Banco Bilbao Stock Price, News & Analysis

Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) is a customer-centric global financial services group in the commercial banking industry. According to company disclosures, BBVA was founded in 1857 and operates as a financial institution with a strong leadership position in the Spanish market. The group is also described as the largest financial institution in Mexico and maintains leading franchises in South America and the Sunbelt Region of the United States, while acting as the leading shareholder in Turkey's Garanti BBVA.

BBVA is overwhelmingly a retail and commercial bank, as noted in its business description. Corporate and investment banking form a minor part of its overall activities. The bank also offers insurance and investment products through its banking networks. Based on available information, BBVA generates only around one-fourth of its profits in Spain, with a significant contribution expected from its Mexican bank and additional earnings from its Turkish operation and smaller operations in South America.

In the United States, BBVA has operated through BBVA USA, described as a Sunbelt-based financial institution. Public communications state that BBVA USA has operated hundreds of branches across several states, including Texas, Alabama, Arizona, California, Florida, Colorado and New Mexico. These disclosures also highlight that BBVA USA has ranked among the top 25 largest U.S. commercial banks based on deposit market share and has been recognized by the Small Business Administration as one of the leading small business lenders, with national rankings by SBA loan volume in certain fiscal years.

BBVA emphasizes a purpose "to bring the age of opportunities to everyone," which is described as being based on customers' real needs. The group states that it seeks to provide what it considers the best solutions and to help customers make financial decisions through an easy and convenient experience. BBVA also highlights a responsible banking model that aspires to achieve a more inclusive and sustainable society, and it frequently references environmental, social and governance (ESG) considerations in its communications, including initiatives in green financing and sustainable financing structures for clients.

The institution underscores a set of values: "Customer comes first, we think big and we are one team." These values are cited across multiple communications, including descriptions of diversity and inclusion efforts, internal business resource groups, and financial education initiatives. BBVA USA has reported programs such as a Financial Education Forum and a Center for Financial Education, as well as impact reporting on its financial education activities. These efforts are presented as aligned with trends in financial health and with the bank's stated responsibility to share knowledge to support sound financial choices.

BBVA has also communicated a focus on diversity and inclusion in its workforce. In the U.S. operations, the bank has announced business resource groups for women, LGBTQ employees, and Black and African-American employees. These groups are described as supporting employees, fostering conversations around personal experiences, and building bonds of compassion, respect and trust. Such initiatives are presented as part of BBVA's broader workplace diversity and inclusion strategy.

In addition to traditional banking services, BBVA has engaged in partnerships and sponsorships that reflect its presence in key markets. For example, BBVA USA has been associated with major sporting events and community initiatives, such as serving as a presenting sponsor for a prominent college football game and supporting related charitable campaigns. These activities are described as part of the bank's approach to connecting with communities and supporting local organizations.

From a capital markets perspective, BBVA files as a foreign issuer with the U.S. Securities and Exchange Commission on Form 20-F and Form 6-K. Recent filings describe actions such as share buyback programs, partial share capital reductions through cancellation of treasury shares, and plans to redeem certain green preferred securities contingently convertible into ordinary shares. These actions are presented in the context of BBVA's capital management, including references to impacts on common equity tier 1 (CET1) capital and the use of buybacks to reduce share capital.

BBVA has communicated that it has undertaken buyback programs of its own shares with the stated purpose of reducing share capital. In one instance, the company reported the completion of a buyback program with the acquisition of tens of millions of its own shares, representing a small percentage of its share capital at that time, and indicated that it expected to redeem all of those shares. In another communication, BBVA described a broader authorization from the European Central Bank for buybacks and cancellations of own shares up to a specified maximum aggregate amount, to be executed in several tranches over a defined period.

The bank has also reported decisions regarding hybrid capital instruments. For example, BBVA disclosed that, pursuant to the terms and conditions of an issuance of green preferred securities contingently convertible into ordinary shares, and after obtaining regulatory consent, it decided to redeem the issuance in whole on a specified redemption date. The redemption price per preferred security was described as equal to the liquidation preference plus accrued and unpaid distributions for the then current distribution period, subject to the limitations on payment in the terms and conditions of the issuance.

Overall, BBVA's available disclosures portray a commercial banking group focused on retail and commercial banking services, complemented by insurance and investment products, with a geographic footprint that includes Spain, Mexico, South America, the Sunbelt Region of the United States, and an equity position in a Turkish bank. Its communications emphasize customer focus, responsible banking, financial education, diversity and inclusion, and active capital management through share buybacks and hybrid capital instruments.

Business model and activities

According to the information provided, BBVA's core activities are in retail and commercial banking. This includes serving individual and business customers through banking networks and offering related financial products. Corporate and investment banking are described as a minor part of the overall business, indicating that BBVA's earnings are primarily driven by its retail and commercial operations.

The group also offers insurance and investment products through its banking networks. While specific product types are not detailed in the provided information, these offerings are presented as part of the broader financial services available to BBVA customers.

Geographic presence and earnings profile

BBVA's disclosures indicate that, despite its Spanish origins and leadership position in the Spanish market, only around one-fourth of its profits are generated in Spain. On a normalized basis, its Mexican bank is expected to contribute a substantial portion of earnings, with additional contributions from its operation in Turkey and smaller operations in South America. The group also highlights its franchises in the Sunbelt Region of the United States.

In the U.S., BBVA has described BBVA USA as a Sunbelt-based financial institution with hundreds of branches across several states. Public statements emphasize its ranking among the top 25 largest U.S. commercial banks by deposit market share and its position among the largest banks in certain states. BBVA USA has also been recognized by the Small Business Administration for its small business lending activity, with national rankings in SBA loan volume in specific fiscal years.

Culture, responsibility and inclusion

BBVA consistently references its values and purpose in its communications. The stated purpose is to bring the age of opportunities to everyone, focusing on customers' real needs and aiming to provide solutions that help customers make financial decisions with an easy and convenient experience. The values "Customer comes first, we think big and we are one team" are cited as the foundation of the institution.

The bank's responsible banking model is described as aspiring to a more inclusive and sustainable society. Examples in the available information include green financing initiatives, where internal leaders have been described as champions of green financing, working on financing structures that support clients' green and sustainable ambitions and ESG practices.

BBVA USA's communications also highlight financial education and social impact. The bank has hosted Financial Education Forums, partnered with nonprofit organizations, and released impact reports through its Center for Financial Education. These efforts are framed as supporting financial health and addressing disparities in financial outcomes across different communities.

Diversity and inclusion are another focus area. BBVA USA has announced the formation of business resource groups for women, LGBTQ employees, and Black and African-American employees. These groups are intended to support employees, foster dialogue about experiences such as prejudice and microaggressions, and create opportunities for employees to bring their full selves to work.

Capital management and regulatory filings

BBVA reports to the U.S. Securities and Exchange Commission as a foreign issuer, using Form 20-F for its annual report and Form 6-K for current reports. Recent Form 6-K filings describe several capital management actions, including share buyback programs and share capital reductions. In one filing, BBVA announced the completion of a buyback program with a defined maximum monetary amount, resulting in the acquisition of a specific number of own shares, representing a small fraction of its share capital, and indicated that it expected to redeem all of these shares.

Another filing details a partial execution of a share capital reduction resolution adopted by the Ordinary General Shareholders' Meeting. This reduction was implemented through the cancellation of tens of millions of own shares held as treasury shares, with the capital reduction charged to unrestricted reserves and accompanied by the creation of a reserve for redeemed capital under the Spanish Companies Act. The filing also notes that BBVA would request the delisting of the redeemed shares from the relevant stock exchanges and the cancellation of those shares in the accounting records of the Spanish central securities depository.

BBVA has also communicated the receipt of authorization from the European Central Bank for a program scheme for the buyback and cancellation of own shares up to a specified maximum aggregate amount, to be executed in several tranches over a defined period. The first tranche is described with details such as the maximum cash amount, maximum number of shares, execution period, trading venues, and the appointment of an external manager to execute the purchases independently.

In addition, BBVA has announced its decision to redeem in whole an issuance of green preferred securities contingently convertible into ordinary shares of BBVA on a defined redemption date, coinciding with the first reset date for the issuance. The redemption price per preferred security is described as equal to the liquidation preference plus accrued and unpaid distributions for the current distribution period, subject to the limitations on payment set out in the terms and conditions of the issuance.

FAQs about Banco Bilbao Vizcaya Argentaria, S.A. (BBVA)

• What type of financial institution is BBVA?
  BBVA describes itself as a customer-centric global financial services group and is characterized as overwhelmingly a retail and commercial bank. Corporate and investment banking are indicated to be a minor part of its overall business.
• When was BBVA founded?
  Company communications state that BBVA was founded in 1857.
• In which markets does BBVA report strong positions?
  According to BBVA, the group has a strong leadership position in the Spanish market, is the largest financial institution in Mexico, and has leading franchises in South America and the Sunbelt Region of the United States. It is also the leading shareholder in Turkey's Garanti BBVA.
• How does BBVA describe its earnings profile by geography?
  Available information indicates that only around one-fourth of BBVA's profits are generated in Spain, with a significant portion expected from its Mexican bank, additional earnings from its Turkish operation, and the balance from smaller operations in South America.
• What products and services does BBVA offer?
  BBVA is described as overwhelmingly a retail and commercial bank and also offers insurance and investment products through its banking networks. Corporate and investment banking activities are noted as a minor part of the group.
• What is BBVA's stated purpose and set of values?
  BBVA states that its purpose is to bring the age of opportunities to everyone, focusing on customers' real needs and providing solutions to help them make financial decisions through an easy and convenient experience. The institution cites values summarized as "Customer comes first, we think big and we are one team."
• How is BBVA present in the United States?
  BBVA has described BBVA USA as a Sunbelt-based financial institution operating hundreds of branches across several states, including Texas, Alabama, Arizona, California, Florida, Colorado and New Mexico. It has been reported as ranking among the top 25 largest U.S. commercial banks by deposit market share and as one of the largest banks in certain states.
• What role does small business lending play in BBVA USA's profile?
  BBVA USA has been recognized by the Small Business Administration as one of the leading small business lenders in the U.S., with national rankings in terms of SBA loan dollar volume in specified fiscal years, according to the bank's public statements.
• What kinds of capital management actions has BBVA reported?
  Recent SEC filings describe share buyback programs aimed at reducing share capital, partial executions of share capital reductions through cancellation of treasury shares, and the planned redemption of green preferred securities contingently convertible into ordinary shares, subject to regulatory consent and the terms of the issuances.
• How does BBVA address sustainability and ESG topics?
  BBVA refers to a responsible banking model that aspires to a more inclusive and sustainable society. In its communications, the bank highlights initiatives in green financing and sustainable financing structures, as well as financial education and diversity and inclusion programs.