BBVA posts strong Q2 2026 with 23% loan growth but valuation looks stretched at 2.45x P/BV.

Banco Bilbao Vizcaya Argentaria (BBVA) reported strong Q2 2026 results, driven by a 23% year-over-year rise in net interest income, mainly from Spain and Mexico. Despite high profitability with a 21% return on equity and €3 billion net profit, rising operating expenses limited operating leverage. The stock's current price-to-book value of 2.45x appears high compared to peers, leading to an upgrade to 'Hold' as better value is found in cheaper European banks offering higher yields.