Company: BBVXF
Filing Date: 2025-09-05
Form Type: F-4/A
Source: 0001193125-25-196513
Chunk: 709

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-05
Form: F-4/A
Chunk 709
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 the property is located or, where appropriate, by appraisal firms or services accredited in Spain, and in accordance with the appraisal rules applicable in that country insofar as these are compatible with generally accepted appraisal practices. The Group has developed internal methodologies to estimate credit loss allowances. These methodologies use the appraisal value as a starting point to determine the amount that can be recovered with the enforcement of real estate guarantees. This appraisal value is adjusted to account for the time required to enforce such guarantees, price trends and the Group’s ability and experience in realising the value of properties with similar prices and time lines, as well as the costs of enforcement, maintenance and sale. The calculation of credit losses on state-guaranteed loans granted as part of a government support scheme designed to address the impact of COVID-19,irrespective of the credit risk category or categories into which the transaction is classified throughout its life, is based on their expected credit loss less the positive impact of cash flows expected to be recovered with the state guarantee. Overall comparison between financial asset and real estate asset impairment allowances The Group has established backtesting methodologies to compare estimated losses against actual losses. Based on this backtesting exercise, the Group makes amendments to its internal methodologies when this regular backtesting exercise reveals significant differences between estimated losses and actual losses. The backtests carried out show that the credit loss allowances are adequate given the portfolio’s credit risk profile. 1.3.4.2 Investments in joint ventures and associates The Group recognises allowances for the impairment of investments in joint ventures and associates, always provided there is objective evidence that the carrying amount of an investment is not recoverable. Objective evidence that equity instruments have become impaired is considered to exist when, after initial recognition, one or more events occur whose direct or combined effect demonstrates that the carrying amount is not recoverable. A-586

The Group considers the following indicators, among others, to determine whether there is evidence of impairment.

| – | Significant financial difficulties. |

| – | Disappearance of an active market for the instrument in question due to financial difficulties. |

| – | Significant changes in profit or loss, compared to the data included in budgets, business plans or targets. |

| – | Significant changes in the market in the issuer’s equity instruments, its existing products, or its potential 
 products.                                                                                                     |

| – | Significant changes in the global economy or in the economy of the region in which the issuer operates. |

| – | Significant changes in the technological or legal environment in which the issuer operates. |

The value