1、7T2se3r0Ot6kwoPa7T2se3r0Ot6kwoPaDistributed on:09/07/2025 04:02:12 GMTDistributed on:09/07/2025 04:02:12 GMT9 July 2025An overall uneventful(but solid)quarterIberian banks(we include BCP,for which we leave a specific section at the end of this report)will kick off the 2Q25 reporting season with Bank

2、inter on 24 July,concluding with BBVA on 31 July.In general,we expect another solid quarter overall,although NII will likely show some further decline due to rate repricing.While funding costs are decreasing,their impact may not yet fully offset margin compression.On the positive side,loan volumes,p

3、articularly in the corporate sector,are expected to provide support,confirming positive trends.Costs and provisions should remain broadly in line with previously issued guidance,while capital might remain almost stable or slightly up.Now focussing on confirming trendsFollowing the uncertainty in Apr

4、il surrounding economic developments(including lower potential interest rates and a less benign growth and asset quality outlook than previously predicted),significant resilience has been confirmed thus far.While some degree of unpredictability likely remains,we believe guidance is likely to be conf

5、irmed,even potentially opening the door for some improvement or,at least,positive bias on the provisions side.Therefore,we are making only minor changes to our estimates at this stage,as in general,the favourable Spanish economic outlook relative to that of Europe should continue to support activity

6、 and reasonably resilient asset quality.Figure 1:Spanish banks valuation metricsPriceP/EP/TNAVDiv.YieldRoTECompany name7-Jul-25TPReco.2025E2026E2027E2025E2026E2027E2025E2026E2027E2025E2026E2027EBCP0.670.73Buy10.38.78.41.391.341.355.0%6.1%6.5%12.7%15.1%15.5%BBVA13.1514.10Buy7.37.47.11.481.441.415.7%5