Company: BBVXF
Filing Date: 2025-02-27
Form Type: F-4/A
Source: 0001193125-25-037317
Chunk: 469

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-27
Form: F-4/A
Chunk 469
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 monetary policy tightening, the resilience of the US economy and concerns regarding high levels of need for sovereign debt funding. In the last two months of the year, some unexpected falls in price data and a shift in central banks’ 
 communication policy (particularly that of the Fed) led to a turnaround in yields, which completely reversed the upward trend.                                                                                                            |

| – | The risk premiums on peripheral sovereign debt were at lower levels than those seen at the end of 2022. In the case 
 of Spain, the risk premium remained stable and at low levels.                                                       |

| – | The US dollar posted numerous swings in its exchange rate against the euro, finishing the year at somewhat lower 
 levels compared to the end of 2022 (EUR 1.00 = USD 1.10).                                                        |

| – | In emerging economies’ financial markets, sovereign risk premiums were slightly reduced over the year. Regarding                                
 exchange rates, the high official interest rates continued to buoy emerging market currencies and the Mexican peso performed particularly well. |

| – | The banking sector generally displayed adequate capital levels, with a CET1 ratio that, according to the authorities,                                                              
 would remain above the minimum regulatory requirements even in an adverse scenario. Furthermore, profitability increased, thanks to the positive evolution of net interest income. |

| – | The financial authorities continued to rate the risks associated with global financial instability as high. Attention                                                                                         
 was mainly focused on the commercial real estate sector, risks related to the non-banking financial sector and the situation facing companies, above all the most highly leveraged ones, in an environment of 
 higher financing costs.                                                                                                                                                                                       |

Political and regulatory environment Impacts stemming from the war in Ukraine The war between Russia and Ukraine, which broke out at the end of February 2022 and which is still ongoing today, prompted governments to adopt plans and measures to mitigate the impacts of the conflict by providing public support for the affected sectors. On 23 March 2022, the European Commission approved a temporary framework for State aid measures intended to support the economy following Russia’s aggression against Ukraine. This framework was implemented in Spain by Royal Decree-Law6/2022. The Agreements of the Spanish Council of Ministers, of 10 May 2022 and of 27 December 2022, released the first two tranches of the guarantee line for a total of 5,500 million euros. On 12 December 2023, the Agreement of the Council of Ministers of 5 December 2023