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Banco Bilbao Vizcaya Argentaria (ES:BBVA)
BME:BBVA

Banco Bilbao Vizcaya Argentaria (BBVA) AI Stock Analysis

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ES

Banco Bilbao Vizcaya Argentaria

(BME:BBVA)

Rating:76Outperform
Price Target:
€15.00
▲(13.12%Upside)
BBVA's overall score reflects its strong financial performance, attractive valuation, and robust technical indicators. The bank's impressive profitability metrics and strategic focus on sustainable growth further bolster its position. However, external risks, such as macroeconomic challenges in Turkey and new tax structures in Spain, could impact future performance.

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

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 makes money primarily through interest income from loans and credit products, which constitutes a significant portion of its revenue. The company also generates revenue from non-interest income sources, including fees and commissions from services such as asset management, transaction banking, and insurance products. Additionally, BBVA benefits from trading and investment income derived from its capital markets activities. Strategic partnerships and technological innovations, particularly in digital banking, play a crucial role in expanding BBVA's customer base and enhancing its revenue streams.

Banco Bilbao Vizcaya Argentaria Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: 5.28%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
BBVA reported a strong financial performance with significant profit growth, high customer acquisition, and robust capital position. However, challenges in Turkey and uncertainties in Mexico's loan growth amid macroeconomic conditions present potential risks. The new banking tax in Spain also impacts financials.
Q1-2025 Updates
Positive Updates
Strong Financial Performance
BBVA reported a net attributable profit of EUR 2,698 million, a 23% increase compared to the same quarter last year and 10.9% higher than the previous quarter. Earnings per share increased by 24% year-over-year.
Impressive Profitability Metrics
Return on tangible equity reached 20.2% and return on equity reached 19.3%, positioning BBVA as one of the most profitable banks in Europe.
Robust Capital Position
The CET1 fully loaded capital ratio improved by 21 basis points during the quarter, reaching 13.09%, well above target range and regulatory requirements.
Record Customer Acquisition
BBVA acquired a record 2.9 million new customers in the quarter, with 66% joining through digital channels.
Sustainable Business Growth
BBVA reached EUR 29 billion in sustainable business in the quarter, with a target to channel EUR 700 billion between 2025 and 2029.
Negative Updates
Challenging Macro Environment in Turkey
Net profit in Turkey is expected to be somewhat below EUR 1 billion due to higher than anticipated inflation and interest rates by the year end.
Special Banking Tax in Spain
BBVA recorded an EUR 85 million charge in the income tax heading due to a new banking tax structure in Spain.
Short-Term Loan Growth Uncertainty in Mexico
Despite a 17% increase in loan growth, BBVA is cautious about revising guidance due to short-term nature of loans and macroeconomic uncertainties.
Company Guidance
In BBVA's first quarter 2025 earnings call, the bank highlighted several key financial metrics illustrating its robust performance and strategic priorities of value creation and profitable growth. Tangible value per share plus dividends grew by 14.1% year-over-year and 3.3% quarter-over-quarter. The bank achieved a return on tangible equity of 20.2% and a return on equity of 19.3%, positioning it as potentially the most profitable European bank among the continent's 15 largest. Net attributable profit reached EUR 2,698 million, a 23% increase from the same quarter last year. Earnings per share rose by 24% year-over-year to EUR 0.45. The CET1 fully loaded capital ratio improved by 21 basis points, reaching 13.09%. Net interest income grew by 8.5% year-over-year, and net fees and commissions increased by 19%. The efficiency ratio improved to 38.2%, and the cost of risk was at 130 basis points. BBVA attracted a record 2.9 million new customers and generated EUR 29 billion in sustainable business during the quarter.

Banco Bilbao Vizcaya Argentaria Financial Statement Overview

Summary
Banco Bilbao Vizcaya Argentaria demonstrates strong income statement performance with consistent revenue and profit growth. The balance sheet reflects a sound equity position, although there is a reliance on liabilities. Cash flow metrics show some concerns regarding growth but remain stable overall. The bank is well-positioned in the diversified banking industry with a focus on maintaining profitability and managing leverage effectively.
Income Statement
85
Very Positive
Banco Bilbao Vizcaya Argentaria exhibits strong financial performance with a substantial increase in total revenue and net income over the years. The TTM gross profit margin stands at 82.64%, indicating efficient cost management. The net profit margin is healthy at 23.70%, showing profitability. The revenue growth rate from 2024 to TTM is 25.52%, reflecting robust growth. EBIT and EBITDA margins are solid at 36.59% and 40.06%, respectively, indicating strong operational efficiency.
Balance Sheet
75
Positive
The bank maintains a strong equity position with a debt-to-equity ratio of 1.96, indicating moderate leverage. The return on equity (ROE) is impressive at 19.15%, showcasing effective utilization of shareholder equity. However, the equity ratio of 7.12% suggests a high reliance on liabilities for funding, which is typical in banking but still a potential risk factor. Overall, the balance sheet shows stability with a focus on equity growth.
Cash Flow
70
Positive
The TTM cash flow analysis indicates a free cash flow growth rate of -85.44%, primarily due to a significant reduction in operating cash flow compared to the previous year. Despite this, the operating cash flow to net income ratio is 0.57, suggesting moderate cash generation efficiency relative to net income. The free cash flow to net income ratio stands at 0.45, reflecting moderate cash generation capabilities. The reduction in free cash flow growth is a concern but is partially offset by positive cash flow metrics.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
44.52B35.48B29.54B28.07B23.00B22.27B
Gross Profit
36.79B33.63B29.54B28.07B23.00B22.27B
EBIT
16.30B15.40B12.42B10.27B7.25B5.25B
EBITDA
17.83B16.94B13.82B11.60B8.48B6.54B
Net Income Common Stockholders
10.55B10.05B8.02B6.36B4.65B1.30B
Balance SheetCash, Cash Equivalents and Short-Term Investments
151.20B199.57B256.84B225.41B228.87B208.37B
Total Assets
772.86B772.40B775.56B712.09B662.88B733.80B
Total Debt
107.72B144.43B179.11B114.64B116.09B110.80B
Net Debt
47.55B84.55B95.74B29.55B41.53B37.90B
Total Liabilities
713.60B712.39B720.29B661.57B614.13B683.78B
Stockholders Equity
55.08B55.65B51.70B46.90B43.91B44.55B
Cash FlowFree Cash Flow
4.77B32.74B75.34B21.28B-2.19B38.23B
Operating Cash Flow
5.99B33.94B77.16B23.72B-1.24B39.35B
Investing Cash Flow
-25.15B-53.55B-79.30B-3.91B-1.63B-37.00M
Financing Cash Flow
-3.21B-2.57B-1.84B-7.56B-4.35B-2.07B

Banco Bilbao Vizcaya Argentaria Technical Analysis

Technical Analysis Sentiment
Positive
Last Price13.26
Price Trends
50DMA
12.60
Positive
100DMA
12.20
Positive
200DMA
10.62
Positive
Market Momentum
MACD
0.12
Positive
RSI
55.38
Neutral
STOCH
57.49
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 13.26 is below the 20-day moving average (MA) of 13.35, above the 50-day MA of 12.60, and above the 200-day MA of 10.62, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 55.38 is Neutral, neither overbought nor oversold. The STOCH value of 57.49 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
€75.80B7.3319.33%6.36%20.72%27.50%
64
Neutral
$12.85B9.817.79%78.20%12.23%-7.93%
€14.87B6.8515.03%5.88%
GBBNC
£88.86B8.0913.26%2.68%
€9.97B9.8617.81%3.73%
€52.38B8.5417.33%4.74%
$5.75B8.379.23%2.90%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:BBVA
Banco Bilbao Vizcaya Argentaria
13.26
4.64
53.77%
GB:0H00
Banco de Sabadell
2.81
1.15
69.28%
GB:BNC
Banco Santander
590.00
234.53
65.98%
GB:0H7O
Bankinter
11.17
3.91
53.86%
GB:0ILK
CAIXABANK
7.41
2.61
54.38%
UNJCF
Unicaja Banco SA
2.16
0.90
71.43%

Banco Bilbao Vizcaya Argentaria Corporate Events

BBVA’s Acquisition of Banco Sabadell Approved with Conditions
Apr 30, 2025

BBVA has received authorization from the National Commission of Markets and Competition (CNMC) for its acquisition of Banco de Sabadell, forming the second largest financial entity in Spain by credit volume. This merger is contingent upon commitments to maintain financial inclusion, territorial cohesion, and credit access for SMEs and freelancers, including maintaining office operations in underserved areas and offering favorable commercial conditions.

BBVA Announces Early Redemption of 2020 Mortgage Bonds
Apr 23, 2025

BBVA has announced the early redemption of its ‘Mortgage Bonds – October 2020’ issuance, with a total value of 2 billion euros, set to occur on April 29, 2025. This move reflects BBVA’s strategic financial management, potentially impacting its liquidity and market positioning positively while ensuring compliance with regulatory requirements.

BBVA Announces Early Redemption of 1.5 Billion Euro Territorial Bonds
Apr 23, 2025

BBVA has announced the early redemption of its ‘Territorial Bonds – September 2020,’ with a total issuance amount of 1.5 billion euros. This strategic move, set for completion by April 29, 2025, reflects BBVA’s proactive financial management and could impact its liquidity and financial strategy positively.

BBVA to Present Q1 2025 Financial Results
Apr 22, 2025

BBVA announced it will present its first quarter 2025 financial results on April 29, 2025. The presentation will be accessible online via BBVA’s corporate website, and a recording will be available for one month, indicating the company’s commitment to transparency with its stakeholders.

BBVA Announces Early Redemption of Senior Preferred Bonds
Apr 1, 2025

BBVA has announced its decision to redeem early the issuance of Senior Preferred bonds, originally made in May 2023, with a total nominal amount of 1,000 million euros. This strategic move, set to occur in May 2025, aligns with the company’s financial management strategies and requires authorization from the European Central Bank, potentially impacting stakeholders by demonstrating BBVA’s proactive financial planning and commitment to maintaining robust financial health.

BBVA Shareholders Approve 2024 Financials and Dividend Allocation
Mar 21, 2025

The Ordinary General Meeting of Shareholders of BBVA approved the annual accounts and management reports for the fiscal year 2024, along with the non-financial information statement. Additionally, a proposal for the application of the fiscal year’s results was approved, allocating over €4 billion for dividend payments, highlighting BBVA’s financial health and commitment to shareholder returns.

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.