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Banco Bilbao Vizcaya Argentaria (ES:BBVA)
BME:BBVA
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Banco Bilbao Vizcaya Argentaria
(BME:BBVA)
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Rating:76Outperform
Price Target:
€25.00
▲(13.48% Upside)
BBVA's overall stock score of 76 reflects its strong financial performance and positive technical indicators. The company's robust revenue growth and profitability, combined with a reasonable valuation and positive earnings call sentiment, contribute to a favorable outlook. However, the high leverage and potential overbought technical conditions warrant cautious monitoring.
Positive Factors
Revenue and Margin Strength
Sustained double-digit revenue growth and high gross and net margins indicate a durable, scalable core banking franchise. These metrics reflect diversified income streams (NII, fees, trading) and structural cost control, supporting long-term profitability and reinvestment capacity across markets.
Cash Generation
Strong free cash flow growth and near parity of FCF to net income show efficient conversion of earnings into cash. This bolsters capacity to fund loan growth, capital buffers, buybacks and dividends without overreliance on external financing, strengthening long-term financial flexibility.
Capital Position and Returns
An improving CET1 ratio alongside planned buybacks and industry-leading returns on tangible equity signals balanced capital allocation. Strong capital supports risk absorption and shareholder remuneration while underpinning strategic investments, enhancing durable shareholder value creation.
Negative Factors
High Leverage
A materially elevated debt-to-equity ratio raises sensitivity to credit stress and interest-rate shocks, constraining capital flexibility. Over time high leverage can amplify losses, limit ability to absorb shocks, and force more conservative lending or higher provisioning during downturns.
Emerging Market Asset-Quality Pressure (Turkey)
Rising cost of risk and provisioning needs in Turkey reflect persistent macro and inflationary pressures that can erode margins and tie up capital. Continued asset-quality strain in this market risks sustained credit losses and higher cyclically-adjusted capital requirements.
Competitive Pressure in Mexico
Intensifying competition from digital challengers is a structural risk to deposit and fee margins in Mexico. Sustained market share erosion would force higher investment in digital capabilities or pricing concessions, pressuring long-term fee income and return on assets in a key market.
Banco Bilbao Vizcaya Argentaria (BBVA) vs. iShares MSCI Spain ETF (EWP)
Market Cap
€124.77B
Dividend Yield3.39%
Average Volume (3M)7.77M
Price to Earnings (P/E)12.3
Beta (1Y)1.50
Revenue Growth5.66%
EPS Growth8.16%
CountryES
Employees124,741
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.43
Shares Outstanding5,708,968,800
10 Day Avg. Volume8,267,449
30 Day Avg. Volume7,765,916
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
€22.18Price Target Upside0.68% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 multiple key streams, primarily from interest income, fees and commissions, and trading activities. Interest income is derived from the interest earned on loans extended to customers, which is a significant portion of their business model. Fees and commissions come from various services such as account maintenance, transaction processing, and investment products. Additionally, BBVA engages in trading and investment activities that contribute to its earnings. The bank also benefits from partnerships with fintech companies and other financial institutions to enhance its service offerings, particularly in digital banking. The institution's focus on digital transformation has led to increased efficiency and customer acquisition, further bolstering its revenue generation capabilities.
Banco Bilbao Vizcaya Argentaria Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
The earnings call presented a strong performance in terms of growth in tangible book value, record profits, and strategic progress in sustainability. However, there were challenges due to inflation impacts in Turkey, economic volatility in Argentina, and increasing competition in Mexico. The highlights of growth and profitability were balanced by these challenges.Q3-2025 Updates
Positive Updates
Strong Tangible Book Value Growth
Tangible book value per share plus dividends increased by 17% year-over-year and 4.5% in the quarter.
High Return on Tangible Equity
Industry-leading return on tangible equity of 19.7% and ROE of 18.8% in the first 9 months of 2025.
Record Net Attributable Profit
Net attributable profit exceeded EUR 2.5 billion, with a cumulative profit of nearly EUR 8 billion in the first 9 months, a 4.7% increase year-over-year.
Robust Loan Growth
Loan growth maintained at 16% year-over-year, leading to strong net interest income performance.
Positive Capital Position
CET1 capital ratio improved by 8 basis points to 13.42%, with plans for a significant share buyback program.
Strategic Progress in Sustainability
Record EUR 97 billion channeled in sustainable business within the first 9 months of 2025.
Strong Performance in Spain
Spain showed strong momentum with a net profit of EUR 3.1 billion in the first 9 months, driven by solid business performance and outstanding NII evolution.
Positive Asset Quality Metrics
Cost of risk in Spain remains contained at 34 basis points, and asset quality metrics are performing better than expectations.
Negative Updates
Net Attributable Profit Decrease
Net attributable profit decreased compared to the previous quarter due to higher inflation in Turkey and one-off positive impacts from the second quarter not recurring.
Challenges in Turkey
Cost of risk in Turkey slightly increased to 176 basis points, with provisioning needs remaining high in retail.
Argentina Economic Volatility
In Argentina, there was a sharp compression in spreads amid a volatile rate and currency environment, leading to some deterioration in asset quality.
Pressure from New Competitors in Mexico
Increased competition from neobanks in the Mexican market, particularly in the credit card and deposit segments.
Company Guidance
During BBVA's Q3 2025 earnings call, several key metrics and strategic insights were provided. Tangible book value per share plus dividends grew by 17% year-over-year and 4.5% in the quarter. The bank maintained high profitability ratios, with a return on tangible equity of 19.7% and a return on equity of 18.8% for the first nine months. Net attributable profit exceeded EUR 2.5 billion, despite challenges like higher inflation in Turkey and currency effects from the Mexican peso. The CET1 capital ratio improved by 8 basis points to 13.42%, bolstering shareholder remuneration plans, including a EUR 1 billion share buyback. Loan growth was strong at 16% year-over-year, particularly in Spain and Mexico, and net interest income and fees showed robust year-over-year growth of 18% and 15%, respectively. The efficiency ratio improved to 38.2%, while the cost of risk stood at 135 basis points. The bank's strategic focus included new customer acquisition, sustainability, and digital expansion, as highlighted by the acquisition of 8.7 million new customers, 66% through digital channels, and channeling EUR 97 billion in sustainable business.Banco Bilbao Vizcaya Argentaria Financial Statement Overview
Summary
Banco Bilbao Vizcaya Argentaria demonstrates strong financial performance with robust revenue growth and profitability. The high leverage on the balance sheet is a potential risk, but the company effectively generates returns on equity. Cash flow generation is strong, though stability could be improved. Overall, the financial statements reflect a well-performing company with growth potential, albeit with some leverage-related risks.Income Statement
Banco Bilbao Vizcaya Argentaria shows strong revenue growth with a 20.39% increase in TTM, indicating robust business expansion. The gross profit margin is high at 68.99%, and the net profit margin is solid at 23.33%, reflecting efficient cost management and profitability. EBIT and EBITDA margins are also healthy, suggesting strong operational performance. Overall, the income statement reflects a positive growth trajectory and strong profitability.85
Very Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 2.49, indicating significant leverage, which could pose a risk if not managed carefully. However, the return on equity is strong at 18.66%, showing effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset structure. While the company is profitable, the high leverage warrants cautious monitoring.70
Positive
Cash Flow
The cash flow statement shows impressive free cash flow growth of 57.20% in TTM, indicating strong cash generation capabilities. The free cash flow to net income ratio is high at 0.96, reflecting efficient conversion of income into cash. However, the operating cash flow coverage ratio is low, suggesting potential volatility in cash flow generation. Overall, the cash flow position is strong, but attention to cash flow stability is advised.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 54.22B | 75.63B | 58.19B | 40.37B | 31.32B | 22.27B |
| Gross Profit | 32.01B | 33.63B | 28.97B | 24.68B | 19.97B | 22.27B |
| EBITDA | 17.59B | 16.94B | 13.82B | 11.60B | 8.48B | 6.54B |
| Net Income | 10.41B | 10.05B | 8.02B | 6.36B | 4.65B | 1.30B |
Balance Sheet | ||||||
| Total Assets | 813.06B | 772.40B | 775.56B | 712.09B | 662.88B | 733.80B |
| Cash, Cash Equivalents and Short-Term Investments | 125.11B | 118.86B | 256.84B | 225.41B | 228.87B | 208.37B |
| Total Debt | 110.14B | 144.43B | 179.35B | 114.64B | 116.09B | 110.80B |
| Total Liabilities | 751.25B | 712.39B | 720.29B | 661.57B | 614.13B | 683.78B |
| Stockholders Equity | 57.64B | 55.65B | 51.70B | 46.90B | 43.91B | 44.55B |
Cash Flow | ||||||
| Free Cash Flow | 40.03B | 32.74B | -2.54B | 21.28B | -2.19B | 38.23B |
| Operating Cash Flow | 41.23B | 33.94B | -721.00M | 23.72B | -1.24B | 39.35B |
| Investing Cash Flow | -38.15B | -53.55B | -1.42B | -3.91B | -1.63B | -37.00M |
| Financing Cash Flow | -3.01B | -2.57B | -1.84B | -7.56B | -4.35B | -2.07B |
Banco Bilbao Vizcaya Argentaria Technical Analysis
Positive
22.03
Price Trends
19.95
Positive
18.33
Positive
16.00
Positive
Market Momentum
0.51
Negative
69.65
Neutral
84.32
Negative
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 22.03 is above the 20-day moving average (MA) of 21.02, above the 50-day MA of 19.95, and above the 200-day MA of 16.00, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 69.65 is Neutral, neither overbought nor oversold. The STOCH value of 84.32 is Negative, 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | €124.77B | 12.30 | 18.66% | 3.39% | 5.66% | 8.16% | |
76 Outperform | €80.07B | 13.73 | 15.73% | 4.05% | -7.50% | 12.76% | |
75 Outperform | $7.24B | 11.51 | 8.76% | 5.80% | -9.39% | 45.60% | |
75 Outperform | €13.29B | 12.58 | 16.71% | 3.64% | -7.12% | 15.96% | |
73 Outperform | £157.01B | 12.18 | 12.91% | 1.82% | -16.49% | 14.32% | |
72 Outperform | €17.04B | 16.93 | 7.75% | 7.43% | -6.77% | -39.63% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
ES:BBVA
Banco Bilbao Vizcaya Argentaria
21.91
11.38
108.01%
ES:SAB
Banco de Sabadell
3.39
1.27
59.77%
ES:SAN
Banco Santander
10.70
5.43
102.92%
ES:BKT
Bankinter
14.79
6.94
88.31%
ES:CABK
CAIXABANK
11.41
5.80
103.46%
ES:UNI
Unicaja Banco SA
2.82
1.45
105.70%
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.