Company: BBVXF
Filing Date: 2025-08-12
Form Type: DRS
Source: 0000950123-25-007520
Chunk: 788

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-08-12
Form: DRS
Chunk 788
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.7 years, respectively. The early retirement age considered is the earliest retirement date after which pension entitlements cannot be revoked by the employer for 100% of the employees. The return on long-term assets corresponding to plan assets and insurance policies linked to pensions has been determined by applying the same discount rate used in actuarial assumptions (3.25% and 1.00% in 2022 and 2021, respectively). 1.3.18 Foreign currency transactions and exchange differences The Group’s functional and reporting currency is the euro. Consequently, all balances and transactions denominated in currencies other than the euro are treated as being denominated in a foreign currency. On initial recognition, debit and credit balances denominated in foreign currencies are translated to the functional currency at the spot exchange rate, defined as the exchange rate for immediate delivery, on the recognition date. Subsequent to the initial recognition, the following rules are used to translate foreign currency balances to the functional currency of each investee:

| – | Monetary assets and liabilities are translated at the closing rate, defined as the average spot exchange rate as at 
 the reporting date.                                                                                                 |

| – | Non-monetary items measured at historical cost are translated at the exchange 
 rate ruling on the acquisition date.                                          |

| – | Non-monetary items measured at fair value are translated at the exchange rate 
 ruling on the date on which the fair value was determined.                    |

| – | Income and expenses are translated at the exchange rate ruling on the transaction date. |

In general, exchange differences arising on the translation of debit and credit balances denominated in foreign currency are recognised in the consolidated income statement. However, for exchange differences arising in non-monetaryitems measured at fair value where the fair value adjustment is recognised under the heading “Accumulated other comprehensive income” in the consolidated statement of equity, a breakdown is given for the exchange rate component of the remeasurement of the non-monetaryitem. The balances of the financial statements of consolidated entities with a functional currency other than the euro are translated into euros in the following manner:

| – | Assets and liabilities are translated at the exchange rate ruling at each 
 year-end closing.                                                         |

| – | Income and expenses are translated at the average exchange rate, weighted by the volume of transactions of the 
 company whose income and expenses are being translated.                                                        |

| – | Equity is translated at historical exchange rates. |

A-598

As confidentially submitted to the Securities and Exchange Commission on August 11, 202