Company: BBVXF
Filing Date: 2025-02-21
Form Type: 20-F
Source: 0000842180-25-000010
Chunk: 147

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-21
Form: 20-F
Item: Item 5
Chunk 147
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 corporate loans and retail loans, partially offset by an increase in interest expense of 101.2%, mainly driven by higher overall funding costs due to interest rate increases, with liabilities repricing faster than assets. The positive income generated by the funds obtained from drawdowns of the ECB’s TLTRO III facilities was recorded under interest and other income, while the borrowing costs of the drawdowns of the TLTRO III facilities were recorded under interest expense. By region, the increase in net interest income was the result of increases in net interest income in the main countries where the BBVA Group operates (as described below). At constant exchange rates, net interest income increased by 28.6%. The following factors, set out by region, were the main contributors to the 20.7% increase in net interest income:
•Mexico: there was a 31.9% increase mainly as a result of the higher contribution from our wholesale and retail portfolios (in terms of volume and yield) and, to a lesser extent, the securities portfolio (in terms of yield), supported by the appreciation of the Mexican peso against the euro and (with respect to the yield) the higher interest rate environment, partially offset by higher funding costs as a result of the increase in interest rates, and the effect of the appreciation of the Mexican peso against the euro on interest expense.
•Spain: there was a 48.9% increase mainly as a result of the higher yield of the non-financial corporations loan portfolio, supported by the higher interest rate environment, partially offset by significantly higher funding costs.
•South America: there was a 6.2% increase mainly as a result of increases in the yield and volume of credit card loans and the commercial loan portfolios in the region, partially offset by significantly higher funding costs (particularly, in the wholesale portfolio in Colombia) as a result of increases in interest rates, and the depreciation of the currencies of the main countries where the BBVA Group operates within the region against the euro, which had a greater impact on interest income than on interest expense.
The increase in net interest income was partially offset by:
•Turkey: there was a 28.4% decrease mainly as a result of the depreciation of the Turkish lira against the euro and, to a lesser extent, lower swap funding costs, partially offset by the higher volume of Turkish lira-denominated loans (credit card loans and loans to enterprises) and the increase in volume of sovereign debt securities, as a result in part of the increase in the securities maintenance