Company: BBVXF
Filing Date: 2025-03-21
Form Type: 6-K
Source: 0000842180-25-000016
Chunk: 121

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-03-21
Form: 6-K
Chunk 121
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 a risk weight of 1,250% are deducted from own funds, as explained in section m) of chapter 3.2 of this report. |     |                               |     |         |     |                |     |                 |     |                    |                          |     |   |                                          |     |          |     |                    |     |        |                          |     |   |                              |     |          |     |                    |     |        |                          |     |   |                               |     |          |     |                    |     |        |                          |     |   |

In 2024 there was no relevant variations in securitisation exposures, when the Group acts as an investor.

| PILLAR 3 2024 |     | 4. RISK |     | P.158 |

#### 4.2.8.
Hedging and risk reduction policies. Supervision strategies and processes

Article 435 (1) d) CRR

EU OVA g)

In certain cases, maximum credit risk exposure is reduced by collateral, credit enhancements and other actions which mitigate the Group’s exposure. The BBVA Group applies a credit risk hedging and mitigation policy deriving from a banking approach focused on relationship banking. The existence of guarantees could be a necessary but not sufficient instrument for accepting risks, as the assumption of risks by the Group requires prior evaluation of the debtor’s capacity for repayment, or that the debtor can generate sufficient resources to allow the amortization of the risk incurred under the agreed terms.

The policy of accepting risks is therefore organized into three different levels in the BBVA Group:

– analysis of the financial risk of the transaction, based on the debtor’s capacity for repayment or generation of funds;

– the constitution of guarantees that are adequate, or at any rate generally accepted, for the risk assumed, in any of the generally accepted forms: monetary, secured, personal or hedge guarantees; and

– assessment of the repayment risk (asset liquidity) of the guarantees received.

This is carried out through a prudent risk policy that consists of the analysis of the financial risk, based on the capacity for reimbursement or generation of resources of the borrower, the analysis of the guarantee, assessing, among others, the efficiency, the robustness and the risk, the adequacy of the guarantee with the operation and other aspects such as the location, currency, concentration or the existence of limitations. Additionally, the necessary tasks for the constitution of guarantees must be carried out - in any of the generally accepted forms (collaterals,