Company: BBVXF
Filing Date: 2025-09-05
Form Type: F-4/A
Source: 0001193125-25-196513
Chunk: 531

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-05
Form: F-4/A
Chunk 531
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 3.6 |     |        |  3.8 |     |        |  3.6 |     |        |  3.6 |     |                | -0.9 |     |        |  -2.3 |     |        |  0.7 |     |        | 2.9 |     |        | 3.7 |
| Alternative scenario 2 |     |            | -2.6 |     |        | -1.6 |     |        |  2.0 |     |        |  2.0 |     |        |  2.0 |     |                | -3.4 |     |        | -11.1 |     |        | -0.5 |     |        | 4.3 |     |        | 4.3 |

(*) For Spain, the price variation at year-endis calculated and, for the UK, the average price variation over the year is calculated. In the Group, macroeconomic scenarios have been incorporated into the impairment calculation model. The Group applies a series of additional adjustments to the results of its credit risk models, referred to as overlays, in order to address situations in which the results of the models are not sufficiently sensitive to the uncertainty of the macroeconomic environment. These adjustments are temporary and remain in place until the reasons for which they were originally applied cease to exist. The application of these adjustments is subject to the governance principles established by the Group. Specifically, as at 31 December 2022, the impairment losses of the loan portfolio included a series of additional provisions that included sector-specific characteristics of the macroeconomic situation and inflationary environment, in the amount of 170 million euros, the adjustment remaining on the balance sheet as at 31 December 2023 being around 80 million euros. The balance variation during the year is mainly due to the specific way in which those adjustments were made, after having completed the recurring updates of internal provisioning models and their parameters. The Group applies the criteria described below to calculate credit loss allowances. The amount of impairment allowances is calculated based on whether or not there has been a significant increase in credit risk since initial recognition, and on whether or not a default event has occurred. This way, the impairment allowance for transactions is equal to:

| – | 12-month expected credit losses, when the risk of a default event                                       
 materialising has not significantly increased since initial recognition (assets classified as stage 1). |

|