BBVA’s Strong Performance Amidst Eurozone Interest Rate Reduction
BBVA, a Spanish banking giant with significant operations in Spain, Mexico, and Turkey, reported record-breaking profits for the first half of 2025. The company announced an increase in its financial targets despite the European Central Bank’s (ECB) decision to lower interest rates.
Impressive Financial Results
BBVA’s net profit reached €5,447 million ($6.23 billion) in the first six months of 2025, marking a 9% increase from €4,990 million in the same period last year. This performance surpassed analysts’ expectations, who had forecasted an average of €5,000 million in profits.
“BBVA is at its best moment in history. We are one of the most profitable and fastest-growing banks in Europe,” said Onur Genç, BBVA’s CEO.
Key Factors Behind BBVA’s Success
BBVA attributed its impressive results to the strong performance in both Mexico, its primary market, and Spain. Despite the ECB’s interest rate cuts, BBVA’s net profitable assets grew by 10% to €12.607 billion, and banking commission income surged by 18% to €4.010 billion.
Revised Financial Targets for 2025
Based on these results, BBVA upgraded its profitability outlook for 2025. The bank anticipates a cumulative net profit of €48 billion by 2028 and plans to redistribute €36 billion to its shareholders during this period.
BBVA’s Acquisition Attempt of Rival Sabadell Faces Challenges
The announcement of BBVA’s results coincides with its hostile takeover attempt of rival Sabadell, launched in May 2024. However, the Spanish left-wing government imposed strict conditions at the end of June to prevent a merger between the two banks for at least three years, citing concerns over reduced competition.
Sabadell’s Countermeasures
In response to BBVA’s acquisition attempt, Sabadell sold its British subsidiary TSB to Banco Santander for €3.1 billion and pledged to offer record-breaking returns to its shareholders.
Key Questions and Answers
- What is BBVA’s performance in the first half of 2025? BBVA reported a net profit of €5,447 million ($6.23 billion) in the first six months of 2025, a 9% increase from the same period last year.
- Why did BBVA revise its financial targets? The bank upgraded its profitability outlook for 2025 based on its impressive first-half results, anticipating a cumulative net profit of €48 billion by 2028.
- What challenges is BBVA facing in its acquisition attempt of Sabadell? The Spanish government imposed strict conditions to prevent a merger between BBVA and Sabadell for at least three years, citing competition concerns.
- How is Sabadell responding to BBVA’s acquisition attempt? Sabadell sold its British subsidiary TSB to Banco Santander and promised record-breaking returns to its shareholders.
