BBVA reiterates that it has "neither the intention nor the need" to improve the takeover bid for Sabadell.

MADRIDBBVA has kicked off the year with another record profit. The Bilbao-based bank posted a net profit of €2.698 billion in the first three months of 2025 (between January and March), representing a 22.7% increase compared to the same period in 2024, as reported by the bank this Tuesday through the National Securities Market Commission (CNM).

Despite the lowering of interest rates by central banks, an element that has so far boosted the banking business, BBVA's revenue, or gross margin, between January and March was €9.324 billion, up 13.5%. Of that figure, net interest income (interest margin) fell 1.7% to €6.398 billion, while net fees grew 9.2% to €2.06 billion. With these results, its return on tangible equity (ROTE) has skyrocketed to 20%.

Business by country

Mexico was once again the main contributor to the bank's profit growth, although less than the previous year. During the first three months of the year, it accounted for €1.332 billion of profit, a 7.6% decrease. In Spain, profits increased by 43.8%, to €1.024 billion, while Türkiye accounted for €158 million.

One year after the second attempt to buy Sabadell

Tuesday's results were released a year after BBVA made its second attempt to acquire Banc Sabadell (the first attempt was in 2020). After the Catalan bank refused to negotiate a merger, the Bilbao-based entity launched the hostile takeover bid, which is still pending.

As a result of yesterday's power outage, the National Commission on Markets and Competition (CNMC) postponed the meeting it had scheduled to issue its final opinion on the takeover bid. The supervisory body will meet again this Wednesday and is expected to announce its conclusions, namely, the commitments and conditions it demands from BBVA in exchange for authorizing the takeover bid for Sabadell. In this regard, BBVA CEO Onur Genç reiterated that the entity presented a series of "unprecedented" commitments. Sabadell, on the other hand, sees things completely differently and even criticized the methodology used by the CNMC to analyze the takeover bid.

Genç said he trusts the commitments presented will allay the Spanish government's doubts about the takeover bid. It's worth remembering that once the ruling is known, the ball will be transferred to the Ministry of Economy, which will have to decide whether to submit the takeover report to the Council of Ministers for its decision in Phase 3, at which point it could demand more conditions.

However, Genç stated that the bank has "neither the need nor the intention" to improve the takeover bid for Banc Sabadell and defended the premium included a year ago. This hypothesis has gained strength since the share exchange premium is negative, meaning Sabadell shareholders would lose value if they made the exchange.

"Europe needs bigger banks to meet the necessary investments in technology, sustainability, energy, and defense. Only in this way can we have a more competitive economy compared to the rest of the world. In this context, the merger with Banco Sabadell is a great opportunity to create a stronger, more competitive, and more profitable bank," said the CEO of Alicante.