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Banco Bilbao (BBVA)
NYSE:BBVA
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Banco Bilbao
(NYSE:BBVA)
Rating:73Outperform
Price Target:―
Positive Factors
Financial Performance
Net profit is 8% ahead of consensus.
Market Expansion
M&A with Sabadell could unlock significant value through market share gains, cost synergies, and scale in product offerings.
Strategic Positioning
BBVA is one of the '25 stocks for 2025' and is added to the Europe 1 list of top ideas, showcasing its potential for growth.
Negative Factors
Cost Management
Costs were a 10% higher vs. consensus.
Market 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
$89.76B
Dividend Yield4.09%
Average Volume (3M)1.75M
Price to Earnings (P/E)8.1
Beta (1Y)0.79
Revenue Growth30.24%
EPS Growth28.90%
CountryUS
Employees124,741
SectorFinancial
Sector Strength82
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.51
Shares Outstanding5,763,285,600
10 Day Avg. Volume1,316,324
30 Day Avg. Volume1,750,292
Financial Highlights & Ratios
PEG Ratio-0.35
Price to Book (P/B)1.45
Price to Sales (P/S)0.00
P/FCF Ratio-2.41
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.68Price Target Upside-11.17% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 primarily through interest income from loans and mortgages, as well as from fees and commissions associated with banking services like asset management, transaction processing, and advisory services. The bank also earns income from trading and investment activities, which includes buying and selling securities and other financial instruments. Key revenue streams include retail banking services, which provide interest and fee income, and corporate banking, which offers loans, credit, and financial services to businesses. BBVA's digital transformation strategy aims to enhance customer experience and drive growth in digital banking, contributing to its revenue. Strategic partnerships and collaborations, such as fintech alliances and joint ventures, also play a significant role in expanding its market reach and boosting earnings.
Banco Bilbao Financial Statement Overview
Summary
Banco Bilbao demonstrates solid financial performance with strong revenue and profit growth, supported by a stable equity structure. However, the high leverage and recent cash flow challenges pose risks that need to be managed to sustain long-term growth.Income Statement
Banco Bilbao has shown strong growth in its revenue and profitability over recent years. The net profit margin has improved significantly, considering the net income growth from €3.84 billion in 2020 to €10.05 billion in 2024. The gross profit margin is robust, indicating efficient cost management. However, the volatility in EBITDA margins suggests potential fluctuations in operational efficiency.78
Positive
Balance Sheet
The balance sheet reflects a solid equity base with a stockholders' equity of €55.65 billion in 2024. The equity ratio indicates a stable financial structure, although there's a high debt-to-equity ratio due to significant liabilities. The bank's cash reserves are substantial, providing a buffer against financial risks.70
Positive
Cash Flow
The cash flow statement reveals challenges in maintaining positive free cash flow, primarily due to increased capital expenditures and negative operating cash flow in 2024. Despite these issues, the bank's ability to generate operating cash flow has shown improvements in prior years, highlighting potential for future cash flow recovery.65
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 54.99B | 31.57B | 27.16B | 11.00M | 22.82B | 23.11B | Gross Profit |
| 47.75B | 33.63B | 29.54B | 11.00M | 22.82B | 23.11B | EBIT |
| 12.40B | 17.86B | 15.30B | 9.95B | 6.56B | 2.69B | EBITDA |
| 13.13B | 16.94B | 0.00 | 11.57B | 8.48B | 0.00 | Net Income Common Stockholders |
| 10.55B | 10.05B | 8.02B | 6.36B | 4.65B | 3.84B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 151.20B | 250.00B | 256.84B | 225.41B | 228.87B | 208.37B | Total Assets |
| 772.86B | 772.40B | 775.56B | 712.09B | 662.88B | 733.80B | Total Debt |
| 107.72B | 144.43B | 179.11B | 114.64B | 116.09B | 110.80B | Net Debt |
| 47.55B | 84.55B | 95.74B | 29.55B | 41.53B | 37.90B | 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 |
| 11.81B | -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
15.40
Price Trends
13.84
Positive
12.65
Positive
11.15
Positive
Market Momentum
0.50
Negative
70.75
Negative
84.33
Negative
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 14.55, above the 50-day MA of 13.84, and above the 200-day MA of 11.15, indicating a bullish trend. The MACD of 0.50 indicates Negative momentum. The RSI at 70.75 is Negative, neither overbought nor oversold. The STOCH value of 84.33 is Negative, 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 3 New Risks
1.
The trading market for securities issued by BBVA depends in part on the research reports of third-party securities analysts Q4, 2024
2.
Environmental, social and governance (ESG) risks may adversely impact the Group Q4, 2024
3.
The structure, capital, leverage, liquidity, MREL and resolution profile of the Group if the Exchange Offer is completed remains uncertain Q4, 2024
Banco Bilbao Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $120.80B | 8.57 | 13.25% | 2.13% | 0.27% | 19.44% | |
80 Outperform | $210.30B | 11.08 | 10.83% | 5.53% | -1.91% | -6.79% | |
77 Outperform | $55.87B | 9.32 | 13.70% | 3.84% | 18.85% | 14.85% | |
75 Outperform | $67.44B | 10.16 | 11.92% | 4.67% | 4.07% | 9.97% | |
74 Outperform | $62.98B | 9.05 | 9.36% | 2.42% | 11.33% | 47.74% | |
73 Outperform | $89.76B | 8.06 | 19.22% | 4.09% | 30.24% | 28.90% | |
64 Neutral | $12.78B | 9.87 | 7.67% | 17015.06% | 12.34% | -5.99% |
* Financial Sector Average
Performance Comparison
BBVA
Banco Bilbao
15.40
5.22
51.28%
BCS
Barclays
17.64
7.05
66.57%
HSBC
HSBC Holdings
59.41
18.22
44.23%
ING
ING Groep
21.42
4.85
29.27%
NWG
NatWest Group
13.96
6.46
86.13%
SAN
Banco Santander SA
7.94
2.99
60.40%
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.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.