BBVA delivered a sweeping set of record numbers in the second quarter, underscoring the strength of its emerging-market-heavy franchise and its ability to squeeze industry-leading profitability from rapid loan growth. Net attributable profit surged to €3.062 billion, up 11.4% from a year earlier and 2.4% quarter-on-quarter, while first-half earnings hit an all-time high of €6.051 billion. Return on tangible equity reached 22.2% for the half, cementing BBVA’s position as one of Europe’s most profitable large banks.

“Once again, we have demonstrated the strength of BBVA’s business model,” said CEO Onur Genç on the earnings call. “We have delivered record earnings, industry-leading profitability, strong activity growth, and capital generation while reinforcing our competitive position.”

Bolstered by the results, the bank announced a new €2 billion extraordinary share buyback, with the first €1 billion tranche to begin on August 5 and run through year-end. The move reflects what Genç described as a “firm commitment” to distribute all excess capital above the 12% CET1 target. Pro forma for the buyback, the CET1 ratio would be 12.41%, still well above the target, leaving room for further payouts in the second half.

Financial Highlights

MetricQ2 2026Q2 2025QoQ ChangeNet attributable profit€3.062B+11.4% YoY+2.4%Net interest income+17.8% YoY–+2.1%Net fees & commissions+16.2% YoY––Gross income+15.7% YoY–broadly stableEfficiency ratio37.8%–improved 77bp ex-itemsCET1 ratio12.90%+7bp QoQ–ROTE (H1)22.2%––

Loan Growth – The Relentless Engine

BBVA’s loan book expanded by an extraordinary 17.7% year-over-year in constant euros (20% in current euros), far outpacing European peers. The bank has now grown its loan portfolio by 62% since December 2020, compared with just 10% for a peer group of European banks. Crucially, this growth has not come at the expense of returns: ROTE widened to 22.2% versus 15.1% for the peer average.

“Profitable growth is the best predictor of future value creation, and this is precisely what BBVA continues to deliver,” Genç said.

Spain and Mexico both accelerated. Spain’s loans grew 7.4% year-on-year, with consumer and enterprise segments far outpacing the market. BBVA Spain gained 84 basis points of market share since 2020, and an even sharper 276 bps in consumer lending. In Mexico, the loan book expanded close to 10%, and market share rose to 26.17%, up 272 bps since 2020, despite fierce fintech competition.

MarketLoan Growth YoY (local)Profit (H1)Key DriversSpain7.4%€2.2B (+2.3% YoY)New customer acquisition, transactionalityMexico~10%€3.0B (+8.2% YoY cc)Retail & wholesale, ALCO supportSouth America–€556M (+33.6% YoY)Peru & Colombia strength, FXRest of Business (CIB)52% (loans)€508MCross-border corporate lendingTurkey–€532MFee-driven, NII under pressure

Outlook Upgrades – and One Caution in Turkey

Management upgraded several full-year targets, reflecting the strong first half:

MetricPrevious GuidanceNew GuidanceGroup ROTE–~21% (up from previously implied)Mexico loan growthMid-single digit~10%Mexico NII growth–High single digitMexico cost of risk~335bp<335bpSouth America gross revenueDouble digitsHigh teensTurkey cost of risk~200bp~220bpGroup efficiencyBelow 35%Below 35% maintained

The only revision down: Turkey’s cost of risk guidance was nudged to around 220 basis points from 200 basis points, as the normalization of retail portfolios takes longer than expected in a “higher for longer” rate environment. Still, full-year net profit in Turkey is expected around €1 billion with a slight downward bias, compared with €532 million in the first half.

Spain – Deposits Defy the Rate Cycle

A highlight of the call was Spain’s ability to grow demand deposits by 5% year-over-year despite rising competition for savings. Genç attributed this to the bank’s relentless focus on new customers (nearly 500,000 in the first half alone) and transactionality: BBVA holds a 16.6% market share in payroll accounts versus its 14.2% loan share, and similarly higher shares in acquiring and cash management. With a loan-to-deposit ratio of 98%, Spain has “the capacity to manage the cost of funding” effectively.

Customer spread improved by 3 basis points in the quarter, and Genç sees further improvements each quarter from here as rates begin to stabilize.

Capital and Buyback – ‘We Don’t Like Excess Capital’

BBVA generated 7 basis points of CET1 in the quarter, lifting the ratio to 12.90%. Strong organic earnings and risk-transfer transactions (SRTs) more than offset high loan growth and shareholder distributions. The bank expects to deliver 30–40 basis points of CET1 per year organically, and is on track for the higher end of that range, helped by recent SRTs, including a first-ever Mexican SME portfolio transaction executed in July.

Genç was unequivocal on capital returns: “We don’t like to work with excess capital. When we have excess capital above 12%, we will distribute it back to our shareholders.”

Q&A: AI Exposure, Mexico Competition, and the CIB Boom

Analysts probed several areas of rapid expansion.

AI risk: Marta Sanchez Romero (JPMorgan) asked about the bank’s exposure to AI-related lending given the breakneck pace of CIB growth. Management said total exposure to data centers was just 0.7% of EAD, technology 0.5%, and financial sponsors under 0.8%. “We don’t see a major risk profile for BBVA,” Genç said.
Mexico competition: Asked about Nubank’s new banking license, Genç noted that BBVA gained credit card market share despite the fintech’s 3.6% market share. “We will compete really nice,” he said.
CIB run-rate: Genç stressed that the 52% loan growth in Rest of Business is sustainable, anchored by cross-border client business (40% of client revenues) and RORWA of around 3% ex-Turkey/Argentina. “Our CIB business is not prop trading – it’s client-led growth.”
M&A: With the buyback dilutive to high ROTE, Andrea Filtri (Mediobanca) asked if external growth hurdles were too high. Genç said the hurdle is cost of equity: as long as deals generate positive EVA, they would be considered, but “today, we are completely organic-focused.”

AI Transformation Taking Shape

The bank confirmed it has over 100,000 employees actively using AI tools, and is now moving to a framework for industrializing AI agents at scale—with detailed strategic presentations scheduled for October 6.

Luisa Gómez Bravo, in her final earnings call as CFO, signed off with typical resilience: “Never a dull moment,” she said, thanking analysts for their “continuous source of self-improvement.” Genç paid tribute, saying she had been “one of the architects” of BBVA’s historic run.

With record profits, upgraded guidance, and a fresh buyback, BBVA heads into the second half with considerable momentum. The only uncertainty remains whether Turkey’s macro environment will finally allow inflation—and interest rates—to ease, unlocking the next leg of growth in a key market.