BBVA Shares Drop After Spain Business Misses Expectations

By Adria Calatayud

BBVA shares dropped after the Spanish bank reported weaker-than-expected earnings for the third quarter in its home market, as strong lending activity didn't translate into a higher profit.

Shares in BBVA were down 5.5% in European morning trading Thursday, reducing the stock's year-to-date gains to 5.8%.

The lender--formally called Banco Bilbao Vizcaya Argentaria--said Thursday that net profit for its Spanish business fell to 934 million euros ($1.04 billion) in the third quarter from 988 million euros in the same period last year. Analysts had expected the figure at 1.03 billion euros, according to consensus estimates provided by the bank.

BBVA said loan growth in its key Spanish and Mexican businesses boosted a key revenue stream in the quarter, helping the group report a higher quarterly profit.

The bank's performance in Spain was weak, with disappointing revenue dynamics and higher impairments leading to a profit miss, analysts at Jefferies wrote in a note to clients.

BBVA sought to boost its presence in Spain through a hostile takeover offer for smaller rival Banco de Sabadell, but its bid fell through last year.

Sabadell separately reported third-quarter results on Thursday and lowered slightly its annual guidance for net interest income, the difference between what banks earn on loans and pay on deposits.

Overall, BBVA made a third-quarter net profit of 3.015 billion euros compared with 2.53 billion euros for the same period last year. Analysts had forecast profit at 3.01 billion euros, according to consensus estimates compiled by the bank.

BBVA attributed the increase to growth in recurring revenue and net trading income, even if the figure declined compared with the prior quarter due to higher costs and loan-loss provisions.

Gross income--the bank's top-line figure--climbed 20% to 10.91 billion euros, with all income lines contributing to the rise. Analysts had expected 10.765 billion euros, according to the same consensus.

Net interest income jumped 22% to 8.08 billion euros, driven by lending growth in Mexico and Spain. Net fee income and net trading income, meanwhile, rose 13% and 12%, respectively.

BBVA said it is on track to hit its 2025-28 targets.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

October 29, 2026 05:45 ET (09:45 GMT)