BBVA (BBVA) Issues €1B AT1 Bonds, Reports 18% NII Growth in Q3

Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) is one of the best European bank stocks to buy now. On November 3, Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) issued convertible preferred securities worth €1 billion. Otherwise known as contingent convertible or CoCo bonds, these securities qualify as Additional Tier 1 (AT1) capital under solvency regulations. They are contingently convertible into newly issued ordinary shares of BBVA, that is, if the bank’s Common Equity Tier 1 (CET1) ratio falls below a certain trigger.​ The coupon is set at 5.625% per annum from November 11, 2025, to November 11, 2032. Beyond that range, the rate will reset to a margin of 324.6 basis points over the 5-year Mid-Swap Rate.

BBVA (BBVA) Issues €1B AT1 Bonds, Reports 18% NII Growth in Q3

Just days earlier (October 30), the lender had reported a strong financial performance in Q3 2025. Net interest income touched €6.64 billion (up 18% year-over-year), and fee and commission income rose 15% year-over-year to €2.06 billion.​ The bank’s net attributable profit for the quarter was €2.53 billion, down 3.7% from Q2 2025 and 8% lower year-over-year. For the first nine months of 2025, net profit totaled €7.98 billion, a 4.7% increase from the prior year.​

Nevertheless, EPS for the quarter came in at €0.42, missing the consensus forecast by more than 20%. The €6.64 billion, although higher than the same quarter last year, fell short of the €10.33 billion forecast.

Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) is a Spanish multinational bank headquartered in Bilbao and Madrid. The lender operates as a universal bank, offering services that span retail, corporate, investment, and private banking.

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Disclosure: None. This article is originally published at Insider Monkey.