BBVA has accelerated a 23% share buyback. The program began in early October after the bank allocated 115 million euros to acquire 15 million of its own securities, as disclosed in the latest filing with the National Securities Market Commission (CNMV). The move reflects a deliberate course of action by BBVA to return capital to shareholders while maintaining a disciplined balance sheet approach. The latest update confirms a cumulative spend of 230.5 million euros to date, involving 30 million shares, with the bank outlining a plan to execute purchases on a steady, ongoing basis until the target aggregate investment reaches one billion euros.
BBVA has designated itself as the primary executor of the buyback across its trading venues, focusing on activity in the Spanish Permanent Market and in DXE Europe. The bank has signaled a daily purchase objective of 2,500,000 shares in Spain and 500,000 shares in Europe, with the aim of completing the program in a timely manner while preserving market stability and orderly trading conditions.
Share repurchases are a common instrument banks use to reward investors, offering an alternative to the traditional dividend distribution. BBVA’s framework for capital return contemplates a payout policy that blends cash dividends with potential additional share buybacks. In practice, the policy envisions distributing between 40% and 50% of profits to shareholders, through a combination of cash payments and share-based actions when conditions allow.
From a broader perspective, such buybacks can signal confidence in the bank’s earnings trajectory and capital adequacy. For investors, the policy can influence equity value by reducing share count and potentially supporting earnings per share over time, while also signaling a willingness to deploy excess capital when viewed favorably by the market. As BBVA progresses, market participants will be evaluating the pace of purchases, the impact on liquidity, and how these actions align with ongoing strategic objectives across its Iberian and international franchises. (Source: CNMV filing)