Economy and Finance

Following the assessment of the condition imposed by the Spanish Council of Ministers on June 24, 2025, BBVA is to move forward with the acquisition of Banco Sabadell as “the project creates significant value for the shareholders of both entities and represents a unique opportunity to build one the most competitive and innovative banks in Europe. Together we will be a stronger institution, with greater scale and the capacity to increase lending to households and business by €5 billion annually, thereby supporting the economic growth of our country,” BBVA Chair Carlos Torres Vila said.

BBVA’s Turkish franchise has successfully completed the issuance of a $500 million Tier 2 bond in the international markets. This marks the bank’s first such transaction in 2025, following a $750 million Tier 2 issue in November 2024.

Garanti BBVA has been recognized as the “Best Cash Management Bank” in Türkiye by Global Finance magazine for the second year in a row. The publication, which has been evaluating financial institutions globally for 37 years, honored the bank for its continued excellence in the cash management field.

The BBVA Chair recalled this Wednesday that the BBVA Sabadell transaction has received over 27 approvals, including from the CNMC, following a process that has been “more rigorous and longer than ever before.” In an interview with Carlos Alsina on Onda Cero’s ‘Más de uno’ show, Carlos Torres Vila underscored that the integration with Banco Sabadell is a transaction between two private actors. “The truth is that what really serves the public interest is for Banco Sabadell shareholders to be able to decide whether to accept the offer,” he said. “We are confident that they will decide to join this great project.”

With the slogan ‘Go Further’ as the central theme, nearly 1,600 BBVA professionals gathered in Madrid to explore the Group’s new 2025–2029 strategic plan. Officially presented in February, the teams responsible for the plan’s design and execution are now working through the details. At the opening of the event, BBVA Chair Carlos Torres Vila and CEO Onur Genç reflected on the achievements of the previous plan (2021-2024): profitable growth, over 14 million new target customers, and the early fulfillment of the sustainable business commitment, channeling €300 billion of sustainable finance one year ahead of schedule. They also conveyed their vision of the future: a competitive scenario, full of opportunity.

The Bank of Spain has informed BBVA of its new minimum requirement for own funds and eligible liabilities (MREL), the regulatory framework that requires banks to have sufficient funds to absorb losses in case of crisis.  Starting June 12, 2025, BBVA must maintain a buffer of 23.13 percent of the total risk-weighted assets (including the parent company, BBVA S.A and its subsidiaries in Europe). With an MREL ratio of 33.20 percent at the end of March 2025, the bank already far exceeds this threshold, and also meets the additional requirements for subordination and capital buffers.

BBVA Chair Carlos Torres Vila announced a record-breaking investment plan at the opening of the National Meeting of Regional Advisors (RNCR) of BBVA Mexico, the financial institution’s most important meeting in the country.  In front of more than 500 members of the business community, the Chair reported that BBVA is now making an even more ambitious announcement: “more than 100 billion pesos by 2030”, approximately €4.57 billion. “It is not only an investment. It’s trust. It’s a long-term vision. It’s a commitment to the more than 30 million customers we serve in the country,” he said.

BBVA posted solid results in the first three months of the year. Yet another quarter, BBVA stood out for its distinctive profitability, with an ROTE over 20 percent, and its ability to create value for its shareholders, with a 14 percent yoy increase in the tangible book value per share plus dividends. The Group earned €2.7 billion, up 23 percent in current euros (+46 percent in constant euros), driven by greater activity. The loan portfolio grew by 15 percent in constant euros, with a strong performance of Spain and Mexico. In these two countries, lending for companies and businesses increased by 8.5 and 25 percent, respectively. These earnings strengthened even further BBVA’s capital position, with a CET1 ratio over 13 percent.

The BBVA Group paid a record-breaking €8.46 billion in own taxes in 2024 in the countries where it operates, 10 percent more than the previous year, according to the Total Tax Contribution Report. In addition to this figure, BBVA collected €8.98 billion in taxes from third parties for a total of €17.44 billion–the Group’s highest tax contribution thus far. This means that for every €100 of income generated by BBVA in 2024, the bank contributed €49 to public coffers in taxes¹.

¹Ratio between BBVA’s financial contribution to public coffers in 2024 (€17.44 billion) and the bank’s gross margin for the year (€35.48 billion). BBVA’s tax contribution includes both its own taxes (corporate tax, VAT and specific levies on the financial sector, among others), as well as taxes collected by the BBVA Group on behalf of third parties, which are paid as a result of its presence and activity with employees, customers and suppliers in over 25 countries.

On Thursday, April 10, BBVA will pay a supplementary dividend of €0.41 per share. Added to the interim dividend paid in October, the total payout for 2024 rises to €0.70 per share, the bank’s highest since 2007. BBVA has also announced a €993 million share buyback.  Through dividends and the buyback, the bank will return a combined €5.03 billion to shareholders this year, half of its 2024 profit.

BBVA CEO Onur Genç emphasized on Thursday that the transaction with Banco Sabadell is focused on growth, bringing together the strengths of both institutions. “This is about preserving and expanding the excellent work Sabadell has done, and growing together in high-value segments, such as companies,” he explained. At an investor event organized by Bank of America, Genç underscored the attractiveness of the offer for Sabadell shareholders, not only due to the premium offered, but because of the value that will be created through synergies. As a result, they will be able to increase earnings per share compared to the standalone scenario. “BBVA is offering Sabadell shareholders the opportunity to become part of a stronger, more profitable, and more efficient bank,” he said.

On Friday, BBVA held its Annual General Meeting in Bilbao, where the Chair, Carlos Torres Vila, took stock of an excellent year. During his presentation, he underscored that BBVA, “with its strategic plan, aims to consolidate its business growth, multiply its contribution to society and create value for everyone.” In his opinion, it is crucial that Europe and Spain have banks with the right scale to take on the challenges posed by the new global landscape. In this context, BBVA is proposing the integration with Banco Sabadell as a “clear commitment to Spain and its companies.” Carlos Torres Vila stressed that with this transaction “both BBVA and Banco Sabadell shareholders will become the owners of a bank better prepared for the future.”

On Friday, March 21st at 12:00 PM (CET), BBVA will hold its 2025 Annual General Meeting (AGM) at the Euskalduna Conference Center in Bilbao (Spain). BBVA is making it easier for its shareholders to participate in the AGM by offering a hybrid model, combining in-person attendance with the option of remote participation. To participate remotely, shareholders need to register in advance on the Remote Attendance Portal. Furthermore, the bank’s corporate website will broadcast the event via webcast.

2024 was a great year for BBVA. The Group continued to grow steadily, while having a positive impact on society. Furthermore, BBVA successfully completed a strategic cycle, far surpassing all the targets it had set.

The more a company grows and increases its profitability, the greater its positive impact on the economy and people. During the presentation of the 2024 results, BBVA Chair Carlos Torres Vila explained how the bank will allocate its revenue and profit, with a greater social impact.

The finance department plays a pivotal role in the transformation of an organization. Although the CFO (chief financial officer) has traditionally been viewed as the guardian of a company’s finances, they happen to play a much bigger role. They help to shape the strategic roadmap needed to embark on this transformation and allocate the resources to make it all happen. This is what Luisa Gómez Bravo, Global Head of Finance at BBVA, had to say in a recent interview published by Forbes magazine, together with Carmen de Pablo, Chief Financial, Strategy and Sustainability Officer at Moeve, and Laura Abasolo, Chief Financial and Control Officer at Telefónica.

On Tuesday, BBVA issued a contingent convertible (CoCo or AT1) bond in the amount of $1 billion dollars, with an early redemption option in seven years. The operation kicks off the 2025 debt market, making BBVA the first EU bank to issue debt in this format this year. With this transaction, the bank is reinforcing its ability to diversify sources of funding.

Garanti BBVA customers can now apply for a used vehicle loan through Garanti BBVA Mobile without ever having to visit a branch, allowing them to finance the purchase of any second-hand vehicle they may wish to purchase from a dealership or a private seller.

Juan Blasco, Global Head of Institutional Business at BBVA CIB, has been appointed Chair of the Board of the Association for Financial Markets in Europe (AFME). Blasco takes on this role with the goal of contributing to the strengthening of European capital markets, fostering their integration and enhancing their ability to meet the needs of businesses and investors.

BBVA Mexico has become the first financial institution in the country to manage 1.012 trillion pesos in investment funds, according to the latest report by the Asociación Mexicana de Instituciones Bursátiles (Mexican Association of Stock Market Institutions, or AMIB). Now, as part of the bank’s strategy to professionalize its team, BBVA Mexico has reached an agreement with the CFA Institute to allow 140 of the bank’s investment advisors to obtain certifications with a focus on socially responsible investing and data science.

BBVA was recognized for the second time as the best bank in Spain by The Banker, part of the U.K.-based Financial Times publishing group. Having also won the award in 2022, the bank has now earned the accolade in 2024 for its focus on innovation, digitization and sustainability. BBVA Spain Country Manager Peio Belausteguigoitia described the award as “a reflection of the hard work and dedication of the entire BBVA team” and emphasized the bank’s commitment to integrating advanced technologies to improve customer service. In addition, BBVA received the global award for financial inclusion for its work through the BBVA Microfinance Foundation. The bank was also recognized as the best in Peru and Venezuela.

BBVA has been awarded the Inhouse Team of the Year in the Banks & Financial Institutions category at the 2024 Iberian Lawyer Gold Awards, in recognition of the work of its legal team and their ability to address challenges within the financial sector.

The top sectors investing through BBVA Mexico's Nearshoring unit are manufacturing, automotive, electronics, technology, and logistics.

The US magazine also proclaimed BBVA the best bank in Mexico, Colombia and Argentina, three key markets for the Group in Latin America.

During BBVA’s earnings presentation for the third quarter of 2024, the bank’s CEO, Onur Genç was upbeat about the bank’s prospects looking forward, predicated on a clear strategy of profitable growth and sound risk management. Geographic diversification and the ability to adapt to changes in interest rates place BBVA in good stead to face the challenges on the near horizon. Genç also appeared confident that the combination with Banco Sabadell will ultimately go ahead and have a positive impact for Spanish businesses and for the country as a whole.

The BBVA Group earned a record €7.62 billion from January through September, up 28 percent yoy (+44 percent at constant exchange rates). Of this figure, €2.63 billion are from 3Q24 (+26 percent). Earnings per share grew even higher (+32 percent), to €0.44 on the back of share buyback programs over the past 12 months. Greater lending activity (+11 percent in constant euros) drove these results. Profitability (ROTE) rose to 20.1 percent, with a solid capital position (CET1 fully loaded of 12.84 percent). Furthermore, the efficiency ratio improved to a record of 38.9 percent. BBVA continues to generate value for shareholders: the tangible book value plus dividends per share increased by 16 percent yoy.