Company: BBVXF
Filing Date: 2025-02-21
Form Type: 20-F
Source: 0000842180-25-000010
Chunk: 166

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-21
Form: 20-F
Item: Item 5
Chunk 166
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 loss on the net monetary position resulting from the adjustment for hyperinflation (€1,512 million and €2,118 million in the years ended December 31, 2024 and 2023, respectively) and, to a lesser extent, the depreciation of the Turkish lira against the euro, partially offset by certain sales of non-financial services and the lower positive impact of the revaluation of bonds linked to inflation in the period (€1,164 million and €1,202 million, respectively, in the years ended December 31, 2024 and 2023). At constant exchange rates, there was a 42.1% decrease in net expense. See “Presentation of Financial Information Hyperinflationary Economies” for information on the impact of hyperinflation accounting.
Income and expense on insurance and reinsurance contracts
Net income on insurance and reinsurance contracts of this operating segment for the year ended December 31, 2024 was €60 million, a 4.3% decrease compared with the €63 million income recorded for the year ended December 31, 2023. At constant exchange rates, there was a 5.2% increase. 
Administration costs
Administration costs of this operating segment for the year ended December 31, 2024 amounted to €1,895 million, a 51.3% increase compared with the €1,252 million recorded for the year ended December 31, 2023, mainly as a result of the increase in personnel expenses, driven by the increase in salaries (mainly driven by inflation) and, to a lesser extent, the number of employees, and the increase in general expenses (technology, outsourced services and maintenance) driven to a great extent by the higher average inflation rates, partially offset by the depreciation of the Turkish lira. At constant exchange rates, administration costs increased by 69.4%, which was above Turkey’s inflation rate for the year.
Depreciation and amortization
Depreciation and amortization for the year ended December 31, 2024 was €216 million, a 44.3% increase compared with the €150 million recorded for the year ended December 31, 2023, mainly as a result of the increase in the depreciation expense related to IT equipment, offset in part by the depreciation of the Turkish lira. At constant exchange rates, there was a 55.0% increase.
Impairment or reversal of impairment on financial assets not measured at fair value through