BBVA buries the takeover bid chapter and now wants to grow only in Spain

MadridBBVA has definitively buried the chapter on the hostile takeover bid for Banc Sabadell. Now the financial institution wants to focus on the strategic plan outlined last summer, which requires continued growth, but independently, both within and outside the Spanish market. With the possibility of acquiring Sabadell now gone, Torres has closed the door on any alternative: "There are no possibilities for consolidation in Spain now that the Sabadell deal has passed," the executive stated. Likewise, when asked about the acquisition that Banco Santander has just announced in the United States, the BBVA chairman affirmed that the bank feels "no pressure to make an acquisition." "We must have a plan that generates organic value for shareholders," Carlos Torres reiterated during the presentation of the 2025 results, which are once again record-breaking – between January and December of last year, the bank earned €10.511 billion, a 4.5% increase. BBVA, in fact, decided to sell part of its US business in 2020. "It was the right decision," Torres stated. Santander, on the other hand, is taking the opposite approach: "You can't be a global bank without being in the United States," Ana Botín argued this Tuesday. Her words have been interpreted as a kind of lesson at the Bilbao-based bank. "I don't know what it means to be a global bank," Torres asserted, avoiding any comment on Santander's €12.2 billion acquisition of Webster Bank.

With no operations on the horizon to shape BBVA's agenda, Carlos Torres didn't hesitate to use the presentation of the 2025 earnings to demonstrate that the financial institution has sufficient strength to reach, and even exceed, the targets set for 2028. "It's been a year, it's been a year of press conferences." However, the record earnings presented this Tuesday failed to convince the market: BBVA's shares fell almost 8.8%. "Corrections [in the stock market] are normal," stated Torres, who downplayed the drop, suggesting that perhaps they had been overly cautious, or the market had higher expectations, regarding the 2026 targets.

The financial institution explained that total revenues for the three years soared by 3%, a 4.1% increase. As for interest income (net interest margin), it reached... €26.28 billion, thanks primarily to growth in activity in Spain, the market that has driven these results, even surpassing Mexico. In fact, based on the figures for the Spanish business, BBVA has been one of the few institutions that have managed to weather the European Central Bank's (ECB) interest rate cuts, which directly impact this source of income. In contrast, in Mexico, profit for 2025 fell to €5.264 billion when compared at current prices to 2024 earnings, and revenues suffered a slight decline. Meanwhile, business in Turkey progressed strongly, although, as in Argentina, the bank has had to set aside more provisions than anticipated. BBVA's fee income reached €8.215 billion. Finally, return on tangible equity fell from 20% to 19.3%.

More shareholder returns

"This magnificent performance has translated into excellent value creation, allowing us to accelerate shareholder returns with a record-high dividend and the share buyback program to date," BBVA Chairman said in a statement. Alongside the publication of the results, the bank announced it will pay a supplementary dividend to its shareholders in 2026, increasing the 2025 payout by 30% to a record €5.249 billion. Specifically, it will pay €0.60 in cash per share in April of this year, in addition to the €0.32 paid in November. That is, a total of €0.92 in cash. "We look to 2026 with positive prospects in all our markets. We expect to continue growing faster than our competitors and increase profitability to levels around 20%. BBVA is at its best," said Torres.