Company: BBVXF
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001193125-25-198517
Chunk: 334

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-09
Form: 424B3
Chunk 334
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2 “Risk management models”).

| – | Loss Given Default (LGD): expected loss on transactions which are in default. This loss also takes into account                                                                                                                    
 outstanding debt, late-payment interest and expenses relating to the recovery process. Additionally, for each cash flow (amounts outstanding and amounts recovered), an adjustment is applied to consider the time value of money. |

| – | Effective Interest Rate (EIR): the rate that exactly discounts estimated future cash payments or receipts through the                                            
 expected life of the financial asset or financial liability to the gross carrying amount of a financial asset or to the amortised cost of a financial liability. |

A-121

| – | Multiple scenarios: in order to estimate expected losses, the Group applies different scenarios to identify the                                                                                            
 effect of the non-linearity of losses. To that end, the provisions required are estimated in the different scenarios for which a probability of occurrence has been defined (see Note 4.4.2.5 “Calculation 
 of credit loss allowances”).                                                                                                                                                                               |

A-122

Summary of criteria for classification and allowances

The amount of credit impairment allowances is calculated based on whether or not there has been a significant increase in credit risk since the
transaction was originated, and on whether or not any default events have occurred:

The methodology used to estimate losses on refinanced and restructured transactions is generally similar to that
used for other financial assets at amortised cost, but it is considered that, in principle, the estimated loss on a transaction that has had to be restructured to enable payment obligations to be satisfied should be greater than the estimated loss
on a transaction with no history of non-payment, unless sufficient additional effective guarantees are provided to justify otherwise.

Guarantees

Effective guarantees are
collateral and personal guarantees proven by the Group to be a valid means of mitigating credit risk.

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Under no circumstances will guarantees whose effectiveness substantially depends on the credit quality of the debtor or, where applicable, of the economic group of which the debtor forms part, be accepted as effective guarantees. Based on the foregoing, the following types of guarantees can be considered to be effective guarantees:

| – | Real estate guarantees applied as first mortgage liens: |

| • |     | Completed buildings and building components: |

| ○ | Housing units. |

| ○ | Offices, commercial premises and multi-purpose industrial buildings. |

| ○ | Other buildings, such as non-multi-purpose industrial buildings and hotels. |

| • |     | Urban