Company: BBVXF
Filing Date: 2025-09-05
Form Type: F-4/A
Source: 0001193125-25-196513
Chunk: 565

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-05
Form: F-4/A
Chunk 565
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 | The European Central Bank (ECB) implemented an unprecedented tightening of its monetary policy and ended up raising                                                        
 the deposit rate to a record high of 4.00%. The reduction of its balance sheet also continued, due to the maturity of TLTRO-III loans and the reduction of asset holdings. |

A-380

| – | For its part, the Federal Reserve (Fed) continued to pursue its rake hike cycle, with official interest rates at a                                                                        
 range of 5.25%-5.50%. With regard to its balance sheet, the reduction process continued, interrupted only briefly to respond to the episode of instability caused by the collapse of SVB. |

| – | The Bank of England (BoE) raised its base rate to 5.25% and continued with its balance sheet reduction programme. |

| – | The financial markets performed better in 2023 than the previous year, when a large portion of financial assets 
 posted heavy losses.                                                                                            |

| – | Long-term government bond yields continued on an upward trend for much of the year. They were driven by pressure from                                                                                                                     
 monetary policy tightening, the resilience of the US economy and concerns regarding high levels of need for sovereign debt funding. In the last two months of the year, some unexpected falls in price data and a shift in central banks’ 
 communication policy (particularly that of the Fed) led to a turnaround in yields, which completely reversed the upward trend.                                                                                                            |

| – | The risk premiums on peripheral sovereign debt were at lower levels than those seen at the end of 2022. In the case 
 of Spain, the risk premium remained stable and at low levels.                                                       |

| – | The US dollar posted numerous swings in its exchange rate against the euro, finishing the year at somewhat lower 
 levels compared to the end of 2022 (EUR 1.00 = USD 1.10).                                                        |

| – | In emerging economies’ financial markets, sovereign risk premiums were slightly reduced over the year.                                                    
 Regarding exchange rates, the high official interest rates continued to buoy emerging market currencies and the Mexican peso performed particularly well. |

| – | The banking sector generally displayed adequate capital levels, with a CET1 ratio that, according to the authorities,                                                              
 would remain above the minimum regulatory requirements even in an adverse scenario. Furthermore, profitability increased, thanks to the positive evolution of net interest income. |

| – | The financial authorities continued to rate the risks associated with global financial instability as high.