BBVA Targets €380 Million in Non-Performing Mortgages for Sale Amid Asset Quality Review

Spanish lender BBVA is actively seeking to divest approximately €380 million in non-performing residential mortgage loans, as part of a broader strategy to strengthen its balance sheet and improve capital efficiency. The move underscores ongoing efforts to manage risk in a challenging economic environment.

BBVA has initiated a process to sell a portfolio of non-performing residential mortgages valued at around €380 million, according to internal restructuring documents reviewed by financial sources. The assets, primarily tied to Spain’s residential real estate market, have been classified as non-performing due to prolonged delinquency or restructuring. The bank is engaging with institutional investors and specialized asset managers to facilitate the transaction. The sale is part of a wider asset quality assessment conducted by BBVA in late 2025 and early 2026. The initiative reflects the bank’s ongoing focus on optimizing its loan portfolio and reducing exposure to high-risk segments, particularly in light of lingering macroeconomic pressures such as elevated interest rates and regional housing market volatility. The €380 million figure represents roughly 2.3% of BBVA’s total non-performing loan exposure as of December 2025, a level that has remained stable despite recent refinancing efforts. The disposal is expected to improve the bank’s core capital ratio by approximately 12 basis points, supporting its regulatory resilience and enabling greater flexibility in future lending decisions. Market participants note that the sale could attract interest from European real estate investment funds and distressed debt specialists. The transaction, if completed by Q2 2026, may set a benchmark for similar asset dispositions in the Southern European banking sector, where legacy loan portfolios continue to pose challenges.