BBVA Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Net Attributable Profit: EUR 3.062 billion for Q2, up 11.4% year-over-year; cumulative profit for H1 reached EUR 6.051 billion.

Earnings Per Share: Increased by 15.2% year-over-year.

Return on Tangible Equity (RoTE): 22.2% for H1, positioning BBVA among the most profitable banks in Europe.

CET1 Capital Ratio: Improved to 12.90%, up 7 basis points during the quarter.

Tangible Book Value Growth: Increased 17.3% year-over-year, 5.4% quarter-over-quarter; 21.8% excluding share buybacks.

Loan Portfolio Growth: 17.7% year-over-year at constant euros, with notable growth in Spain (7.4%) and Mexico (close to 10%).

2Strategic Updates and Business Highlights

AI Transformation Strategy: BBVA is advancing its AI initiatives, with over 100,000 employees using AI tools. A new framework for managing AI agents has been established.

Market Share Gains: Increased loan market share in Spain by 84 basis points since 2020 and in Mexico by 272 basis points.

Core Revenue Growth: Net interest income grew by 17.8% year-over-year, driven by strong lending activity. Net fees and commissions rose by 16.2%.

Efficiency Ratio: Improved to 37.8%, outperforming guidance for the year.

3Forward Guidance and Outlook

2026 RoTE Guidance: Upgraded to around 21%.

Mexico Loan Growth: Expected to be around 10% for the year, with net interest income growth in the high single digits.

South America: Full-year revenue growth expected in the high teens, driven by strong performance in Peru and Colombia.

Cost of Risk: Anticipated to remain stable at current levels, with some upward adjustments for Turkey.

4Bad News, Challenges, or Points of Concern

Turkey's Economic Environment: Elevated cost of risk at 236 basis points, with ongoing challenges in the retail portfolio and macroeconomic instability.

Competitive Pressures: Increased competition from FinTechs in Mexico, particularly in the credit card segment, though BBVA has maintained or grown market share.

Cost Management: Operating expenses rose by 17.9%, impacted by nonrecurring items; underlying cost growth was 14.5%.

Regulatory Environment: Uncertainty regarding future regulatory changes in Europe, though there are hopeful signs for simplification.

5Notable Q&A Insights

Customer Deposits Management: BBVA is successfully managing deposit costs despite competitive pressures, with a focus on customer acquisition and transactionality.

CIB Business Growth: Growth rates in the CIB segment are higher in the U.S. and Asia compared to Europe, driven by lower penetration in those markets.

AI Risk Assessment: BBVA is actively assessing risks associated with AI exposure, indicating a conservative approach to lending in this area.

M&A Strategy: The bank is focused on organic growth rather than acquisitions, maintaining a consistent strategy despite market opportunities. Overall, BBVA reported strong financial results for Q2 2026, demonstrating robust growth and profitability while navigating challenges in certain markets, particularly Turkey. The bank's strategic focus on AI, customer acquisition, and maintaining a strong capital position underpins its positive outlook for the remainder of the year.