Company: BBVXF
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001193125-25-198517
Chunk: 449

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-09
Form: 424B3
Chunk 449
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 on the available own funds, or affect the Group’s compliance with its Risk Appetite Statement. As a
result of these exercises, weaknesses can be detected and, if necessary, action plans can be proposed to mitigate the identified risks.

Forward-looking analyses under adverse scenarios are supplemented with reverse stress tests, which identify the Group’s idiosyncratic
characteristics that could entail a material vulnerability for its solvency if they were to materialise.

The combination of the different solvency
measurements (static or dynamic and regulatory or economic), taking into account the inventory of risks affecting the Group and the main vulnerabilities detected, enables the Board of Directors, as the body ultimately responsible for the ICAAP, to
draw a conclusion regarding the Group’s solvency position.

The level and quality of capital are Group RAS metrics and their management and
control are governed by the Group’s Risk Appetite Framework (RAF).

The Group has implemented a Risk-adjusted Return on Capital (RaRoC)
metric in segments where this is considered relevant. This metric is embedded in the pricing management system and is therefore subject to the Institution’s policies and procedures. In addition to being used in the pricing process, this metric
can measure the return obtained on each transaction and customer and even by each business unit, which makes it possible to make like-for-like comparisons.

Banco Sabadell has a Capital Contingency Plan (CCP) in place, which sets forth the strategy to ensure that the Group has sufficient management
capabilities and measures in place to minimise the negative impacts of a capital contingency and return to a business-as-usual situation. The CCP is part of the Internal
Crisis Management Framework (ICMF) and is intended to respond to potential contingencies (serious, but unlikely to occur) that could have an impact on capital in the short term; these would be less severe than a crisis, but might affect other areas,
such as liquidity, thereby comprising the Group’s continuity. The activation of the CCP may occur in response to systemic, idiosyncratic or combined contingencies. The CCP includes the governance process (preparation, approval and updating),
the key processes involved in its implementation (identification, activation, management and closure) and the capital measures to be applied in different contingency situations or crises associated with its activation. No specific reporting process
is defined for the CCP; instead, there is a general framework for action that is underpinned by protocols and by the reporting structure already in place.

A