Company: BBVXF
Filing Date: 2025-08-12
Form Type: DRS
Source: 0000950123-25-007520
Chunk: 311

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-08-12
Form: DRS
Chunk 311
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 holdings in US dollars and 391 million euros to
permanent equity holdings in Mexican pesos. Net assets and liabilities valued at historical exchange rates are hedged with currency forwards and currency options in line with the Group’s risk management policy.

A-33

As confidentially submitted to the Securities and Exchange Commission on August 11, 2025. This Amendment No. 4 has not been publicly filed with the Securities and Exchange Commission and all information herein remains strictly confidential. As at 30 June 2025, the sensitivity of the equity exposure to an exchange rate depreciation against the euro of the main currencies to which exposure exists of 3.4% (calculated based on the quarterly exchange rate volatility over the past three years) amounted to 105 million euros, of which 64% corresponds to the pound sterling, 22% to the US dollar and 13% to the Mexican peso. Note 5 – Minimum own funds and capital management Capital ratios The Group calculates minimum own funds requirements in accordance with the regulatory framework based on Regulation (EU) 575/2013 (CRR), which sets forth the capital and solvency requirements, and Directive 2013/36/EU (CRD IV), in relation to prudential supervision. These regulations were amended in 2024 by Regulation (EU) 2024/1623 (CRR Ill) and by Directive (EU) 2024/1619 (CRD VI), respectively. The CRR Ill regulation is applicable in the European Union, as a general rule, as from 1 January 2025, while the CRD VI directive should be transposed into Spanish law by no later than 10 January 2026 and shall be applicable, as a general rule, as from 11 January 2026. In accordance with the aforesaid regulatory framework, credit institutions must comply with a total capital ratio of 8% at all times. However, regulators may exercise their authority and require institutions to maintain additional capital. On 1 October 2024, the Bank of Spain approved the new framework to calculate the countercyclical capital buffer and established that, for exposures located in Spain, the countercyclical buffer percentage shall be 0.5%, applicable as from 1 October 2025. Thereafter, provided that cyclical systemic risks are maintained at a standard level, the buffer percentage will be raised to 1% as from the fourth quarter of 2025 (to be applicable as from 1 October