Company: BBVXF
Filing Date: 2025-08-12
Form Type: DRS
Source: 0000950123-25-007520
Chunk: 419

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-08-12
Form: DRS
Chunk 419
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 borrowers that have, or are expected to have, financial difficulties to honour their payment obligations under the prevailing contractual terms, is to facilitate the repayment of the debt by reducing the probability of default as much as possible. A number of common policies to achieve this are in place in the Institution, as well as procedures for the approval, monitoring and control of potential debt forbearance (refinancing and restructuring) processes, the most significant of which are the following:

| – | The existence of a sufficiently long good payment history by the borrower and a manifest intention to repay the loan,                                                                             
 assessing the period of time during which the customer is likely to continue to experience financial difficulties (in other words, whether they are facing short-term or long-term difficulties). |

A-157

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.

| – | Refinancing and restructuring conditions based on a realistic repayment schedule that is in line with borrowers’                                       
 current and expected payment capacity, also taking into account the macroeconomic situation and outlooks, avoiding their postponement to a later date. |

| – | If new guarantees are provided, these must be regarded as a secondary and exceptional means of recovering the debt,                                       
 so as to avoid adversely affecting existing means. In any case, the ordinary interest accrued should be paid up to the refinancing or restructuring date. |

| – | Limits are applied to the length of grace periods and to the granting of successive refinancing. |

The Group continually monitors compliance with the agreed terms and with the above policies. Furthermore, the Group has an advanced model in place for managing non-performingexposures in the impaired assets portfolio. For further quantitative information, see Schedule IV “Other risk information – Credit risk exposure: Forbearance” to these consolidated annual financial statements. Internal risk models Banco Sabadell Group also has a system in place which is made up of three lines of defence to ensure the quality and oversight of internal models, as well as a governance process specifically designed to manage and monitor these models and to ensure compliance with regulations and the supervisor’s instructions. The governance framework of internal credit risk and impairment models (management of risk, calculation of regulatory capital and provisions) is based on the following pillars:

| – | Effective management of changes to internal models. |

| – | Ongoing monitoring of the performance of internal models. |

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