Business areas<\/p>\n
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 \u20ac2.14 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.<\/p>\n
Mexico contributed to the Group\u2019s earnings with \u20ac2.58 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.<\/p>\n
In T\u00fcrkiye, 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 \u20ac412 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.<\/p>\n
In South America, growth in lending activity (+16 percent) and customer funds (+18 percent) stood out.\u00a0 The area reported a net attributable profit of \u20ac421 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 \u20ac156 million, Argentina earned \u20ac91 million, and Colombia reported \u20ac73 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.<\/p>\n
Medium-term financial goals<\/p>\n