Company: BBVXF
Filing Date: 2025-02-21
Form Type: 20-F
Source: 0000842180-25-000010
Chunk: 186

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-21
Form: 20-F
Item: Item 5
Chunk 186
---
 €118 million expense, a 69.4% decrease compared with the €387 million expense recorded for the year ended December 31, 2022, mainly due to the decrease in the collective expected losses related to the wholesale portfolio, as a result of the improved performance of companies which resulted in a lower default rate, and the depreciation of the Turkish lira against the euro, partially offset 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 (which resulted in an impairment that amounted to €25 million as of December 31, 2023) and certain significant Stage 3 entries from the retail 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, 2023 were a €137 million expense, a 55.4% increase compared with the €88 million expense recorded for the year ended December 31, 2022, mainly due to the provisions recorded in connection with the February 2023 earthquakes, the increased provisions for pensions and other employee benefit commitments and higher non-financial assets impairments, partially offset by the depreciation of the Turkish lira against the euro and lower provisions for various purposes.
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, 2023 was €1,324 million, a 19.1% decrease compared with the €1,636 million recorded for the year ended December 31, 2022.
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, 2023 was €702 million, a 36.4% decrease compared with the €1,103 million expense recorded for the year ended December 31, 2022, as a result of the revaluation for tax purposes of certain non-monetary assets of Garanti BBVA based on inflation as a result of certain changes in Turkey’s tax regulations during 2023. The impact of this revaluation led to a corporate income tax credit in 2023 amounting to approximately €260 million, due to the higher tax base of such assets, partially offset by the net loss on the monetary position resulting from the adjustment for hyperinflation in Turkey which, in turn, led to additional adjustments to