Company: BBVXF
Filing Date: 2025-02-27
Form Type: F-4/A
Source: 0001193125-25-037317
Chunk: 601

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-27
Form: F-4/A
Chunk 601
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 a variety of uses in risk management. Most notably, they form part of the transaction approval process (system of discretions), risk monitoring and pricing policies.

| • |     | Early warnings tool, known as HAT (for companies): HAT gives a score that estimates the risk of a company defaulting in                                                                                
 the near term, determined based on a variety of information (balances, non-payments, information from CIRBE (Spain’s central credit register), external credit bureaux, etc.). HAT aims to capture the 
 short-term risk of a company. The scores that it gives are very sensitive to changes in a company’s status or behaviour and are therefore updated on a daily basis.                                    |

| • |     | Credit scores: in general, credit risks undertaken with individuals are rated using credit scoring systems, which are                                                                                              
 in turn based on a quantitative model of historical statistical data, where the relevant predictive factors are identified. In regions where credit scoring takes place, credit scores are divided into two types: |

| ○ | Reactive credit scores: these are used to assess applications for consumer loans, mortgage loans and credit cards.                                                                                                                                      
 Once all of the data relating to the transaction has been entered, the system calculates a result based on the estimated borrowing power, financial profile and, if applicable, the profile of assets pledged as collateral. The resulting credit score 
 is integrated in risk management processes using the system of discretions.                                                                                                                                                                             |

| ○ | Behavioural credit scores: the system automatically classifies all customers using information regarding their                                                                                                  
 activity based on their financial situation (balances, activity, non-payments), their personal characteristics and the features of each of the products that they have acquired. These credit scores are mainly 
 used to authorise transactions, establish (authorised) overdraft limits, design advertising campaigns and adjust the initial stages of the debt recovery management process.                                    |

If no credit scoring system exists, individual assessments supplemented with policies are used instead.

| – | LGD (Loss Given Default): 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): discount rate that exactly equals the estimated cash flows receivable or payable                                                                     
 throughout the expected life of a financial asset or a financial liability to the gross