Company: BBVXF
Filing Date: 2025-02-27
Form Type: F-4/A
Source: 0001193125-25-037317
Chunk: 482

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-27
Form: F-4/A
Chunk 482
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 financial statements. A-300

4.4.1.2 Business risk 2023 has been affected by different macroeconomic and geopolitical events, including the following:

| – | The interest rate hikes implemented by the central banks, persistently high inflation rates, and the progressive 
 transfer of the impacts of these to economic activity.                                                           |

| – | Specific episodes of uncertainty of different kinds, among them: (i) the collapse of certain US regional banks,                                                                      
 (ii) the takeover of Credit Suisse by UBS due to the problems observed in the Swiss institution, and (iii) the start of a new conflict in the Middle East, between Israel and Hamas. |

Against this backdrop, in year-on-yearterms, Banco Sabadell has significantly increased its bottom line. This Group profit was mainly driven by the good performance of core results (net interest income + fees and commissions – recurrent costs), which improved due to both the increase in net interest income and the efforts made to contain costs. It is also worth highlighting the improvement in the Group’s credit quality, which has made it possible to reduce provisions for non-performingassets and place the total cost of risk below the levels recorded in 2022. All these aspects are clearly reflected in the Group’s improved profitability, shown by an improvement of its ROTE, which increased from 8.2% as at 31 December 2022 to 11.5% as at 31 December 2023. 4.4.1.3 Reputational risk In recent years, both customers and society as a whole have attached more importance to the service offered by banks. Vulnerable customers and their specific needs have gained visibility. The change of the Group’s business model, shifting to one in which less of the service is provided in person, increases the materiality of this risk, as these stakeholders’ perception of its performance is one of the factors that it considers. Banco Sabadell Group bases its business model on corporate values such as ethics, professionalism, rigour, transparency, quality and, in general, long-term business relationships that are beneficial to both the Group and its counterparties. The Group rigorously manages its reputational risk, identifying any potential or actual threat of this type in good time and ensuring that it is suitably dealt with as quickly and as early as possible, as the materialisation of such a risk could jeopardise the achievement of the vision that the Group has for its future and that it wishes to convey to the market, with its