Banco Bilbao Vizcaya (BBVA) | News Based Sentiment Analysis

• On September 16, 2025, S&P Global Ratings upgraded BBVA's long-term issuer credit rating to 'A+' from 'A', citing solid risk-adjusted returns and a strengthened financial position – a significant vote of confidence in the bank's stability and future prospects. This upgrade also included improvements to resolution, senior unsecured, and subordinated debt ratings.
• BBVA CEO Onur Genç presented the bank’s strategic plan to investors in London and New York on September 16, 2025, outlining a target of €48 billion in attributable profit and €49 billion in capital generation between 2025 and 2028, with €36 billion earmarked for shareholder payouts. The plan projects an average Return on Tangible Equity (ROTE) of 22% during this period, aiming to lead European banking.
• Despite the positive outlook, BBVA Banco Frances (NYSE:BBAR), BBVA’s Argentinian subsidiary, hit a 52-week low on September 8, 2025, following missed earnings and revenue expectations; reporting EPS of $0.24 versus an estimated $0.37 and revenue of $524.41 million compared to $727.31 billion expected. This led to downgrades from Zacks Research and Citigroup.
• BBVA expanded its U.S. presence with a new Corporate and Investment Banking (CIB) and Wealth Management office in Houston, Texas, opening on September 17, 2025, staffed by nearly 90 professionals. This expansion aims to capitalize on nearshoring opportunities and serve high-net-worth clients from Mexico, particularly in the clean energy sector.
• Banco Sabadell’s Board of Directors unanimously rejected BBVA’s takeover bid on September 12, 2025, believing the offer undervalued the institution, despite BBVA offering a 30% premium over Sabadell’s April 29, 2024 share price. Sabadell’s shares were trading 6% above BBVA’s offer price, indicating confidence in its standalone value.
• BBVA further solidified its commitment to digital assets by expanding its partnership with Ripple on September 9, 2025, to utilize Ripple Custody technology for providing digital asset custody services in Spain, aligning with the EU’s MiCA regulation. This supports BBVA’s new crypto asset trading and custody solution for retail customers.
• Time magazine recognized BBVA’s strong performance, ranking it eighth globally in its 'World's Best Companies 2025' list on September 11, 2025, climbing 37 positions from 2024 and becoming the top-ranked bank in Spain.

The Investment Story: September was a month of contrasts for BBVA, marked by a credit rating upgrade, ambitious strategic plans, and expansion into new markets, offset by challenges in its Argentinian subsidiary and the rejection of its takeover bid for Banco Sabadell. The bank is clearly focused on growth and shareholder returns, but faces hurdles in certain areas.

What It Means for Investors: The positive developments – the rating upgrade, strategic plan, and U.S. expansion – suggest continued growth potential. However, the Sabadell rejection introduces uncertainty, and the struggles of BBVA Banco Frances are a concern. Investors should monitor the outcome of the Sabadell situation and the performance of the Argentinian subsidiary.

Looking Ahead: Investors should closely watch the tender offer closing date for Sabadell on October 7, 2025, and the expected outcome by October 14, 2025. The performance of BBVA Banco Frances and the continued rollout of digital asset services will also be key areas to monitor.

The Bottom Line: BBVA remains a compelling investment opportunity, demonstrating a proactive approach to growth and a commitment to shareholder value. While the Sabadell acquisition presents a risk, the bank’s overall strategy and positive momentum suggest long-term potential.