Company: BBVXF
Filing Date: 2025-09-17
Form Type: 425
Source: 0001193125-25-205900
Chunk: 11

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-17
Form: 425
Chunk 11
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 rest of the industry. We have the best bank in the country. And if you look into the size of the economy, and if you have — in this case, including state banks, we have 10% market share; excluding state banks, we have 17–18% market share. With that market share, you should be able to deliver at least €2 billion to €3 billion. Otherwise, you don’t cover your cost of equity as the system and as the bank. So that’s why we said in the past that when normalization happens, you should expect much more from Turkey. That’s why we, at some point, called it a large optional value. We are more and more in the option, in our view, every single day. But we’ll see how the path develops and how it all turns out. But we are at the moment quite positive. One thing that you mentioned, which is important: the hyperinflationary accounting obviously creates a hit not in capital but in P&L, in the profits. Hyperinflation accounting is going to be left out, it’s going to be taken out, if the cumulative past three-year inflation is less than 100%. As it seems, in 2027 Turkey is going to get out of hyperinflationary accounting. Our expectation in the plan is that we wanted to be conservative and we put just 2028. But independent of whether Turkey has or doesn’t have hyperinflation accounting, if inflation comes down, the negative impact coming from hyperinflation accounting disappears in the P&L, if you know what I mean. So you don’t need to wait for the accounting to change, you need to get inflation coming down. And if inflation comes down, hyperinflationary accounting per se doesn’t create too much of a difference in the P&L. In that context, 2028 is the date that we assumed hyperinflation accounting will be taken out. But even before, if inflation comes down, Turkey will continue to generate much better profits.

| [00:26:44 |     | - |     | 00:27:10] |

BofA:That’s a big deal. And now let’s talk about actually the tender offer because we’re live now. And when Sabadell’s board rejected your offer, they formalized a number of points as to why that was the case. I mean, three in particular. One was the premium, two, base footprint, and three, Sabadell