Banco Bilbao posts profit beat on revenue strength

Banco Bilbao Vizcaya Argentaria SA on Thursday reported third-quarter net profit of €3,015 million, exceeding analyst expectations by 1%. The Spanish bank’s results showed stronger net interest income offsetting weaker trading income and higher impairments.

The bank’s attributable profit came in above the company consensus estimate of €2,996 million. Pre-provision profit beat expectations by 2%, while total revenue exceeded forecasts by 2%. Operating costs were 1% higher than anticipated.

Net interest income rose 6% quarter-over-quarter and 22% year-over-year, beating consensus by 3%. Net fee income missed estimates by 1%, and trading income fell short by 8%.

Customer loans stood 1% above consensus, increasing 4% from the previous quarter and 21% year-over-year.

The bank’s Common Equity Tier 1 ratio reached 12.2%, falling 10 basis points below analyst estimates and declining 20 basis points quarter-over-quarter.

The decrease reflected 71 basis points from results, offset by 38 basis points from dividend accruals and AT1 coupon payments, 44 basis points from risk-weighted asset growth, and 9 basis points from other impacts.

Total impairments missed consensus by 4%. The cost of risk stood at 144 basis points for the first nine months of 2026, remaining stable compared to the first half.

The bank’s nine-month return on tangible equity reached 22%, exceeding its full-year 2026 guidance of around 21%.

In Spain, net profit missed forecasts by 10% due to lower income and higher impairments. Net interest income fell 2% short of expectations, rising 1.2% quarter-over-quarter. Customer spreads widened by 2 basis points in the quarter, with loan yields up 14 basis points and cost of deposits up 13 basis points.

Mexico operations delivered profit in line with expectations. Loans grew 12% year-over-year in Mexican peso terms, with wholesale lending driving growth. Customer spreads declined 7 basis points in the quarter.

Turkey operations beat profit expectations by 9% on stronger revenues and lower costs. Customer spreads in Turkish lira expanded 70 basis points. The year-to-date cost of risk stood at 255 basis points.

South America missed net profit estimates by 4%, while Rest of Business operations beat by 26%.