Company: BBVXF
Filing Date: 2025-07-31
Form Type: 6-K
Source: 0000842180-25-000030
Chunk: 43

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-07-31
Form: 6-K
Chunk 43
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 of macroeconomic normalization has continued in recent months. In addition to continued fiscal consolidation and monetary tightening, more recently a large part of the exchange controls have been lifted and a floating exchange rate regime with wide bands has been implemented. Although the new exchange rate regime has allowed some depreciation of the peso, its impact on inflation has been limited. Thus, BBVA Research forecasts that annual inflation, which reached 39.4% in June, will close 2025 at around 28.0%. On the other hand, it maintains unchanged its GDP growth forecast of 5.5% in 2025, after the contraction of 1.7% recorded in 2024. The banking system continues to grow at a high pace. With data at the end of June 2025, total lending was increased by 176% compared to June 2024, favored by consumer, corporate and, above all, mortgage portfolios, which grew by 188%, 154% and 453% year-on-year, respectively. For its part, deposits continue to decelerate, and at the end of June recorded a year-on-year growth of 67%. Finally, the NPL ratio remains controlled, placing at 2.19% at the end of April 2025. Activity and results – In the first half of 2025, performing loans under management grew by 45.4% (+21.0% in the second quarter), mainly driven by the growth in corporate loans and all the retail loans, notable was the growth in consumer loans (+61.1%) and the dynamism that mortgage loans start to show (+87.6% in the first half). At the end of June 2025, the NPL ratio stood at 2.7%, an increase of 99 basis points compared to the end of March 2025, mainly due to retail portfolio NPL entries, which affected the NPL coverage ratio, which stood at 98%, below the level recorded at the end of March 2025. – On balance sheet funds recorded a 32.0% growth in the first half of 2025 (+19.1% in the second quarter), with growth in time deposits (+54.8%, favored by corporate balances) higher than demand deposits (+20.0%). For its part, mutual funds (off-balance resources) also had a good performance in the same time horizon ( +13.1 %), with decrease in the second quarter (-4.1%).

Translation of this report originally issued