Company: BBVXF
Filing Date: 2025-02-27
Form Type: F-4/A
Source: 0001193125-25-037317
Chunk: 236

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-27
Form: F-4/A
Chunk 236
---
 application of these criteria, the Group either classifies its borrowers as stage 2 or 3 or keeps them in stage 1. A-28

Individual assessment The Group has established a significance threshold in terms of exposure, which is used to classify certain borrowers as significant, meaning that their risks need to be assessed individually. The thresholds at the customer level used to classify borrowers as significant have been set at 10 million euros for customers classified in stage 1, and at 3 million euros for customers classified in stage 2 or 3. These thresholds comprise amounts drawn, amounts available and guarantees. Exposures of more than 1 million euros of borrowers within the top 10 main risk groups classified in stage 3, identified on an annual basis, are also considered individually. Exceptionally, and with the sole purpose of classifying and more precisely impairing transactions, borrowers whose exposures are not above the significance threshold but who nevertheless belong to a group in which the individual assessment of its components is based on consolidated data may also be assessed individually. To assess significant borrowers’ transactions, a system of triggers is established. These triggers identify any significant increase in credit risk, as well as any signs of impairment. A team of expert risk analysts carries out the individual assessment of borrowers, reviewing each transaction and assigning it the corresponding accounting classification. The system of triggers for significant borrowers is automated and takes into account the particular characteristics of segments that perform differently within the loan portfolio, with specific triggers in place for certain segments. In any event, the system of triggers does not automatically or individually classify borrowers. Instead, it brings forward the due date for assessment of the borrower by the analyst and prompts decision-making with regard to their classification. The main aspects identified by the system of triggers are listed here below: Stage 2 triggers:

| • |     | Adverse changes in the financial situation, such as a significant increase in levels of leverage or a sharp drop in 
 turnover or equity.                                                                                                 |

| • |     | Adverse changes in the economy or market indicators, such as a significant fall in share prices or a reduction in the 
 price of debt issues.                                                                                                 |

| • |     | Significant fall in the internal credit rating of the borrower. |

| • |     | Significant increase in credit risk of other transactions of the same borrower, or in entities associated with the 
 borrower’s risk group.                                                                                             |

| • |     | For transactions secured with collateral, significant decline in the value of the collateral received. |

Stage 3 triggers