BBVA Net Interest Income Rises 2.1% on Spanish Spread Growth
The global financial services group saw net interest income reach €7,627 million in the second quarter.
Net interest income grew 2.1% from the previous quarter to €7,627 million, representing a 17.8% increase year-over-year in constant terms. The growth was supported by a widening customer spread in Spain, which rose 3 bps to 2.85% as loan yields increased to 3.43% from 3.39% while deposit costs remained stable.
Performance in other key markets diverged. Mexico's customer spread in MXN compressed to 11.61% from 11.74% as loan yields declined to 13.84% from 14.02%, though deposit costs improved to -2.23% from -2.28%. In Turkey, the TL customer spread compressed to 0.38% from 2.02% because deposits repriced faster than loans in a higher-rate environment.
Loan volumes increased 17.7% compared to June 2024 in constant terms. On a quarterly basis, loan growth was 3.3% in Spain and 2.1% in Mexico.
Non-interest income showed mixed results. Net fees and commissions grew 2.6% from the prior quarter to €2,316 million, or 16.2% year-over-year in constant terms, driven by asset management and corporate and investment banking activity. Net trading income declined 36.4% to €582 million, reflecting a more normalized result following previous gains.
Capital position and shareholder returns remained a focus. The CET1 ratio increased 7 bps to 12.90% from 12.83%, staying above the target range of 11.5% to 12.0%. The bank approved a new €2 billion share buyback program and launched an initial €1 billion tranche during the second quarter.
Credit quality metrics showed a slight increase in risk. The cost of risk for the first half of 2025 was 1.39% year-to-date, compared to 1.32% for the same period in 2024.
Operating efficiency and profitability improved. The efficiency ratio moved to 37.8% from 38.0% in the first quarter. Return on tangible equity for the first half of 2025, excluding share buybacks, was 22.2%, up from 21.7% in the first quarter.