Company: BBVXF
Filing Date: 2025-08-12
Form Type: DRS
Source: 0000950123-25-007520
Chunk: 164

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-08-12
Form: DRS
Chunk 164
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| ii. | Improvements in the productivity of banking operations. Both entities will seek, first, to drive early                                                                                                                                                   
 productivity improvements through a comparative analysis process between different areas that, without compromising their autonomous management, seeks to identify gaps in operational efficiency and effectiveness by comparing key metrics, including  
 cost per customer or transaction, processes performed per employee in a transaction, level of automation and digitalization ratios. This is expected to facilitate the identification of operational best practices in each type of banking transaction. |

Based on the sharing of best practices, parallel automation initiatives are expected to be implemented in administrative or back-office tasks, such as document validation or regulatory reporting, generating savings for each entity. Likewise, the use of supplier capacity in centralized back offices is expected to be optimized as new technologies, particularly the cutting-edge application of artificial intelligence, enable greater process automation, achieving efficiency gains without the need to restructure operational areas.

| iii. | The implementation of best practices derived from being part of a larger global group. This includes the                                                                                                                                                
 voluntary adoption of advanced methodologies in areas such as risk management, resilience and cybersecurity, fraud prevention and anti-money laundering alert management, software development productivity, cloud computing, ESG, customer experience, 
 data governance, and the practical application of new technologies (particularly artificial intelligence, quantum computing, blockchain, and the tokenization of digital assets), through joint committees or cross-functional technical teams, without 
 compromising the autonomous management of each entity.                                                                                                                                                                                                  |

In addition, BBVA and Banco Sabadell are expected to be able to progressively align their organizational cultures, leadership styles and talent programs through shared training, development and succession planning initiatives, offering greater opportunities to their employees and reinforcing their commitment to the BBVA Group, within the framework of autonomous management and the maximization of the value of each entity. BBVA estimates that obtaining these operating cost synergies will not require incurring significant restructuring costs. With the main aim of expediting the realization of the synergies expected to be realized upon consummation of a merger with Banco Sabadell following the No-merger Period, BBVA has estimated, based on its experience in prior transactions, that it will be necessary to incur restructuring costs (which will affect only the results of operations of BBVA) of approximately €60 million in the aggregate before taxes, regardless of whether the No-merger Period lasts for three years or remains in effect after June 24, 2028 for an additional two-year period). Such restructuring costs would primarily include investments in