SKN | BBVA Reports Record €9.66 Billion Profit as Lending Growth and Returns Strengthen

Key Points:

• BBVA reported third-quarter net attributable profit exceeding €3 billion, up 19.1% year over year, while nine-month profit reached a record €9.66 billion.
• Net interest income increased 16.5% and fees rose 12.4% in the third quarter, supported by lending growth and customer activity across the bank’s core markets.
• BBVA maintained its CET1 management target of 11.5% to 12%, reported a 12.21% CET1 ratio, and continued executing the second €1 billion tranche of its share buyback programme.

Banco Bilbao Vizcaya Argentaria (BBVA) reported record profitability for the first nine months of 2026, supported by stronger lending activity, higher net interest income, and continued growth in fees. Third-quarter net attributable profit exceeded €3 billion, increasing 19.1% from a year earlier, while nine-month profit reached €9.66 billion. The results underscore the Spanish banking group’s ability to generate earnings across its main markets, particularly Spain and Mexico, while maintaining a defined capital-management framework.

BBVA Strengthens Profitability and Maintains High Returns

For the first nine months of 2026, BBVA’s net attributable profit increased 13.6% year over year. The bank reported a 22% return on tangible equity and a 20.8% return on equity. Chief Executive Officer Onur Genç said management expects return on tangible equity to remain above 21% at the group level.

BBVA also reported that tangible book value per share plus dividends increased 14.3% year over year, or nearly 20% when excluding the effect of share buybacks, according to the earnings-call account. These measures provide investors with insight into the bank’s profitability and value creation. Their sustainability will depend on future earnings, capital requirements, and the performance of its lending and fee-generating businesses.

Interest Income and Fees Drive Revenue Expansion

BBVA’s third-quarter net interest income rose 16.5% year over year and 5.7% quarter over quarter in constant currency. Net fees and commissions increased 12.4%, led by payments and asset-management activities, while net trading income advanced 5.7%. Together, these developments supported a 15.7% increase in gross income.

The combination of lending-related income and fee growth is significant for BBVA’s earnings profile. Fee-generating activities can broaden revenue sources beyond traditional interest income, while stronger customer engagement can support demand for payments, investment services, and credit. The bank’s ability to maintain this balance will be an important indicator in subsequent quarters.

Spain and Mexico Remain Central to Lending Growth

BBVA reported that lending grew by more than 20% year over year in current euros at the end of the third quarter. In its two largest markets, loans increased 7.3% in Spain and 12% in Mexico. Consumer lending, credit cards, and enterprise financing were among the faster-growing and more profitable segments identified by the bank.

These figures point to continued momentum in the bank’s core markets. However, lending expansion also requires careful monitoring of underwriting standards, borrower repayment capacity, and provisions for potential credit losses. Growth is most durable when it translates into sustainable returns without a disproportionate increase in credit risk.

Capital Discipline Remains a Priority

BBVA’s CET1 capital ratio stood at 12.21% following share buybacks and strong lending growth. The bank is executing the second €1 billion tranche of its buyback programme and retained its CET1 management target of 11.5% to 12%.

Going forward, investors should monitor whether BBVA can sustain returns above 21%, maintain revenue momentum across Spain and Mexico, and preserve capital strength while returning funds to shareholders. Its latest results demonstrate strong profitability, while disciplined credit management and capital allocation will remain essential to maintaining that performance.

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