Company: BBVXF
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001193125-25-198517
Chunk: 559

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-09
Form: 424B3
Chunk 559
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.10).                                                        |

| – | In emerging economies’ financial markets, sovereign risk premiums were slightly reduced over the year.                                                    
 Regarding exchange rates, the high official interest rates continued to buoy emerging market currencies and the Mexican peso performed particularly well. |

| – | The banking sector generally displayed adequate capital levels, with a CET1 ratio that, according to the authorities,                                                              
 would remain above the minimum regulatory requirements even in an adverse scenario. Furthermore, profitability increased, thanks to the positive evolution of net interest income. |

| – | The financial authorities continued to rate the risks associated with global financial instability as high. Attention                                                                                         
 was mainly focused on the commercial real estate sector, risks related to the non-banking financial sector and the situation facing companies, above all the most highly leveraged ones, in an environment of 
 higher financing costs.                                                                                                                                                                                       |

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 to mitigate the impacts of the conflict by providing public support for the affected sectors. On 23 March 2022, the European Commission approved a temporary framework for State aid measures intended to support the economy following Russia’s aggression against Ukraine. This framework was implemented in Spain by Royal Decree-Law6/2022. The Agreements of the Spanish Council of Ministers, of 10 May 2022 and of 27 December 2022, released the first two tranches of the guarantee line for a total of 5,500 million euros. On 12 December 2023, the Agreement of the Council of Ministers of 5 December 2023 was published in the Official State Gazette ( Boletín Oficial del Estadoor BoE), establishing the terms and conditions for the third tranche of the guarantee line amounting to 4.5 billion euros for financing granted to companies and self-employed persons. Among other changes, it was decided to increase the threshold for guaranteed loans from 2 million to 2.25 million euros and to extend the application deadline for the corresponding guarantee line to 1 June 2024. The amount of the above mentioned third tranche was reduced to 3,500 million euros through the Agreement of the Council of Ministers of 27 December 2023, amending the Agreement of the Council of Ministers of 5 December 2023. The European Commission will be notified of the aforesaid changes so