BBVA(US:BBVA)2025-07-31 16:48Financial Performance - The profit attributable to the parent company for the six months ended June 30, 2025, was €5,447 million, up from €4,994 million in the same period of 2024, representing an increase of 9.06%[36] - Operating profit before tax increased by 8.3% to €8,424 million for the six months ended June 30, 2025, compared to €7,780 million in 2024[186] - Profit for the six months ended June 30, 2025, was €5,798 million, a 10.3% increase from €5,255 million in 2024[210] - Total gross income increased by 3.4% to €18,034 million for the six months ended June 30, 2025, compared to €17,446 million in 2024[186] - Fee and commission income increased by 5.9% to €6,514 million for the six months ended June 30, 2025, up from €6,149 million in 2024[190] - Net gains on financial assets and liabilities rose by 4.4% to €1,554 million for the six months ended June 30, 2025, compared to €1,489 million in 2024[194] Asset and Liability Management - As of June 30, 2025, total assets of the BBVA Group amounted to €776,974 million, an increase from €772,402 million as of December 31, 2024, reflecting a growth of 0.74%[33] - Total liabilities for the BBVA Group as of June 30, 2025, were €760,465 million, compared to €756,163 million as of December 31, 2024, showing a growth of 0.42%[39] - The total equity of the BBVA Group as of June 30, 2025, was €47,545 million, compared to €47,242 million as of December 31, 2024, indicating a slight increase of 0.64%[41] - The Group's assets under management reached €203,225 million as of June 30, 2025, reflecting a growth from €192,604 million as of December 31, 2024[41] Loan and Deposit Trends - Loans and advances to customers rose by 5.0% to €188,584 million as of June 30, 2025, driven by increases in corporate loans, public sector loans, and consumer loans[45] - Customer deposits at amortized cost increased by 1.6% to €230,120 million as of June 30, 2025, primarily due to higher deposits from public institutions[47] - Total loans outstanding reached €471,384 million as of June 30, 2025, up from €455,016 million as of December 31, 2024[127] - Average demand deposits increased to €333,931 million for the six months ended June 30, 2025, compared to €323,940 million for the year ended December 31, 2024[138] Non-Performing Loans and Credit Quality - The non-performing loan ratio decreased to 3.5% as of June 30, 2025, down from 3.7% as of December 31, 2024, positively impacted by increases in corporate and consumer loans[50] - The allowance for credit losses to total loans and advances at amortized cost decreased to 2.47% as of June 30, 2025, from 2.56% as of December 31, 2024[133] - Total impaired loans amounted to €14,131 million as of June 30, 2025, a decrease of 0.6% compared to €14,213 million as of December 31, 2024[136] Income and Expense Analysis - The net interest income for the Group in the first half of 2025 was €12,607 million, compared to €12,993 million in the same period of 2024, reflecting a decrease of 2.97%[38] - Personnel expenses for the first half of 2025 totaled €3,693 million, a 1.7% increase from €3,633 million in 2024[202] - Tax expense related to profit from continuing operations increased by 4.0% to €2,626 million in 2025 from €2,525 million in 2024, reflecting higher operating profits[209] Market and Economic Conditions - BBVA Research forecasts global GDP growth at 3.0% for 2025, reflecting concerns over protectionism and uncertainty in economic activity[173] - The Group is exposed to significant geopolitical and economic risks, particularly in Spain, Mexico, and Turkey, which could adversely affect its financial condition and results of operations[167] - The overall effect of changes in exchange rates was negative for the Group's income statement, primarily due to the depreciation of the Argentine peso and Turkish lira[157]