Company: BBVXF
Filing Date: 2025-02-27
Form Type: F-4/A
Source: 0001193125-25-037317
Chunk: 481

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-27
Form: F-4/A
Chunk 481
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| – | Solvency risk: this is the risk of not having sufficient capital, in terms of either quality or quantity, to achieve                                                    
 strategic and business objectives, withstand operational losses or meet regulatory requirements and/or the expectations of the market in which an institution operates. |

| – | Business risk: this refers to the possibility of incurring losses as a result of adverse events that negatively                                     
 affect the capacity, strength and recurrence of the income statement, either because of its viability (short term) or sustainability (medium term). |

| – | Reputational risk: current or future risk of the Bank’s competitive capacity being affected as a result of:                                                                                                                                    
 (i) actions or omissions, carried out by or attributed to the Group, Senior Management or its governing bodies, or (ii) maintaining business relationships with counterparties with poor reputation, resulting in a negative perception by its 
 stakeholders (regulators, employees, customers, shareholders, investors and the general public).                                                                                                                                               |

| – | Environmental risk: risk of incurring losses as a result of the impacts, both those existing at present and those                                                                                                                                        
 that may exist in the future, of environmental risk factors on counterparties or invested assets, as well as aspects affecting financial institutions as legal entities. Environmental factors are related to the quality and functioning of natural     
 systems and resources, and include factors such as climate change and environmental degradation. Any one of them can have a positive or negative impact on the financial performance or solvency of an institution, sovereign state or individual. These 
 factors may materialise mainly in physical aspects (effects of climate change and environmental degradation, including more frequent extreme weather events and gradual changes in weather patterns and in the balance of ecosystems) and transitional   
 aspects (arising from processes to adjust to an environmentally sustainable economy, for example, lower emissions, greater energy efficiency and reduced consumption of natural resources, among others).                                                |

4.4.1.1 Solvency risk Banco Sabadell’s ratios are above the minimum capital requirements established by the European Central Bank (ECB). Therefore, the Group is not subject to any caps on the distribution of dividends, variable remuneration or coupon payments made to holders of AT1 capital instruments. Banco Sabadell is also compliant with MREL, which coincides with supervisory expectations and is in line with its funding plans. Details on the closing data as at 31 December 2023 for solvency risk and capital management are available in Note 5 to these consolidated annual