Company: BBVXF
Filing Date: 2025-09-05
Form Type: F-4/A
Source: 0001193125-25-196513
Chunk: 334

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-05
Form: F-4/A
Chunk 334
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 off-balancesheet exposures, when identifying their possible impairment and, where applicable, when calculating the amounts necessary to cover these expected losses. 1.3.4.1.1 Accounting classification on the basis of credit risk attributable to insolvency The Group has established criteria that allow borrowers showing a significant increase in credit risk, vulnerabilities or objective evidence of impairment to be identified and classified on the basis of their credit risk. The following sections describe the classification principles and methodology used by the Group. Definition of classification categories Credit exposures and off-balancesheet exposures are both classified, on the basis of their credit risk, into the following stages:

| – | Stage 1: standard exposures, i.e. transactions whose risk profile has not changed since they were granted and for          
 which there are no doubts as to the fulfilment of repayment commitments in accordance with the contractually agreed terms. |

A-115

| – | Stage 2: standard exposures under special monitoring, i.e. transactions which, although they do not meet the criteria                                                                                                                                    
 to be classified individually as stage 3 or write-offs, show a Significant Increase in Credit Risk (SICR) since initial recognition. This category includes, among other transactions, those in which there are amounts more than 30 days past due, with 
 the exception of non-recourse factoring, for which a threshold of more than 60 days is applied (the amount of non-recourse factoring transactions with amounts between 30                                                                                
 and 60 days past due came to 12 million euros and 28 million euros as at the end of 2024 and 2023, respectively), as well as refinanced and restructured transactions not classified as stage 3 until they are classified into a lower risk              
 category once they meet the established requirements for modifying their classification.                                                                                                                                                                 |

| – | Stage 3: non-performing exposures are transactions for which there are                                                                                                                                                                                  
 reasonable doubts as to their repayment in full in accordance with the contractually agreed terms. This category comprises debt instruments, matured or otherwise, which do not meet the conditions for classification into the write-offs category but 
 for which there are reasonable doubts as to their repayment in full (principal and interest) by the borrower, as well as off-balance sheet exposures whose payment by the Group is likely but whose recovery is                                         
 doubtful:                                                                                                                                                                                                                                               |

| • |     | As a result of borrower arrears: all transactions, without exception, with any amount of principal, interest or