Financial Data and Key Metrics Changes - Tangible book value per share plus dividends increased by 17% year over year and 4.5% quarter over quarter [3] - Net attributable profit exceeded EUR 2.5 billion, although it decreased compared to the previous quarter due to higher inflation in Turkey and one-off positive impacts in the second quarter [4] - CET1 capital ratio improved by 8 basis points to 13.42%, providing capacity for increased shareholder remuneration [5] Business Line Data and Key Metrics Changes - Core revenues showed strong growth, with net interest income and fees growing 18% and 15% year over year, respectively [6] - Net interest income grew by 3.2% quarter on quarter in Spain, driven by strong loan growth in profitable segments [18] - In Mexico, net interest income grew by 3.3% quarter on quarter, supported by robust lending activity [21] Market Data and Key Metrics Changes - Loan growth in Spain accelerated to 7.8% year over year, while Mexico's loan growth was 9.8% year over year [9] - The cumulative cost of risk in Mexico improved to 327 basis points, better than expected [23] - Asset quality metrics showed improvement, with MPL and coverage ratios continuing to enhance [13] Company Strategy and Development Direction - The company aims to resume shareholder remuneration programs, including a nearly EUR 1 billion share buyback program [15] - Focus on sustainability, with EUR 97 billion channeled into sustainable business in the first nine months of 2025 [16] - Strategic growth in Corporate & Investment Banking (CIB) with a goal to double the business in four years [70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future revenue and profit growth, expecting stability in customer spreads and continued loan growth [12] - The company anticipates that interest rates are near terminal levels in both Europe and Mexico, which will stabilize customer spreads [11] - Positive macroeconomic adjustments in Mexico have led to improved GDP growth forecasts, indicating resilience in the economy [22] Other Important Information - The company reported a record net profit of almost EUR 8 billion for the first nine months of 2025, a 4.7% increase year over year [5] - The efficiency ratio improved to 38.2%, reflecting effective cost management [12] Q&A Session Summary Question: Loan book growth in Spain and cost of risk in Mexico - Management noted strong corporate loan growth in Spain, particularly in mid-sized companies, and explained that mortgage growth is below sector average due to pricing concerns [34][36] - Cost of risk in Mexico was slightly up due to annual recalibration of IFRS 9 modeling, but overall dynamics remain positive [37][38] Question: Insights on the Sabadell transaction and capital distribution outlook - Management closed the chapter on the Sabadell transaction, viewing it as a missed opportunity but focusing on future business operations [44][45] - The company expects to reach a capital target of 11.5%-12% and plans to distribute excess capital back to shareholders [46][48] Question: Margins in Spain and Mexico - Management indicated that customer spreads in Spain are stabilizing and close to the bottom, while Mexico's margins are resilient despite falling interest rates [53][56] - The repricing of assets and liabilities is a key factor in the margin dynamics in both countries [59][61]

Financial Data and Key Metrics Changes - Tangible book value per share plus dividends increased by 17% year over year and 4.5% quarter over quarter [2] - Net attributable profit exceeded €2.5 billion, although it decreased compared to the previous quarter due to higher inflation in Turkey and one-off positive impacts in the second quarter [3] - CET1 capital ratio improved by 8 basis points to 13.42%, providing capacity for increased shareholder remuneration [4] - Cumulative profits for the first nine months reached almost €8 billion, a 4.7% increase year over year [4] Business Line Data and Key Metrics Changes - Core revenues showed strong growth with net interest income and fees increasing by 18% and 15% year over year, respectively [5] - Net interest income grew by 3.2% quarter on quarter in Spain, driven by strong loan growth in profitable segments [19] - In Mexico, net interest income grew by 3.3% quarter on quarter, supported by robust lending activity [21] - Turkey's net attributable profit increased by nearly 50% year over year, driven by higher core revenues [24] Market Data and Key Metrics Changes - Loan growth in Spain accelerated to 7.8% year over year, while Mexico's loan growth was 9.8% year over year [9] - The Mexican peso's appreciation negatively impacted FX hedges this quarter but is expected to benefit in the coming quarters [3] - The cost of risk in Mexico improved, with guidance now expecting it to remain below 340 basis points [24] Company Strategy and Development Direction - The company aims to focus on organic growth and has closed the chapter on the Sabadell transaction, emphasizing future operational focus [45] - A significant share buyback program of nearly €1 billion will commence, alongside a record interim dividend [16] - The company is committed to achieving a cost-to-income ratio of 35% by 2028, with a focus on maintaining operational leverage [68] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about future revenue and profit growth, citing stability in customer spreads and strong loan growth [12] - The company expects interest rates to stabilize, with limited room for further cuts, which will support core revenue growth [11] - The competitive landscape in Mexico is acknowledged, with a focus on leveraging existing strengths to maintain market position [76] Other Important Information - The company acquired a record 8.7 million new customers in the first nine months of 2025, with 66% through digital channels [17] - A record €97 billion was channeled into sustainable business, reflecting the company's commitment to sustainability [17] Q&A Session Summary Question: Loan book growth in Spain and cost of risk in Mexico - Management noted that corporate loan growth in Spain is strong, driven by various sectors, while mortgage growth is limited due to pricing concerns [34][37] - The cost of risk in Mexico is expected to improve, with positive macro adjustments influencing guidance [38][39] Question: Insights on the Sabadell transaction and capital distribution outlook - Management considers the Sabadell transaction a missed opportunity but emphasizes a focus on future growth and shareholder value [45][46] - The company plans to distribute excess capital back to shareholders, targeting a capital level of 11.5% to 12% [46][50] Question: Margins in Spain and Mexico - Management indicated that customer spreads in Spain are stabilizing, with expectations of limited further declines [55][58] - In Mexico, margins are resilient despite falling interest rates, with expectations of stabilization in customer spreads [61][62] Question: Group costs and ambitions for Corporate & Investment Banking (CIB) - Management highlighted a focus on containing costs and achieving a cost-to-income ratio of 35% by 2028 [68] - The CIB business aims for 20% revenue growth, with aspirations to double the business over four years [70][72]

3Q25 Earnings October 30, 2025 3Q25 EARNINGS Disclaimer This document is only provided for information purposes and is not intended to provide financial advice and, therefore, does not constitute, nor should it be interpreted as, an offer to sell, exchange or acquire, or an invitation for offers to acquire securities issued by any of the aforementioned companies, or to contract any financial product. Any decision to purchase or invest in securities or contract any financial product must be made solely and e ...

Core Insights - Gross income increased by 4.4% driven by growth in net interest income, along with higher commissions and fees [1] Summary by Categories - **Financial Performance** - Gross income rose by 4.4% [1] - Growth attributed to an increase in net interest income [1] - Higher commissions and fees contributed to the overall income growth [1]

Core Insights - Volkswagen reported an operating loss of 1.3 billion euros ($1.52 billion) in the third quarter, primarily due to significant costs associated with U.S. tariffs and a strategic reversal in its electric vehicle plans [1] Financial Performance - The operating loss of 1.3 billion euros indicates a substantial financial impact on Volkswagen, reflecting challenges in managing costs and adapting to market conditions [1] Strategic Challenges - The company faced billions of euros in costs related to U.S. tariffs, which have affected its profitability [1] - A costly strategy reversal regarding electric vehicles has also contributed to the financial losses, highlighting the difficulties in transitioning to new technologies and market demands [1]

Core Insights - BBVA reported a 3.7% decline in net profit for the third quarter compared to the same period in 2024, primarily due to currency depreciation in South America and Mexico offsetting higher lending income [1] Financial Performance - The net profit for BBVA in the third quarter decreased by 3.7% year-over-year [1] - Higher lending income was noted, but it was not sufficient to counterbalance the negative impact of currency depreciation [1]

Market Performance - Argentine stocks experienced a significant rally, with the Global X MSCI Argentina ETF (ARGT) increasing nearly 20% on Monday [1] - Economically sensitive stocks, particularly Argentine banks, saw even greater gains, trading approximately 40% higher on the same day [1]

Core Insights - The article emphasizes the importance of identifying undercovered stocks in Brazil and Latin America, suggesting that the best investment opportunities may not be immediately obvious [1]. Group 1: Company Focus - The analyst has a beneficial long position in the shares of ARGT, indicating confidence in the stock's potential [2]. - The analysis is based on personal opinions and not influenced by external compensation, ensuring an independent perspective on the stock [2]. Group 2: Industry Context - The research primarily targets stocks in Brazil and Latin America, highlighting a niche focus that may uncover unique investment opportunities [1].

Group 1 - Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) is considered one of the best affordable stocks to buy under $20, with Morgan Stanley resuming coverage and setting a price target of €19, indicating limited upside to consensus earnings estimates [1] - Barclays analyst Cecilia Romero reiterated a Buy rating on BBVA, assigning a price target of €18, and suggested a new buyback plan of around €3.5 billion ($4 billion) following the company's move on from its failed acquisition attempt of Banco Sabadell SA [2][3] - Romero anticipates the announcement of the buyback program alongside the fiscal Q3 results, expected to be reported later this month, with the launch contingent on approval from the European Central Bank [3] Group 2 - BBVA is headquartered in Madrid, Spain, and operates in various traditional banking sectors including asset management, retail banking, private banking, and wholesale banking, with operations across the United States, Spain, Mexico, Turkey, South America, and the Rest of Eurasia [4]

Core Insights - BBVA's hostile takeover bid for Banco Sabadell has concluded after 18 months without success [1] - The bid was accepted by shareholders representing 25.47% of voting rights, falling short of the required 30% [2] - BBVA's bid valued Banco Sabadell at $19 billion [3] Company Developments - Banco Sabadell's CEO stated the bank has undergone a "major transformation" and aims for a profitability increase to 16% by 2027, alongside returning €6.45 billion to shareholders [3] - BBVA plans to resume shareholder remuneration through a share buyback program and the highest dividend ever [4] - BBVA expects to generate approximately €48 billion in cumulative attributable profit from 2025 to 2028 and allocate €36 billion for shareholder distributions [5] Industry Context - The attempted takeover was viewed as a test case for consolidation in the European banking sector [5] - The bid received clearance from the CNMV and the European Central Bank but faced opposition from politicians, business groups, and unions [5] - BBVA's earlier attempt to merge with Banco Sabadell in 2020 failed due to price disagreements [6]