Company: BBVXF
Filing Date: 2025-02-21
Form Type: 20-F
Source: 0000842180-25-000010
Chunk: 179

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-21
Form: 20-F
Item: Item 5
Chunk 179
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 this operating segment for the year ended December 31, 2023 amounted to a €651 million expense, a 24.5% increase compared with the €522 million expense recorded for the year ended December 31, 2022, mainly due to the increase in credit impairments in the retail loan portfolio, with certain Stage 3 entries, as a result, in part, of the high interest rate environment.
Provisions or reversal of provisions and other results
Provisions or reversal of provisions and other results of this operating segment for the year ended December 31, 2023 were a €145 million expense, an 86.6% increase compared with the €78 million expense recorded for the year ended December 31, 2022, mainly due to the increased provisions for pensions and other employee benefit commitments, higher provisions for various purposes and higher legal contingencies, partially offset by lower non-financial assets impairments. 
Operating profit / (loss) before tax
As a result of the foregoing, operating profit before tax of this operating segment for the year ended December 31, 2023 was €3,897 million, a 49.3% increase compared with the €2,610 million profit recorded for the year ended December 31, 2022.
Tax expense or income related to profit or loss from continuing operations
Tax expense related to profit from continuing operations of this operating segment for the year ended December 31, 2023 was €1,175 million, a 59.1% increase compared with the €739 million expense recorded for the year ended December 31, 2022, as a result of the higher operating profit before tax recorded for the year ended December 31, 2023. The effective tax rate increased to 30.1% for the year ended December 31, 2023 from 28.3% for the year ended December 31, 2022. Amounts paid by BBVA under the temporary tax on credit institutions and financial credit establishments in Spain are a non-deductible expense for tax purposes.
Profit / (loss) from discontinued operations, net and Other
Loss from discontinued operations, net and Other of this operating segment for the year ended December 31, 2023 was nil compared with the €201 million loss recorded for the year ended December 31, 2022. Loss from discontinued operations, net and Other for the year ended December 31, 2022 included the loss recorded in connection with the acquisition of Tree