Company: BBVXF
Filing Date: 2025-09-05
Form Type: 425
Source: 0001193125-25-197292
Chunk: 5

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-05
Form: 425
Chunk 5
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 EUR835 million of cost synergies, of which
EUR510 million are general and administrative OPEC savings EUR325 million are personnel cost savings. The cost synergies are equivalent to 13.5% of the combined cost base of BBVA Spain and Banco Sabadell, excluding TSB, and the
restructuring costs would amount to EUR1.45 billion pre-tax, of which nearly 96% will be booked in the year of the merger.

And moving to Page 13 on the expected timeline of these synergies. Although the amount of fully phased-in synergies increased,
as I mentioned in the previous page, we now expect those synergies to come in with a delay due to the restriction imposed by the Council of Ministers. Despite this restriction, though, our expectation is such that the fully phased in synergies would
be delayed by one year only versus the original scenario. In the original scenario, you are expecting the full synergies to kick in in the third year, 2028, much later than the legal merger, as we needed to prepare for the integration of systems
technically. In this current scenario, we are planning to do all the preparations before the legal merger takes place, allowing us to realize the full synergies in the year immediately after the merger. Therefore, as you see in the chart, in 2029.

Also, it’s important to highlight here that in the years before the merger, we believe that some of the synergies can still be realized with levers such as,
obviously, the review of contractual terms with suppliers due to enhanced scale, improvements in banking operations and productivity with near-term savings in operations of Sabadell outside Spain, and best practices implementation on selected
functional areas. And to be more specific, we anticipate the materialization of EUR175 million in cost synergies during the second year post-transaction, which is expected to coincide with the calendar year 2027.

Funding synergies will be incrementally added to this, leading to EUR235 million of synergies during the third year, 2028. And once again, immediately after the
merger, which is expected to take place at the end of 2028 or at the beginning of 2029, we expect to materialize the remaining annual synergies in the fourth year 2029, again, reaching EUR900 million of total
pre-tax annual synergies at steady state.

Moving to Page 14 and beginning the chapter on the highly attractive offer to
Banco Sabadell