Company: BBVXF
Filing Date: 2025-02-27
Form Type: F-4/A
Source: 0001193125-25-037317
Chunk: 646

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-27
Form: F-4/A
Chunk 646
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, reliance on funding markets, etc. It is also worth noting that TSB has a low risk profile, with one of the most robust capital positions in the United Kingdom (fully-loaded CET1 capital ratio of 17.1%), with a balance sheet that is evenly distributed between loans and deposits (loan-to-depositratio of 105%) and with a loan book in which over 90% of loans are mortgage-secured. Furthermore, the quality of this mortgage book is very high, with an average LTV of 42%, and only a relatively small exposure to high-risk segments. In 2022, the Bank analysed the recoverability of the capital invested in TSB, based on the financial forecasts approved by the Board of Directors. The results of the analysis showed that there are no signs of impairment in this investment, as detailed in Note 16. 4.2 Key milestones during the year 4.2.1 The Group’s risk profile during the year The following milestones have been achieved in relation to the Group’s risk profile during 2022:

| I. | Non-performing assets: |

| – | Decrease in the NPL ratio in the year, from 3.7% to 3.4%, due to a reduction of stage 3 volumes as a result of 
 improved credit quality.                                                                                       |

| II. | Lending performance: |

| – | Gross performing loans continue to increase                                                                                                                              
 year-on-year in all geographies, excluding the impact of the evolution of foreign currencies, with annual growth figures of 1.7% in Spain, 3.3% in the UK (TSB) and 1.4% 
 in Mexico.                                                                                                                                                               |

| – | In Spain, the year-on-year growth is                                                                                   
 primarily driven by loans to individuals (the increase in the mortgage portfolio is noteworthy) and by business loans. |

| – | In TSB, at a constant exchange rate, annual growth was 3.3%, supported by the positive evolution of the mortgage 
 book.                                                                                                            |

| III. | Concentration: |

| – | From a sectoral point of view, the loan portfolio is diversified, has limited exposure to the sectors most sensitive 
 to the current environment and follows a downward trend.                                                             |

| – | Similarly, in terms of individual concentration, the risk metrics relating to concentration of large exposures do                                                                                                                    
 show a slight upward trend but nevertheless remain within the appetite level. The credit ratings of top segments improve significantly