Company: BBVXF
Filing Date: 2025-09-05
Form Type: F-4/A
Source: 0001193125-25-196513
Chunk: 510

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-05
Form: F-4/A
Chunk 510
---
 “Interest expenses”, as applicable. Dividends received from other companies are recognised in the consolidated income statement for the year in which the right to receive them is originated. Instruments which form part of a hedging relationship are treated in accordance with regulations applicable to hedge accounting. Changes in measurements occurring subsequent to initial recognition for reasons other than those mentioned above are treated according to the classification of financial assets and financial liabilities for the purposes of their measurement. In the case of financial assets, classification is generally based on the following aspects:

| – | The business model under which they are managed, and |

| – | Their contractual cash flow characteristics. |

Business model A business model refers to the way in which financial assets are managed in order to generate cash flows. The business model is determined by considering the way in which groups of financial assets are managed together to achieve a particular objective. Therefore, the business model does not depend on the Group’s intentions for an individual instrument, rather, it is determined for a group of instruments. A-340

The business models used by the Group are indicated here below:

| – | Business model whose objective is to hold financial assets in order to collect contractual cash flows: under this                                                                                                                                      
 model, financial assets are managed in order to collect their particular contractual cash flows, rather than to obtain an overall return by both holding and selling assets. The above notwithstanding, assets can be disposed of prior to maturity in 
 certain circumstances. Sales that may be consistent with a business model whose objective is to hold assets in order to collect contractual cash flows include sales that are infrequent or insignificant in value, sales of assets close to maturity, 
 sales triggered by an increase in credit risk and sales carried out to manage credit concentration risk.                                                                                                                                               |

| – | Business model whose objective is to sell financial assets. |

| – | Business model that combines the two objectives above (hold financial assets in order to collect contractual cash                                                                          
 flows and sell financial assets): this business model typically involves greater frequency and value of sales because such sales are integral to achieving the business model’s objective. |

Contractual cash flow characteristics of financial assets Financial assets should initially be classified in one of the following two categories:

| – | Those whose contractual terms give rise, on specified dates, to cash flows that are solely payments of principal and 
 interest on the principal amount outstanding.                                                                        |

| – | All other financial assets. |

For the purposes of this classification, the principal of a financial asset is its fair value at initial recognition, which could change over the life