Company: BBVXF
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001193125-25-198517
Chunk: 324

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-09
Form: 424B3
Chunk 324
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 recognised in the consolidated income statement by applying the effective interest rate to its amortised cost adjusted to account for any impairment allowances. To determine impairment losses, the Group monitors borrowers individually, at least all those who are significant borrowers, and collectively, for groups of financial assets with similar credit risk characteristics that reflect borrowers’ ability to satisfy their outstanding payments. The Group has policies, methods and procedures in place to estimate the losses that it may incur as a result of its credit risks, due to both insolvency attributable to counterparties and country risk. These policies, methods and procedures are applied when granting, assessing and arranging debt instruments and off-balancesheet exposures, when identifying their possible impairment and, where applicable, when calculating the amounts necessary to cover these expected losses. 1.3.4.1.1 Accounting classification on the basis of credit risk attributable to insolvency The Group has established criteria that allow borrowers showing a significant increase in credit risk, vulnerabilities or objective evidence of impairment to be identified and classified on the basis of their credit risk. The following sections describe the classification principles and methodology used by the Group. Definition of classification categories Credit exposures and off-balancesheet exposures are both classified, on the basis of their credit risk, into the following stages:

| – | Stage 1: standard exposures, i.e. transactions whose risk profile has not changed since they were granted and for          
 which there are no doubts as to the fulfilment of repayment commitments in accordance with the contractually agreed terms. |

A-115

| – | Stage 2: standard exposures under special monitoring, i.e. transactions which, although they do not meet the criteria                                                                                                                                    
 to be classified individually as stage 3 or write-offs, show a Significant Increase in Credit Risk (SICR) since initial recognition. This category includes, among other transactions, those in which there are amounts more than 30 days past due, with 
 the exception of non-recourse factoring, for which a threshold of more than 60 days is applied (the amount of non-recourse factoring transactions with amounts between 30                                                                                
 and 60 days past due came to 12 million euros and 28 million euros as at the end of 2024 and 2023, respectively), as well as refinanced and restructured transactions not classified as stage 3 until they are classified into a lower risk              
 category once they meet the established requirements for modifying their classification.                                                                                                                                                                 |

| – | Stage 3: non-performing exposures are transactions for which there are