Company: BBVXF
Filing Date: 2025-02-27
Form Type: F-4/A
Source: 0001193125-25-037317
Chunk: 711

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-27
Form: F-4/A
Chunk 711
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 and commonly used reference for the fair value of a financial asset or financial liability is the price that would be paid in an organised, transparent and deep market (“quoted price” or “market price”). When there is no market price for a particular financial asset or financial liability, the fair value is estimated from the values established for similar instruments in recent transactions or, alternatively, by using mathematical valuation models that have been suitably tested by the international financial community. When using these models, the particular characteristics of the financial asset or financial liability to be valued are taken into account, particularly the different types of risk that may be associated therewith. The above notwithstanding, the limitations inherent in the valuation models that have been developed and possible inaccuracies in the assumptions and parameters required by these models may result in the estimated fair value of a financial asset or financial liability not exactly matching the price at which the asset or liability could be delivered or settled on the valuation date. The fair value of financial derivatives quoted on an active market is the daily quoted price. In the case of instruments for which quoted prices cannot be determined, prices are estimated using internal models developed by the Bank, most of which take data based on observable market parameters as significant inputs. In the remaining cases, the models make use of other inputs which rely on internal assumptions based on generally accepted practices within the financial community. For financial instruments, the fair values disclosed in the financial statements are classified according to the following fair value levels:

| – | Level 1: Fair values are obtained from the (unadjusted) prices quoted on active markets for that instrument. |

| – | Level 2: Fair values are obtained from the prices being quoted on active markets for similar instruments, the                                                                   
 prices of recent transactions, expected payment flows or other valuation techniques in which all significant inputs are directly or indirectly based on observable market data. |

| – | Level 3: Fair values are obtained through valuation techniques in which some significant inputs are not based on 
 observable market data.                                                                                          |

Set out below are the main valuation methods, assumptions and inputs used when estimating the fair value of financial instruments classified in Levels 2 and 3, according to the type of financial instrument concerned: A-579

| Financial           
 instruments Level 2 |                                                                                                                                                                     | Valuation techniques            |                                                                                                                                                                                                      | Main assumptions                                                                                                                                  |                                                                                                   | Main inputs used                                                                                         |
| Debt securities     |                                                                                                                                                                     | Net present value method        |                                                                                                                                                                                                      | Calculation of the present value of financial instruments as the present value of future