Company: BBVXF
Filing Date: 2025-09-05
Form Type: F-4/A
Source: 0001193125-25-196513
Chunk: 682

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-05
Form: F-4/A
Chunk 682
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 understood as the sum of consideration for the time value of money, for lending and structural costs, and for the credit risk associated with the principal amount outstanding during a particular period of time, plus a profit margin. If a financial asset contains contractual terms that could change the timing or amount of cash flows, the Group will estimate the cash flows that could arise before and after the change and determine whether these are solely payments of principal and interest (SPPI) on the principal amount outstanding. The most significant judgements used in this evaluation are indicated here below:

| – | Modified time value of money: in order to determine whether the interest rate of a transaction incorporates any                                                                                                                                        
 consideration other than that linked to the passage of time, transactions that present a difference between the tenor of the benchmark interest rate and the reset frequency of that interest rate are analysed, considering a tolerance threshold, in 
 order to determine whether the instrument’s contractual (undiscounted) cash flows could be significantly different from the contractual (undiscounted) benchmark cash flows of a financial instrument whose time value of money element was not        
 modified. At present, tolerance thresholds of 10% and 5%, respectively, are used for the differences in each tenor and for the analysis of cumulative cash flows over the life of the financial asset.                                                 |

| – | Contractual terms that change the timing or amount of cash flows: an analysis is carried out to determine whether any 
 contractual terms exist that could change the timing or amount of contractual cash flows from the financial asset:    |

| • |     | Clauses for conversion to equity shares: clauses that include a conversion-to-equity option and the loss of the right to claim contractual cash flows in the event the principal amount is reduced due to insufficient funds. Contracts that include this option will 
 automatically fail the SPPI test.                                                                                                                                                                                                                                     |

| • |     | Existence of the option to prepay or extend the financial instrument, or extend the contractual term, and possible                                                                                                                                      
 residual compensation: a financial asset will fulfil the SPPI test requirements if it includes a contractual option that permits the issuer (or debtor) to prepay a debt instrument or to put back a debt instrument before maturity and the prepayment 
 amount substantially represents unpaid amounts of principal and interest outstanding, which may include reasonable additional compensation for the early termination of the contract.                                                                   |

A-567

| • |     | Other clauses that could change the timing or amount of cash flows: clauses that could alter contractual cash flows as 
 a