Company: BBVXF
Filing Date: 2025-09-05
Form Type: F-4/A
Source: 0001193125-25-196513
Chunk: 327

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-05
Form: F-4/A
Chunk 327
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 of assets close to maturity, 
 sales triggered by an increase in credit risk and sales carried out to manage credit concentration risk.                                                                                                                                               |

| – | Business model whose objective is to sell financial assets. |

| – | Business model that combines the two objectives above (hold financial assets in order to collect contractual cash                                                                          
 flows and sell financial assets): this business model typically involves greater frequency and value of sales because such sales are integral to achieving the business model’s objective. |

Contractual cash flow characteristics of financial assets Financial assets should initially be classified in one of the following two categories:

| – | Those whose contractual terms give rise, on specified dates, to cash flows that are solely payments of principal and 
 interest on the principal amount outstanding.                                                                        |

| – | All other financial assets. |

For the purposes of this classification, the principal of a financial asset is its fair value at initial recognition, which could change over the life of the financial asset; for example, if there are repayments of principal. Interest is understood as the sum of consideration for the time value of money, for lending and structural costs, and for the credit risk associated with the principal amount outstanding during a particular period of time, plus a profit margin. If a financial asset contains contractual terms that could change the timing or amount of cash flows, the Group will estimate the cash flows that could arise before and after the change and determine whether these are Solely Payments of Principal and Interest (SPPI) on the principal amount outstanding. The most significant judgements used in this evaluation are indicated here below:

| – | Modified time value of money: in order to determine whether the interest rate of a transaction incorporates any 
 consideration other than that linked to the passage of time, transactions that                                  |

A-110

| present a difference between the tenor of the benchmark interest rate and the reset frequency of that interest rate are analysed, considering a tolerance threshold, in order to determine whether                                               
 the instrument’s contractual undiscounted cash flows could be significantly different from the contractual undiscounted benchmark cash flows of a financial instrument whose time value of money element was not modified. At present, tolerance 
 thresholds of 10% and 5%, respectively, are used for the differences in each tenor and for the analysis of cumulative cash flows over the life of the financial asset.                                                                           |

| – | Contractual terms that change the timing or amount of cash flows: an analysis is carried out to determine whether any 
 contractual terms exist that could change the timing or amount of contractual