Company: BBVXF
Filing Date: 2025-09-17
Form Type: 425
Source: 0001193125-25-205900
Chunk: 4

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-17
Form: 425
Chunk 4
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, we already created 23 basis points in capital from STS. Banks like us, banks which have a very high RWA density — we have the highest RWA density, by the way, among our peer group. We have 50% RWA density when the rest of our peer group is 29%. So this stress securitizations, it helps us much more than the rest of the banking industry in Europe, which is going to give us another 5 billion in capital release. So sum them up: 4.5 billion excess capital at the beginning of the period, 39 billion which is coming from profits, 5 billion from STS gives you the 49. So that’s the breakdown that you were asking. But that 49, how are we going to use this? 13 billion will be used for growth, so new RWA is because of growth. And 36 billion we put into our plan as the excess capital that we would be accumulating, that we would be paying out to our shareholders. You ask about how do you kind of balance growth and the shareholder remuneration? To us, there’s no need to balance. They are actually self-reinforcing. It’s actually a positive loop that they have. I think what we did in the last cycle, in the last 2021–2024 period, was exactly that. We grow as long as that growth is profitable. It actually gives you more ammunition to pay back more to your shareholders. So as much as possible and as long as it’s profitable, we first want to grow. That’s the 13 billion capital allocated to growth. And again, if we do it well, we have established really strict mechanisms around this. Any part of BBVA, any part of the world, whatever growth that we do, whatever growth that consumes capital — even I see it on my desktop — on what is the capital consumption, what is the return on that capital. So that micro-planning, micro capital management is helping us on this growth being profitable. But then, 13 billion, even though we are gaining market share in the plan and so on, it’s only 13 billion. We accumulate so much capital that the 36 billion then we will pay back. We will pay back to our shareholders in terms of that capital levers. Again, all else being equal, at the same return levels, we obviously prefer first growth because it gives you franchise value, it makes the long-term returns stable. So we