Company: BBVXF
Filing Date: 2025-07-31
Form Type: 6-K
Source: 0000842180-25-000030
Chunk: 59

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-07-31
Form: 6-K
Chunk 59
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 credit risk balance are gross, meaning they are not adjusted by associated accounting provisions.

18 IFRS 9 classifies financial instruments into three stages, which depend on the evolution of their credit risk from the moment of initial recognition. The stage 1 includes operations when they are initially recognized, stage 2 comprises operations for which a significant increase in credit risk has been identified since their initial recognition and, stage 3, impaired operations. Translation of this report originally issued in Spanish. In the event of a discrepancy, the Spanish -language version prevails.

| January - June 2025Report - p.66 |

Non-performing loans are calculated as the sum of “loans and advances at amortized cost” and the “contingent risk” in stage 3 18 and the following counterparties: • other financial entities • public sector • non-financial institutions • households. The credit risk balance is calculated as the sum of "loans and advances at amortized cost" and "contingent risk" in stage 1 + stage 2 + stage 3 of the previous counterparts. This indicator is shown, as others, at a business area level. Relevance of its use: this is one of the main indicators used in the banking sector to monitor the current situation and changes in credit risk quality, and specifically, the relationship between risks classified in the accounts as non-performing loans and the total balance of credit risk, with respect to customers and contingent liabilities.

| NON-PERFORMING LOANS (NPLS) RATIO |                                   |          |          |          |
|                                   |                                   | 30-06-25 | 31-12-24 | 30-06-24 |
| Numerator(Millions of euros)      | NPLs                              |   14,621 |   14,839 |   15,434 |
| Denominator(Millions of euros)    | Credit Risk                       |  503,733 |  488,302 |  469,687 |
| =                                 | Non-Performing Loans (NPLs) ratio |     2.9% |     3.0% |     3.3% |

NPL coverage ratio This ratio reflects the degree to which the impairment of non-performing loans has been covered in the accounts via allowances. It is calculated as follows:

| Provisions           |
| Non-performing loans |

Explanation of the formula: it is calculated as "Provisions" from stage 1