BBVA stock edges higher as market weighs capital return and earnings momentum

Banco Bilbao Vizcaya Argentaria SA (ISIN ES0113211835) delivered strong earnings momentum in 2024, with BBVA stock reflecting investors focus on capital returns, dividend growth, and the group s solid capital position in a still volatile European banking environment.

Earnings grow double digit in 2024

According to BBVA s published full year 2024 results, the group reported a net attributable profit of EUR 8.02 billion for fiscal 2024, up from EUR 6.62 billion in 2023, representing an increase of about twenty one percent year on year as higher interest rates and business growth supported margins and volumes.

BBVA stated in its release that recurring revenues, including net interest income and net fees and commissions, rose in most core markets in 2024, with Spain, Mexico, and Turkey contributing strongly to the group total, while loan loss provisions also increased as BBVA maintained a prudent risk stance and built buffers against potential asset quality deterioration.

In Spain, BBVA highlighted that strong commercial activity with both retail and corporate customers, together with repricing of the loan book, supported net interest income in 2024, and the bank underlined that it continued to gain market share in key products such as consumer loans and payment services during the year.

Revenue and capital ratios support BBVA stock

On a group level, BBVA reported that 2024 gross income exceeded EUR 27 billion, compared with roughly EUR 25 billion in 2023, illustrating that topline revenue expanded by around eight percent year on year on the back of solid client activity and positive interest rate dynamics in BBVA s main geographies.

BBVA also pointed out that its fully loaded CET1 capital ratio ended 2024 at about 12.7 percent, slightly above the twelve and a half percent area a year earlier, underlining that the bank managed to organically generate capital while at the same time funding dividends and share buybacks for its shareholders.

For investors, the combination of mid single digit to high single digit revenue growth and a CET1 ratio clearly above regulatory requirements means BBVA has room to continue returning capital, and the net profit growth of more than EUR 1.3 billion in 2024 versus 2023 shows that earnings leverage to higher rates and volume growth remains intact.

Dividend and buyback underpin shareholder returns

BBVA emphasized in its 2024 communications that it continued to increase total shareholder remuneration, with the cash dividend for fiscal 2024 amounting to roughly EUR 0.64 per share versus about EUR 0.55 per share distributed for fiscal 2023, which corresponds to an increase of around sixteen percent year on year in the cash payout.

In addition to the higher dividend, BBVA launched a share buyback program for 2024 of approximately EUR 1.0 billion, following earlier programs in prior years, and indicated that the total payout, including dividends and buybacks, was aligned with a target of distributing between forty and fifty percent of profit to shareholders over the cycle.

The combination of a rising dividend per share and the ongoing buyback means that BBVA s implied shareholder yield, when measured against the bank s market capitalization in the tens of billions of euros, remains competitive compared with other large euro area banks that have also resumed or expanded capital return programs.

Retail banking and digital products

BBVA is known for its strong retail and commercial banking franchise, particularly in Spain and Mexico, where it offers current accounts, savings products, consumer and mortgage loans, and a broad range of cards and payment services to individual and small business clients.

The group has invested heavily in digitalization, and a growing share of its customers now interacts with the bank through mobile and online channels, using the BBVA app to manage accounts, transfer funds, apply for loans, and access savings and investment products.

BBVA stock and market context

BBVA is listed on the Spanish stock exchange in Madrid and is a constituent of the IBEX 35 index, giving BBVA stock broad visibility among both domestic and international investors who track major euro area bank benchmarks and European equity indices.

At recent trading levels, BBVA shares have reflected expectations for moderate earnings growth in the coming years, underpinned by the 2024 net profit of EUR 8.02 billion and the continued focus on cost discipline, risk control, and capital generation in the group s core markets.