businesses, which constitutes a significant portion of its revenue. Additionally, BBVA generates non-interest income through fees and commissions from services such as account maintenance, fund management, insurance products, and transaction processing. The bank also benefits from trading, investment banking activities, and asset management services. BBVA's revenue is further supported by strategic partnerships and collaborations in fintech and digital banking innovations, enhancing its product offerings and market reach. These diversified income streams, combined with its global presence, contribute to BBVA's financial performance.
Banco Bilbao Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 7.17%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call highlights strong financial performance with significant growth in profitability, customer acquisition, and loan growth. However, there are challenges due to new taxes in Spain and macroeconomic uncertainties in Turkey and Mexico that could impact future performance.Q1-2025 Updates
Positive Updates
Strong Tangible Value Growth
Tangible value per share plus dividends increased by 14.1% year-over-year and 3.3% in the first quarter of 2025.
Outstanding Profitability
Return on tangible equity reached 20.2% and return on equity was 19.3% in the first quarter of 2025.
Record Net Attributable Profit
Net attributable profit for the quarter reached EUR 2,698 million, a 23% increase year-over-year and 10.9% higher than the previous quarter.
Robust Loan Growth
Loan growth in Spain reached 6.6% year-over-year, and Mexico saw a significant loan growth of 17.2% year-over-year.
Increased Customer Base
The bank acquired a record 2.9 million new customers in the first quarter of 2025, with 66% through digital channels.
Improved Efficiency Ratio
The efficiency ratio improved to 38.2%, an improvement of 469 basis points versus last year.
Solid Asset Quality
Non-Performing Loan (NPL) ratio stood at 2.9% and the coverage ratio at 82%, with a cost of risk at 130 basis points.
Negative Updates
Banking Tax Impact in Spain
A EUR 85 million charge was booked under income tax for the quarterly accrual of the new banking tax in Spain.
Challenges in Turkey
Higher than anticipated inflation and interest rates in Turkey are expected, impacting profitability with net profit to close somewhat below EUR 1 billion in 2025.
Potential Impact of Global Trade Uncertainty
Uncertainty regarding global trade dynamics, particularly tariffs, could impact future loan growth and economic conditions in Mexico.
Company Guidance
During BBVA's first quarter 2025 earnings call, the company provided a comprehensive update on its financial metrics, demonstrating strong performance and strategic focus. Tangible value per share plus dividends increased by 14.1% year-over-year, and 3.3% over the quarter. Profitability was highlighted with a return on tangible equity of 20.2% and a return on equity of 19.3%, positioning BBVA as potentially the most profitable European bank among the continent's largest 15 banks. Net attributable profit for the quarter was EUR 2,698 million, marking a 23% increase year-over-year and a 10.9% rise from the previous quarter, translating into earnings per share of EUR 0.45, a 24% increase year-over-year. The CET1 fully loaded capital ratio improved by 21 basis points to 13.09%, exceeding the target range and regulatory requirements. Net interest income saw an 8.5% year-over-year growth, with net fees and commissions up by 19%, while the efficiency ratio improved to 38.2%. Asset quality remained solid with a cost of risk at 130 basis points. BBVA also reported record acquisition of 2.9 million new customers and EUR 29 billion in sustainable business for the quarter.Banco Bilbao Financial Statement Overview
Summary
BBVA shows strong financial performance in revenue and profitability, with a high net profit margin and effective cost management. However, high leverage typical for banks and significant negative cash flow present liquidity challenges.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 31.57B | 27.16B | 22.98B | 22.82B | 23.11B |
| Gross Profit | 33.63B | 28.97B | 22.98B | 22.82B | 23.11B |
| EBITDA | 16.94B | 13.82B | 11.60B | 8.48B | 6.54B |
| Net Income | 10.05B | 8.02B | 6.36B | 4.65B | 1.30B |
Balance Sheet | |||||
| Total Assets | 772.40B | 775.56B | 712.09B | 662.88B | 733.80B |
| Cash, Cash Equivalents and Short-Term Investments | 250.00B | 256.84B | 225.41B | 228.87B | 208.37B |
| Total Debt | 144.43B | 179.11B | 114.64B | 116.09B | 110.80B |
| Total Liabilities | 712.39B | 720.29B | 661.57B | 614.13B | 683.78B |
| Stockholders Equity | 55.65B | 51.70B | 46.90B | 43.91B | 44.55B |
Cash Flow | |||||
| Free Cash Flow | -19.39B | -2.54B | 21.28B | -2.19B | 38.23B |
| Operating Cash Flow | -18.19B | -721.00M | 23.72B | -1.24B | 39.35B |
| Investing Cash Flow | -1.42B | -1.42B | -3.91B | -1.63B | -37.00M |
| Financing Cash Flow | -2.57B | -1.84B | -7.56B | -4.35B | -2.07B |
Banco Bilbao Technical Analysis
Positive
15.40
Price Trends
15.14
Positive
14.33
Positive
12.25
Positive
Market Momentum
-0.03
Positive
55.13
Neutral
39.77
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 15.4 is above the 20-day moving average (MA) of 15.19, above the 50-day MA of 15.14, and above the 200-day MA of 12.25, indicating a bullish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 55.13 is Neutral, neither overbought nor oversold. The STOCH value of 39.77 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $85.18B | 7.69 | 19.22% | 5.08% | 19.48% | 26.26% | |
80 Outperform | $222.47B | 11.83 | 10.83% | 7.41% | -1.91% | -6.79% | |
78 Outperform | $129.15B | 9.56 | 13.25% | 0.39% | 0.26% | 19.35% | |
77 Outperform | $54.88B | 9.22 | 13.70% | 3.88% | 18.85% | 14.85% | |
76 Outperform | $67.46B | 9.87 | 9.36% | 3.54% | 11.33% | 47.74% | |
75 Outperform | $70.03B | 11.21 | 11.92% | 5.04% | -0.63% | -6.01% | |
68 Neutral | $17.10B | 11.62 | 9.70% | 3.86% | 11.32% | -7.37% |
* Financial Sector Average
Performance Comparison
BBVA
Banco Bilbao
15.40
5.09
49.37%
BCS
Barclays
19.46
8.06
70.70%
HSBC
HSBC Holdings
65.13
24.85
61.69%
ING
ING Groep
23.80
6.56
38.05%
NWG
NatWest Group
13.79
5.41
64.56%
SAN
Banco Santander SA
8.88
4.10
85.77%
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.