Banco Bilbao Earnings: Earnings Beat and Higher Guidance Drive an 8% Fair Value Estimate Increase

Narrow-moat Banco Bilbao Vizcaya Argentaria, or BBVA, reported a net attributable profit of EUR 2.2 billion for the first quarter of 2024, comfortably ahead of the EUR 2 billion that the consensus of analysts polled by BBVA expected. Contrary to our expectations, net interest income continued its upward trend. BBVA also increased its 2024 guidance as it now expects double-digit net attributable profit growth driven by higher-than-expected net interest income growth from its Spanish operations. We have increased our fair value estimate to EUR 11.50 per share from EUR 10.70 per share to reflect the better-than-expected results and higher guidance.