BBVA is resisting improving its offer for Sabadell and insists it can withdraw it: "We have the right."

MadridBBVA has also sought to paint a promising future for itself, mirroring exactly what Banc Sabadell did last week. This Thursday, the Biscayan bank did not present a strategic plan like Sabadell did, but it did present its objectives for achieving alone between 2025 and 2028. This does not mean it will back down from the hostile takeover bid it has launched against the Valles-based bank.although he has recalled that it is an option within his reachFor now, the process continues with an offer that it does not intend to touch. "The offer is the offer," said the bank's CEO, Onur Genç. What BBVA did this Thursday was take advantage of the presentation of its first-half results (a record €5.447 billion) to demonstrate that it only has muscle capacity.

Among the objectives presented is the distribution of €36 billion to its shareholders from 2025 to 2028. In this way, BBVA is once again stepping on the accelerator regarding one of the mainstays of the takeover bid: dividends. It also expects to achieve accumulated profits of up to €48 billion, a return on tangible equity (ROTE) of 22%, and an efficiency improvement ratio of 35% (an important indicator in the eyes of supervisors because it shows whether an entity consumes fewer resources to generate income, i.e., whether it is below 50%).

However, it hasn't gone unnoticed that all the figures affect BBVA alone. In other words, the targets presented this Thursday do not include the possible acquisition of Sabadell. "I think it's normal [that they present the targets alone] because they're selling their project and want to show a lot of strength. They also couldn't provide combined figures [for BBVA and Sabadell] because that could affect shareholders," said financial sources consulted by ARA.

In a press conference, the bank's CEO, Onur Genç, explained that they decided to present these targets due to "the context of the takeover bid [for Sabadell] and so that shareholders would know what this bank [BBVA] is like." "We want the market to better understand the intrinsic value of BBVA on its own," Genç reiterated, while boasting about the figures. "BBVA is at the best moment in its history."

When asked whether the objectives presented are confirmation of a Plan B because BBVA is considering withdrawing the offer (or to prevent it from going ahead), the CEO denied this: "The presentation is not because we are thinking of withdrawing the offer. It is a good offer." However, he reiterated that if they ultimately halt the process, "nothing would happen." "If the operation is successful, perfect, but if not, we move forward and turn the page," Genç told analysts. "There are no guarantees of anything," he reiterated at a press conference later.

In any case, BBVA intends to explain the figures for the operation, that is, the combination of the two banks, once the transaction prospectus is approved by the National Securities Market Commission (CNMV) and the acceptance period is triggered (when BBVA). The prospectus is the document that should detail the impact of the transaction, especially with regard to synergies or cost savings, which are one of the cornerstones of business mergers.

"If no value is created [with the takeover bid], we will withdraw the offer."

One of the reasons BBVA could withdraw the offer is its value. "If [the acquisition] doesn't create value, we will withdraw the takeover bid for Sabadell," Genç acknowledged. Several factors come into play here, two of which stand out: the conditions imposed by the Spanish government on the transaction and the fact that they oblige BBVA to maintain Sabadell as a separate bank for three years. And Sabadell's sale of its British subsidiary TSB to Banco Santander, which, if successful, would leave the bank much smaller and without a presence in the United Kingdom. "We don't comment on the actions of our competitors," Genç simply stated.

Regarding the conditions imposed by Pedro Sánchez's government, BBVA remains open to appealing the decision in court. Meanwhile, he will closely follow the Sabadell shareholders' meetings on August 6, where the sale of TSB and the distribution of an extraordinary dividend will be voted on: "If the sale and the dividend are approved, we have the right to withdraw the offer, but the decision will be made after the meetings," the CEO indicated.

BBVA has shown no hesitation regarding the offer it has proposed. The bank continues to maintain that it is attractive and does not, for now, plan to lower the acceptance threshold for its success (that Sabadell shareholders sell at least 50.01% of the shares). "It's an option, but the offer is the offer, and we've set the minimum at 50% because we want to have control. The rest is speculation, and we're not going to enter," Genç said.

Record results through June

Returning to the first six months of 2025, BBVA posted a record profit of €5.447 billion in the first half of the year, a 9.1% increase compared to the same period in 2024, thanks to the boost in activity in Spain, but also in Mexico, as reported this Thursday. In this way, it avoids the European Central Bank's interest rate cuts and trade tensions with the United States. However, it also joins its competitors' announcements of profits, again, record-breaking in the first half of the year. In total, the four largest banks in Spain (CaixaBank, Banco Santander, BBVA, and Sabadell) earned €16.206 billion.

The financial institution explained that total revenue for the first half of the year soared to €16.617 billion, an increase of 12%. Regarding interest income (net interest income), it stood at €12.607 billion, up 10%, thanks primarily to growth in activity in Mexico and Spain. In fact, it is the only one of the four major banks to register growth in the country in this source of income, which is automatically impacted by the drop in interest rates. Fee and commission income rose 18% to €4.01 billion in just six months. Profitability rose above 20%. With these figures, the bank improves its outlook for 2025 in terms of profitability and efficiency for the group as a whole, and in terms of growth in lending and net interest income in the case of Spain.