BBVA stock trades near yearly high as profit and capital ratios strengthen

Banco Bilbao Vizcaya Argentaria stock is underpinned by an earnings and capital story, with the Spanish lenders 2024 net profit and capital ratios providing the main anchor for investors. According to the banks 2024 annual report, BBVA generated a net profit of EUR 8.02 billion in 2024, up from EUR 6.62 billion in 2023, reflecting growth of around 21 percent year on year as higher interest income and resilient credit quality supported results.

Net profit up 21 percent

In its 2024 reporting, BBVA highlighted that total revenue for the year reached approximately EUR 29.0 billion, compared with around EUR 25.0 billion in 2023, underscoring how higher net interest income and fee income lifted the top line. The bank reported that net interest income alone contributed more than EUR 20 billion in 2024, benefiting from higher policy rates in key markets such as Spain and Mexico and wider customer spreads. Against this backdrop, net profit rose to EUR 8.02 billion in 2024, versus EUR 6.62 billion a year earlier, meaning earnings increased by about EUR 1.4 billion year on year.

BBVA also pointed to efficiency as a key driver of its profitability metrics, indicating that its cost to income ratio remained below 50 percent in 2024 on a group basis. Operating expenses grew more slowly than revenue, allowing the bank to expand its operating income and absorb higher loan-loss provisions without eroding net profit. Management has emphasized that keeping the cost base under control while investing in digital capabilities and branch optimization remains central to sustaining profitability in the coming years.

Return on equity and capital ratios

The banks profitability improvement translated into a higher return on equity, with BBVA reporting a return on equity above 15 percent in 2024, compared with roughly 14 percent in 2023. This improvement reflects the combined effect of higher profits and disciplined capital management, including share buybacks and a progressive dividend policy. A return on equity in the mid teens places BBVA among the more profitable large euro area banks, reinforcing its investment case relative to many domestic and European peers.

Capital strength remains another pillar of the story. BBVA stated that its fully loaded common equity tier 1 ratio stood around 12.7 percent at the end of 2024, up from approximately 12.3 percent at the end of 2023, despite capital being deployed for organic growth and shareholder remuneration. This level provides a buffer above the regulatory minimums set by the European Central Bank and national regulators, giving the bank room to navigate macroeconomic uncertainty and potential credit losses. Management has indicated that maintaining a CET1 ratio comfortably above 12 percent is consistent with its strategic plan.

Loan quality indicators also contributed to the capital narrative. The banks non performing loan ratio remained close to 3 percent in 2024, with coverage ratios above 70 percent, according to its published figures. This combination suggests that BBVA has built provisions that can absorb a degree of stress in its loan book, including exposures in emerging markets such as Mexico and Turkey, which historically carry higher volatility than the home Spanish market.

Dividend and shareholder distributions

For income oriented investors, BBVA has paired its earnings growth with rising shareholder distributions. Based on the 2024 results, the bank proposed a cash dividend that brought the total payout to around 50 percent of net profit, alongside additional capital returns through share buybacks. In March 2024, the bank executed a share repurchase program amounting to several hundred million euros, reducing the share count and supporting earnings per share metrics. This payout strategy aligns with managements stated aim to combine growth investment with attractive shareholder remuneration.

Compared with the prior year, the total dividend per share for 2024 increased, reflecting both the higher net profit base and the chosen payout ratio. While the exact dividend per share figure depends on the final share count after buybacks, the higher aggregate payout illustrates how BBVA is using its stronger profitability to reward shareholders. The bank has noted that its dividend policy remains subject to regulatory guidance and internal capital targets, but the medium term intention is to keep payout ratios in a range that balances flexibility and yield.

Revenue mix and geographic exposure

BBVAs earnings remain diversified across geographies, with a substantial share of profit generated in Mexico and Spain, and additional contributions from Turkey and South America. In 2024, the bank reported that its Mexico unit contributed more than 40 percent of group profit, benefiting from robust loan growth, higher net interest margins, and a relatively benign credit environment. Spain, by contrast, accounted for around one quarter of group earnings, as rising rates and cost control offset slower loan demand.

Exposure to Turkey and South America introduces both upside and risk. In Turkey, BBVA controls Garanti BBVA, whose results are influenced by local macroeconomic conditions and currency volatility. The bank has acknowledged that inflation and exchange rate movements in Turkey can affect reported earnings and capital ratios, though hedging and capital management aim to mitigate these effects. In South America, operations in countries such as Colombia, Peru, and Argentina provide growth potential but also require careful risk management to handle cyclical swings.

Digital banking and customer growth

BBVA emphasizes its digital transformation as a competitive advantage. According to its 2024 disclosures, the bank counted more than 50 million digital customers, up from around 45 million two years earlier, reflecting a steady migration of users to online and mobile channels. This digital adoption has allowed BBVA to streamline branch networks, reduce operating costs per customer, and expand the range of products offered through apps and online platforms.

Management has highlighted that more than 70 percent of product sales in 2024 were conducted through digital channels, compared with roughly 60 percent in 2022, underscoring the shift in customer behavior. The bank claims that digital customers tend to show higher engagement, lower churn, and a greater propensity to use multiple products, supporting revenue per client. These dynamics feed into the efficiency ratio and help sustain profitability even in a competitive and regulated banking landscape.

Shares near recent highs

On the market side, BBVA shares trade on the Bolsa de Madrid and form part of the Ibex 35 index, making the stock a key component of the Spanish equity benchmark. As of mid July 2026, BBVA stock was trading around EUR 10.50, compared with approximately EUR 7.50 at the start of 2024, implying a gain of about 40 percent over that period. This performance outpaced many European banking peers, reflecting investors positive assessment of the banks earnings momentum, capital strength, and exposure to higher growth markets.

The share price has also approached its 52 week high, which lies slightly above EUR 11.00, underlining the improved sentiment around the name. At a price near EUR 10.50 and based on the 2024 net profit, the stock trades at a price to earnings multiple in the high single digits and offers a dividend yield in the mid single digits, depending on the exact payout. For investors, the combination of earnings growth, capital returns, and geographic diversification is central to the stocks appeal, but it also means that macroeconomic and regulatory developments in Spain, Mexico, and Turkey remain key watchpoints.

BBVA app and digital banking products

BBVAs flagship retail product for many customers is its mobile banking app, which provides access to current accounts, savings, cards, loans, and investment products. The bank reports that daily active users of its app have been rising steadily, with millions of clients logging in regularly to manage transactions, set saving goals, and apply for new products. For example, in 2024 the bank noted that the number of mobile transactions grew by double digits compared with 2023, underscoring the relevance of digital channels in day to day banking.

Beyond basic banking, the app integrates budgeting tools, personalized financial insights, and access to investment products such as mutual funds and pension plans. BBVA has also expanded its offering of digital onboarding, allowing new customers to open accounts remotely without visiting a branch, which is particularly attractive in markets with large urban populations and high smartphone penetration. This digital ecosystem supports cross selling opportunities and helps the bank maintain engagement with younger, tech savvy clients who might otherwise gravitate toward fintech competitors.

BBVA stock on the Madrid exchange

BBVA shares are listed primarily on the Bolsa de Madrid under the ticker BME BBVA, and the stock is a constituent of the Ibex 35 index, which tracks leading Spanish companies. As of 15 July 2026, BBVA stock traded around EUR 10.50 on the Madrid exchange, with intraday volumes reflecting its role as one of the most actively traded Spanish banking names. At this price level and based on the banks reported share count, the implied market capitalization stands in the range of EUR 65 billion, highlighting BBVAs status as a major European financial institution.