BBVA Plunges 5.52% Amid Dividend Announcement, Regulatory Concerns

On April 7, 2025, Bank Bilbao Vizcaya experienced a significant drop of 5.52% in pre-market trading, reflecting a notable decline in investor sentiment.

BBVA's recent dividend announcement has been a key factor influencing its stock performance. On April 10, the bank will pay a supplementary dividend of €0.41 per share, marking a 5.1% increase from the previous year. 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, BBVA has announced a new €993 million share buyback program, aiming to return €5.03 billion to shareholders this year. This move underscores the bank's commitment to enhancing shareholder value and reflects its strong financial performance.

The integration of BBVA and Sabadell has also been a significant development. Onur Genç, the CEO, highlighted that this transaction presents a clear opportunity to gain scale in Spain and generate long-term value for all stakeholders. This strategic move is expected to bolster BBVA's market position and drive future growth.

However, regulatory concerns have also surfaced. The Competition Authority has identified potential issues in the retail banking, SME, POS, and ATM sectors during the second phase of BBVA's takeover bid. These concerns could impact the bank's operational strategies and market dynamics, adding to the uncertainty surrounding its stock performance.