Company: BBVXF
Filing Date: 2025-02-21
Form Type: 20-F
Source: 0000842180-25-000010
Chunk: 5

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-21
Form: 20-F
Item: Item 3
Chunk 5
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 disposable income levels in areas that are net energy importers, such as Spain or Turkey, to which the Group is particularly exposed; changes in exchange rates; an unfavorable evolution of the real estate market; changes in the institutional environment of the countries in which the Group operates, which could give rise to sudden and sharp drops in GDP and/or changes in regulatory or government policy, including in terms of exchange controls and restrictions on the distribution of dividends or the imposition of new taxes or charges; high public debt or external deficit, which could lead to a downward revision of the credit ratings of the sovereign debt and even a possible default or restructuring of such debt; and episodes of volatility in the financial markets, which could cause significant losses for the Group. 
Any of these factors may have a material adverse effect on the Group’s business, financial condition and results of operations.
Political, economic and social conditions in any of Spain, Mexico and Turkey may have a material adverse effect on our business, financial condition and results of operations
The Group has historically carried out its lending activity mainly in Spain, which continues to be its primary business area. In addition, the Group is significantly exposed to Mexico and, to a lesser extent, Turkey. As of December 31, 2024, total risk in financial assets in Spain, Mexico and Turkey (in each case calculated as set forth in Appendix IX (Additional information on risk concentration) of the Consolidated Financial Statements) amounted to €239,058 million, €143,924 million and €62,473 million, respectively, equivalent to 34%, 21% and 9%, respectively, of the Group’s total risk in financial assets. The Group’s gross exposure to loans and advances to customers in Spain, Mexico and Turkey totaled €232,185 million, €91,717 million and €50,083 million, respectively, as of December 31, 2024, representing 55%, 22% and 12%, respectively, of the Group’s total amount of loans and advances to customers.
Given the significance of the Group’s exposure to each of Spain, Mexico and Turkey, any adverse change affecting political, economic and social conditions in any such country could have a material adverse effect on the Group’s business, financial condition and results of operations.
BUSINESS RISKS
The Group’s business is subject to inherent risks concerning counterparties’ credit quality and the value of collateral
The total maximum credit risk exposure of the Group (calculated as set forth in Note 7.2.2 to the Consolid