Banco Bilbao Vizcaya Argentaria S.A.

The stable outlook reflects our belief that over the next 18-24 months, BBVA will remain resilient and continue to benefit from robust, albeit lower, profitability and the competitive advantage deriving from its strong digital capability. We forecast that the BBVA's ROE will remain above 15.0% over 2025-2027, compared with 19.7% in 2024. Despite asset expansion and high distributions to shareholders, we expect BBVA's capitalization to strengthen further so that its RAC ratio reaches 8.5% by 2027, up from an estimated 8.0% at end-2024. Asset quality could deteriorate moderately, particularly among small companies and in unsecured consumer loans in riskier geographies. Finally, we do not expect the cushion of subordinated bail-inable instruments to change. While we are unlikely to raise or

...Banco Bilbao Vizcaya Argentaria S.A. (BBVA) reports outstanding profitability. This is despite the still lackluster performance of its Turkish operations and the slowdown in the Mexican economy. Sound volume growth, competitive advantage deriving from its strong digital capability, and contained credit provisions support BBVA's strong performance. The group's return on tangible equity (ROTE) climbed to 19.7% in 2024 and we anticipate BBVA will benefit from robust, albeit lower, profitability amid the slowdown in the economy in Mexico and the declining rates in Europe....

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