Company: BBVXF
Filing Date: 2025-08-12
Form Type: DRS
Source: 0000950123-25-007520
Chunk: 344

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-08-12
Form: DRS
Chunk 344
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 contractual cash flows in the event the principal amount is reduced due to insufficient funds. Contracts that include this option will 
 automatically fail the SPPI test.                                                                                                                                                                                                                                     |

| • |     | Existence of the option to prepay or extend the financial instrument, or extend the contractual term, and possible                                                                                                                                      
 residual compensation: a financial asset will fulfil the SPPI test requirements if it includes a contractual option that permits the issuer (or debtor) to prepay a debt instrument or to put back a debt instrument before maturity and the prepayment 
 amount substantially represents unpaid amounts of principal and interest outstanding, which may include reasonable additional compensation for the early termination of the contract.                                                                   |

| • |     | Financial assets with interest rates linked to environmental, social or governance targets (ESG-linked features): these financial assets provide general funding at a contractual interest rate that is discounted based on the level of compliance, by customers, of certain environmental metrics, not requiring 
 any specific destination for the funds, the purpose of the adjustment being to incentivise the achievement of those targets. The key consideration here is whether the resulting cash flows reflect a return for risk that is unrelated to a basic                                                                 
 lending arrangement. Thus, if the adjustment linked to ESG targets does not introduce compensation for risks that is inconsistent with a basic lending arrangement, or if it does so only residually, then it is considered that the financial asset has                                                           
 contractual cash flows that are compatible with a basic lending arrangement. As at 31 December 2024 and 2023, the impacts of environmental clauses on the interest rate applied to transactions whose remuneration is linked to ESG targets are                                                                    
 considered to be residual for the purposes of the SPPI test. Similarly, in general terms, those financing transactions do not include other characteristics that could call into question their status as basic lending arrangements.                                                                              |

| • |     | Other clauses that could change the timing or amount of cash flows: clauses that could alter contractual cash flows as 
 a result of changes in credit risk are considered to pass the SPPI test.                                               |

| – | Leverage: financial assets with leverage (i.e. those in which the contractual cash flow variability increases, such                          
 that they do not have the same economic characteristics as the interest rate on the principal amount of the transaction) fail the SPPI test. |

| – | Contractually linked financial instruments: the cash flows arising from these types of financial instruments are      
 considered to consist solely of payments of principal and interest on the principal amount outstanding