BBVA Shares Drop as Rising Provisions Dampen Strong Results in Mexico and Spain
BBVA shares fell today as higher provisions offset record annual profits. The bank remains optimistic about lending growth in Mexico and Spain through 2026.
Insights:
Banco Bilbao Vizcaya Argentaria, S.A. reported on Thursday that higher-than-expected fourth-quarter loan-loss provisions have offset stronger lending income from its key markets. The lender's provisions for the final quarter of 2025 rose 19% year-on-year to €1.75 billion, a figure that exceeded forecasts of €1.66 billion previously noted by analysts at Jefferies. This development coincided with a 6.2% decline in the share price of Banco Bilbao Vizcaya Argentaria, S.A. as the market reacted to the impact on quarterly profitability and capital metrics.
