Company: BBVXF
Filing Date: 2025-02-21
Form Type: 20-F
Source: 0000842180-25-000010
Chunk: 109

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-21
Form: 20-F
Item: Item 4
Chunk 109
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 2024, 2023 and 2022 were mainly related to the real estate sector.
When the recovery of any recognized amount is considered to be remote, this amount is removed from the consolidated balance sheet, without prejudice to any actions taken by the consolidated entities in order to collect the amount until their rights extinguish in full through expiry, forgiveness or for other reasons. 
Our total net charge-offs to average loans at amortized cost ratio decreased to 0.87% for the year ended December 31, 2024, compared with 0.89% for the year ended December 31, 2023 mainly as a result of decreases in charge-offs in Spain. The decrease was partially offset by an increase in charge-offs in Colombia, Peru and Mexico.
 The following factors, set out by region, were the main contributors to the decrease in the ratio:
•Mexico: there was a decrease in the ratio mainly due to an increase in the size of the retail portfolio, in a context of growing lending activity, which exceeded the increase in the amount of charge-offs.
•Spain: there was a decrease in the ratio mainly as a result of the increases in the wholesale portfolio, in particular, loans to enterprises and, to a lesser extent, the decrease in charge-offs. 
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The decrease in the total net charge-offs to average loans ratio was partially offset by:
•South America: there was an increase in the ratio due to an increase in charge-offs in the retail portfolios in Peru and Colombia as a result of new Stage 3 entries within a context of overall unfavorable macroeconomic conditions.
Our allowance for credit losses to total loans and advances at amortized cost decreased to 2.56% as of December 31, 2024 compared with 2.75% as of December 31, 2023, mainly as a result of the increase in total loans outstanding, in particular, the increase in Turkish lira-denominated credit card loans and consumer loans in Turkey, the increase in commercial loans and, to a lesser extent, credit card loans in Argentina and the increases in the wholesale portfolio, in particular, loans to enterprises in Spain, partially offset by certain non-performing loan entries in the retail loan portfolios in Turkey.
Impaired Loans
Loans are considered to be credit-impaired under IFRS 9 if one or more events have occurred and they have a detrimental impact on the estimated future cash flows of the loan.
Amounts collected in relation to impaired financial assets at amortized cost are first applied