Company: BBVXF
Filing Date: 2025-02-21
Form Type: 20-F
Source: 0000842180-25-000010
Chunk: 126

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-21
Form: 20-F
Item: Item 5
Chunk 126
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 as of December 31, 2023 and 12.7% as of December 31, 2022).
As of December 31, 2024, if the discount rate had increased or decreased by 50 basis points, the recoverable amount would have decreased or increased by 3% and 3%, respectively (6% and 7%, respectively, as of December 31, 2023, and 7% and 8%, respectively, as of December 31, 2022). If, as of December 31, 2024, the growth rate had increased or decreased by 50 basis points, the recoverable amount would have increased or decreased by 2% and 2%, respectively (5% and 4%, respectively, as of December 31, 2023, and 5% and 5%, respectively, as of December 31, 2022).
Turkey CGU
As a result of the designation of Turkey as a hyperinflationary economy in the first half of 2022 and the application of IAS 29 “Financial Reporting in Hyperinflationary Economies” and IAS 21 “Effects of Changes in Foreign Exchange Rates”, the Group determined that the book value of the Turkish CGU exceeded the existing recoverable value as of December 31, 2021 and, thus, goodwill corresponding to the Turkey CGU was derecognized and other intangible assets assigned to the Turkish CGU were written off in their entirety. See Note 2.2.18 to the Consolidated Financial Statements.
Prior to such derecognition, the Group carried out impairment tests using the cash flow projections estimated by the Group’s management, based on the latest budgets available for the next five years. 
The recoverable amounts of all the CGUs were in excess of their carrying value as of December 31, 2024, December 31, 2023 and December 31, 2022.
 Insurance contracts
For the years ended December 31, 2024, 2023 and 2022, the valuation method used by default for all insurance and reinsurance contracts was the General Model (Building Block Approach) based on IFRS 17, except in respect of contracts eligible to be valued under the Simplified Model (Premium Allocation Approach) or the Variable Fee Approach. The General Model requires that insurance contracts be initially valued for the total of fulfillment cash flows and the contractual service margin (CSM), each as further described