Company: BBVXF
Filing Date: 2025-08-12
Form Type: DRS
Source: 0000950123-25-007520
Chunk: 747

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-08-12
Form: DRS
Chunk 747
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 any impairment allowances. To determine impairment losses, the Group monitors borrowers individually, at least those who are significant borrowers, and collectively, for groups of financial assets with similar credit risk characteristics that reflect borrowers’ ability to satisfy their outstanding payments. The Group has policies, methods and procedures in place to estimate the losses that it may incur as a result of its credit risks, due to both counterparty insolvency and country risk. These policies, methods and procedures are applied when granting, assessing and arranging debt instruments and off-balancesheet exposures, when identifying their possible impairment and, where applicable, when calculating the amounts necessary to cover these expected losses. A-571

As confidentially submitted to the Securities and Exchange Commission on August 11, 2025. This Amendment No. 4 has not been publicly filed with the Securities and Exchange Commission and all information herein remains strictly confidential. 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. |

| – | 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 significant increases 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 arrears of between                                                                               
 30 and 60 days represented 55 million euros at year-end 2022 and 32 million euros at year-end 2021), 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.