Q2 2025 Banco Bilbao Vizcaya Argentaria SA Earnings Call Transcript
Key Points
- Banco Bilbao Vizcaya Argentaria SA (BBVA) reported a strong increase in tangible book value per share plus dividends, up 14.6% year over year.
- The bank achieved an outstanding return on tangible equity of 20.4% and a return on equity of 19.5% in the first half of 2025.
- Net attributable profit reached EUR 2.749 billion, despite challenges such as falling rates in core markets.
- Loan growth at the group level increased impressively by 16% year over year, with strong performances in Spain and Mexico.
- The CET1 capital ratio improved by 25 basis points during the quarter, reaching 13.34%, indicating strong capital management.
- Falling rates in core markets negatively impacted results, despite the bank's efforts to sustain profit levels.
- The bank faced a negative impact from US dollar hedges due to dollar depreciation against the euro.
- Net trading income recorded a negative impact from the mark-to-market of FX hedges, particularly related to US dollar hedges.
- The cost of risk in Turkey increased, reflecting a normalization amid ongoing macroeconomic rebalancing.
- The bank's market share in mortgages is declining, and it expects this softness to continue due to competitive pricing.
Good morning, and welcome, everyone, to BBAV's quarterly audio webcast. As in previous quarters, I'm joined today by our CEO, Onur Genc; and the Group CFO, Luisa Gomez Bravo.
Today, along with the second quarter results, we are also announcing the group's midterm goals. Accordingly, we will dedicate the first part of the call to reviewing the quarterly figures and then move on to our strategic objectives. Finally, we will open the line for your questions.
So without further delay, I turn over to Onur.
Thank you. Thank you, Patricia. Good morning to everyone. Welcome, and thank you for joining BBVA's second quarter 2025 earnings webcast. As Patricia, mentioned, we have two things today, the second quarter results, as always. And we also have medium-term objectives at the end of the presentation.
So let me start with the second
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