Banco Bilbao Vizcaya Argentaria S.A.

Good morning, and thank you all for joining BBVA's first quarter earnings call. As in previous quarters, I'm joined today by our CEO, Anur Ghent, and the group CFO, Luisa Gómez Bravo. First, they will walk you through quarterly figures, after which we will open the line for the live Q&A session. With that, I hand it over to Anur.

Thank you, Patricia. Good morning to everyone. Welcome, and thank you for joining BBVA's first quarter 2026 earnings webcast. Starting with slide number three, and as always, beginning with value creation. On the left-hand side of the page, you can see the strong evolution of tangible book value per share plus dividends. growing 5% in the quarter and 14.7% year-on-year, driven by our excellent results, as we will see in the following slides. It's also worth highlighting here that excluding the impact of the share buyback programs, the year-on-year growth would have been 18.1%. And on this one, as you know, in the fourth quarter of 2025, we executed a €993 million share buyback program. And at the moment, we are currently executing the nearly €4 billion program announced in December 2025, of which €2.5 billion has already been completed across two tranches. As you all know, and as these buybacks have been carried out at a premium to book value, they clearly create value for our shareholders, but they have a negative impact on tangible book value per share. On the right-hand side of the slide, our profitability ratios have further improved, reaching an industry-leading return on tangible equity of 21.7% and return on equity of 20.7%. On page 4, on the left-hand side, we delivered another very strong quarter in terms of net attributable profit, reaching almost 3 billion euros, as you can see. This represents a 10.8% increase year-on-year and 18% growth versus the previous quarter. These results at the bottom of the left-hand side, it brings our earnings per share up to 51 cents, an increase of 12.5% year-over-year, higher than the growth of the net attributable profit, thanks to the share buyback programs. On the right-hand side of the page, our CT1 capital ratio, it improved by 13 basis points during the quarter, reaching 1,283. A strong quarter in capital generation, placing our capital ratio well above our target range and, obviously, regulatory requirements. Moving to page number five. And as an introduction to the following pages, the key drivers of our performance this quarter. First, at the top, net interest income, it grew by 20.2% year over year, driven by very strong business activity, long growth at 17%. Second, net fees and commissions also showed an excellent evolution, increasing by 15.5%. Third, in the page, our industry-leading efficiency ratio, it continued to improve, reaching 38%. Fourth in the page, sound asset quality metrics with a cost of risk at 154 basis points, showing relative stability in the current geopolitical context. And finally, at the bottom of the page, as mentioned, we maintain a solid capital position, showing further improvement in the quarter. Slide number six, as always, the summarized P&L of the quarter. You can see the year-over-year quarterly evolution in the second column from the left in constant, and next to it in the third column in current terms. If I highlight something, I would highlight the strong performance of core revenues with excellent growth in net interest income, excellent growth in fees, leading to a gross income growth of 18.3% in constant euros and 14.2% in current euros. Moving to slide number seven and talking more about the gross income growth with more details on the quarterly progress in the last five quarters. As you can see, net interest income growth remains very strong, increasing 20% year over year and 2.9% quarter over quarter, supported by, again, robust activity growth, increase in lending. Worth mentioning, there is always a seasonality to take into account here in the first quarter, also due to the day count. Net fees and commissions continued their excellent trajectory, as I mentioned, up 15.5% versus the same quarter last year, driven by payments, asset management, and we increasingly see a higher contribution from insurance and especially from CIB. And despite the seasonality also here, it has grown 0.9% compared to the previous quarter. Finally, net trading income delivered a very good performance, supported by positive momentum in our global markets business. All of the above leads to excellent gross income growth, 18.3% as mentioned year on year, and 4.3% quarter on quarter. Moving to slide number eight, we wanted to share some perspectives on the evolution of our net interest income, the critical part of our revenues in our core geographies you would see in the page, Spain and Mexico. On the left side of the page, long growth. It remains very strong in both Spain and Mexico, with growth rates of 6.3% and 8.4% respectively. In the center of the page, customer spreads. As you mentioned in the past, our results are positively correlated to interest rates in both countries. And as a result, customer spreads have declined in the last years in both countries. But as you can see on the page, at a much slower pace than the reduction observed in the interest rates due to effective price management. And on the right side of the page, as a result of both activity and spreads, NAI has grown by 3.6% in Spain and 8.3% in Mexico year over year. On a quarter-over-quarter basis, although not shown on the page, NAI shows a slight decline, mainly due to aforementioned seasonality effects. And looking forward, it's important to mention that we are already seeing the bottom of the rate cycle in both countries. We have discussed it multiple times in the previous calls. But if the rates have reached their bottom, more or less, in both countries, this implies continued NAI growth, obviously with sustained activity levels. In conclusion, in short, despite rate compression, our strong loan growth and proactive price management continue to support net interest income growth, and with stabilizing rates, we are very positive for the future. Moving to slide number nine, on the left-hand side of the slide, we continue to deliver positive jobs at the group level, supported by the strong performance of gross income, which grew, as I mentioned, 18.3% year over year, while operating expenses increased by 17.5%, reflecting continued investment in organic growth, according to our strategic plan. It is important to note that expenses growth rate is impacted by the voluntary redundancies implemented in the first quarter, with a one-off restructuring charge of approximately 125 million euros, mainly impacting Spain and corporate centers. Excluding this effect, cost growth would have been 13.9%. On the right-hand side, our efficiency ratio, it stands at 38%, improving 24 basis points versus last year. Excluding the voluntary redundancy program, the ratio would have been 36.8%, clearly better than our guidance for the year. Turning to slide number 10, this page shows the evolution of our sound asset quality metrics in a context of strong activity growth, again, especially in the most profitable segments. On the left-hand side, at the bottom of the page, we see the evolution of cost of risk shown on a quarterly basis to allow for direct comparison between quarters. As you can see, cost of risk stands at 154 basis points in the first quarter, broadly in line with the previous quarter. It's worth highlighting here that due to the current macroeconomic uncertainty and aligned with our prudent risk management approach, we have included a post-model adjustment of around 100 million euros in our results this first quarter, of which the majority affects our impairment figures primarily in Spain and in Turkey. Excluding this impact, cost of risk would have been 147 basis points. And on the bottom right-hand side, both our non-performing loan ratio and coverage ratio, they continue to improve year over year and also quarter over quarter. Slide 11 on capital and shareholder remuneration. Starting on the left-hand side of the slide, you can see the quarter-on-quarter evolution on our CET1 ratio, which increased by 13 basis points to 1,283. This is comfortably above our target range of 11.5 to 12. But if you focus on the waterfall... are strong results that contribute 75 basis points to the ratio. Second, the accrual of the dividend and 81 coupon payments, deducting 40 basis points. Third, on the page, 34 basis points due to the RWA's growth. This figure once again reflects our ability to reinvest part of our capital generation into profitable growth, while we also benefited this quarter and as in previous quarters from several risk transfer transactions, SRTs, which contributed 12 basis points to the ratio in the quarter. And lastly on the page, a bucket of others of 12 basis points, which comprises, as in other quarters, the market-related impacts and the credit in OSI that accounting-wise neutralizes the deduction in the P&L due to hyperinflationary accounting. And then moving to the right side of the page, on the nearly 4 billion share buyback program that started in late December, As mentioned, we have completed the first and the second tranches, and we still have nearly 1.5 billion euros pending, on which we plan to start the execution early next week, and the date is the 6th of May. Needless to say, again, we remain beyond the share buyback programs. We still have excess capital, and we remain fully committed to distributing our excess capital above the upper end of our CET1 target range. Moving to page 12, we continue to make strong progress in the execution of our transformation strategy. Today, we wanted to particularly update you on AI, one of our priorities in the strategic plan, as you know. And then BBVA has always harnessed innovation as a critical lever to differentiate itself from competitors. We have proven it in our view through digitalization in the last decade, and we are committed to do it again through AI. AI, a disruptive technology in our view that has the potential to transform banking even faster and even deeper than previous technological disruptions. As you can see on the left-hand side, We are pursuing this across eight very tangible initiatives from the personal advisor for every client, which we call blue in the bank, and the AI for the banker to other areas, to risk, to operations, software development, embedding intelligence across the entire organization. And beyond the eight, which are, again, very tangible initiatives, we are revolving towards a truly AI-driven bank, revamping our operating system by industrializing the creation, the governance, and the operation of AI agents at scale across the bank. This transformation is already reshaping how we serve clients, run our processes, and it also empowers our people. We are seeing some very early but very promising results to that end, and we will keep updating you as outcomes grow and consolidate in terms of what this means. But beyond these early results, once again, what truly will differentiate BBVA is our ability to scale AI across the group, similar to what we did in digital transformation. And moving to page number 13, before handing it over to Louisa, regarding our ambitious financial goals for the 2025-2028 period that we announced last year in June. I will not read each of them, but we are performing, I can very clearly confirm to you, that we are performing in line or better than our original expectations in all of the metrics that you see on the page. And now for the business areas, I'll turn it to Louisa.

Thank you very much, Anur, and good morning, everyone. On slide 15, let me start with Spain, which has delivered an excellent first quarter, with net profit once again exceeding the $1 billion mark. This strong performance was supported by solid revenue dynamics, with gross income growing by 5.4% year over year and 4.3% quarter over quarter. Strong loan growth continues to support NII, up 3.6% year-on-year, with customer spread broadly stable in the quarter. On a quarterly basis, NII is affected by a day-count effect. Adjusting for this, it would have remained largely stable. On fees, as is typical in the first quarter, they are impacted by the seasonality of asset management success fees booked in the fourth quarter. Excluding this, fees grew 5.5% quarter-on-quarter, showing healthy underlying momentum, supported by strong CIB performance and an increasing contribution from insurance. As Honor mentioned, costs are impacted by the voluntary redundancies implemented early in the year. Excluding the one-off restructuring charge, cost growth remains well under control at 4.8% year-on-year. The expected savings will be largely realized in 2026 and are already reflected in our guidance. On asset quality, trends remain very sound. As previously mentioned, and following a prudent approach in a highly uncertain macroeconomic context, we applied a PMA, a post-model adjustment, in the quarter, which led to a higher reported cost of risk. On an underlying basis, however, the cost of risk stands in line with our low 30s guidance, which we reiterate. Overall, Spain has delivered a very strong start to the year, giving us confidence in our ability to deliver on our full-year guidance. Turning to Mexico on slide 16, BBVA Mexico once again has delivered outstanding results, with net profit reaching 1.45 billion euros in the quarter, up 4.5% year-on-year in constant euros. This performance is driven by strong top-line dynamics, with gross income increasing by 10.3% year-over-year, supported by strength across all revenue lines. Net interest income increased by 8.3% year-on-year, supported by a strong loan growth, over 10% excluding FX, and resilient margins despite a declining rate environment. As shown on the slide, customer spreads show strong resilience, even as the reference rate has declined by 225 basis points since March of last year. We expect rates to bottom out this year at 6.5 from 6.75 currently. As in Spain, NII is also impacted by a typical first quarter seasonality, in this case also affecting the credit card activity, which is very strong and typically is in the fourth quarter, and also the calendar day effect. Excluding the latter, NII would have grown above 1% quarter on quarter. Fees remain solid despite seasonality, again on the credit card and payment fees following the commercial campaigns of the fourth quarter. Revenues are also underpinned by strong net trading income and good performance from the insurance business reported on the other income line. Overall, strong gross revenues performance continues to drive positive jobs while we continue to invest in future growth and maintain best-in-class efficiency with a cost-to-income ratio of 30.8%. Asset quality remains solid with stable underlying trends across portfolios. Cost of risk stood at 345 basis points, flat quarter on quarter, and in line with guidance. Looking ahead, we maintain our guidance for the year, now with an upward bias to loan growth, supported by the strong momentum in activity across both retail and wholesale segments. Now, moving to Turkey, BVA Turkey delivered a strong net profit of €263 million, mainly driven by net interest income growth and overall robust revenue dynamics. Let me just highlight a few key points. Net interest income remains strong, supported by selective loan growth and wider TL customer spread, as lower TL deposit costs more than offset declining loan yields in a falling rate environment. Fees also showed good momentum, supported by payments, asset management, and CIB fees, while net trading income also contributed positively. Hyperinflation adjustment, however, was somewhat higher this quarter due to higher inflation metrics. And finally, on asset quality, cost of risk stood at 253 basis points, broadly stable quarter on quarter, reflecting elevated but manageable provisioning needs in retail portfolios. The quarter includes a PMA for macro uncertainty. Excluding this, cost of risk would have been 238 basis points, above full-year guidance as anticipated in the first half, but expected to converge over the year. Overall, Turkey delivered a strong quarter. However, given the uncertain environment, we now see a downward bias to our guidance. The central bank is expected to remain tight until conditions allow for a gradual resumption of the easing cycle, presumably in the second half of the year. As a result, NIM improvement could be more gradual than previously anticipated. Recall that guaranteed UVA has positive sensitivity to lower rates. Let's turn now to South America. On slide 18, the region delivered a very strong performance quarter with net profit close to 250 million, up 16% year on year in current euros. These strong results were driven by solid core revenue growth across all geographies. Net interest income grew by close to 14% quarter on quarter, supported by healthy loan growth and customer spread expansion, particularly in Argentina and Peru. Fees also performed strongly, reflecting our continued focus on strengthening this revenue line. Solid gross income growth supports positive jobs and efficiency gains, with cost-to-income ratio improving to 41.6%. On asset quality, cost of risk stood at 276 basis points, somewhat elevated due to still high provisioning needs in Argentina's retail portfolios, where we expect gradual improvement only towards the second half of 2026. Trends remain supportive both in Peru and Colombia. Overall, we confirm our full-year guidance for cost of risk in the region below 250 basis points. The strong start to the year reinforces our confidence to deliver on our full-year guidance. Also, both for activity and revenue growth. Finally, let's move to rest of business. As you know, rest of businesses houses, just a reminder, houses the CIB business carried out by the branches and the digital banks activity. In the quarter, net profit reached €236 million, driven by solid revenue growth supported by strong activity momentum. Loan growth remained robust and well-balanced across geographies, mainly driven by corporate lending, which represents 77% of the total book and grew by 10% quarter over quarter. Activity growth translated into solid revenue growth, with solid NII, remarkable evolution of fees across the board, and higher net trading income supported by client activity. On cost, expanded evolution continues to reflect the rollout of our strategic plan to support future growth and is in line with our guidance. Risk metrics remain very solid. Cost of risk rose to 30 basis points in the quarter, driven by higher provisioning linked to some specific exposures. Finally, given the strong performance in the quarter, we are upgrading our 2026 guidance. Loan and gross revenue growth now above 30% year-on-year, while maintaining cost of risk guidance at around 20 basis points. And now back to Anna for the takeaways.