Company: BBVXF
Filing Date: 2025-02-21
Form Type: 20-F
Source: 0000842180-25-000010
Chunk: 188

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-21
Form: 20-F
Item: Item 5
Chunk 188
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(2)“Net margin before provisions” is calculated as “Gross income” less “Administration costs” and “Depreciation and amortization”.
In the year ended December 31, 2023, the Argentine peso, the Colombian peso and the Peruvian sol depreciated by 78.9% (considering the period-end exchange rates), 4.5% and 0.2%, respectively, against the euro in average terms, compared with the year ended December 31, 2022. The income statement of BBVA Argentina for the year ended December 31, 2023 was significantly impacted by the decline of the Argentine peso during the year, including, in particular, the extraordinary devaluation of the Argentine peso against the euro in December 2023, as a result of the economic measures adopted by the new government. Overall, changes in exchange rates resulted in a negative exchange rate effect on the consolidated income statement for the year ended December 31, 2023 and in the results of operations of the South America operating segment for such period expressed in euros. See “―Factors Affecting the Comparability of our Results of Operations and Financial Condition―Trends in Exchange Rates”.
As of and for the years ended December 31, 2023 and 2022, the Argentine and Venezuelan economies were considered to be hyperinflationary as defined by IAS 29 “Financial Reporting in Hyperinflationary Economies” (see “Presentation of Financial Information—Hyperinflationary Economies”).
Net interest income
Net interest income of this operating segment for the year ended December 31, 2023 amounted to €4,394 million, a 6.2% increase compared with the €4,138 million recorded for the year ended December 31, 2022, mainly as a result of increases in the yield and volume of credit card loans and the commercial loan portfolios in the region, partially offset by significantly higher funding costs (particularly, in the wholesale portfolio in Colombia) as a result of increases in interest rates, and the depreciation of the currencies of the main countries where the BBVA Group operates within the region against the euro, which had a greater impact on interest income than on interest expense. At constant exchange rates, there was a 0.5% increase in net interest income. The net interest margin over total average assets of this operating segment amounted to 6.71% for the year ended December 31, 2023, compared with