** BofA Global Research confirms Spain's lender BBVA BBVA.MC as one of its "25 stocks for 2025", reiterating the bank as its top pick in Iberia

** In a sector note, the analysts say that sensitivities from rates on net interest income (NII) have dropped by about 50% among Spanish banks, and forecast loans among lenders to grow 2-3% "this year and next"

** "We forecast NII to trough in second quarter of 2025 and then inflect also supported by volumes", BofA says adding it expects more significant upgrades to NII in 2026 and 2027

** The analysts also urge on deal-making as "M&A in Spain is approaching a key turning point", eyeing potential of BBVA-Sabadell SABE.MC merger to be a "win-win" with return-on-investment ranging from about 17% to 19%

** Apart from distinguishing BBVA from the rest of the banks, based on its ROTE premium to peers of around 19% while trading at a discount, BofA also maintains "buy" rating on Caixabank CABK.MC , Sabadell, and Unicaja UNI.MC

(Reporting by Mateusz Rabiega)

((Mateusz.rabiega@thomsonreuters.com))