BBVA has decided to maintain its takeover offer for Banco Sabadell despite investor backing for the rival’s decision to sell its UK unit TSB https://t.co/XqTKNFW90k ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the six months ended June 30, 2025 Commission file number: 1-10110 BANCO BILBAO VIZCAYA ARGENTARIA, S.A. (Exact name of Registrant as specified in its charter) BANK BILBAO VIZCAYA ARGENTARIA, S.A. (Translation of Registrant's name into English) Calle Azul, 4 28050 Madrid Spain (Address of principal executive offices) ...

Banco Bilbao Vizcaya Argentaria (BBVA) Q2 2025 Earnings Call July 31, 2025 03:30 AM ET Company ParticipantsPatricia Bueno Olalla - Global Head - Shareholder & Investor RelationsOnur Genç - CEO & Executive DirectorLuisa Gómez Bravo - Global Head of FinanceBenjamin Toms - Director - EquitiesMaksym Mishyn - Managing Director & Co-head of Equity ResearchFrancisco Riquel - Partner & Head - Equity ResearchHugo Cruz - DirectorConference Call ParticipantsCarlos Peixoto - Equity Research AnalystCecilia Romero - Dire ...

Financial Data and Key Metrics Changes - The tangible book value per share plus dividends increased by 14.6% year over year and 2.9% quarter over quarter [4] - Return on tangible equity reached 20.4% and return on equity was 19.5% for the first half of 2025 [4] - Net attributable profit for the quarter was EUR 2,749 million, maintaining record profit levels despite falling rates and currency headwinds [5][7] - CET1 capital ratio improved by 25 basis points to 13.34% [8] Business Line Data and Key Metrics Changes - Core revenues showed robust growth with net interest income and fees increasing by 11% and 18% year over year, respectively [10] - Loan growth at the group level was 16% year over year, with Spain at 6.3% and Mexico at 11.7% [14][15] - Efficiency ratio improved to 37.6%, with costs growing at 10% below the average inflation rate [16] Market Data and Key Metrics Changes - In Spain, net profit reached EUR 1,100 million, supported by positive dynamics in net interest income and lower operating expenses [24] - BBVA Mexico reported a net profit of nearly EUR 1,300 million, driven by strong lending activity [28] - Turkey's net profit increased by over 17% year over year, driven by higher core revenues [30] - South America achieved a net profit of EUR 421 million, representing a 33% year-on-year increase [33] Company Strategy and Development Direction - The company aims to strengthen its leadership position through customer service excellence and sustainable growth [38] - Focus on increasing contributions from sustainability and enterprise segments, with a target of channeling EUR 700 billion in sustainable finance by 2029 [23] - Plans to improve profitability and efficiency, targeting a cost-to-income ratio of around 35% by 2028 [47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong profitability despite macroeconomic challenges [36] - Expectations for stable interest rates in the coming years, which will help improve margins and profitability [44] - Anticipated gradual decline in inflation and interest rates in Turkey and Argentina, with a focus on improving asset quality [42] Other Important Information - The company plans to distribute approximately EUR 36 billion of capital, with a maximum of EUR 24 billion allocated for regular payouts [56][80] - The integration of Banco Sabadell is expected to enhance earnings generation, with further details to be provided in September [86] Q&A Session Summary Question: What would your RoTE and CET1 available for distribution look like using current forward FX rates? - The company uses forward rates in every country except Turkey, where a range of depreciations is applied due to uncertainty [63][65] Question: Can you clarify the 40 to 50 basis points benefit from capital simplification? - The ECB has formally approved the simplification, which will reduce RWA density and positively impact capital ratios [66][68] Question: How much were the VAT gross impacts and the recognition of DTAs? - The total impact from VAT and tax rate adjustments was around EUR 250 million, with half attributed to VAT and half to tax rate impacts [75] Question: Is there a chance to start the buyback before launching the offer for Sabadell? - The buyback will likely occur after the completion of the Sabadell integration process [91] Question: What are the prospects for lending growth in Mexico? - Lending growth is expected to remain strong, supported by investments and improved banking penetration [92]

Financial Performance Highlights - BBVA Group's Net Attributable Profit for 6M25 reached €5447 million, a 31% increase compared to 6M24[17, 21] - The group's CET1 ratio stands at 1334%, exceeding the target range of 115%-120%[15, 19] - The efficiency ratio for 6M25 is 376%, reflecting positive jaws[19, 33] - Sustainable business channeling reached €63 billion in 6M25[19] Key Growth Drivers - Net Interest Income (NII) increased by 112% compared to 2Q24 on a constant basis[19, 24] - Net Fees and Commissions increased by 177% compared to 2Q24 on a constant basis[19, 26] - Total loan growth increased by 160% compared to June 2024 on a constant basis[19, 32] - The group acquired 57 million new customers in 6M25, driven by digital channels[19, 47] Strategic Outlook - The company expects a ROTE of around 20% and an efficiency ratio below 40%[82] - The company anticipates approximately €36 billion available for distribution from 2025-2028[97]

Mergers and Acquisitions - EU watchdogs issued a legal warning to the Spanish government for obstructing BBVA's €13 billion bid for Banco Sabadell [1]

Market Overview - The broader equity markets have shown a steady uptrend as investors remain optimistic despite tariff threats from President Trump on 14 countries, including Japan and South Korea [1] - Investors are hopeful for a mutually beneficial solution to avoid market turmoil as they look forward to a busy earnings season [1][2] Trade Relations - Positive discussions between U.S.-China diplomats regarding trade tariffs and potential peace talks between U.S. officials and Iran have contributed to market stability [2] - Investors are awaiting clarity on interest rate cuts with inflation data expected to be released soon [2] Investment Strategy - Investors are advised to focus on "cash cow" stocks that provide higher returns, emphasizing the importance of attractive efficiency ratios like return on equity (ROE) [3] - High ROE indicates effective reinvestment of cash at a high rate of return, distinguishing profitable companies from less efficient ones [4][5] Stock Screening Parameters - Stocks are screened based on criteria including cash flow greater than $1 billion and ROE exceeding industry averages [6] - Additional metrics include Price/Cash Flow lower than industry average and Return on Assets (ROA) greater than industry average [7] Featured Stocks - **Walt Disney**: Long-term earnings growth expectation of 11.8% with a trailing four-quarter earnings surprise of 16.4% on average, Zacks Rank 2 [8][9] - **TE Connectivity**: Long-term earnings growth expectation of 9.8% with a trailing four-quarter earnings surprise of 3.3% on average, Zacks Rank 2 [10][11] - **Fortinet**: Long-term earnings growth expectation of 13.4% with a trailing four-quarter earnings surprise of 23.8% on average, Zacks Rank 2 [12][13] - **Banco Bilbao**: Long-term earnings growth expectation of 5.5% with a trailing four-quarter earnings surprise of 6.3% on average, Zacks Rank 1 [13][14] - **Colgate-Palmolive**: Long-term earnings growth expectation of 5.2% with a trailing four-quarter earnings surprise of 4% on average, Zacks Rank 2 [14][15]

Company Performance - Banco Bilbao (BBVA) has returned approximately 60.1% year-to-date, significantly outperforming the Finance sector's average return of 9.1% [4] - Over the past 90 days, the Zacks Consensus Estimate for BBVA's full-year earnings has increased by 5.7%, indicating improved analyst sentiment and a stronger earnings outlook [4] - BBVA currently holds a Zacks Rank of 1 (Strong Buy), suggesting it is poised to outperform the broader market in the near term [3] Industry Context - Banco Bilbao is part of the Banks - Foreign industry, which consists of 67 individual stocks and is currently ranked 26 in the Zacks Industry Rank [6] - The Banks - Foreign industry has gained about 27.1% year-to-date, indicating that BBVA is performing better than its industry peers [6] - In comparison, another Finance stock, Peakstone Realty Trust (PKST), has returned 26.7% year-to-date and also holds a Zacks Rank of 1 (Strong Buy) [5]

Group 1 - BBVA is pursuing a takeover of Banco Sabadell, despite Sabadell's decision to sell its U.K. unit, TSB [1][2] - Sabadell plans to sell TSB to Banco Santander for £2.9 billion (approximately $4 billion) and will use the proceeds to fund a €2.5 billion (about $2.9 billion) extraordinary cash dividend for shareholders [3][4] - The sale of TSB is seen as a strategy by Sabadell to enhance shareholder value and defend against BBVA's takeover bid [2][5] Group 2 - BBVA may make a tender offer to Sabadell's shareholders within weeks, although it has not made a final decision and could potentially withdraw from the deal [2] - Banco Sabadell's Chairman stated that the transaction is beneficial for the bank and its shareholders, allowing for an extraordinary dividend while maintaining a capital ratio above 13% [4] - Santander's acquisition of TSB is expected to strengthen its position in the U.K. market, creating the third largest bank in the country by personal current account balances [5] Group 3 - The Spanish government has indicated that BBVA's offer can proceed, provided that BBVA and Sabadell maintain separate operations for a period of three to five years [6]

Mergers and Acquisitions - BBVA is proceeding with its takeover bid for Sabadell [1] Company Strategy - The takeover bid continues despite Sabadell's sale of its UK unit [1]