Group

Quarterly evolution of results

BBVA Group's profit for the second quarter of 2025 was €2,749m, representing a 1.9% increase over the previous quarter. Excluding the currency evolution impact, this growth would be 10.6%, as the main currencies of the countries in which the Group operates depreciated in the quarter. Thus, excluding the performance of currencies in the quarter, the favorable evolution of recurring revenues from the banking business stood out across all business areas. Additionally, other operating income and expenses line showed a positive result, helped by a lower adjustment for hyperinflation and operating expenses reduced. This was partially offset by lower net trading income (NTI), especially in the Corporate Center and as a result of foreign exchange hedging activity, and higher impairment charges on financial assets.

Year-on-year evolution of results

The BBVA Group achieved a cumulative result of €5,447m, by the end of June 2025, representing a year-on-year increase of 9.1%. If the exchange rate variation is excluded, this increases to 31.4%, supported by solid results that are driven by the strong performance of recurring revenues from the banking business, this is, in the favorable evolution of the net interest income and fees. In addition, there was a negative impact on the other operating income and expenses line significantly lower than in the same period of 2024, mainly due to a lower hyperinflation adjustment.

Unless expressly indicated otherwise, for a better understanding of the changes under the main headings of the Group's income statement, the rates of change provided below refer to constant exchange rates. When comparing two dates or periods presented in this report, the impact of changes in the exchange rates against the euro of the currencies of the countries in which BBVA operates is sometimes excluded, assuming that exchange rates remain constant. For this purpose, the average exchange rate of the currency of each geographical area of the most recent period is used for both periods, except for those countries whose economies have been considered hyperinflationary, for which the closing exchange rate of the most recent period is used.

The accumulated net interest income as of June 30, 2025 exceeded that recorded in the same period of the previous year (+9.7%), mainly driven by the evolution in Turkey and, to a lesser extent, by Mexico, followed by the contribution of Rest of Business and Spain.

Likewise, net fees and commissions experienced a year-on-year growth of 17.9%, once again supported by the performance of fees from payment methods and, to a lesser extent, asset management fees and commissions. Among the business areas, Turkey made an outstanding contribution in this line, well above the other business areas.

As a result, overall recurring banking business revenues, increased by 11.6% compared to the first half of 2024.

The NTI reported a 12.7% year-on-year decrease at the end of the first half of 2025, mainly due to the lower results in Turkey.

The other operating income and expenses line accumulated, as of June 30, 2025, a significantly improved result compared to the same period of the previous year. This is due to a lower negative impact in the first half of 2025 derived from the hyperinflation in Argentina and Turkey compared with the same period of the previous year, as well as to the recording in the first quarter of 2024 of the total annual amount of the temporary tax on credit institutions and financial credit establishments for €285m. The results of the insurance business, also included in this line, had a positive evolution.

Thanks to the remarkable growth in gross income, which increased by 19.6%, well above the rate of growth in operating expenses, (+10.2%), the efficiency ratio fell to 37.6% as of June 30, 2025, which represents an improvement of 322 basis points compared to the ratio as of June 30, 2024, at constant exchange rates.

On a year-on-year basis, the increase in operating expenses at the Group level stood at 10.2%, a rate that is below the inflation rates observed in the countries in which the Group has a presence (an average of 13.4% in the last 12 months⁷). The quarter includes a positive effect on the general expenses line due to the recognition of a lower expense corresponding to the Value Added Tax at BBVA, S.A. following the upward re-estimation of its pro-rata applied both in previous years and in 2025 itself.

The impairment on financial assets not measured at fair value through profit or loss (impairment on financial assets) stood at 9.7% at the end of June 2025 higher than in the same period of the previous year, due to year-on-year growth in lending to companies and, to a lesser extent, to retail customers. Turkey and Mexico required an increase in the level of provisions, which was partially offset by lower needs in South America and, to a lesser extent, in Spain.

The provisions or reversal of provisions line (hereinafter provisions) registered at the end of June 30, 2025 higher provisions compared to the same period of the previous year, mainly originated in Spain and Mexico and in the lower releases in Turkey.

On the other hand, the other gains (losses) line ended June 2025 with a balance of €72m, in line with June 2024.

Income tax includes the accrual corresponding to the first half of 2025 of the new tax on net interest income and net fees and commissions amounting to approximately €150m. In addition, in the second quarter of this year, as a result of the positive effects of the estimated outcome of the closure of the tax inspection process of the Group in Spain, covering the years 2017 to 2020 and the consequent reassessment of the needs to cover the tax risks, as well as the recognition of certain deferred tax assets corresponding to the tax Group in Spain that until now had not been recorded in the financial statements, there has been a positive net effect on the Group's estimated effective tax rate, which at 30 June stood at 31.2%.

As a result of the above, the BBVA Group reached a net attributable profit of €5,447m in the first half of 2025, showing a significant growth of 31.4% compared to the first half of the previous year. This solid result is supported by the positive evolution of the recurring banking business income, which have been able to offset the increase in operating expenses and in the provisions for impairment losses on financial assets. In addition, there was a less negative hyperinflation impact compared to the first half of 2024.

The net attributable profits, in millions of euros and accumulated at the end of June 2025 for the business areas that compose the Group were as follows: 2,144 in Spain, 2,578 in Mexico, 412 in Turkey, 421 in South America and 304 in Rest of Business.

The Group's excellent performance has also allowed it to continue generating value, as is reflected in the growth of the tangible book value per share and dividends, which at the end of June 2025 was 14.6% higher than at the same period of the previous year.

Lastly, the Group’s profitability indicators show BBVA's ability to combine higher growth rates and better profitability ratios in a way that differentiates it from the market. All the indicators improved in year-on-year terms supported by the favorable performance of the results.

⁷ Weighted by operating expenses and excluding Venezuela.

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