Company: BBVXF
Filing Date: 2025-02-21
Form Type: 20-F
Source: 0000842180-25-000010
Chunk: 167

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-21
Form: 20-F
Item: Item 5
Chunk 167
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 profit or loss or net gains by modification
Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification of this operating segment for the year ended December 31, 2024 was a €526 million expense compared with the €118 million expense recorded for the year ended December 31, 2023, mainly as a result of the increase in the expected losses related to the retail portfolio (mainly credit card and consumer loans, which volumes increased and also experienced greater deterioration), partially offset by the depreciation of the Turkish lira and the higher reversal of impairment on the wholesale portfolio compared to 2023. The year ended December 31, 2023 was affected by the change in the staging of certain loans from Stage 1 to Stage 2, due to the impact of the earthquakes in February 2023 and certain significant Stage 3 entries in the retail and wholesale portfolios.
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, 2024 were a €165 million income compared with the €137 million expense recorded for the year ended December 31, 2023, mainly due to the impact, in 2023, of the provisions recorded in connection with the February 2023 earthquakes, and increases in the value of certain real estate assets in 2024.
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, 2024 was €1,741 million, a 31.5% increase compared with the €1,324 million recorded for the year ended December 31, 2023. At constant exchange rates, operating profit before tax increased by 83.3%.
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, 2024 was €1,014 million, a 44.4% increase compared with the €702 million expense recorded for the year ended December 31, 2023, mainly as a result of the increase in operating profit before tax recorded for the year ended December 31, 2024. 
Current tax regulation in Turkey does not include a provision to reduce tax expense upon the existence of a loss linked to the net monetary position. The effective tax rate amounted to 58.2% of