Company: BBVXF
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001193125-25-198517
Chunk: 696

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-09
Form: 424B3
Chunk 696
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 individually:

| – | Discounted cash flow method (going concern): debtors who are estimated to be able to generate future cash flows                                                                                                                                          
 through their own business activity, thereby allowing them to fully or partially repay the debt owed through the economic and financial activities and structure of the company. This involves estimating the cash flows obtained by the borrower during 
 the course of their business activity.                                                                                                                                                                                                                   |

| – | Collateral recovery method (gone concern): debtors who are not able to generate cash flows during the course of their                                                                    
 own business activities and who are forced to liquidate assets in order to fulfil their payment obligations. This involves estimating cash flows based on the enforcement of guarantees. |

| – | Combined method: debtors who are estimated to be able to generate future cash flows and also have non-core assets. These cash flows can be supplemented with the potential sale of non-core assets, insofar as they are not required for the performance of their activity and, 
 consequently, for the generation of the aforesaid future cash flows.                                                                                                                                                                                                            |

Collective allowance estimates Exposures that are not assessed using individual allowance estimates are subject to collective allowance estimates. When calculating collective impairment losses, the Group, in accordance with IFRS 9, mainly takes the following aspects into account:

| – | The impairment estimation process takes all credit exposures into account. The Group recognises an impairment loss                                                                                                                                       
 equal to the best estimate available from internal models, taking into account all of the relevant information which it holds on the existing conditions at the end of the reported period. For some types of risk, including sovereign risk and         
 exposures with credit institutions and general governments of countries in the European Union and other advanced economies, the Group does not use internal models. These exposures are considered to have negligible risk given that, based on the      
 information available as at the date of signing off the consolidated annual financial statements, and considering past experience with these risks, the impairment allowance that these exposures are estimated to require is not significant as long as 
 they are not reclassified into stage 3.                                                                                                                                                                                                                  |

| – | In order to collectively assess impairment, internal models estimate a different PD and LGD for each contract. To                                                                                                                                         
 this end, various types of historical information are used that allow the risk to be individually classified for each exposure (ratings, non-payments, vintage, exposure, collateral, characteristics of the                                              
 borrower or contract). Available historical information representative of the Institution and past losses (defaults) is therefore taken into