BBVA launched a €3.96 billion share buyback after its failed takeover of Banco de Sabadell, boosting shareholder returns.

BBVA has launched a €3.96 billion ($4.64 billion) share buyback after its hostile takeover bid for Spain’s Banco de Sabadell collapsed, citing regulatory and strategic reasons. The program, the largest in the bank’s history, begins with a €1.5 billion initial phase and will be completed by April 7, 2026. The move signals a shift toward boosting shareholder returns, with BBVA projecting €36 billion in shareholder distributions over four years. Despite a 100 basis point reduction in its core tier-1 capital ratio, the bank remains well above regulatory targets. BBVA’s shares rose slightly on the news, reflecting investor confidence in its financial strength and strategic pivot.