Company: BBVXF
Filing Date: 2025-03-21
Form Type: 6-K
Source: 0000842180-25-000016
Chunk: 294

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-03-21
Form: 6-K
Chunk 294
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 represents the best information available as of the date of publication of the report. |     |                                   |                                                                                                         |      |   |     |                                            |     |                           |     |                                           |

#### Breakdown of residential mortgages
The EPC (Energy Performance Certificate) label is a classification of buildings according to their energy efficiency. It must be calculated according to the methodology set out in Royal Decree 390/2021, to be updated when Directive (EU) 2024/1275 (the Energy Performance of Buildings Directive, or EPBD for short), published in April 2024, is transposed into national regulations.

The BBVA Group's exposures secured by real estate, as well as real estate foreclosed or received in payment of debts, are located both within and outside the scope of the EPBD. As a result, the standards for assessing the energy consumption intensity or energy efficiency of real estate in each region have different levels of maturity, which adds complexity when trying to provide a consistent view from a global perspective.

Most of the real estate is business-related in Spain, where the EPC is the standard approach to assessing energy efficiency. According to applicable law and regulations in Spain, the evaluation and generation of an energy certificate in the sale and purchase of a residential property has been mandatory since 2013. In recent years, BBVA S.A. has implemented the necessary changes to collect information on energy certificates for new residential mortgages in Spain.

Additionally, has a process to obtain information on the pre-existing portfolio through EPC data provided by an independent appraisal company approved in Spain, thus covering most of the exposure. In this regard, the EPC information was obtained from existing public records and, in cases where the information was not available, it was based on a model developed by the appraiser to estimate the intensity of energy consumption based on nearby properties, climate zone, year of construction and floor of the building, among other variables. This model has been analyzed by BBVA’s Internal Validation team.

It should be noted that due to the type of property in question, the issuance of EPC labels may not be mandatory, as is the case with plots of land, storage rooms, or stand-alone garages, for which no information or estimated energy consumption (kWh/m 2 /year) has been obtained.

For real estate within the banking business in Spain, a project was launched to raise awareness and inform BBVA customers of the usefulness of EPCs and to include them among the documentation to be requested during the process of