Carlos Torres Vila says the combination of BBVA and Sabadell will create more value for shareholders than if the two banks went it alone
During the annual earnings presentation of BBVA, which saw profit exceeding €10 billion in 2024 and profitability (ROTE) close to 20 percent, its Chair, Carlos Torres Vila, remarked on the bank’s exceptional ability to generate value for its shareholders. More precisely, BBVA will distribute €5 billion among its shareholders—in the form of cash dividends and share buybacks— against 2024 earnings. In his view, the offer presented to Banco Sabadell is highly attractive and he is confident that it will go ahead, as the combination will create more value for shareholders than what both banks could generate going it alone. Meanwhile, BBVA CEO Onur Genç stated that BBVA expects to maintain its current levels of profitability throughout 2025 and confirmed Mexico’s growth potential. He also announced that the bank will hold an Investor Day later in the year.
One of the highlights of BBVA’s press conference was the bank’s commitment to create value for its shareholders, with distributions exceeding €5 billion against 2024 earnings, which represents a 50 percent payout. This remuneration consists of a cash dividend of €0.70 per share and a new €993 million share buyback program, which the bank expects to launch soon.[1] “Our strategy has worked exceedingly well so far and we believe it will continue to generate value moving forward,” said Carlos Torres Vila.
In total, “since 2021 we have distributed €18 billion to our shareholders,” including both dividends and share buybacks. He also noted that the return on investment for BBVA shareholders has more than tripled over the last five years (from January 2019 to date). Specifically, from January 2019 to the close of January 29, 2025, BBVA’s total shareholder return, which includes the stock performance and dividends, was 235 percent, compared to 137 percent for the Stoxx Europe 600 Banks index and 91 percent for the average among its comparable peers in Spain.
The BBVA Chair reiterated that the proposed combination with Banco Sabadell is a highly attractive proposition: “We are talking about premiums of 50 percent above the average share price for the previous three months and of 30 percent above the price on the day right before the offer was announced. Compared to other recent transactions in Europe, this is clearly an exceptionally attractive offer,” he explained. He also noted that Sabadell’s stock price “is being supported by the offer” and that the share exchange will allow its shareholders to obtain synergies leading to an increase of more than 20 percent in earnings per share.
As for the timeline, he said that BBVA expects the transaction to be approved by the CNMC (Spain's National Markets and Competition Commission) in a matter of weeks, following the presentation of “unprecedented remedies” to ensure competition, financial inclusion, availability of credit to SMEs and territorial cohesion once the combination of the two banks takes place: “Thanks to these remedies, we expect the deal to be approved in the coming weeks on terms that will maintain the value creation potential of this combination,” he added.
Carlos Torres Vila insisted on the importance of having larger and stronger banks in Europe and making them more competitive globally: “For Europe to be truly competitive, it needs financial institutions with greater scale and capable of financing large-scale projects in technology, sustainability and infrastructure,” he explained. According to the BBVA Chair, the European banking sector must set its sights on further consolidation in order to keep pace with other regions of the world and ensure its sustainable growth in the long run. The combination with Banco Sabadell is part of this wider process and will, in his view, “not only generate value for the shareholders of both banks, but also benefit customers, employees and society at large, especially in those territories where Sabadell has a greater presence.” Following on, he said that the deal represents a firm commitment to SMEs and to Catalonia, the Valencian Community and the other autonomous regions in which Banco Sabadell is active.
He remains confident that Banco Sabadell’s shareholders will appreciate the appeal of the transaction: “It is a union of two powerful banks to create another institution that can reach goals that might not be possible going it alone.”
Bright outlook for BBVA in 2025
Onur Genç, BBVA’s CEO, remarked on the strength of the bank’s earnings and their sustainability over time. In 2025, he predicts that “return on equity will remain at similar levels to 2024, meaning we will continue to see very positive financial figures.” In this regard, he pointed to BBVA’s unique combination of credit growth and profitability, where it outpaced its peers within the European banking sector. “We are the fastest growing and most profitable bank among our comparable European peers,” he exclaimed.
Both executives also underlined the strength of the franchise in Mexico and its strategic importance within the Group. The Chair shared BBVA’s vision of the Mexican economy. “We have a very positive outlook, no matter what happens when it comes to tariffs,” he said, pointing to Mexico’s competitive edge in production costs, its proximity to the United States, and low levels of banking penetration as key factors supporting its economy and financial sector.
Onur Genç added that BBVA has a leading position in the country, with a market share of 25 percent and with 40 percent of payroll payments channeled through the bank. “Regardless of short-term volatility, we are convinced that Mexico will remain an engine of growth for BBVA moving forward,” he concluded.
Lastly, and turning to BBVA’s business in Türkiye, Carlos Torres Vila said he was “delighted” with the outlook. After achieving an attributable profit of more than €600 million in 2024, thanks to the strength of the local franchise and with inflation gradually retreating, BBVA expects to reach the €1 billion mark in 2025.
¹ Once the necessary regulatory clearance has been obtained and the corporate bodies have green-lighted the combination.
