Company: BBVXF
Filing Date: 2025-07-31
Form Type: 6-K
Source: 0000842180-25-000030
Chunk: 44

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-07-31
Form: 6-K
Chunk 44
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 in Spanish. In the event of a discrepancy, the Spanish -language version prevails.

| January - June 2025Report - p.50 |

– The cumulative net attributable profit at the end of June 2025 stood at €91m, above that achieved in the same quarter of the previous year, due to a significantly lower hyperinflationary impact than at the end of June 2024. Net interest income continues to be affected by the cuts in the monetary policy rate, which was not offset by the higher lending volume. Net fee and commission income grew by 60.6% year-on-year, with growth driven by payment methods activity. On the other hand, a significantly lower negative adjustment for hyperinflation was recorded (mainly reflected in the other operating income and expenses line) and higher expenses, both in personnel (fixed compensation to staff) and general expenses. Loan-loss provisions increased as a result of the growth in lending activity and higher requirements in the retail portfolio. As a result of the above, the cost of risk stood at 4.46%, which represents an increase of 16 basis points in the quarter. Thus, the result of the second quarter reached € 57 m, up from the previous quarter in constant terms, mainly due to a better performance of the net interest income thanks to the evolution of business activity with individuals and companies, also favored by a less negative adjustment for hyperinflation and lower provisions for impairment of financial assets in the fixed income portfolio. All of the above offset lower NTI revenues (despite higher results from exchange rate differences and derivatives due to the relaxation of the exchange rate hedge) and the growth in operating expenses. Colombia Macro and industry trends The recovery in economic growth has continued in recent months and is likely to continue going forward. BBVA Research has also revised down its GDP growth forecast for 2025 by two tenths to 2.3% (which is placed above the growth of 1.7% recorded in 2024), mainly due to a less favorable global environment and a lower than expected fall in inflation and interest rates. In this respect, inflation is most likely to moderate from levels above 5.0% at the beginning of this year, and from 4.8% in June, to around 4.7% in December. Despite the relative persistence of inflation, and concerns about fiscal performance, interest rates could be cut from 9.25% in June to around 8.25% in December. Total credit growth in the