Company: BBVXF
Filing Date: 2025-08-12
Form Type: DRS
Source: 0000950123-25-007520
Chunk: 298

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-08-12
Form: DRS
Chunk 298
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 resilience.                                                         |

| – | In the United States, one aspect that drew considerable attention was the approval, by a very slim margin, of the tax                                                            
 reform bill by Congress. The package includes an extension of the tax cuts introduced in 2017 as well as new tax cuts. Some estimates suggest that this reform will increase the 
 debt-to-GDP ratio by more than 10 percentage points over the coming decade.                                                                                                      |

| – | In terms of inflation, the services component showed signs of easing and so far the main price indices show no signs 
 of any impacts from the tariffs, although there is still a lot of uncertainty in that respect.                       |

A-21

As confidentially submitted to the Securities and Exchange Commission on August 11, 2025. This Amendment No. 4 has not been publicly filed with the Securities and Exchange Commission and all information herein remains strictly confidential.

| – | As for monetary policy, the European Central Bank and the Bank of England continued with their interest rate cuts,                             
 while the Federal Reserve put them on pause against a backdrop of heightened uncertainty over the impact of the Trump administration’s agenda. |

| – | The markets reacted with intensity to the tariffs announced by the United States in April, with sharp declines in                                                                                                                                  
 stock markets, increases in various volatility indices, and significant rebounds in corporate loan spreads. The US dollar, unlike in previous episodes of risk aversion, experienced a widespread depreciation this time around. All of the losses 
 sustained by risk assets during April’s episode were reversed after Trump announced a trade truce. In any case, there is still some evidence that investors have lost confidence in US assets.                                                     |

| – | Long-term government bond yields in the main developed economies ended the first half of the year with no major                               
 changes. It is worth noting that in April, US public debt temporarily stopped acting as a safe haven asset, although this was later reversed. |

| – | The euro, in its currency pair with the US dollar, appreciated by close to 14% in the first half of 2025, standing at 
 1.18 dollars per euro. These are levels that had not been seen since mid-2021.                                        |

Political and regulatory environment In a context marked by calls for simpler regulations by European institutions, the European Commission unveiled its European Competitiveness Compass on 29 January 2025. The main aim of this proposition is to restore and boost the competitiveness of the European Union, building on the recommendations set out in the