Why Did BBVA Plunge 5.48% Despite Dividend Hike?

On April 7, 2025, Bank Bilbao Vizcaya experienced a significant drop of 5.48% in pre-market trading, reflecting a notable shift in investor sentiment towards the banking giant.

BBVA's recent announcement of a supplementary dividend of €0.41 per share, scheduled for April 10, marks a 5.1% increase from the previous year's payout. This dividend, combined with the €0.29 interim dividend distributed in October, brings the total cash dividend for 2024 to €0.70 per share. Additionally, the bank has unveiled a new €993 million share buyback program, aiming to return €5.03 billion to shareholders this year. This move underscores BBVA's commitment to enhancing shareholder value through consistent and growing returns.

Onur Genç, the CEO of BBVA, highlighted the strategic integration of BBVA and Sabadell, emphasizing the transaction's potential to achieve scale in Spain and generate long-term value for all stakeholders. This integration is expected to strengthen BBVA's market position and drive future growth.

BBVA's strong financial performance and robust capital base have enabled it to steadily increase shareholder returns since 2021, with over €18 billion distributed through dividends and share buybacks. This consistent return of capital to shareholders has been a key factor in maintaining investor confidence and supporting the bank's stock performance.