Banco Bilbao Vizcaya Argentaria SA (BBVA) shares plummeted 7.93% during intraday trading on Thursday, following the release of its fourth-quarter 2025 financial results. The sharp decline reflects investor concerns over pressured profitability and the bank's future growth trajectory.
The Spanish lender reported a significant 19% year-on-year surge in provisions, primarily driven by its operations in Turkey and Mexico, which weighed on profits despite overall revenue growth. Furthermore, quarterly sales of $11.403 billion missed analyst consensus estimates. The bank's outlook for 2026 was viewed as conservative, with targets for net interest income growth and return on equity appearing below some analyst forecasts, prompting profit-taking among investors.
Market sentiment was further dampened by the recent collapse of BBVA's plan to acquire smaller rival Banco de Sabadell, which has reignited concerns over the bank's exposure to emerging markets and its ability to sustain growth. Analysts noted that while the bank maintains an attractive financial profile, much of this is already reflected in its valuation, making further share price appreciation challenging at current levels.
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