Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) posted record annual profit of 10.5 billion in 2025, up 4.5% year-over-year, driven by strong loan growth across key markets 1.
The results highlight the bank’s ability to expand lending while managing rising credit provisions, signaling resilience in Spain’s financial sector amid economic uncertainties.
Key Takeaways
- Annual profit reached record 10.5 billion, up 4.5%
- Loan portfolio grew 16.2% to 472.70 billion
- Spanish operations delivered 13.7% profit increase
Market reaction & context
BBVA’s fourth-quarter net profit rose 4.1% to 2.53 billion, slightly below analyst expectations 2. The performance outpaced many European banking peers struggling with margin compression and economic headwinds.
Performing loans under management grew 16.2% at constant exchange rates to 472.70 billion from 424.09 billion at the end of 2024 3. Customer deposits also expanded, supporting the bank’s funding base.
Detailed analysis
Spain remained a bright spot, with net profit rising 13.7% year-over-year in the fourth quarter while lending income increased 5.8% 4. The domestic market benefited from improved lending margins and market share gains.
Mexico operations faced headwinds from higher provisions, though loan growth remained solid. Turkey also contributed to the bank’s expansion, with lending activity showing strong momentum across emerging markets 5.
Outlook & management guidance
BBVA guided for low to mid single-digit growth in Spain for 2026, reflecting cautious optimism about domestic economic conditions 6. Management emphasized the bank’s ability to balance profitability with growth initiatives.
“This outstanding performance has resulted in” strong market positioning, management said, highlighting gains in market share across Spain, Mexico and Turkey 7.
Capital strength & returns
The bank’s return on equity improved to 19.3% last year, with management targeting around 20% for 2026 8. This would place BBVA among the most profitable European banks by this key metric.
BBVA’s Corporate & Investment Banking division posted record revenues of 6.56 billion in 2025, with loans activity increasing 28% compared to December 2024 9. The strong performance underscores the bank’s diversified revenue streams beyond traditional retail banking.
Conclusion
BBVA’s record profit demonstrates effective execution of its growth strategy despite challenging market conditions. The bank’s geographic diversification and strong capital position support continued expansion.
Investors will monitor whether the bank can sustain loan growth momentum while managing credit quality, particularly in volatile emerging markets where it maintains significant exposure.
Not investment advice. For informational purposes only.
References
1“BBVA reports record profits, flags higher-than-expected provisions” (2026-02-05). Sharecast. Retrieved February 5, 2026.
2“Spain’s BBVA Profit Rises on Loan Growth” (2026-02-05). Wall Street Journal. Retrieved February 5, 2026.
3“BBVA Q4 profit rises 4% as Spain and Mexico boost growth despite higher provisions” (2026-02-05). Investing.com. Retrieved February 5, 2026.
4“BBVA’s higher provisions offset brighter lending outlook in Mexico” (2026-02-05). Reuters. Retrieved February 5, 2026.
5“BBVA Reports Strong Lending Growth Amid Rising Provisions” (2026-02-05). Global Banking and Finance. Retrieved February 5, 2026.
6“BBVA’s higher provisions offset brighter lending outlook in Mexico” (2026-02-05). Reuters. Retrieved February 5, 2026.
7“BBVA posts record profit after failed Sabadell takeover” (2026-02-05). KHQ National. Retrieved February 5, 2026.
8“BBVA Rising Provisions, Capital Miss Offset Higher Revenue” (2026-02-05). Bloomberg. Retrieved February 5, 2026.
9“BBVA CIB Posts A Record 2025: 6558 Million In Revenues” (2026-02-05). BBVA. Retrieved February 5, 2026.