Company: BBVXF
Filing Date: 2025-10-30
Form Type: 6-K
Source: 0001628280-25-047351
Chunk: 26

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-10-30
Form: 6-K
Chunk 26
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 basis points for the US dollar, -9 basis points for the Mexican peso and -3 basis points for the Turkish lira 14 . With regard to the hedging of results, BBVA hedges between 40% and 50% of the aggregate net attributable profit it expects to generate in the next 12 months. For each currency, the final amount hedged depends, among other factors, on its expected future evolution, the costs and the relevance of the income related to the Group's results as a whole. Interest rate Interest rate risk management seeks to limit the impact that BBVA may suffer, both in terms of results (short-term) and economic value (long-term), from adverse movements in the interest rate curves in the various currencies in which the Group operates. BBVA carries out this work through an internal procedure, pursuant to the guidelines established by the European Banking Authority (EBA), with the aim of analyzing the potential impact that could derive from a range of scenarios on the Group's different balance sheets. Risk measurement is based on assumptions intended to realistically mimic the behavior of the balance sheet. The assumptions regarding the behavior of accounts with no explicit maturity and prepayment estimates are especially relevant. These assumptions are reviewed and adapted, at least once a year according to the evolution in observed behaviors. At the aggregate level, BBVA continues to maintain a limited risk profile in line with the target set in the changing interest rate cycle environment maintaining positive sensitivity to interest rate rises in net interest income. The first nine months of 2025 have been influenced by geopolitical events, such as increased US tariffs, as well as developments and expectations regarding inflation and central bank actions. The US and European yield curves diverged. While the sovereign curve fell in the United States due to the deceleration signs and greater prospects for cuts by the Fed, in Europe a rebound in the long trenches was observed due to the change of course in Germany's fiscal policy, while the short tranches fell. The peripheral curves are still supported. In Turkey, yield curves were more volatile as a result of the political situation; nevertheless, it is worth noting the positive performance of credit default swaps (CDS) and sovereign bonds denominated in hard currency since the events of March. Meanwhile, in Mexico, the sovereign curve fell, (due to the United States) and in South America there were generalized growth profitability in Argentina, mixed performance in Colombia and moderate falls in Peru. All in all, the Group's fixed-income portfolios have had a positive performance during the year, except for Argentina