Company: BBVXF
Filing Date: 2025-09-05
Form Type: F-4/A
Source: 0001193125-25-196513
Chunk: 684

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-05
Form: F-4/A
Chunk 684
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 the capital amount outstanding.                                                                                                                                                                                        |

Portfolios of financial instruments classified for the purpose of their measurement Financial assets and financial liabilities are classified, for the purposes of their measurement, into the following portfolios, based on the aspects described above: Financial assets at amortised cost This category includes financial assets that meet the following two conditions:

| – | They are managed with a business model whose objective is to hold financial assets in order to collect contractual 
 cash flows, and                                                                                                    |

| – | Their contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest 
 on the principal amount outstanding.                                                                                  |

This category comprises investments associated with typical lending activities, such as amounts loaned to customers withdrawn in cash and not yet repaid, deposits placed with other institutions, regardless of the legal arrangements under which the funds were provided, debt securities which meet the two conditions indicated above, as well as debts incurred by purchasers of goods or users of services forming part of the Group’s business. A-568

Following their initial recognition, financial assets classified in this category are measured at amortised cost, which should be understood as the acquisition cost adjusted to account for repayments of principal and the portion recognised in the consolidated income statement, using the effective interest rate method, of the difference between the initial cost and the corresponding repayment value at maturity. In addition, the amortised cost is decreased by any reduction in value due to impairment recognised directly as a decrease in the value of the asset or through an allowance or compensatory item of the same value. The effective interest rate is the discount rate that exactly equals the value of a financial instrument to the estimated cash flows over the instrument’s expected life, on the basis of its contractual terms, such as early repayment options, but without taking into account expected credit losses. For fixed rate financial instruments, the effective interest rate coincides with the contractual interest rate set at the time of their acquisition, considering, where appropriate, the fees, transaction costs, premiums or discounts which, because of their nature, may be likened to an interest rate. In the case of floating-rate financial instruments, the effective interest rate is the same as the rate of return in respect of all applicable concepts until the first scheduled benchmark revision date. Financial assets at fair value through other comprehensive income This category includes financial assets that meet the following two conditions:

| – | They are managed with a business model whose objective is achieved by both collecting contractual cash flows and 
 selling financial assets, and                                                                                    |

| – | The contractual terms give rise