Capital and shareholders

Capital base

The BBVA Group's CET1 ratio⁸ stood at 13.34% as of June 30, 2025, which allows it to maintain a large management buffer over the Group's CET1 requirement as of that date (9.12%⁹), and is also above the Group's target management range of 11.5% - 12.0% of CET1.

Regarding the evolution during the second quarter, the Group’s CET1 increased by 25 basis points with respect to the March level (13.09%).

Noteworthy in this evolution is the strong earnings generation during the second quarter, which contributed +69 basis points to the ratio. The provision for dividends and the coupon payments on AT1 instruments (CoCos) subtracted -37 basis points. Organic growth in risk-weighted assets (RWA) at constant exchange rates, net of risk transfer initiatives, represents a consumption of -41 basis points, reflecting, once again, the Group's ability to continue reinvesting in new growth.

Among the remaining impacts that increase the ratio by 34 basis points, the positive compensation effect of "Other Comprehensive Income" over the net monetary value loss registered in results in hyperinflationary economies stands out. In similar terms, the market variables and one-off regulatory impacts in the quarter also contributed positively to the ratio.

QUARTERLY EVOLUTION OF THE CET1 RATIO

⁽¹⁾ Includes, among others, FX and mark to market of HTC&S portfolios, minority interests, and a positive impact in OCI equivalent to the Net Monetary Position value loss in hyperinflationary economies registered in results.
⁽²⁾ One-offs derived from a positive regulatory impact partially compensated by higher Tax assets (DTAs).

The AT1 ratio showed a variation of -2 basis points compared to March 31, 2025. This variation was due to exchange rate fluctuations, which impacted both the computability of issuances and the growth in RWA. No issuances were made or redeemed during the quarter.

For its part, the Tier 2 ratio has experienced a significant variation (-5 basis points in the quarter), mainly impacted by the exchange rates.

As a consequence of the foregoing, the consolidated total capital ratio stood at 17.72% as of June 30, 2025, above the total capital requirements (13.28%⁹).

Following the latest decision of the SREP (Supervisory Review and Evaluation Process), which came into force on January 1, 2025, BBVA Group must maintain at consolidated level a total capital ratio of 13.28% and a CET1 capital ratio of 9.12%⁹, including a Pillar 2 requirement at consolidated level of 1.68% (a minimum of 1.02% must be satisfied with CET1), of which 0.18% is determined on the basis of the European Central Bank (hereinafter ECB) prudential provisioning expectations, and must be satisfied by CET1.

CAPITAL RATIOS (PERCENTAGE)

As of June 30, 2025, the fully loaded leverage ratio stood at 6.93%, which represents a slight reduction (-1 basis point) compared to March 2025.

With respect to the MREL (Minimum Requirement for own funds and Eligible Liabilities) ratios¹⁰ achieved as of June 30, 2025, these were 31.55% and 12.03%, respectively for MREL in RWA and MREL in LR, reaching the subordinated ratios of both 26.64% and 10.16%, respectively. A summarizing table is shown below:

On June 12, 2025 the Group made public that it had received a communication from the Bank of Spain regarding its MREL requirement, established by the Single Resolution Board (“SRB”). According to this communication, BBVA must maintain, as from June 12, 2025, an MREL in RWA of at least 23.13%¹¹. In addition, BBVA must reach, also as from June 12, 2025, a volume of own funds and eligible liabilities in terms of total exposure considered for purposes of calculating the leverage ratio of at least 8.59% (the “MREL in LR”)¹². These requirements do not include the current combined capital requirement, which, according to applicable regulations and supervisory criteria, is 3.65%¹³. Given the structure of the resolution group's own funds and eligible liabilities, as of June 30, 2025, the Group meets the aforementioned requirements.

For more information on these issuances, see "Structural risks" section within the "Risk management" chapter.

Shareholder remuneration

Regarding shareholder remuneration, as approved by the General Shareholders' Meeting on March 21, 2025, under item 1.3 of the agenda, on April 10, 2025, a cash payment of €0.41 gross per outstanding BBVA share was made against 2024 earnings, with the right to receive this amount as a final dividend for 2024. Thus, the total amount of cash distributions for 2024, taking into account that €0.29 gross per share were distributed in October 2024, amounted to €0.70 gross per share.

Additionally, on January 30, 2025, a BBVA share repurchase program for an amount of €993m million was announced, which is pending execution in its entirety as of the date of this document.

As of June 30, 2025, BBVA’s share capital amounted to €2,824,009,877.85 divided into 5,763,285,465 shares.

Ratings

During the first half of 2025, several agencies have recognized the favorable evolution of BBVA's fundamentals, especially in relation to the high levels of profitability achieved and the resilient asset quality maintained. In February, Fitch changed the outlook on its rating (A-) to positive from stable, and subsequently placed it on rating watch positive in May. Moody's changed the outlook on its long-term senior preferred debt to rating watch positive from positive in March, maintaining its rating at A3. For its part, in February, DBRS communicated the result of its annual review of BBVA affirming its rating at A (high) with a stable outlook, and S&P affirmed in March its rating at A with a stable outlook. The following table shows the credit ratings and outlooks assigned by the agencies:

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