BBVA 1Q26 Earnings Release

BBVA reported a strong first quarter for 2026, showcasing excellent value creation and profitability. The bank achieved a Return on Equity (ROE) of 20.2% and a Return on Tangible Equity (ROTE) of 19.3% in 1Q26. Net attributable profit increased by 14.1% year-on-year to €2,989 million, with Earnings Per Share (EPS) at €0.51. The bank maintained a robust Capital position with a CET1 ratio of 12.83%, comfortably above the target range. Key financial messages highlight excellent fee income evolution, positive jaws leading to an improved Efficiency Ratio of 38.0%, sound asset quality with a cost of risk at 1.54%, and a strong capital position. Net Interest Income saw a significant increase of 20.2% year-on-year, driven by strong activity and effective price management, particularly in Spain and Mexico. The bank is also advancing its AI transformation strategy, with early positive impacts observed in employee efficiency and customer service. BBVA reaffirmed its Group financial goals, including a target ROTE of c.22% and an Efficiency Ratio of c.35% for the 2025-2028 period. The outlook for 2026 indicates continued strong performance, with expected ROTE above 20% and Gross Income growth above 30% in the Rest of Business segment.