Banco Bilbao Vizcaya Argentaria, S.A.

What does it do?

BBVA is one of Spain's two biggest banks, but it operates more like a global bank with a heavy focus on Latin America. If you live in Mexico, Spain, Turkey, or Colombia, there's a good chance BBVA is where you keep your savings account or took out your mortgage. Think of it like a European version of JPMorgan, but with a much bigger footprint in emerging markets — countries whose economies are still growing fast. It also runs a popular digital banking app used by tens of millions of customers.

How does it make money?

BBVA makes money the same way most banks do — it charges more interest on loans than it pays out on deposits, and that gap (called the net interest margin) is its single biggest income source. With $36.9 billion in revenue in its latest year, up from $35.5 billion the year before, its top line is growing. Mexico alone contributes roughly half of the group's total profit, making it the engine of the whole business. It also earns fees from investment banking, insurance products, and asset management services.

Why do investors care?

The core growth story is simple: BBVA is a European bank priced like one, but it earns like a Latin American bank — and Latin America has much higher interest rates and faster-growing middle classes than Europe. Net profit hit $10.1 billion last year, which is an exceptionally high profit margin for any bank. If BBVA can complete its takeover of Sabadell, it could cut billions in overlapping costs and grow earnings per share — meaning each share you own becomes worth more. What has to go right: the Sabadell deal clears regulators, Mexico's economy stays stable, and Turkish inflation doesn't spiral out of control again.