Spanish banking giant BBVA is continuing its trend of returning capital to investors,recently announcing plans for another share buyback program following a record-setting interim dividend payout of €1.842 billion to shareholders on November 7th. The move underscores BBVA’s strong financial performance-with attributable profit growing consistently over the last three years-and its commitment to enhancing shareholder value [[2]]. BBVA has now authorized over €6 billion in share buybacks since November 2021, a strategy demonstrably impacting earnings per share.
BBVA shareholders received a record interim dividend of €0.32 per share on November 7, representing a 10% increase over the 2024 payout. The total cash distribution to shareholders amounted to €1.842 billion, marking the highest interim dividend in the bank’s history.
The Spanish banking giant also announced plans for a significant new share buyback program, pending necessary approvals and authorizations. This move comes as BBVA continues to return capital to investors amid strong financial performance.
Over €6 Billion in Buybacks in Four Years
The recent program saw BBVA repurchase 54.3 million of its own shares, equivalent to approximately 0.93% of its outstanding capital as of today.
Since November 2021, BBVA has executed share buyback programs totaling €6.356 billion, representing nearly 17% of its current share capital. These buybacks reduce the number of shares outstanding through treasury stock, positively impacting earnings per share (EPS).
BBVA’s reported attributable profit grew 31% in 2022, 21% in 2023, and 25% in 2024. However, EPS growth outpaced these figures, increasing by 48%, 26%, and 27% respectively, demonstrating the effect of the share repurchase programs.
This is the third time BBVA has utilized share buybacks as part of its regular shareholder remuneration. The bank repurchased shares worth €422 million in 2022 and €781 million in 2023.
In addition to these regular buybacks, BBVA has also undertaken two extraordinary shareholder remuneration programs. The first, between 2021 and 2022, totaled €3.160 billion, one of the largest such programs in Europe at the time. A second extraordinary buyback in 2023 amounted to €1.000 billion, as the bank continued to distribute excess capital.
