Business areas

Growth in lending activity and customer funds stood out in Spain. Loans increased by more than 6 percent yoy, with a solid performance of commercial, consumer and cards. Customer funds grew by 5 percent yoy, with significant growth in off-balance sheet funds. Spain posted a net attributable profit of €2.14 billion in 1H25 (+21 percent vs 1H24), driven by core revenues, and particularly NII (+1.5 percent), amid a context of lower interest rates. Risk indicators performed better than expected and remained virtually stable vs March 2025: from January the accumulated cost of risk stood at 0.32 percent, coverage ratio was 61 percent, and the NPL ratio stood at 3.5 percent.

Mexico contributed to the Group’s earnings with €2.58 billion, up 6 percent yoy. Lending showed solid growth (+12 percent yoy), with a significant performance of all segments. Customer funds also grew at a solid pace (+15 percent). The strong activity, together with effective price management, boosted NII growth (+9 percent yoy). Furthermore, loan-loss provisions increased in the face of a more adverse macroeconomic scenario, which drove the accumulated cost of risk higher, to 3.24 percent, a better than expected performance, nonetheless. At the end of June the NPL ratio stood at 2.7 percent, and the coverage ratio was 125 percent.

In Türkiye, growth in lending was noteworthy, both in Turkish lira (+42 percent yoy) and foreign currency (+21 percent). Customer deposits also increased handsomely, particularly in Turkish lira (+40 percent yoy). The solid performance of lending and the improvements in customer spreads in Turkish lira boosted NII. Net attributable profit in 1H25 stood at €412 million, up 17 percent in current euros, as a result of a better performance of core revenues and a lower impact from hyperinflation. As for asset quality indicators, the accumulated cost of risk at the end of June stood at 1.64 percent, the NLP ratio was 3.4 percent, and the coverage ratio stood at 86 percent.

In South America, growth in lending activity (+16 percent) and customer funds (+18 percent) stood out.  The area reported a net attributable profit of €421 million in 1H25, up 33 percent in current euros, as a result of a lower adjustment for hyperinflation in Argentina and a more contained level of impairments. In the country breakdown, Peru posted a net attributable profit of €156 million, Argentina earned €91 million, and Colombia reported €73 million. Risk indicators saw an improvement in the region. The cost of risk shrank to 2.33 percent, and the NPL ratio stood at 4.2 percent. The coverage ratio remained virtually stable at 89 percent.

Medium-term financial goals

BBVA also presented its financial goals for the 2025-2028 period -not including the impact from the transaction with Banco Sabadell-,  which are part of the strategic plan presented at the beginning of the year. Specifically, the bank expects ROTE to stand around 22 percent, with the efficiency ratio improving to levels around 35 percent. Likewise, BBVA plans to continue creating value for shareholders, with an increase in the tangible book value per share plus dividends of around 15 percent (CAGR).  Finally, the bank aims to reach an accumulated net attributable profit of approximately €48 billion over four years.

Revenue growth and value creation

These goals are supported by several plans that will provide a significant boost to revenue growth and value creation:

Ongoing improvement of market share thanks to customer base growth.
BBVA’s core countries will improve even further its high profitability, driven by activity and a lower cost of risk.
Improvement of the franchises now operating in countries with hyperinflation (mainly Türkiye and Argentina), in particular in the second part of the 2025-2028 period.
A significant increase in the contribution to earnings from the corporate segments and Corporate & Investment Banking, on the back of cross-border businesses and sustainability.
An emphasis in business segments with higher revenues in commissions, such as insurance, asset management,  and in transactional products.

Furthermore, the bank will amplify the impact through two additional levers: an active management of the balance sheet in order to optimize the use of capital and productivity programs through  ‘Next Gen’ technologies and artificial intelligence.

Goals for geographical areas are as follows: