BBVA posts record $12.3B profit in 2025 but shares trade above fair value, rated Hold.

Banco Bilbao Vizcaya Argentaria (BBVA) reported a record net profit of $12.3 billion in 2025 with a return on tangible equity (ROTE) of 19.3%. Despite strong shareholder returns including a $4.64 billion buyback and a $0.70 dividend, the stock is currently trading about 10% above the analyst's fair value estimate of $20.25 per share. Key risks such as Mexican peso volatility, Turkish hyperinflation, sector re-rating, and regulatory capital requirements may limit further upside. The analyst rates BBVA shares as Hold, suggesting cautious optimism given the current valuation and risks.