Q2 FY2026
Filed Jul 30, 2026Excellent quarter in profit and solid capital position, with net attributable profit of €3,062M and a CET1 ratio of 12.90%.
BBVA reported 2Q26 net attributable profit of €3,062M, up 6.5% year over year and 3.3% quarter over quarter in current euros, alongside 17.8% year-over-year growth in net interest income, 16.2% growth in net fees and commissions, a 37.8% efficiency ratio and CET1 of 12.90%, above its 11.5%-12.0% target range.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net Interest Incomeother | €7,627M | 2.1% | 17.8% |
| Net Fees and Commissionsother | €2,316M | 4.4% | 16.2% |
| Net Trading Incomeother | €582M | -35.8% | 13.1% |
| Other Income & Expensesother | -€19M | – | – |
| Gross Incomeother | €10,506M | -0.2% | 15.7% |
| Operating Expensesother | -€3,951M | -1.4% | 18.5% |
| Operating Incomeother | €6,555M | 0.5% | 14.1% |
| Impairment on Financial Assetsother | -€1,677M | -6.5% | 14.9% |
| Provisions and Other Gains and Lossesother | -€19M | -68.6% | -44.2% |
| Income Before Taxother | €4,859M | 4.1% | 14.4% |
| Income Taxother | -€1,578M | 4.1% | 30.7% |
| Non-controlling Interestother | -€219M | 16.9% | 30.5% |
| Net Attributable Profitother | €3,062M | 3.3% | 6.5% |
| EPSother | €0.53 | – | 15.2% |
| Net Interest Income, 6M26other | €15,164M | – | 18.8% |
| Net Fees and Commissions, 6M26other | €4,572M | – | 15.8% |
| Net Trading Income, 6M26other | €1,498M | – | 5.5% |
| Gross Income, 6M26other | €21,159M | – | 16.9% |
| Operating Expenses, 6M26other | -€8,000M | – | 17.9% |
| Operating Income, 6M26other | €13,159M | – | 16.2% |
| Impairment on Financial Assets, 6M26other | -€3,497M | – | 24.2% |
| Income Before Tax, 6M26other | €9,581M | – | 13.5% |
| Net Attributable Profit, 6M26other | €6,051M | – | 10.0% |
| ROTE, 6M26other | 22.2% | – | – |
| ROE, 6M26other | 20.4% | – | – |
| Total loan growthother | +17.7% vs. Jun-25 CONSTANT | – | +17.7% |
| Efficiency ratioother | 37.8% | – | – |
| Cost of risk, YtDother | 1.43% | – | – |
| NPL ratioother | 2.6% | – | – |
| Coverage ratioother | 85% | – | – |
| NPLsother | €15.2bn | – | – |
| CET1 ratioother | 12.90% | +7bps | – |
| Fully-Loaded RWAsother | €423,497M | 3.6% | 9.4% |
| Liquidity Coverage Ratio, Total Groupother | 174% / 145% | – | – |
| NSFR, Total Groupother | 125% | – | – |
| Loan To Deposit, Total Groupother | 100% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| SpainStrong loan growth (+3.3% QoQ), led by robust consumer and enterprise lending; NII was driven by loan growth and disciplined pricing. | Gross Income €2,493M | -6.0% | 0.9% |
| MexicoSolid loan growth (+2.1% QoQ), with balanced contributions from retail (+2.2% QoQ) and wholesale (+2% QoQ) portfolios; core revenues grew +2.4% QoQ. | Gross Income €4,255M | -1.3% | 7.5% |
| TurkeyLoan growth was constrained by regulatory growth caps; NII was impacted by TL customer-spread compression, partly offset by activity growth and strong payments fees. | Gross Income €1,660M | -3.0% | 45.4% |
| South AmericaSouth America net attributable profit was €308M, up 51.7% versus 2Q25 and 23.6% versus 1Q26, supported by higher gross income and core revenues. | Gross Income €989M | – | – |
| Rest of businessStrong revenue growth was supported by robust lending activity; core revenues increased by 6.9% QoQ. | Gross Income €600M | 0.4% | 46.5% |
| Corporate CenterCorporate Center recorded net attributable profit of -€391M. | Gross Income -€223M | 7.3% | 1.3% |
2026 Outlook outlook
- NoteMexico loans: around 10% growth
- NoteMexico NII: high single digit growth
- NoteMexico CoR: below 335 bps
- NoteGroup ROTE: around 21%
- NoteTurkey CoR: around 220 bps
- NoteSouth America gross income: high teens growth
Capital returns
- Share buyback approved in Dec-25 of c.€4.0 billion will be completed in the coming days.
- A new €2 billion share buyback programme has been approved, to be executed in several tranches, together with the launch of a first €1 billion tranche.
- The execution of the remaining €1 billion under the new share buyback programme will be announced once approved by the governing bodies.
- Gross dividend per share: 0.32€ paid in Nov-25 and 0.60€ paid in Apr-26.
What drove it
- Performing loans under management excluding repos grew +17.7% versus Jun-25 in constant euros.
- Constant core revenues, defined as NII plus fees, grew +17.4% versus 2Q25.
- Net interest income growth was driven by Spain and Mexico loan growth.
- Positive fee income was levered on payments, asset management and CIB.
- Group gross income growth was mainly explained by core-revenue growth, positive Global Markets results and FX evolution.
- The efficiency ratio was 37.8%, with operating expenses declining -1.4% quarter over quarter.
- Spain's customer spread widened by 3 bps quarter over quarter.
- Mexico reported a 30.8% efficiency ratio in 6M26 and cost of risk of 326 bps.
- Turkey fee income was primarily driven by payments, with additional insurance and asset-management fees.
Concerns
- Group impairment on financial assets was -€1,677M in 2Q26, up 14.9% year over year.
- Turkey NII was affected by TL customer-spread compression as deposits repriced faster in a higher-rate environment.
- Turkey cost of risk was 236 bps YtD, reflecting elevated provisioning requirements in TL retail portfolios.
- Turkey loan growth was limited by regulatory growth caps.
- South America reported elevated cost of risk in Argentina, although it stabilized.
- Net trading income fell -35.8% quarter over quarter to €582M.
What to watch
- Execution of the approved €2 billion share buyback programme and its remaining €1 billion tranche.
- Mexico's delivery against updated 2026 loans guidance of around 10% growth, high single digit NII growth and cost of risk below 335 bps.
- Turkey's delivery against cost-of-risk guidance of around 220 bps and the trajectory of TL customer spreads.
- South America's delivery against high teens gross-income growth guidance.
- CET1 capital generation relative to the 11.5%-12.0% target range following the share buybacks.
- Asset-quality trends, including the 2.6% NPL ratio, 85% coverage ratio and 1.43% YtD cost of risk.
Balance sheet and cash flow
- CET1 ratio was 12.90%, versus a target range of 11.5%-12.0% and an SREP Requirement of 8.98%.
- BBVA Group fully-loaded RWAs were €423,497M as of Jun-26.
- Total Group LCR was 174% / 145%, NSFR was 125%, and Loan To Deposit was 100%.
- MREL eligible instruments were 29.96% of RWA, compared with a total requirement of 17.22% plus a 3.72% CBR.
- No operating cash flow, free cash flow, cash balance, or debt balance was reported.
Analysis
BBVA delivered a strong second quarter, with net attributable profit of €3,062M, up 6.5% year over year and 3.3% quarter over quarter in current euros. EPS was €0.53, compared with €0.46 in 2Q25 and €0.51 in 1Q26. For 6M26, net attributable profit reached €6,051M, up 10.0% year over year. The group reported 22.2% ROTE for 6M26 and 20.4% ROE.
Core operating momentum was broad. Net interest income rose 17.8% year over year to €7,627M and net fees and commissions rose 16.2% to €2,316M. Gross income increased 15.7% to €10,506M despite net trading income declining 35.8% sequentially to €582M. Constant core revenues, comprising NII and fees, grew +17.4% versus 2Q25, while performing loans under management excluding repos increased +17.7% versus Jun-25 in constant euros.
Costs and credit performance remain central to the result. Operating expenses were -€3,951M, up 18.5% year over year but down 1.4% sequentially, producing operating income of €6,555M. The efficiency ratio was 37.8%. Impairment on financial assets was -€1,677M, up 14.9% year over year, while the YtD cost of risk was 1.43%. The NPL ratio was 2.6%, coverage was 85%, and NPLs were €15.2bn.
Mexico remained a major source of earnings, with gross income of €4,255M and net attributable profit of €1,514M, supported by +2.1% quarterly loan growth and a 30.8% 6M26 efficiency ratio. Spain generated €2,493M of gross income and €1,077M of net attributable profit, with consumer and enterprise loan growth and a 3 bps quarterly widening in customer spread. Turkey delivered €269M of net attributable profit but faced TL spread compression and regulatory loan-growth caps. Rest of business generated €600M in gross income, up 46.5% year over year.
Capital was above the stated target range, with CET1 at 12.90%, up 7 bps from Mar-26 and above the 11.5%-12.0% target range. BBVA also outlined substantial distribution capacity through a c.€4.0 billion Dec-25-approved share buyback nearing completion and a newly approved €2 billion buyback programme. Guidance calls for group ROTE around 21%, Mexico loan growth around 10%, Mexico NII growth in the high single digits, Mexico cost of risk below 335 bps, Turkey cost of risk around 220 bps, and South America gross-income growth in the high teens.
Not in the filing
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AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.