Company: BBVXF
Filing Date: 2025-03-21
Form Type: 6-K
Source: 0000842180-25-000016
Chunk: 95

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-03-21
Form: 6-K
Chunk 95
---
 method are notable, mainly in the authorized portfolios of Mexico. In Spain the policies of risk transfer and balance sheet rotation, along with improvements in asset quality, have allowed the growth of RWAs during the quarter to be very limited despite the growth in activity.

The increase in RWAs due to exchange rate variations is driven by the appreciation of the US dollar from the exposures to this currency in both geographies.

The full annual series of RWA flow of credit risk under the IRB approach is available in the editable file “Pillar 3 2024 – Tables & Annexes”.

4.2.5.5. Risk weights of specialised lending exposure

Article 438 e) CRR

The solvency regulation stipulates that the classification of specialised lending companies should apply to legal entities with the following characteristics:

• The exposure is to an entity created specifically to finance and/or operate physical assets.

• The contractual arrangements give the lender a substantial degree of control over the assets and income they generate.

• The primary source of repayment of the obligation is the income generated by the assets being

financed, rather than the independent capacity of the borrower.

Corporate specialized lending exposures subject to the IRB Supervisory Slotting Approach, which is used by BBVA for RWA calculations, are assigned to a grade, the determination of which takes into account the following factors:

1. Financial Strength that includes: market conditions, financial ratios, stress analysis and financial structure.

2. Political and legal environment that includes: political risks, country risks, force majeure risks, government support, stability of legal and regulatory environment, local support and legal force of the contracts.

3. Asset and operational characteristics that includes: design and technology risks, permits and license risks, construction risks, completion guarantees, Contractor and Operator qualifications, O&M agreements and supply risks.

4. Strength of the Sponsor that includes: financial strength, experience and support to the project.

5. Legal & Finance Structure that includes: pledges and assignments, covenants and restrictions, DSRA.

Once assigned to a grade, the exposure is risk-weighted in accordance with the risk weight applicable to that grade and remaining maturity banding.

| PILLAR 3 2024 |     | 4. RISK |     | P. 129 |

The following tables show information on specialised lending exposures by type according to CRR2 EBA ITS. as of December 31, 2024 and December 31, 2023:

| Table 34.EU CR10 (