SKN | BBVA Reports 19% Quarterly Profit Growth as Profitability Remains Strong and Capital Ratio Moderates

Key Points:

• BBVA generated more than €3 billion in net attributable profit in the third quarter of 2026, representing year-over-year growth of 19.1%.
• The bank reported a 22% return on tangible equity (RoTE) and a 20.8% return on equity for the first nine months of the year.
• Its CET1 capital ratio declined to 12.21% from a pro forma 12.41% in June, as capital consumed by profitable business growth and other factors offset strong earnings generation.

BBVA reported another quarter of strong earnings growth, with net attributable profit exceeding €3 billion and profitability remaining at elevated levels during the first nine months of 2026. However, management also highlighted a moderation in the bank’s Common Equity Tier 1 (CET1) capital ratio, illustrating the balance between generating shareholder returns, expanding profitable business activities, and preserving regulatory capital capacity.

Quarterly Earnings Continue to Exceed €3 Billion

CEO Onur Genç told investors that BBVA delivered quarterly net attributable profit of more than €3 billion, an increase of 19.1% compared with the same period last year. Earnings per share advanced even faster, rising approximately 23.9% year over year, supported by the share buyback programs implemented by the bank.

The earnings performance reinforces BBVA’s ability to translate its business activity into shareholder returns. Management also highlighted that tangible book value per share plus dividends increased by 14.3% year over year. Excluding the impact of share buybacks, growth approached 20%, which Genç presented as evidence of strong underlying organic value creation.

Profitability Remains a Central Strength

BBVA maintained high profitability ratios during the first nine months of 2026. Return on tangible equity reached 22%, while return on equity stood at 20.8%. Genç described these results as placing BBVA among Europe’s most profitable large banks.

For institutional investors, sustained profitability is an important measure of a bank’s ability to generate returns from its capital base. BBVA’s reported figures demonstrate strong earnings capacity, although the durability of these returns will also depend on the bank’s ability to manage capital consumption as its business expands.

CET1 Ratio Moderates Amid Profitable Growth

Despite strong earnings generation, BBVA’s CET1 ratio declined from a pro forma 12.41% in June to 12.21% in September. Management explained that capital consumed by profitable business growth more than offset the capital generated through earnings during the quarter.

Genç also identified a lower contribution from significant risk transfer (SRT) operations, primarily reflecting summer seasonality, alongside negative market-related impacts. These factors contributed to the quarterly movement in the capital ratio, although management indicated that the bank would provide a more detailed explanation of capital evolution later in the presentation.

What Investors Should Monitor

BBVA’s third-quarter performance highlights the relationship between profitability, shareholder distributions, and capital management. The combination of strong earnings growth and a lower CET1 ratio makes the bank’s subsequent capital disclosures particularly relevant. Investors will need to assess whether BBVA can sustain its profitability while managing the capital requirements associated with continued business expansion and shareholder returns. Further details from the earnings presentation and management’s responses to analysts will provide additional context on the bank’s capital trajectory.

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