Company: BBVXF
Filing Date: 2025-08-12
Form Type: DRS
Source: 0000950123-25-007520
Chunk: 151

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-08-12
Form: DRS
Chunk 151
---
 more momentum than in the Eurozone. After a period in which the external sector has played a prominent role, domestic demand may take on a bigger role. Activity will be underpinned by the increase in population (a consequence of migration), the favorable evolution of the labor market, the absence of imbalances in private agents’ balance sheets and in the external sector, lower interest rates and a greater rollout of NGEU funds. The rating of Spanish government bonds is estimated to remain in the A-/ A range, in an environment in which public debt will still remain at high levels. This will contribute to the risk premium remaining at contained levels. Within the financial environment, the profitability of the banking industry is forecast to remain resilient amidst the reactivation of credit and containment of delinquency rates. The capital and liquidity position is expected to remain robust. The entry into force of Basel III, the management of geopolitical risks, the implementation of new digital regulations, ESG matters, cyber threats, the impact of potential adjustments to the non-bank financial sector and the adjustment of commercial real estate will be areas to focus on. Critical Accounting Estimates Judgements and Estimates The information in this subsection has been extracted from pages 19 and 20 of Banco Sabadell’s consolidated financial statements as of and for the year ended December 31, 2024, reproduced herein on pages A-105 and A-106. See also Note 1.3 to the consolidated financial statements as of and for the year ended December 31, 2024. The preparation of the consolidated annual financial statements requires certain accounting estimates to be made. It also requires management to use its best judgement in the process of applying the Group’s accounting policies. Such judgements and estimates may affect the value of assets and liabilities and the disclosure of contingent assets and contingent liabilities as at the date of the consolidated annual financial statements, as well as income and expenses in the year. The main judgements and estimates relate to the following:

| • |     | The accounting classification of financial assets and off-balance sheet exposures according to their credit risk. |

| • |     | Impairment losses on certain financial assets and off-balance sheet 
 exposures.                                                          |

| • |     | The assumptions used in actuarial calculations of liabilities and post-employment obligations. |

| • |     | The measurement of consolidated goodwill. |

| • |     | The useful life and impairment losses of tangible assets and other intangible assets. |

| • |     | The provisions and consideration of contingent