Company: BBVXF
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001193125-25-198517
Chunk: 323

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-09
Form: 424B3
Chunk 323
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 whose payments of principal and/ or interest are indexed to specific
equity instruments (generally, shares of listed companies), to a basket of shares, to stock market indices (such as IBEX and NYSE), or to a basket of stock market indices.

The fair value of the Group’s financial instruments as at 31 December 2024 and 2023 is indicated in Note 6.

A-114

1.3.4 Impairment of financial assets A financial asset or a credit exposure is considered to be impaired when there is objective evidence that one or more events have occurred whose direct or combined effect gives rise to:

| – | In the case of debt instruments, including loans and debt securities, a negative impact on future cash flows 
 estimated at the time the transaction was executed, due to the materialisation of credit risk.               |

| – | In the case of off-balance sheet exposures that carry credit risk, expected                                                                                                                                                     
 inflows that are lower than the contractual cash flows due if the holder of a loan commitment draws down the loan or, in the case of financial guarantees given, inflows that are lower than the payments scheduled to be made. |

| – | In the case of investments in joint ventures and associates, a situation in which their carrying amount cannot be 
 recovered.                                                                                                        |

1.3.4.1 Debt instruments and off-balancesheet exposures Impairment losses on debt instruments and other off-balancesheet credit exposures are recognised as an expense in the consolidated income statement for the year in which the impairment is estimated. The recoveries of any previously recognised losses are also recognised in the consolidated income statement for the year in which the impairment is eliminated or reduced. The impairment of financial assets is calculated based on the type of instrument and other circumstances that could affect it, after taking into account any effective guarantees received. For debt instruments measured at amortised cost, the Group recognises both allowances, when loan loss provisions are allocated to absorb impairment losses, as well as direct write-offs, when the probability of recovery is considered to be remote. For debt instruments at fair value through other comprehensive income, impairment losses are recognised in the consolidated income statement, with a balancing entry under the heading “Accumulated other comprehensive income” on the consolidated statement of equity. Impairment allowances for off-balancesheet exposures are recognised on the liabilities side of the consolidated balance sheet as a provision. For risks classified as stage 3 (see section “Definition of classification categories” in this note), accrued interest is