Did Qualcomm Just Put Apple in Check?<\/a><\/p>\nRegarding provisioning, Gen\u00e7 said the quarter included a post-model adjustment (PMA) of around EUR 100 million due to macro uncertainty, primarily affecting Spain and Turkey. Excluding this adjustment, he said cost of risk would have been 147 basis points. Management also said the non-performing loan ratio and coverage ratio improved year-over-year and quarter-over-quarter.<\/p>\n
Story Continues <\/p>\n
Capital return: buybacks and risk transfer transactions <\/p>\n
Chief Financial Officer Luisa G\u00f3mez Bravo and Gen\u00e7 detailed the CET1 \u201cwaterfall,\u201d including a 75 basis point contribution from results, a 40 basis point impact from dividend accruals and AT1 coupons, and a 34 basis point impact from RWA growth. Gen\u00e7 also noted that risk transfer transactions (SRTs) contributed 12 basis points to CET1 during the quarter.<\/p>\n
G\u00f3mez Bravo said BBVA remains on track with its guidance to complete 30 to 40 basis points of SRT benefit for the year, calling the transactions \u201cvery well received by the market.\u201d<\/p>\n
On shareholder distributions, Gen\u00e7 said BBVA planned to start execution of the third tranche of the buyback program\u2014around EUR 1.5 billion\u2014on May 6. He reiterated the bank\u2019s approach to returning excess capital above the upper end of its CET1 target range.<\/p>\n
Regional performance: Spain and Mexico lead, Turkey guidance sees \u201cdownward bias\u201d <\/p>\n
In Spain, G\u00f3mez Bravo said quarterly net profit again exceeded EUR 1 billion, supported by gross income growth of 5.4% year-over-year and 4.3% quarter-over-quarter. She said net interest income rose 3.6% year-over-year, with customer spreads \u201cbroadly stable,\u201d while quarter-to-quarter NII reflected a day-count effect. She said fees were seasonally affected by fourth-quarter asset management success fees; excluding that seasonality, fees rose 5.5% quarter-over-quarter. Excluding the restructuring charge, she said cost growth in Spain was 4.8% year-over-year, and she said expected savings from the redundancies would be \u201clargely realized in 2026.\u201d<\/p>\n
In Mexico, G\u00f3mez Bravo said BBVA Mexico delivered net profit of EUR 1.45 billion, up 4.5% year-over-year in constant euros, with gross income up 10.3%. Net interest income increased 8.3% year-over-year, driven by loan growth and \u201cresilient margins despite a declining rate environment.\u201d She said BBVA expects rates to bottom out at 6.5% this year, from 6.75% currently. Mexico\u2019s efficiency remained strong, with a cost-to-income ratio of 30.8%. Cost of risk was 345 basis points, \u201cflat quarter-on-quarter and in line with guidance,\u201d she said.<\/p>\n
During Q&A, Gen\u00e7 addressed questions about Mexican credit cards, stating, \u201cWe don\u2019t see any deterioration whatsoever,\u201d and said the bank remained confident in its cost of risk guidance. He also cited loan growth momentum in March and pipelines on the corporate side, referencing \u201cPlan Mexico\u201d and increased infrastructure and energy-related projects as supportive of activity. He said a slight decline in customer spread in the quarter reflected mix, including stronger enterprise growth versus retail and typical seasonality in credit cards.<\/p>\n
In Turkey, G\u00f3mez Bravo reported profit of EUR 263 million, supported by net interest income growth and \u201crobust revenue dynamics,\u201d while hyperinflation adjustment was higher due to inflation metrics. Cost of risk was 253 basis points, and she said excluding the PMA, it would have been 238 basis points. She said the first half was expected to be higher than full-year guidance and \u201cexpected to converge over the year,\u201d but added that \u201cgiven the uncertain environment, we now see a downward bias to our guidance.\u201d Gen\u00e7 attributed the shift to changed macro parameters, including higher inflation expectations, and said net interest income could be negatively affected in the second quarter by rate increases, while stressing that BBVA was \u201cactivating other levers\u201d including cost actions.<\/p>\n
Strategy update: AI initiatives and medium-term targets <\/p>\n
Gen\u00e7 said BBVA continued to progress on its transformation strategy, particularly highlighting artificial intelligence as a priority. He said BBVA is pursuing \u201ceight very tangible initiatives,\u201d including a personal advisor for clients (\u201cBlue\u201d) and tools \u201cfor the banker,\u201d as well as applications in risk, operations, and software development. He said the bank is also \u201crevamping our operating system\u201d to industrialize AI agents at scale, and described early results as \u201cvery promising.\u201d<\/p>\n
Gen\u00e7 also said BBVA was performing \u201cin line or better than our original expectations\u201d on the 2025\u20132028 financial goals announced previously. In closing remarks, he said the bank upgraded its 2026 outlook for group return on tangible equity and for \u201crest of business,\u201d while expressing optimism on Mexico activity and maintaining a prudent stance on Turkey given macro uncertainty.<\/p>\n
About Banco Bilbao Viscaya Argentaria (NYSE:BBVA) <\/p>\n
Banco Bilbao Vizcaya Argentaria (NYSE:BBVA) is a Spanish multinational financial services group headquartered in Bilbao, Spain. The bank traces its roots to several historic regional banks and was formed through a series of mergers that consolidated its position as one of Spain’s largest banking groups. BBVA operates as a universal bank offering a broad range of financial services to retail, corporate and institutional clients.<\/p>\n
BBVA’s core businesses include retail and commercial banking, corporate and investment banking, private banking and wealth management, asset management, and insurance.<\/p>\n
The article “Banco Bilbao Viscaya Argentaria Q1 Earnings Call Highlights<\/a>” was originally published by MarketBeat.<\/p>\n","protected":false},"excerpt":{"rendered":"Banco Bilbao Viscaya Argentaria logo Banco Bilbao Viscaya Argentaria (NYSE:BBVA) reported what CEO Onur Gen\u00e7 described as an…\n","protected":false},"author":2,"featured_media":19501,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[123],"tags":[10548,10549,8191,148,10550,8195,10551,10552,4263],"class_list":["post-19500","post","type-post","status-publish","format-standard","has-post-thumbnail","category-bbva","tag-banco-bilbao","tag-banco-bilbao-viscaya-argentaria","tag-basis-points","tag-bbva","tag-ceo-onur-genc","tag-efficiency-ratio","tag-gomez-bravo","tag-loan-growth","tag-net-interest-income"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/posts\/19500","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/comments?post=19500"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/posts\/19500\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/media\/19501"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/media?parent=19500"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/categories?post=19500"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/spain\/wp-json\/wp\/v2\/tags?post=19500"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"Banco](\"https:\/\/www.europesays.com\/spain\/wp-content\/uploads\/2026\/05\/2e4304c8272e0026bd7b55a5812d2dbd.png\")
Banco Bilbao Viscaya Argentaria logo <\/p>\n