BBVA: Good Operating Performance, But The Valuation Is Too High

Labutes IR 4.37K Followers Follow Summary Banco Bilbao Vizcaya Argentaria, S.A. delivered robust Q2 2026 results, driven by strong loan and revenue growth across key markets. BBVA's net interest income rose 23% YoY, with notable contributions from Spain and Mexico, but rising operating expenses limited operating leverage. Profitability remains high with a 21% ROE and €3 billion Q2 net profit, yet the current 2.45x P/BV valuation appears stretched relative to peers. I upgrade BBVA to 'Hold'—the premium valuation reflects peak profitability, and better value exists in cheaper European banks with higher yields. MarioGuti/iStock Unreleased via Getty Images As I 've covered in past articles , I was bearish on Banco Bilbao Vizcaya Argentaria, S.A. ( BBVA ) due to its sensitivity to rates, which I was expecting to be a negative factor for This article was written by Labutes IR 4.37K Followers Follow Labutes IR is a Fund Manager/Analyst specialized in the financial sector, with more than 18 years of experience in the financial markets. I have worked at several type of institutions in the industry, always at the buy side and related to portfolio management. Associated with the existing author The Outsider. Analyst’s Disclosure: I/we have a beneficial long position in the shares of ING either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.