BBVA(US:BBVA)2025-07-31 08:32Financial Data and Key Metrics Changes - Tangible book value per share increased by 14.6% year over year and 2.9% quarter over quarter, despite currency depreciation [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][17] 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% [13][14] - Efficiency ratio improved to 37.6%, with costs growing at 10% below inflation [15] Market Data and Key Metrics Changes - In Spain, net profit reached EUR 1,100 million, supported by strong loan growth and improved deposit mix [23] - BBVA Mexico reported net profit of nearly EUR 1,300 million, driven by solid lending activity [27] - Turkey's net profit increased by more than 17% year over year, with significant NII growth [29] Company Strategy and Development Direction - The company aims to embed a radical client perspective and enhance customer service standards [38] - Focus on sustainability and enterprise growth, with a target of channeling EUR 700 billion in sustainable finance by 2029 [22] - Plans to improve profitability in core countries while managing costs and risk effectively [44] 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 [43] - Anticipated gradual decline in inflation and interest rates in Turkey and Argentina, with a focus on improving profitability [42] Other Important Information - The company plans to distribute EUR 36 billion of capital, with a maximum of EUR 24 billion allocated for regular payouts [56][80] - The strategic plan includes a target of EUR 48 billion in cumulative net attributable profit over the 2025-2028 period [46] Q&A Session Summary Question: What would your RoTE and CET1 available for distribution look like using current forward FX rates? - Management confirmed that forward rates are used in all countries except Turkey, where a range of depreciations is applied due to uncertainty [63][64] Question: Can you clarify the 40 to 50 basis points benefit from capital simplification? - Management stated that this benefit has formal approval from the ECB and is based on simplifying models in Mexico and Spain [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 the intention to distribute all of the EUR 36 billion available for distribution? - Management indicated that the intention is to distribute this amount, with EUR 24 billion earmarked for regular payouts [80]