Banco Bilbao Vizcaya Argentaria (BBVA) AI Stock Analysis

Compare

176 Followers

Top Page

Banco Bilbao Vizcaya Argentaria

(BME:BBVA)

Select Model

Outperform 76 (OpenAI - 4o)

Rating:76Outperform

Price Target:

€18.00

▲(10.97% Upside)

BBVA's strong earnings call performance, underscored by robust profitability and strategic growth plans, is the most significant factor driving the score. The financial performance shows solid cash flow and leverage improvements, though revenue decline is a concern. The valuation is attractive with a low P/E ratio and high dividend yield, while technical indicators suggest moderate bullish momentum.

Banco Bilbao Vizcaya Argentaria (BBVA) vs. iShares MSCI Spain ETF (EWP)

Market Cap

€92.30B

Dividend Yield4.32%

Average Volume (3M)6.44M

Price to Earnings (P/E)8.9

Beta (1Y)1.45

Revenue Growth7.39%

EPS Growth16.20%

CountryES

Employees124,741

SectorFinancial

Sector Strength70

IndustryBanks - Diversified

Share Statistics

EPS (TTM)0.46

Shares Outstanding5,763,285,600

10 Day Avg. Volume6,380,299

30 Day Avg. Volume6,435,537

Financial Highlights & Ratios

PEG Ratio0.19

Price to Book (P/B)1.02

Price to Sales (P/S)0.75

P/FCF Ratio1.74

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

€17.66

Price Target Upside8.88% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering7

Banco Bilbao Vizcaya Argentaria 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 several key streams. The primary source is interest income, which it earns from loans provided to individuals and businesses. This includes personal loans, mortgages, and corporate financing. Another significant revenue stream comes from fees and commissions charged for various services, including account maintenance, transaction fees, and advisory services. BBVA also earns income through its investment banking division, which offers services such as mergers and acquisitions, and underwriting. Additionally, the bank engages in wealth management and asset management services, generating fees from managing client assets. Strategic partnerships with fintech companies and other financial institutions enhance its service offerings and customer reach, further contributing to its earnings.

Banco Bilbao Vizcaya Argentaria 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 reflects a strong performance in terms of profitability, loan growth, and strategic initiatives, despite challenges posed by currency depreciation and interest rate sensitivity. The medium-term strategic objectives reinforce a positive outlook.

Q2-2025 Updates

Positive Updates

Strong Tangible Book Value Growth

Tangible book value per share, plus dividends, increased by 14.6% year-over-year and 2.9% in the quarter.

Record Profitability Metrics

Outstanding return on tangible equity of 20.4% and return on equity of 19.5% in the first six months of 2025.

Net Attributable Profit Growth

Net attributable profit reached EUR 2.749 billion despite falling rates and currency headwinds.

Capital Ratio Improvement

CET1 capital ratio improved by 25 basis points during the quarter, reaching 13.34%.

Loan Growth and Activity

Impressive loan growth at group level of 16% year-over-year, with Spain at 6.3% and Mexico at 11.7%.

Sustainability and Customer Acquisition

Channeling EUR 63 billion in sustainable finance in the first half of the year and acquiring 5.7 million new customers.

Spain and Mexico Performance

Spain showed strong loan growth and efficiency, while Mexico delivered solid operating income growth with a stable customer spread.

Negative Updates

Currency Depreciation Impact

High negative impact from U.S. dollar depreciation against the euro, affecting hedges.

Challenges in Turkey

Turkey's progress slower than expected, with a cost of risk standing at 164 basis points.

Interest Rate Sensitivity

Falling interest rates in core markets negatively impacted results, though partially mitigated by activity growth.

Company Guidance

During BBVA's second quarter 2025 earnings call, the bank presented strong financial performance metrics and updated its midterm strategic objectives. Tangible book value per share plus dividends rose by 14.6% year-over-year, while return on tangible equity reached 20.4%. Net attributable profit for the quarter was EUR 2.749 billion, supported by high growth in net interest income and fees, which increased by 11% and 18% year-over-year, respectively. Despite currency headwinds, BBVA's CET1 capital ratio improved by 25 basis points to 13.34%. The bank also highlighted robust loan growth, with a 16% year-over-year increase at the group level, and improved its full-year guidance across key financial metrics, including a target cost-to-income ratio of 33% for its Spanish operations. Looking ahead, BBVA outlined a strategic plan aiming for a return on tangible equity of around 22% on average for 2025-2028, with expectations of mid-teens growth in tangible book value including dividends. Overall, the bank affirmed its strong position in the industry, emphasizing sustainable returns and shareholder distributions.

Banco Bilbao Vizcaya Argentaria Financial Statement Overview

Summary

Banco Bilbao Vizcaya Argentaria exhibits strong profitability and cash flow generation, with improvements in leverage. However, the significant revenue decline in the TTM poses a risk that needs to be addressed to sustain growth.

Income Statement

Positive

The income statement shows strong profitability with a TTM net profit margin of 23.33% and an EBIT margin of 35.64%. However, there is a significant revenue decline of 19.13% in the TTM, indicating potential challenges in revenue generation.

Balance Sheet

Positive

The balance sheet reflects a moderate debt-to-equity ratio of 1.26 in the TTM, which is an improvement from previous years, indicating better leverage management. However, the equity ratio remains low, suggesting limited equity financing.

Cash Flow

Positive

Cash flow analysis reveals a robust free cash flow growth of 458.22% in the TTM, demonstrating strong cash generation capabilities. The free cash flow to net income ratio is healthy at 0.76, indicating efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.03B	75.63B	58.19B	40.37B	31.32B	22.27B
Gross Profit	31.07B	33.63B	28.97B	24.68B	19.97B	22.27B
EBITDA	17.57B	16.94B	13.82B	11.60B	8.48B	6.54B
Net Income	10.51B	10.05B	8.02B	6.36B	4.65B	1.30B
Balance Sheet
Total Assets	776.97B	772.40B	775.56B	712.09B	662.88B	733.80B
Cash, Cash Equivalents and Short-Term Investments	131.27B	118.86B	256.84B	225.41B	228.87B	208.37B
Total Debt	71.80B	144.43B	179.35B	114.64B	116.09B	110.80B
Total Liabilities	716.09B	712.39B	720.29B	661.57B	614.13B	683.78B
Stockholders Equity	56.83B	55.65B	51.70B	46.90B	43.91B	44.55B
Cash Flow
Free Cash Flow	25.47B	32.74B	-2.54B	21.28B	-2.19B	38.23B
Operating Cash Flow	26.53B	33.94B	-721.00M	23.72B	-1.24B	39.35B
Investing Cash Flow	-25.07B	-53.55B	-1.42B	-3.91B	-1.63B	-37.00M
Financing Cash Flow	-2.70B	-2.57B	-1.84B	-7.56B	-4.35B	-2.07B

Banco Bilbao Vizcaya Argentaria Technical Analysis

Technical Analysis Sentiment

Positive

Last Price16.22

Price Trends

50DMA

15.02

Positive

100DMA

14.07

Positive

200DMA

12.59

Positive

Market Momentum

MACD

0.27

Positive

RSI

60.76

Neutral

STOCH

73.20

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:BBVA, the sentiment is Positive. The current price of 16.22 is above the 20-day moving average (MA) of 15.90, above the 50-day MA of 15.02, and above the 200-day MA of 12.59, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 60.76 is Neutral, neither overbought nor oversold. The STOCH value of 73.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:BBVA.

Banco Bilbao Vizcaya Argentaria Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BBVA	76 Outperform	€92.30B	8.95	18.91%	4.32%	7.39%	16.20%
SAN	73 Outperform	124.66B	9.48	13.28%	1.99%	-14.67%	16.25%
CABK	72 Outperform	60.86B	10.13	0.00%	5.04%	-3.16%	16.68%
UNI	71 Outperform	5.99B	9.61	0.00%	6.50%	-5.30%	55.66%
BKT	71 Outperform	11.64B	11.40	0.00%	4.32%	-1.36%	13.42%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

* Financial Sector Average

Performance Comparison

ES:BBVA

Banco Bilbao Vizcaya Argentaria

16.22

7.01

76.09%

GB:0H00

Banco de Sabadell

3.20

1.41

78.77%

GB:BNC

Banco Santander

736.00

366.00

98.92%

GB:0H7O

Bankinter

13.14

5.58

73.81%

GB:0ILK

CAIXABANK

8.68

3.49

67.24%

UNJCF

Unicaja Banco SA

2.74

1.52

124.59%

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.Date of analysis: Sep 09, 2025