Company: BBVXF
Filing Date: 2025-08-12
Form Type: DRS
Source: 0000950123-25-007520
Chunk: 574

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-08-12
Form: DRS
Chunk 574
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 confidential.

| • |     | In terms of economic policy, concerns over the state of public finances take centre stage. The bigger role played by                                                                                                                                     
 the State in tackling the major challenges and transitions that society will face in the future (climate, adverse demographics, convoluted geopolitics, industrial policy, new technologies, etc.) requires governments to seek new and often unorthodox 
 income measures in an attempt to cover higher structural costs. In the European Union, the Next Generation funds continue to be rolled out and serve as a mechanism to channel public investment in the next few years.                                  |

| • |     | Central banks cut interest rates as inflation eases off and comes closer to monetary policy targets, in order to avoid                                                                                                                              
 a further rebound of the real interest rate. This process starts in 2024 and continues gradually until levels around monetary neutrality are reached. Meanwhile, central banks continue to make progress on their quantitative tightening policies, 
 although they are eventually forced to stop this process to avoid causing liquidity problems in the markets.                                                                                                                                        |

| • |     | The environment of tight financial conditions is prone to further episodes of stress due to issues in some segments of                                                                                              
 the financial sector, including some banks, or liquidity mismatches in the system. In any event, these events are localised and the authorities manage to control them; therefore, their economic repercussions are 
 non-existent.                                                                                                                                                                                                       |

| • |     | Spain continues to stand out in a positive light in the Eurozone. The recovery in real household incomes, thanks to a                                                                                                                                 
 favourable job market, rising wages and lower inflation, leads to an improvement in private consumption. The robustness of household balance sheets and a relatively low sensitivity to interest rate hikes also support household spending. The NGEU 
 funds remain a supporting factor.                                                                                                                                                                                                                     |

| • |     | Private sector lending in Spain declines in the near term, while in the long term it continues to grow below nominal                                                                    
 GDP, impacted by high interest rates, global economic weakness, companies’ ample liquidity buffers and, in the case of mortgage loans, also by reduced affordability and accessibility. |

| • |     | In relation to financial markets, long-term government bond yields remain stable over the forecast period, despite weak                                                                                                   
 economic growth and more moderate inflation. This is because the market gradually prices in a higher forward premium, due to central banks’ quantitative tightening (QT) and concerns about the state of public finances. |

| • |     | Risk premiums of the European