Company: BBVXF
Filing Date: 2025-08-12
Form Type: DRS
Source: 0000950123-25-007520
Chunk: 802

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-08-12
Form: DRS
Chunk 802
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 BoE also began selling assets from its balance sheet in November.                 |

| – | 2022 was a very negative year for both fixed-income markets and equity markets across the globe. |

| – | Long-term government bond yields in the main developed countries rebounded sharply, influenced by aspects such as 
 inflation and the interest rate hikes introduced by central banks.                                                |

| – | Peripheral sovereign debt risk premiums also rebounded in 2022, although they remained at relatively contained 
 levels.                                                                                                        |

| – | The dollar saw widespread appreciation, acting as a safe-haven asset given the global economic landscape. In its 
 currency pair with the euro, it appreciated to levels not seen since 2002, falling below parity for a few weeks. |

A-606

As confidentially submitted to the Securities and Exchange Commission on August 11, 2025. This Amendment No. 4 has not been publicly filed with the Securities and Exchange Commission and all information herein remains strictly confidential.

| – | Emerging currencies generally found support, as the monetary tightening cycle began earlier in these economies. 
 Sovereign risk premiums inched upwards but remained far from record high levels.                                |

| – | Financial authorities believed that the risks to financial stability increased over the year due to the deterioration 
 of financial and economic conditions, meaning that the banking industry faces higher risks in the medium term.        |

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 similar to those proposed during the health emergency in order to mitigate the impacts of the conflict (ICO guarantee lines and direct aid for affected sectors). Banco Sabadell’s credit risk with both individuals and companies from these countries is limited, and the same is true of its counterparty credit risk with financial institutions from both countries. Specifically, the largest exposures relate to mortgage loans granted to customers of Russian, Ukrainian or Belarusian nationality residing outside Spain, although these amount to less than 300 million euros. The real estate assets securing the aforesaid exposures are located in Spain, with an average loan-to-valueof 39%. Furthermore, these are transactions that have been on the balance sheet for an average of six and a half years. ICO guarantee line in the context of war in Ukraine On 29 March 2022, the government approved the plan outlining its response to Russia’s invasion of Ukraine through Royal Decree-Law6