Company: BBVXF
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001193125-25-198517
Chunk: 690

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-09
Form: 424B3
Chunk 690
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 systems, which are                                                                                              
 in turn based on a quantitative model of historical statistical data, where the relevant predictive factors are identified. In regions where credit scoring takes place, credit scores are divided into two types: |

| ○ | Reactive credit scores: these are used to assess applications for consumer loans, mortgage loans and credit cards.                                                                                                                                      
 Once all of the data relating to the transaction has been entered, the system calculates a result based on the estimated borrowing power, financial profile and, if applicable, the profile of assets pledged as collateral. The resulting credit score 
 is integrated in risk management processes using the system of discretions.                                                                                                                                                                             |

| ○ | Behavioural credit scores: the system automatically classifies all customers using information regarding their                                                                                                  
 activity based on their financial situation (balances, activity, non-payments), their personal characteristics and the features of each of the products that they have acquired. These credit scores are mainly 
 used to authorise transactions, establish (authorised) overdraft limits, design advertising campaigns and adjust the initial stages of the debt recovery management process.                                    |

If no credit scoring system exists, individual assessments supplemented with policies are used instead.

| – | LGD (Loss Given Default): expected loss on transactions which are in default. This loss also takes into account                                                                                                                   
 outstanding debt, late payment interest and expenses relating to the recovery process. Additionally, for each cash flow (amounts outstanding and amounts recovered) an adjustment is applied to consider the time value of money. |

| – | Effective Interest Rate (EIR): discount rate that exactly equals the estimated cash flows receivable or payable                                                                     
 throughout the expected life of a financial asset or a financial liability to the gross carrying amount of the financial asset or to the amortised cost of the financial liability. |

A-578

| – | Multiple scenarios: in order to estimate expected losses, the Group applies different scenarios to identify the                                                                                                                                          
 effect of the non-linearity of losses. To this end, the provisions required are estimated in the different scenarios for which a probability of occurrence has been defined. Specifically, the Group has                                                 
 considered three macroeconomic scenarios: one baseline scenario, the most likely of all (61%), an alternative scenario 1, the most optimistic of the three, which envisages zero supply chain disruption and productivity gains (9%), and an alternative 
 scenario 2, the most adverse, which envisages a synchronised global recession (30%). In each of these scenarios, a 5-year time horizon has been