Banco Bilbao Vizcaya Argentaria S.A

The Dow Jones Industrial Average closed up 614 points, or 1.2 percent, boosted by strong earnings from Microsoft. The company reported total revenue of 90.007 billion dollars, up 18 percent from a year earlier, while cloud revenue expanded 32 percent. Microsoft shares soared 15.5 percent, easing concerns about the outlook for artificial intelligence investment. European stocks also ended higher, with the banking sector rising 2.6 percent, led by Spain's BBVA which jumped around 5 percent after reporting second-quarter 2026 net profit growth of more than 11 percent. Asian markets were mostly higher this morning, with SK hynix surging 25 percent and Samsung Electronics gaining more than 20 percent. In Thailand, the SET index opened more than 15 points higher, tracking global markets, as electronics stocks led by Delta Electronics, Hana Microelectronics, and KCE Electronics rebounded in line with global technology shares.

European stocks closed higher on Thursday, with the Stoxx 600 index rising 0.77% to 649.95 points, supported by strong earnings from companies across multiple sectors. The banking sector led gains, climbing 2.6%, driven by Spain's BBVA which surged around 5% after reporting a more than 11% year-on-year increase in second-quarter net profit. Construction and materials stocks added 2.2%, with Bouygues jumping 7.1% after first-half operating profit beat expectations. Industrial stocks rose 1.8%, buoyed by Schneider Electric which soared 10% after raising its full-year outlook. France's CAC-40 closed at 8,485.64 points, up 0.92%, Germany's DAX ended at 25,612.03 points, up 0.60%, while London's FTSE 100 slipped 0.10% to 10,897.27 points. However, gains were capped by declines in Airbus and Rentokil, as well as uncertainty over the US interest rate path after the Federal Reserve held rates steady amid differing views within the committee.

BBVA reported a net attributable profit of 6.05 billion euros for the first six months of 2026, an 11.1 percent increase year-over-year, and announced a new 2 billion euros extraordinary share buyback program. The first 1 billion euros tranche of the buyback will begin on August 5. Second quarter net attributable profit rose 11.4 percent to 3.06 billion euros, with net interest income up 22.9 percent to 7.63 billion euros. The bank said it is on track to achieve the financial targets of its 2025-2029 Strategic Plan.

OpenAI introduced a new product called OpenAI Presence, now available to eligible enterprise customers through a limited general availability program. The offering is designed to help companies deploy more reliable agents that conform to policies and guardrails, with deployments handled by OpenAI's forward-deployed engineers and select global systems integrators. Each deployment targets a specific job such as resolving billing issues or supporting insurance claims, with the agent receiving only the necessary knowledge and system access while the company sets policies for actions, approvals, and human handoffs. After launch, production sessions and escalations reveal gaps, and Codex proposes updates that teams can test and approve to help the agent adapt as customer behavior changes. Several enterprises, including BBVA and SoftBank, are currently exploring or testing OpenAI Presence for AI-powered customer support.

European banks are increasingly deploying synthetic risk transfer transactions to manage private credit exposures, using bespoke deals to free up capital, reduce concentrations and support continued lending. The International Association of Credit Portfolio Managers reports that in 2025 participating banks securitized €378 billion of loans and protected €30 billion of junior tranches, increases of 35% and 21% respectively over 2024. BNP Paribas completed its first synthetic securitisation referencing $1.25 billion of RCF exposures to US Business Development Companies in December last year, while BBVA was expected to close an SRT transaction reducing risk on AI infrastructure loans in late June. Regulators have raised concerns about interconnectedness, with an ECB working paper estimating that 26% of SRT funding may ultimately be sourced from bank credit, though practitioners argue repo financing remains a small fraction of the market and same-bank round-tripping is not occurring. Investor appetite for fund-finance exposures remains strong, with assets referencing fund vehicles trading at extremely thin spreads despite limited transparency into underlying exposures.

XTransfer has signed a Memorandum of Understanding with BBVA to deepen cross-border payment infrastructure spanning Latin America, Europe, and Hong Kong SAR. The MOU was signed by XTransfer Founder and CEO Bill Deng and BBVA Global Sector Co-Head of TMT Ksenia Nekrasova during Money20/20 Europe 2026 in Amsterdam. The partnership will explore APIs, digital platforms, collection solutions, and virtual accounts to support automated, real-time FX conversion and transaction processing for SMEs. XTransfer also showcased its Latin America strategy at Expo Eléctrica International 2026 in Mexico City, where it highlighted support for local Mexican peso collections and one-account global payments covering over 200 countries and regions. The company now serves more than 890,000 SMEs globally and is expanding partnerships with local banks across Brazil, Chile, Colombia, Mexico, and Peru.

Banco Bilbao, headquartered in Madrid, is highlighted as a compelling dividend investment. The bank currently pays a dividend of $0.57 per share, yielding 4.71%, which is above the Banks - Foreign industry average of 2.73% and the S&P 500's 1.42%. Its annualized dividend of $1.14 has surged 69.9% from last year, and over the past five years, the company has increased its dividend four times, averaging an annual increase of 41.97%. With a payout ratio of 28% and expected earnings growth of 18.41% for fiscal 2026, BBVA holds a Zacks Rank of #2 (Buy).

European banks remain attractively valued compared with many U.S. peers despite a strong 2025 rally. Banco Bilbao Vizcaya Argentaria reported a return on tangible equity of 21.7% and a Common Equity Tier 1 ratio above 12% in the first quarter of 2026, yet trades at around 10.3 times forward earnings with a 4.63% dividend yield. Banco Santander has surged nearly 65% over the last 12 months, retains a 15% return on tangible equity with a 14% Common Equity Tier 1 ratio, and trades at just 11 times earnings with a 1.57% dividend and an approximately 17% dividend payout ratio. ING Group offers a 4.7% yield and trades at about 11.4 times forward earnings, but its 16% Common Equity Tier 1 ratio and 57% dividend payout ratio present a more mixed risk-reward setup.

Zacks Investment Research named NextEra Energy Partners, Banco Bilbao Viscaya Argentaria, and Macy's as top income stocks with buy ranks on June 25. NextEra Energy Partners, which owns and manages clean energy projects, saw its current-year earnings consensus estimate jump 127.7% over the last 60 days and offers a dividend yield of 12.7%, far above its industry average of 0.0%. Banco Bilbao Viscaya Argentaria, a Spanish banking and financial services firm, posted a 3.9% increase in its current-year earnings estimate and carries a 7% dividend yield versus an industry average of 4.6%. Macy's, the omni-channel retailer, recorded an 8.6% rise in its current-year earnings estimate and provides a 3.8% dividend yield compared to its industry's 2.8%. All three stocks hold a Zacks Rank #1, or Strong Buy.

NEXT Properties has commenced a tender offer to purchase for cash up to US$587,500,000 aggregate principal amount of its outstanding 4.869% Senior Notes due 2030, 6.950% Senior Notes due 2044, 6.390% Senior Notes due 2050, and 7.375% Senior Green Notes due 2034. The offer is subject to an acceptance priority level, with the 2030 notes having the highest priority, followed by the 2044, 2050, and 2034 notes. Holders who tender before the early tender date of July 8, 2026 will receive a total consideration that includes an early tender premium of US$50 per US$1,000 principal amount, while those tendering after that date but before the expiration date of July 23, 2026 will receive the base consideration. The purchase is conditioned on the successful completion of a separate financing transaction, which may involve a potential offering of new senior notes. BBVA Securities, BofA Securities, and Citigroup are acting as dealer managers for the tender offer.