Banco Bilbao Vizcaya Argentaria, S.A. Q1 FY2026 earnings call

• Value creation: Tangible book value per share + dividends grew 5% q/q and 14.7% y/y, profitability ratios improved with ROTE 21.7% and ROE 20.7%. - Net attributable profit: Almost 3 billion euros, up 10.8% y/y and 18% q/q, EPS 51 cents. - Key drivers: Net interest income grew 20.2% y/y, net fees and commissions 15.5% y/y, efficiency ratio 38%, cost of risk 154 basis points, solid capital position. - Transformation strategy: Pursuing AI initiatives across 8 areas, reshaping how to serve clients and run processes. - Financial goals: Performing in line or better than original expectations for 2025-2028 metrics

Spain: Net profit exceeded $1 billion, gross income grew 5.4% y/y and 4.3% q/q, NII up 3.6% y/y, fees grew 5.5% q/q ex seasonality, cost growth under control ex restructuring. Mexico: Net profit 1.45 billion euros, gross income up 10.3% y/y, NII up 8.3% y/y, cost-to-income ratio 30.8%, asset quality solid. Turkey: Net profit 263 million euros, NII strong, fees good, cost of risk 253 basis points, downward bias to guidance. South America: Net profit close to 250 million, up 16% y/y, core revenue growth, cost-to-income ratio 41.6%, cost of risk expected to improve. Rest of business: Net profit 236 million euros, revenue growth driven by activity, loan growth robust, cost of risk 30 basis points, upgraded 2026 guidance with loan and gross revenue growth above 30% y/y

• Mexico: Upward bias to loan growth. - Turkey: Downward bias to guidance due to macro parameter changes. - Rest of business: Upgrading 2026 guidance with loan and gross revenue growth above 30% y/y, cost of risk around 20 basis points. - Spain: Mid-single-digit activity growth guidance. - Overall: Continuous improvement in ROTE expected, with rates bottoming out expected to drive profitability

• Turkey: Impact of geopolitical events like war in Iran, uncertainty in macro parameters affecting cost of risk and guidance. - Macro uncertainty: Post-model adjustment of around 100 million euros in results, especially in Spain and Turkey. - Interest rate risk: Sensitivity of NII to rate changes in different geographies

Q: Francisco Raquel of Elantra on Mexico asset quality, cost of risk, revenue guidance, and cost of deposits.

A: No deterioration in credit cards, positive momentum in lending, positive bias on activity, deposit growth driven by time deposits and corporate side.

Q: Max Mission of JB Capital on Spain loan growth and Turkey 2028 targets.

A: Spain mid-single-digit growth guidance, Turkey guidance based on macro parameter changes.

Q: Antonio Real of Bank of America on Turkey net interest margins, cost of risk, efficiency gains, and capital distribution.

A: Cost of risk converging to 200 basis points, third tranche of share buyback starting, cautious on war impact.

Q: Cecilia Romero of Barclays on USMCA, geopolitical credit pressure, and macro assumptions.

A: USMCA likely continuation or status quo, no early credit pressure signs, macro assumptions updated.

Q: Alvaro Serrano of Morgan Stanley on Mexico deposit yield and redundancy plan.

A: Deposit growth due to time deposits and corporate pull-in, around 750 employees affected by restructuring.

Q: Benjamin Toms of RBC on cost gap and ROTE shape.

A: Continuous ROTE improvement expected, cost gap manageable with positive jaws.

Q: Marta Sanchez-Romero of J.P. Morgan on capital allocation and Spain deposit growth.

A: Ongoing capital allocation exercise, deposit growth from customer acquisition.

Q: Ignacio Uluguay of BNP Paribas on SRTs and rest of business revenue growth.

A: SRTs on track to 30-40 basis points, prioritizing client needs in revenue growth.

Q: Sophie Peterson of Goldman Sachs on Italy/Germany performance and Mexico/Turkey hedges.

A: Digital banks in Italy/Germany performing better than plan, hedges in Turkey and Mexico managed.

Q: Britta Schmidt of Autonomous Research on Mexico NII and cost growth.

A: NII slightly below loan growth, positive jobs in Mexico.

Q: Andrea Filtri of Mediobanker on PMA breakdown and EU regulation.

A: PMA mainly in Turkey and Spain, ECB approval of Danish compromise expected in second quarter.

Q: Borja Ramirez of Citi on LATAM macro and Spain AI.

A: LATAM relatively shielded, Spain NII sensitive to rate changes.

Q: Ignacio Cerezo of UBS on trading income and Mexico jobs.

A: Trading income from global markets, jobs in Mexico committed to efficiency target