Company: BBVXF
Filing Date: 2025-07-31
Form Type: 6-K
Source: 0000842180-25-000033
Chunk: 99

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-07-31
Form: 6-K
Chunk 99
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 of June 30, 2025. No significant impact on the BBVA Group's financial statements is expected.

#### 2.3

#### IFRS 9 “Financial Instruments”
Transition to IFRS 9 for accounting for micro hedges

On January 1, 2018, IFRS 9, which replaced IAS 39 with respect to the classification and measurement of financial assets and liabilities, credit impairment, and hedge accounting, came into force. However, the Group chose to continue applying IAS 39 for hedge accounting, as permitted by IFRS 9, pending the approval of a new accounting standard on macro hedges. On January 1, 2025, the Group decided to transition to the new IFRS 9 accounting framework for micro-hedge accounting.

Given the lack of a specific regulatory framework for macro hedges in IFRS 9, the Group continues to apply the current framework established under IAS 39 for macro hedge accounting. Thus, from January 1, 2025, the Group will apply simultaneously two standards with common characteristics (IAS 39 for macro hedges and IFRS 9 for micro hedges) until the IASB concludes the project to develop a specific framework for macro hedge accounting, known as the IFRS 9. Dynamic Risk Management (DRM) Project.

The adoption of the accounting policy for accounting for micro hedges in accordance with the requirements set out in IFRS 9 has not had any significant impact on the Group 's Consolidated Financial Statements.

“Derivatives – Hedge Accounting” and “Fair value changes of the hedged items in portfolio hedges of interest rate risk”

With the aim of improving the alignment between risk management and its presentation in the financial statements, the Group has decided to apply IFRS 9 for micro hedge accounting instead of IAS 39 as from January 1, 2025. Previously, until the transition date, the Group was applying IAS 39 for micro hedge accounting.

The Group uses hedging derivatives as a tool for managing financial risks, mainly interest rate risk and exchange rate risk.

To cover these risks, the Group uses, among others, the following hedging instruments:

– Interest rate derivatives to convert interest rate exposures into fixed or variable rates.

– Foreign exchange derivatives to convert foreign currency exposures to the entity’s currency and net investment exposures to the local currency.

In some hedging relationships, the Group additionally designates inflation risk as a contract