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.

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.

While we acknowledge the potential of BBVA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 11 Best Solar Energy Stocks to Buy Right Now and 11 Must-Buy US Stocks to Buy Now.

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