Annual Report • Feb 14, 2025
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Download Source FileBank Annual Report BBVA,S.A. 2024 Contents I. AUDIT REPORT II.FINANCIAL STATEMENTS Financial Statements Notes to the Financial Statements Appendices Glossary Legal disclaimer III.MANAGEMENT REPORT BBVA in brief Statement of Non-Financial Information Financial information Risk management Subsequent events BBVA Annual Corporate Governance Report Annual Report on the Remuneration of BBVA Directors Legal disclaimer Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU- IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails 1 Index FINANCIAL STATEMENTS Balance sheets .................................................................................................................................................................... 3 Income Statements ........................................................................................................................................................... 6 Statements of recognized income and expenses ........................................................................................................ 7 Statements of changes in equity ..................................................................................................................................... 8 Statements of cash flows ................................................................................................................................................. 10 NOTES TO THE ACCOMPANYING FINANCIAL STATEMENTS 1. Introduction, basis for presentation of the Financial Statements, Internal Control over Financial Information and other information ............................................................................................................................. 11 2. Accounting policies and valuation criteria applied .................................................................................................. 13 3. Shareholder remuneration system ............................................................................................................................ 30 4. Earnings per share ......................................................................................................................................................... 33 5. Risk management .......................................................................................................................................................... 33 6. Fair value of financial instruments .............................................................................................................................. 69 7. Cash, cash balances at central banks and other demand deposits .................................................................... 82 8. Financial assets and liabilities held for trading ......................................................................................................... 82 9. Non-trading financial assets mandatorily at fair value through profit or loss .................................................... 83 10. Financial assets and liabilities designated at fair value through profit or loss ................................................. 83 11. Financial assets at fair value through other comprehensive income ................................................................ 83 12. Financial assets at amortized cost ........................................................................................................................... 87 13. Derivatives - Hedging accounting and fair value changes of the hedged items in portfolio hedges of interest rate risk ............................................................................................................................................................. 89 14. Investments in joint ventures and associates ........................................................................................................ 92 15. Tangible assets ............................................................................................................................................................. 96 16. Intangible assets .......................................................................................................................................................... 98 17. Tax assets and liabilities ............................................................................................................................................. 98 18. Other assets and liabilities ......................................................................................................................................... 102 19. Non-current assets and disposal groups classified as held for sale and liabilities included in disposal groups classified as held for sale ................................................................................................................................ 103 20. Financial liabilities at amortized cost ...................................................................................................................... 104 21. Provisions ...................................................................................................................................................................... 108 22. Post-employment and other employee benefit commitments ......................................................................... 109 23. Common stock ............................................................................................................................................................. 114 24. Share premium ............................................................................................................................................................ 115 25. Retained earnings, Revaluation reserves and Other ............................................................................................ 116 26. Treasury shares ........................................................................................................................................................... 117 27. Accumulated other comprehensive income (loss) ............................................................................................... 118 28. Capital base and capital management ................................................................................................................... 118 29. Commitments and guarantees given ..................................................................................................................... 122 30. Other contingent assets and liabilities .................................................................................................................... 122 31. Purchase and sale commitments and future payment obligations ................................................................... 122 Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU- IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails 2 32. Transactions on behalf of third parties ................................................................................................................... 123 33. Net interest income ..................................................................................................................................................... 123 34. Dividend income .......................................................................................................................................................... 124 35. Fee and commission income ..................................................................................................................................... 124 36. Fee and commission expense ................................................................................................................................... 124 37. Gains (losses) on financial assets and liabilities, hedge accounting and exchange differences, net .......... 125 38. Other operating income and expense ..................................................................................................................... 126 39. Administration cost ..................................................................................................................................................... 126 40. Depreciation ................................................................................................................................................................ 128 41. Provisions or (reversal) of provisions ...................................................................................................................... 129 42. Impairment or (reversal) of impairment on financial assets not measured at fair value through profit or loss or net gains by modification ........................................................................................................................... 129 43. Impairment or (reversal) of impairment on investments in subsidiaries, joint ventures or associates. .... 129 44. Impairment or reversal of impairment on non-financial assets ......................................................................... 129 45. Gains (losses) on derecognition of non-financial assets and investments, net .............................................. 129 46. Gain (losses) from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations ............................................................................................................................................... 130 47. Statements of cash flows .......................................................................................................................................... 130 48. Accountant fees and services ................................................................................................................................... 130 49. Related-party transactions ........................................................................................................................................ 131 50. Remuneration and other benefits for the Board of Directors and members of the Bank's Senior Management ................................................................................................................................................................... 133 51. Other information ......................................................................................................................................................... 141 52. Subsequent events ...................................................................................................................................................... 143 53. Explanation added for translation into English ...................................................................................................... 143 APPENDICES APPENDIX I. BBVA Group Consolidated Financial Statements ............................................................................... 145 APPENDIX II. Additional information on subsidiaries and structured entities composing the BBVA Group . 155 APPENDIX III. Additional information on investments and jointly controlled companies accounted for under the equity method of consolidation in the BBVA Group as of December 31, 2024 ................................... 160 APPENDIX IV. Changes and notification of investments and divestments in the BBVA Group in 2024 .......... 161 APPENDIX V. Fully consolidated subsidiaries with more than 10% owned by non-Group shareholders as of December 31, 2024 ....................................................................................................................................................... 163 APPENDIX VI. BBVA Group’s structured entities. Securitization funds as of December, 31 2024 .................. 165 APPENDIX VII. Details of the outstanding subordinated debt and preferred securities issued by the Bank or entities in the Group consolidated as of December 31, 2024 and 2023 ............................................................ 165 APPENDIX VIII. Balance sheets held in foreign currency as of December 31, 2024 and 2023........................... 166 APPENDIX IX. Income statement corresponding to the first and second half of 2024 and 2023 .................... 167 APPENDIX X. Risks related to the developer and real-estate sector in Spain........................................................ 168 APPENDIX XI. Refinanced and restructured operations and other requirements under Bank of Spain Circular 6/2012 .................................................................................................................................................................. 171 APPENDIX XII. Agency Network ...................................................................................................................................... 176 GLOSSARY LEGAL DISCLAIMER Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Financial Statements 3 BANCO BILBAO VIZCAYA ARGENTARIA, S.A. Balance sheets as of December 31, 2024 and 2023 ASSETS (Millions of Euros) Notes 2024 2023 ⁽¹⁾ CASH, CASH BALANCES AT CENTRAL BANKS AND OTHER DEMAND DEPOSITS 7 20,755 49,213 FINANCIAL ASSETS HELD FOR TRADING 8 89,167 116,828 Derivatives 36,405 32,937 Equity instruments 6,457 3,339 Debt securities 11,806 11,018 Loans and advances to central banks 556 2,808 Loans and advances to credit institutions 19,265 52,441 Loans and advances to customers 14,679 14,285 NON-TRADING FINANCIAL ASSETS MANDATORILY AT FAIR VALUE THROUGH PROFIT OR LOSS 9 895 730 Equity instruments 626 507 Debt securities 269 223 Loans and advances to customers — — FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS 10 — — FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME 11 14,842 19,426 Equity instruments 1,193 1,019 Debt securities 13,649 18,407 FINANCIAL ASSETS AT AMORTIZED COST 12 295,471 261,765 Debt securities 45,846 34,905 Loans and advances to central banks 33 — Loans and advances to credit institutions 18,774 13,074 Loans and advances to customers 230,818 213,786 DERIVATIVES - HEDGE ACCOUNTING 13 784 780 FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK 13 (65) (97) INVESTMENTS IN SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES 14 25,252 23,019 Subsidiaries 24,683 22,637 Joint ventures 24 24 Associates 545 358 TANGIBLE ASSETS 15 3,516 3,373 Properties, plant and equipment 3,437 3,285 For own use 3,437 3,285 Other assets leased out under an operating lease — — Investment properties 79 87 INTANGIBLE ASSETS 16 983 894 Goodwill — — Other intangible assets 983 894 TAX ASSETS 17 12,300 12,416 Current tax assets 2,890 2,145 Deferred tax assets 9,410 10,271 OTHER ASSETS 18 4,064 2,023 Insurance contracts linked to pensions 22 1,260 1,321 Inventories 1,302 132 Other 1,501 569 NON-CURRENT ASSETS AND DISPOSAL GROUPS CLASSIFIED AS HELD FOR SALE 19 331 512 TOTAL ASSETS 468,295 490,883 (1) Presented for comparison purposes only (see Note 1.3). The Notes and Appendices are an integral part of the balance sheets as of December 31, 2024. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Financial Statements 4 BANCO BILBAO VIZCAYA ARGENTARIA, S.A. Balance sheets as of December 31, 2024 and 2023 (continued) LIABILITIES AND EQUITY (Millions of Euros) Notes 2024 2023 ⁽¹⁾ FINANCIAL LIABILITIES HELD FOR TRADING 8 70,943 108,349 Derivatives 30,287 28,615 Short positions 9,635 11,849 Deposits from central banks 360 4,698 Deposits from credit institutions 15,026 42,710 Customer deposits 15,636 20,476 Debt certificates — — Other financial liabilities — — FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS 10 2,955 2,361 Deposits from central banks — — Deposits from credit institutions — — Customer deposits 2,955 2,361 Debt certificates — — Other financial liabilities — — Subordinated liabilities — — FINANCIAL LIABILITIES AT AMORTIZED COST 20 349,381 339,476 Deposits from central banks 6,985 10,962 Deposits from credit institutions 24,686 33,563 Customer deposits 260,366 234,754 Debt certificates 47,086 50,132 Other financial liabilities 10,258 10,065 Memorandum item: Subordinated liabilities 13,355 11,741 DERIVATIVES - HEDGE ACCOUNTING 13 1,536 2,075 FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK 13 — — PROVISIONS 21 2,823 3,131 Pensions and other post-employment defined benefit obligations 1,673 1,871 Other long term employee benefits 351 404 Provisions for taxes and other legal contingencies 419 396 Commitments and guarantees given 178 240 Other provisions 201 221 TAX LIABILITIES 17 1,137 992 Current tax liabilities 225 197 Deferred tax liabilities 912 795 OTHER LIABILITIES 18 2,454 2,808 LIABILITIES INCLUDED IN DISPOSAL GROUPS CLASSIFIED AS HELD FOR SALE — — TOTAL LIABILITIES 431,229 459,192 (1) Presented for comparison purposes only (see Note 1.3). The Notes and Appendices are an integral part of the balance sheet as of December 31, 2024 . Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Financial Statements 5 BANCO BILBAO VIZCAYA ARGENTARIA, S.A. Balance sheets as of December 31, 2024 and 2023 (continued) LIABILITIES AND EQUITY (Continued) (Millions of Euros) Notes 2024 2023 ⁽¹⁾ STOCKHOLDERS’ FUNDS 38,220 33,134 Capital 23 2,824 2,861 Paid up capital 2,824 2,861 Unpaid capital which has been called up — — Share premium 24 19,184 19,769 Equity instruments issued other than capital — — Equity component of compound financial instruments — — Other equity instruments issued — — Other equity 40 40 Retained earnings 25 8,663 7,416 Revaluation reserves 25 — — Other reserves 25 (1,047) (804) Less: treasury shares 26 (7) (3) Profit or loss attributable to owners of the parent 10,235 4,807 Less: interim dividends 3 (1,671) (952) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) 27 (1,154) (1,443) Items that will not be reclassified to profit or loss (1,140) (1,212) Actuarial gains (losses) on defined benefit pension plans (48) (54) Non-current assets and disposal groups classified as held for sale — — Fair value changes of equity instruments measured at fair value through other comprehensive income 11 (1,075) (1,213) Hedge ineffectiveness of fair value hedges for equity instruments measured at fair value through other comprehensive income — — Fair value changes of equity instruments measured at fair value through other comprehensive income (hedged item) — — Fair value changes of equity instruments measured at fair value through other comprehensive income (hedging instrument) — — Fair value changes of financial liabilities at fair value through profit or loss attributable to changes in their credit risk (17) 55 Items that may be reclassified to profit or loss (14) (230) Hedge of net investments in foreign operations (effective portion) — — Foreign currency translation — — Hedging derivatives. Cash flow hedges (effective portion) 251 45 Fair value changes of debt instruments measured at fair value through other comprehensive income 11 (264) (275) Hedging instruments (non-designated items) — — Non-current assets and disposal groups classified as held for sale — — TOTAL EQUITY 37,066 31,691 TOTAL EQUITY AND TOTAL LIABILITIES 468,295 490,883 MEMORANDUM ITEM - OFF BALANCE SHEET EXPOSURES (Millions of Euros) Notes 2024 2023 ⁽¹⁾ Loan commitments given 29 108,206 98,667 Financial guarantees given 29 21,811 18,784 Other commitments given 29 37,641 30,013 (1) Presented for comparison purposes only (see Note 1.3). The Notes and Appendices are an integral part of the balance sheet as of December 31, 2024. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Financial Statements 6 BANCO BILBAO VIZCAYA ARGENTARIA, S.A. Income statements for the years ended December 31, 2024 and 2023. INCOME STATEMENTS (Millions of Euros) Notes 2024 2023 ⁽¹⁾ Interest income 33 17,586 14,569 Financial assets at fair value through other comprehensive income 383 399 Financial assets at amortized cost 12,200 11,653 Other interest income 5,002 2,517 Interest expense 33 (11,190) (9,005) NET INTEREST INCOME 6,396 5,564 Dividend income 34 5,417 3,483 Fee and commission income 35 2,936 2,689 Fee and commission expense 36 (695) (613) Gains (losses) on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 37 76 24 Financial assets at amortized cost 28 — Other financial assets and liabilities 48 24 Gains or (losses) on financial assets and liabilities held for trading, net 37 684 (12) Reclassification of financial assets from fair value through other comprehensive income — — Reclassification of financial assets from amortized cost — — Other profit or loss 684 (12) Gains (losses) on non-trading financial assets mandatorily at fair value through profit or loss, net 37 77 200 Reclassification of financial assets from fair value through other comprehensive income — — Reclassification of financial assets from amortized cost — — Other profit or loss 77 200 Gains (losses) on financial assets and liabilities designated at fair value through profit or loss, net 37 174 16 Gains (losses) from hedge accounting, net 37 2 (6) Exchange differences, net 37 258 23 Other operating income 38 563 455 Other operating expense 38 (516) (804) GROSS INCOME 15,373 11,020 Administrative expense 39 (4,540) (4,157) Personnel expense (2,613) (2,425) Other administrative expense (1,927) (1,733) Depreciation and amortization 40 (641) (651) Provisions or reversal of provisions 41 (132) (116) Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification 42 (741) (677) Financial assets measured at amortized cost (744) (682) Financial assets at fair value through other comprehensive income 3 6 NET OPERATING INCOME 9,319 5,419 Impairment or reversal of impairment of investments in subsidiaries, joint ventures and associates 43 2,246 118 Impairment or reversal of impairment on non-financial assets 44 (11) 5 Tangible assets (5) 17 Intangible assets (7) (12) Other assets — — Gains (losses) on derecognition of non - financial assets and subsidiaries, net 45 50 3 Negative goodwill recognized in profit or loss — — Gains (losses) from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 46 (14) 2 PROFIT (LOSS) BEFORE TAX FROM CONTINUING OPERATIONS 11,590 5,547 Tax expense or income related to profit or loss from continuing operations 17 (1,355) (740) PROFIT (LOSS) AFTER TAX FROM CONTINUING OPERATIONS 10,235 4,807 Profit (loss) after tax from discontinued operations — — PROFIT (LOSS) FOR THE YEAR 10,235 4,807 (1) Presented for comparison purposes only (see Note 1.3). The Notes and Appendices are an integral part of the income statement for the year ended December 31, 2024. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Financial Statements 7 BANCO BILBAO VIZCAYA ARGENTARIA, S.A. Statements of recognized income and expense for the years ended December 31, 2024 and 2023 . STATEMENTS OF RECOGNIZED INCOME AND EXPENSE (Millions of Euros) 2024 2023 ⁽¹⁾ PROFIT RECOGNIZED IN INCOME STATEMENT 10,235 4,807 OTHER RECOGNIZED INCOME (EXPENSE) 249 730 ITEMS NOT SUBJECT TO RECLASSIFICATION TO INCOME STATEMENT 33 3 Actuarial gains (losses) from defined benefit pension plans (25) (24) Non-current assets and disposal groups classified as held for sale — — Fair value changes of equity instruments measured at fair value through other comprehensive income 146 43 Gains (losses) from hedge accounting of equity instruments at fair value through other comprehensive income, net — — Fair value changes of financial liabilities at fair value through profit or loss attributable to changes in their credit risk (102) (24) Other valuation adjustments — — Income tax related to items not subject to reclassification to income statement 13 9 ITEMS SUBJECT TO RECLASSIFICATION TO INCOME STATEMENT 217 727 Hedge of net investments in foreign operations [effective portion] — — Foreign currency translation — — Translation gains (losses) taken to equity — — Transferred to profit or loss — — Other reclassifications — — Cash flow hedges [effective portion] 294 767 Valuation gains (losses) taken to equity 294 767 Transferred to profit or loss — — Transferred to initial carrying amount of hedged items — — Other reclassifications — — Hedging instruments [non-designated elements] — — Valuation gains (losses) taken to equity — — Transferred to profit or loss — — Other reclassifications — — Debt securities at fair value through other comprehensive income 16 271 Valuation gains (losses) taken to equity 63 302 Transferred to profit or loss (47) (31) Other reclassifications — — Non-current assets and disposal groups held for sale — — Income tax relating to items subject to reclassification to income statements (93) (311) TOTAL RECOGNIZED INCOME/EXPENSE 10,484 5,537 (1) Presented for comparison purposes only (see Note 1.3). The Notes and Appendices are an integral part of the statement of recognized income and expense for the year ended December 31, 2024. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Financial Statements 8 BANCO BILBAO VIZCAYA ARGENTARIA, S.A. Statements of changes in equity for the years ended December 31, 2024 and 2023. STATEMENT OF CHANGES IN EQUITY (Millions of Euros) 2024 Capital (Note 23) Share Premium (Note 24) Equity instruments issued other than capital Other Equity Retained earnings (Note 25) Revaluation reserves (Note 25) Other reserves (Note 25) (-) Treasury shares (Note 26) Profit or loss attributable to owners of the parent Interim dividends (Note 3) Accumulate d other comprehen sive income (Note 27) Total Balances as of January 1, 2024 2,861 19,769 — 40 7,416 — (804) (3) 4,807 (952) (1,443) 31,691 Total income/expense recognized — — — — — — — — 10,235 — 249 10,484 Other changes in equity (37) (585) — (1) 1,247 — (243) (4) (4,807) (719) 39 (5,109) Issuances of common shares — — — — — — — — — — — — Issuances of preferred shares — — — — — — — — — — — — Issuance of other equity instruments — — — — — — — — — — — — Period or maturity of other issued equity instruments — — — — — — — — — — — — Conversion of debt on equity — — — — — — — — — — — — Common Stock reduction (37) (585) — — 29 — (189) 781 — — — — Dividend distribution — — — — (2,249) — — — — (1,671) — (3,921) Purchase of treasury shares — — — — — — — (1,309) — — — (1,309) Sale or cancellation of treasury shares — — — — — — (6) 524 — — — 519 Reclassification of financial liabilities to other equity instruments — — — — — — — — — — — — Reclassification of other equity instruments to financial liabilities — — — — — — — — — — — — Transfers between total equity entries — — — 9 3,855 — (48) — (4,807) 952 39 — Increase/Reduction of equity due to business combinations — — — — — — — — — — — — Share based payments — — — (26) — — — — — — — (26) Other increases or (-) decreases in equity — — — 16 (388) — — — — — — (372) Balances as of December 31, 2024 2,824 19,184 — 40 8,663 — (1,047) (7) 10,235 (1,671) (1,154) 37,066 The Notes and Appendices are an integral part of the statement of changes in equity for the year ended December 31, 2024. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Financial Statements 9 BANCO BILBAO VIZCAYA ARGENTARIA, S.A. Statements of changes in equity for the years ended December 31, 2024 and 2023 (continued) STATEMENT OF CHANGES IN EQUITY (Millions of Euros) 2023 ⁽¹⁾ Capital (Note 23) Share Premium (Note 24) Equity instruments issued other than capital Other Equity Retained earnings (Note 25) Revaluation reserves (Note 25) Other reserves (Note 25) (-) Treasury shares (Note 26) Profit or loss attributable to owners of the parent Interim dividends (Note 3) Accumulate d other comprehen sive income (Note 27) Total Balances as of January 1, 2023 2,955 20,856 — 49 5,453 — (474) (3) 4,816 (724) (2,172) 30,756 Total income/expense recognized — — — — — — — — 4,807 — 730 5,537 Other changes in equity (94) (1,087) — (9) 1,963 — (330) — (4,816) (228) — (4,602) Issuances of common shares — — — — — — — — — — — — Issuances of preferred shares — — — — — — — — — — — — Issuance of other equity instruments — — — — — — — — — — — — Settlement or maturity of other equity instruments issued — — — — — — — — — — — — Conversion of debt on equity — — — — — — — — — — — — Common Stock reduction (94) (1,087) — — 75 — (316) 1,422 — — — — Dividend distribution — — — — (1,860) — — — — (952) — (2,812) Purchase of treasury shares — — — — — — — (2,000) — — — (2,000) Sale or cancellation of treasury shares — — — — — — (12) 578 — — — 566 Reclassification of other equity instruments to financial liabilities — — — — — — — — — — — — Reclassification of financial liabilities to other equity instruments — — — — — — — — — — — — Transfers within total equity — — — 2 4,092 — (2) — (4,816) 724 — — Increase/Reduction of equity due to business combinations — — — — — — — — — — — — Share based payments — — — (30) — — — — — — — (30) Other increases or (-) decreases in equity — — — 19 (345) — — — — — — (325) Balances as of December 31, 2023 2,861 19,769 — 40 7,416 — (804) (3) 4,807 (952) (1,443) 31,691 (1) Presented for comparison purposes only (see Note 1.3). The Notes and Appendices are an integral part of the statement of changes in equity for the year ended December 31, 2024. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Financial Statements 10 BANCO BILBAO VIZCAYA ARGENTARIA, S.A. Statements of cash flows for the years ended December 31, 2024 and 2023 . CASH FLOWS STATEMENTS (Millions of Euros) Notes 2024 2023 ⁽¹⁾ A) CASH FLOWS FROM OPERATING ACTIVITIES (1+2+3+4+5) 46 (23,846) (1,809) 1.Profit (loss) for the year 10,235 4,807 2.Adjustments to obtain the cash flow from operating activities: (1,075) 1,766 Depreciation and amortization 641 651 Other adjustments (1,717) 1,115 3.Net increase/decrease in operating assets (2,045) (35,004) Financial assets held for trading 27,661 (25,437) Non-trading financial assets mandatorily at fair value through profit or loss (166) (184) Other financial assets designated at fair value through profit or loss — — Financial assets at fair value through other comprehensive income 4,610 5,428 Financial assets at amortized cost (33,796) (14,875) Other operating assets (355) 65 4.Net increase/decrease in operating liabilities (29,468) 27,697 Financial liabilities held for trading (37,406) 27,495 Other financial liabilities designated at fair value through profit or loss 594 501 Financial liabilities at amortized cost 7,882 506 Other operating liabilities (539) (805) 5.Collection/payments for income tax (1,492) (1,076) B) CASH FLOWS FROM INVESTING ACTIVITIES (1+2) 46 (448) (140) 1.Investment (1,367) (906) Tangible assets (133) (77) Intangible assets (410) (382) Investments in subsidiaries, joint ventures and associates (824) (447) Other business units — — Non-current assets and disposal groups classified as held for sale and associated liabilities — — Other settlements related to investing activities — — 2.Divestments 919 765 Tangible assets 2 2 Intangible assets — — Investments in subsidiaries, joint ventures and associates 656 557 Other business units — — Non-current assets classified as held for sale and associated liabilities 261 207 Other collections related to investing activities — — C) CASH FLOWS FROM FINANCING ACTIVITIES (1 + 2) 46 (3,522) (1,986) 1. Payments (7,368) (6,307) Dividends (shareholders remuneration) (3,921) (2,812) Subordinated liabilities (2,138) (1,495) Treasury share amortization (37) (94) Treasury share acquisition (1,273) (1,906) Other items relating to financing activities — — 2. Collections 3,846 4,321 Subordinated liabilities 3,000 3,679 Common stock increase — — Treasury share disposal 482 536 Other items relating to financing activities 364 106 D) EFFECT OF EXCHANGE RATE CHANGES (643) 175 E) NET INCREASE/DECREASE IN CASH OR CASH EQUIVALENTS (A+B+C+D) (28,459) (3,760) F) CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR 49,213 52,973 G) CASH AND CASH EQUIVALENTS AT END OF THE YEAR (E+F) 46 20,755 49,213 COMPONENTS OF CASH AND EQUIVALENTS AT END OF THE YEAR (Millions of Euros) Notes 2024 2023 ⁽¹⁾ Cash 7 1,027 990 Balance of cash equivalent in central banks 7 17,603 45,653 Other financial assets 7 2,124 2,570 Less: Bank overdraft refundable on demand — — TOTAL CASH AND CASH EQUIVALENTS AT END OF THE YEAR 20,755 49,213 (1) Presented for comparison purposes only (see Note 1.3). The Notes and Appendices are an integral part of the statement of cash flows for the year ended December 31, 2024. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 11 Notes to the accompanying Financial Statements for the year ended December 31, 2024 . 1. Introduction, basis for the presentation of the Financial Statements, Internal Control over Financial Reporting and other information 1.1Introduction Banco Bilbao Vizcaya Argentaria, S.A. (hereinafter “the Bank”, “BBVA" or “BBVA, S.A.”), registered with the Company Register of Vizcaya, is a private-law entity subject to the laws and regulations governing banking entities operating in Spain. It carries out its activity through branches and agencies across the country and abroad. The Bylaws and other public information are available for inspection at the Bank’s registered address (Plaza San Nicolás, 4 Bilbao) as noted on its web site (www.bbva.com). (www.bbva.com). The Bank's purpose is to carry out all kinds of activities, operations, acts, contracts and services within the banking business or directly or indirectly related to it, which are permitted or not prohibited by the provisions in force and supplementary activities. Its corporate purpose also includes the acquisition, possession, use and disposal of securities, public offering of acquisition and sale of securities, as well as all types of holdings in any entity or company. In addition to the activities it carries out directly, the Bank heads a group of subsidiaries, joint ventures and associates which perform a wide range of activities and which together with the Bank constitute the Banco Bilbao Vizcaya Argentaria Group (hereinafter the “Group” or the “BBVA Group”). In addition to its own separate financial statements, the Bank is required to prepare Consolidated Financial Statements comprising all consolidated subsidiaries of the Group. The Bank’s Financial Statements for the year ended December 31, 2023 were approved by the shareholders at the Annual General Shareholders' Meeting (“AGM”) held on March 15, 2024. The Bank’s Financial Statements for the year ended December 31, 2024 are pending approval by their respective AGMs. However, the Board of Directors of the Bank believes that said financial statements will be approved without changes. 1.2Basis for the presentation of the Financial Statements The Bank's Financial Statements for 2024 are presented in compliance with Bank of Spain Circular 4/2017, dated November 27, and as amended thereafter (in the following, “Circular “4/2017), and with any other legislation governing financial reporting which is applicable and with the format and mark-up requirements established in the EU Delegated Regulation 2019/815 of the European Commission. The aforementioned Circular 4/2017 constitutes the development and adaptation to the Spanish credit institutions sector of the International Financial Reporting Standards adopted by the European Union (IFRS-EU) in accordance with the provisions of Regulation 1606/2002 of the Parliament and Council regarding the application of these rules. The Bank's Financial Statements for the year ended December 31, 2024 were prepared by the Bank’s directors (at the Board of Directors meeting held on February 11, 2025) by applying the accounting policies and valuation criteria described in Note 2, so that they present fairly the Bank's equity and financial position as of December 31, 2024, together with the results of its operations and cash flows generated during the year ended on that date. All applicable accounting standards and valuation criteria with a significant effect in the Financial Statements were applied in their preparation. The amounts reflected in the accompanying Financial Statements are presented in millions of euros, unless it is more appropriate to use smaller units. Some items that appear without a balance in these Financial Statements are due to how the units are expressed. Also, in presenting amounts in millions of euros, the accounting balances have been rounded up or down. It is therefore possible that the totals appearing in some tables are not the exact arithmetical sum of their component figures. The percentage changes in amounts have been calculated using figures expressed in thousands of euros. 1.3Comparative information The comparative information included in the accompanying financial statements for the year ended December 31, 2023 which was prepared in accordance with the standards in effect during those years, is presented only for purposes of comparison with the information relating to the 2024 year. 1.4Seasonal nature of income and expense The nature of the most significant activities carried out by the Bank is mainly related to typical activities carried out by financial institutions, and are not significantly affected by seasonal factors within the same year. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 12 1.5Responsibility for the information and for the estimates made The information contained in the Bank's Financial Statements is the responsibility of the Bank’s Directors. Estimates were required to be made at times when preparing these Financial Statements in order to calculate the recorded or disclosed amount of some assets, liabilities, income, expense and commitments. These estimates relate mainly to the following: – Loss allowances on certain financial assets (see Notes 5, 11, 12 and 14). – The assumptions used in to quantify certain provisions (see Note 21), and in the actuarial calculation of post-employment benefit liabilities and commitments (see Note 22). – The useful life and impairment losses of tangible and intangible assets and impairment losses of non-current assets held for sale (see Notes, 15, 16 and 19). – The fair value of certain unlisted financial assets and liabilities in organized markets (see Notes 5, 6, 8, 9, 10, 11 and 13). – The recoverability of deferred tax assets and the forecast of corporate tax expense (see Note 17). In general, BBVA is working to consider and include in the models used for the relevant estimations how climate risk and other climate-related matters can affect the Financial Statements, cash flows and financial performance of the entity. These estimates and judgments are also being considered when preparing the financial statements of BBVA, and to the extent that they were relevant, they have been disclosures in the corresponding Notes to the Financial Statements. The prevailing geopolitical and economic uncertainties (see Note 5.1) entail a greater complexity in developing reliable estimations and applying judgment. Estimates have been made on the basis of the best available information on the matters analyzed as of December 31, 2024. However, it is possible that events may take place subsequent to such date, which could make it necessary to amend these estimations (upward or downward), which would be carried out prospectively, recognizing the effects of the change in estimation in the consolidated financial statements. During 2024 there have been no significant changes in the estimates made as of December 31, 2023 , other than those indicated in these Financial Statements. 1.6Control of the BBVA ’s Financial Reporting The description of BBVA Internal Control over Financial Reporting model is described in the management report accompanying the consolidated Financial Statements for 2024. 1.7Deposit guarantee fund and Resolution fund The Bank is part of the Deposit Guarantee Fund (“Fondo de Garantía de Depósitos”). The expense incurred by the contributions made to this Agency in 2024 and 2023 amounted to €12 and €262 million, respectively. These amounts are registered under the heading "Other operating expenses" of the accompanying income statements (see Note 38). On the other hand, in 2024 no contributions have been made to the single European resolution fund after the completion of the construction phase of the same. The contribution made to the single European resolution fund in 2023 amounted to €187 million euros (see Note 38). 1.8Consolidated Financial Statements The Consolidated Financial Statements of the BBVA Group for the year ended December 31, 2024 have been prepared by the Group's Directors (at the Board of Directors meeting held on February 11, 2025) in compliance with IFRS-IASB (International Financial Reporting Standards as issued by the International Accounting Standards Board), as well as in accordance with the International Financial Reporting Standards adopted by the European Union (in the following “EU-IFRS”) and applicable at the close of 2021, taking into account Bank of Spain Circular 4/2017, and with any other legislation governing financial reporting which are applicable and with the format and markup requirements established in the EU Delegated Regulation 2019/815 of the European Commission. The management of the Group’s operations is carried out on a consolidated basis, independently of the individual allocation of the corresponding equity changes and their related results. Consequently, the Bank's annual Financial Statements have to be considered within the context of the Group, due to the fact that they do not reflect the financial and equity changes that result from the application of the consolidation policies (full consolidation or proportionate consolidation methods) or the equity method. These changes are reflected in the Consolidated Financial Statements of the BBVA Group for the year 2024 , which the Bank's Board of Directors has also prepared. Appendix I includes the Group's Consolidated Financial Statements. In accordance with the content of these Consolidated Financial Statements prepared following the International Financial Reporting Standards adopted by the European Union, the total amount of the BBVA Group’s assets and consolidated equity at the close of 2024 amounted to €772,402 million and €60,014 million, respectively, while the consolidated net profit attributed to the parent company of this period amounted to € 10,054 million. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 13 2. Accounting policies and valuation criteria applied The Glossary includes the definition of some of the financial and economic terms used in Note 2 and subsequent Notes. The accounting standards and policies and valuation criteria used in preparing these financial statements are as follows: 2.1 Investments in subsidiaries, joint ventures and associates Subsidiaries are entities controlled by the Bank (for definition of control, see Glossary). Associates are entities in which the Bank is able to exercise significant influence (for definition of significant influence, see Glossary). Joint ventures are those entities for which there is a joint control arrangement with third parties other than the entity (for definitions of joint arrangement, joint control and joint venture, refer to Glossary). Valuation and impairment Investments in the equity of group companies, joint ventures and associates are initially measured at cost, which is since the fair value of the consideration given plus directly attributable transaction costs. Subsequently, these investments are valued at cost less, if applicable, the accumulated amount of impairment adjustments. At least at year-end, and whenever there is objective evidence that the carrying value may not be recoverable, the corresponding impairment test is performed to quantify the possible valuation adjustment. This valuation adjustment is calculated as the difference between the book value and the recoverable amount, the latter being understood as the higher of its fair value at that time, less costs to sell, and the value in use of the investment. Impairment losses and, if applicable, their reversal, are recorded as an expense or income, respectively, in the income statement. The reversal of an impairment will be limited to the carrying amount of the investment that would be recognized at the date of reversal if the impairment had not been recorded. 2.2 Financial instruments Circular 4/2017 became effective as of January 1, 2018 and replace IAS 39 regarding the classification and measurement of financial assets and liabilities, the, impairment of financial assets and hedge accounting. However, the Bank has determined to apply the requirements of IFRS 9 to hedge accounting from January 1, 2025. This change in accounting policy applicable to hedging relationships had no significant impact on the Bank 's Financial Statements as of the date of its implementation. 2.2.1Classification and measurement of financial assets Classification of financial assets Circular 4/2017 contains three main categories for financial assets classification: measured at amortized cost, measured at fair value with changes through other comprehensive income, and measured at fair value through profit or loss. The classification of financial instruments in the categories of amortized cost or fair value depends on the business model with which the entity manages the assets and the contractual characteristics of the cash flows, commonly known as the "solely payments of principal and interest" criterion (hereinafter the "SPPI"). The assessment of the business model should reflect the way the Bank manages groups of financial assets and does not depend on the intention for an individual instrument. In order to determine the business model, the following aspects are taken into account: – The way in which the performance of the business model (and that of the assets which comprise such business model) is evaluated and reported to the entity's key personnel. – The risks and their management, which affect the performance of the business model. – The way in which business model managers are remunerated. – The frequency, amount and timing of sales in previous years, the reasons for such sales and expectations regarding future sales. In this sense, the Bank has established policies and has developed procedures to determine when the sales of financial assets classified in the amortized cost category are considered infrequent (even when significant), or are insignificant (even when frequent), to ensure compliance with such business model. Furthermore, it is considered that any sales that may occur because the financial asset is close to maturity, due to an increase in credit risk, or if necessary for liquidity needs, are compatible with the amortized cost model. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 14 Regarding the SPPI test, the analysis of the cash flows aims to determine whether the contractual cash flows of the assets correspond only to payments of principal and interest on the principal amount outstanding at the beginning of the transaction. Interest is understood here as the consideration for the time value of money; and for the credit risk associated with the principal amount outstanding during a specific period; and for financing and structure costs, plus a profit margin. The most significant judgments used by the Bank in evaluating compliance with the conditions of the SPPI test are the following: – Modified time value: in the event that a financial asset includes a periodic interest rate adjustment but the frequency of this adjustment does not coincide with the term of the reference interest rate (for example, the interest rate reset every six months to a one-year rate), the Group assesses, at the time of the initial recognition, this mismatch to determine whether the contractual cash flows (undiscounted) differ significantly or not from the cash flows (undiscounted) of a benchmark financial asset, for which there would be no change in the time value of money. The defined tolerance thresholds are 10% for the differences in each period and 5% for the analysis accumulated throughout the financial asset life. – Contractual clauses: the contractual clauses that can modify the calendar or the amount of the contractual cash flows are analyzed to verify if the contractual cash flows that would be generated during the life of the instrument due to the exercise of those clauses are only payments of principal and interest on the principal amount outstanding. To do this, the contractual cash flows that may be generated before and after the modification are analyzed. The main criteria taken into account in the analysis are: a. Early termination clauses: generally, a contractual clause that permits the debtor to prepay a debt instrument before maturity is consistent with SPPI when the prepayment amount substantially represents unpaid amounts of principal and interest on the principal amount outstanding (which may include reasonable additional compensation for the early termination of the contract). b. Instruments with an interest rate linked to contingent events: – An instrument whose interest rate is reset to a higher rate if the debtor misses a particular payment may meet the SPPI criterion because of the relationship between missed payments and an increase in credit risk. – An instrument with contractual cash flows that are indexed to the debtor’s performance – e.g. net income or is adjusted based on a certain index or stock market value would not meet the SPPI criterion. c. Perpetual instruments: to the extent that they can be considered instruments with continuous (multiple) extension options, they meet the SPPI test if the contractual flows meet it. When the issuer can defer the payment of interest, if such payment would affect their solvency, they would meet the SPPI test if the deferred interest accrues additional interest, while if they do not, they would not meet the test. – Non-recourse financial instruments: In the case of debt instruments that are repaid primarily with the cash flows of specific assets or projects and the debtor has no legal responsibility, the underlying assets or cash flows are evaluated to determine whether the contractual cash flows of the instrument are consistent with payments of principal and interest on the principal amount outstanding. a. If the contractual terms do not give rise to additional cash flows to payments of principal and interest on the amount of principal outstanding or limitations to these payments, the SPPI test is met. b. If the debt instrument effectively represents an investment in the underlying assets and its cash flows are inconsistent with principal and interest (because they depend on the performance of a business), the SPPI test is not met. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 15 – Contractually linked instruments: a look-through analysis is carried out in the case of transactions that are set through the issuance of multiple financial instruments forming tranches that create concentrations of credit risk in which there is an order of priority that specifies how the flows of cash generated by the underlying set of financial instruments are allocated to the different tranches. The debt tranches of the instrument will comply with the requirement that their cash flows represent only payment of principal and interest on the outstanding principal if: a. the contractual terms of the tranche being assessed for classification (without looking through to the underlying pool of financial instruments) give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding; b. the underlying pool of financial instruments comprises instruments with cash flow that are solely payments of principal and interest on the principal amount outstanding; and c. the exposure to credit risk in the underlying pool of financial instruments inherent in the tranche is equal to or lower than the exposure to credit risk of the underlying pool of financial instruments (for example, the credit rating of the tranche being assessed for classification is equal to or higher than the credit rating that would apply to a single tranche that funded the underlying pool of financial instruments). In any event, the contractual conditions that, at the time of the initial recognition, have a minimal effect on cash flows or depend on the occurrence of exceptional and highly unlikely events do not prevent compliance with the conditions of the SPPI test. In the specific case of loans granted by the BBVA Bank where the financial remuneration is linked to the compliance with certain environmental, social and governance (hereinafter "ESG") conditions and criteria, the Bank considers that the impact of compliance with the ESG criteria on the interest rate applied to the transactions is very limited and, therefore, meets the condition that it has a minimal effect on cash flows. Therefore, the existence of these ESG-linked clauses would not entail non-compliance with the aforementioned SPP test. Based on the above characteristics, financial assets will be classified and valued as described below. A debt instrument will be classified in the amortized cost portfolio if the two following conditions are fulfilled: – the financial asset is managed within a business model whose purpose is to maintain the financial assets to maturity, to receive contractual cash flows; and – the contractual conditions of the financial asset give rise to cash flows that are only payments of principal and interest. A debt instrument will be classified in the portfolio of financial assets at fair value with changes through other comprehensive income if the two following conditions are fulfilled: – the financial asset is managed with a business model whose purpose combines collection of the contractual cash flows and sale of the assets; and – the contractual characteristics of the instrument generate cash flows which only represent the return of the principal and interest. A debt instrument will be classified at fair value with changes in profit and loss provided that the entity's business model for their management or the contractual characteristics of its cash flows do not require classification into one of the portfolios described above. In general, equity instruments will be measured at fair value through profit or loss. However, BBVA may make an irrevocable election at initial recognition to present subsequent changes in the fair value through “other comprehensive income”. Financial assets will only be reclassified when BBVA decides to change the business model. In this case, all of the financial assets assigned to this business model will be reclassified. The change of the objective of the business model should occur before the date of the reclassification. Measurement of financial assets All financial instruments are initially recognized at fair value, plus, those transaction costs which are directly attributable to the acquisition or issue of the particular instrument, with the exception of those financial assets which are classified at fair value through profit or loss. All changes in the value of financial assets due to the interest accrual and similar items are recorded in the headings "Interest income and other similar income" or "Interest expense", of the income statement of the year in which the accrual occurred (see Note 33), except in the case of trading derivatives that are not economic and accounting hedges. The changes in fair value after the initial recognition, for reasons other than those mentioned in the preceding paragraph, are treated as described below, according to the categories of financial assets. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 16 “Financial assets held for trading”, “Non-trading financial assets mandatorily at fair value through profit or loss” and “Financial assets designated at fair value through profit or loss” Financial assets are recorded under the heading “Financial assets held for trading” if the objective of the business model is to generate gains by buying and selling these financial instruments or to generate short-term results. The financial assets recorded in the heading “Non-trading financial assets mandatorily at fair value through profit or loss" either have contractual cash flows that do not met the conditions of the SPPI test, or are not covered by a business model whose objective is either (i) to hold financial assets to collect contractual cash flows or (ii) achieved by collecting contractual cash flows and selling financial assets. Financial assets are classified in “Financial assets designated at fair value through profit or loss” only if such classification eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise from recognizing or measuring such financial assets on different bases. The assets recognized under these headings of the balance sheet are measured upon acquisition at fair value and changes in the fair value (gains or losses and foreign exchange differences) are recognized as their net value, when applicable, under the headings “Gains (losses) on financial assets and liabilities held for trading, net”, “Gains (losses) on non-trading financial assets mandatorily at fair value through profit or loss, net” and “Gains (losses) on financial assets designated at fair value through profit or loss, net” in the accompanying income statement (see Note 37). ”Financial assets at fair value through other comprehensive income” – Debt instruments Assets recognized under this heading in the balance sheets are measured at their fair value. This category of valuation implies the recognition of the information in the income statement as if it were an instrument valued at amortized cost, while the instrument is valued at fair value in the balance sheet. Thus, both interest income on these instruments and the exchange differences and impairment that arise in their case are recorded in the profit and loss account, while subsequent changes in its fair value (gains or losses) are recognized temporarily, (by the amount net of tax effect) under the heading “Accumulated other comprehensive income (loss)- Items that may be reclassified to profit or loss - Fair value changes of debt instruments measured at fair value through other comprehensive income” in the accompanying balance sheets (see Note 27). The amounts recognized under the headings “Accumulated other comprehensive income (loss)- Items that may be reclassified to profit or loss - Fair value changes of debt instruments measured at fair value through other comprehensive income” continue to form part of the Bank's equity until the corresponding asset is derecognized from the balance sheet or until a loss allowance is recognized on the corresponding financial instrument. If these assets are sold, these amounts are derecognized and included under the headings “Gains (losses) on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net” in the accompanying income statements (see Note 37). The net loss allowances in “Financial assets at fair value through other comprehensive income” over the year are recognized under the heading “Impairment or reversal of impairment on financial assets, not measured at fair value through profit or loss net –gains by modification- Financial assets at fair value through other comprehensive income” in the income statements for that year (see Note 42). Interest income on these instruments is recorded in the profit and loss account (see Note 33). Changes in foreign exchange rates are recognized under the heading “Exchange differences, net" in the accompanying income statement (see Note 37). – Equity instruments At the time of initial recognition of specific investments in equity instruments, an irrevocable decision may be made to present subsequent changes in fair value in other comprehensive income. Subsequent changes in this valuation will be recognized Accumulated other comprehensive income - Items that will not be reclassified to profit or loss- Fair value changes of equity instruments measured at fair value through other comprehensive income" (see Note 27). Dividends received from these investments are recorded in the heading "Dividend income" in the income statement (see Note 34). These instruments are not subject to the impairment model. “Financial assets at amortized cost” The assets under this category are subsequently measured at amortized cost, after initial recognition, using the effective interest rate method. In the case of floating rate instruments, including inflation-linked bonds, periodic restatements of cash flows to reflect interest rate movements and incurred inflation change the effective interest rate prospectively. Net loss allowances of assets recorded under these headings arising in each period, calculated under Circular 4/2017 model, are recognized under the heading “Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss –or net gains by modification -Financial assets measured at amortized cost” in the income statement for such year (see Note 42). Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 17 2.2.2Classification and measurement of financial liabilities Classification of financial liabilities Financial liabilities are classified in the following categories: – financial liabilities at amortized cost; – financial liabilities that are held for trading including derivatives are financial instruments which are recorded in this category when the Bank’s objective is to generate gains by buying and selling these financial instruments or generate results in the short term; – financial liabilities that are designated at fair value through profit or loss on initial recognition under the Fair Value Option. The Bank has the option to designate irrevocably, on the initial moment of recognition, a financial liability at fair value through profit or loss provided that doing so results in the elimination or significant reduction of measurement or recognition inconsistency, or if a group of financial liabilities, or a group of financial assets and financial liabilities, has to be managed, and its performance evaluated, on a fair value basis in accordance with a documented risk management or investment strategy. Measurement of financial liabilities Financial liabilities are initially recorded at fair value, less transaction costs that are directly attributable to the issuance of instruments, except for financial instruments that are classified at fair value through profit or loss. Variations in the value of financial liabilities due to the interest accrual and similar items are recorded in the headings “Interest and other income” or “Interest expense”, of the income statement for the year in which the accrual occurred (see Note 33), except for trading derivatives that are not economic and accounting hedges. The changes in fair value after the initial recognition, for reasons other than those mentioned in the preceding paragraph, are treated as described below, according to the categories of financial liabilities. “Financial liabilities held for trading” and “Financial liabilities designated at fair value through profit or loss“ The subsequent changes in the fair value (gains or losses) of the liabilities recognized under these headings of the balance sheets are recognized as their net value under the headings “Gains (losses) on financial assets and liabilities held for trading, net” and “Gains (losses) on financial assets and liabilities designated at fair value through profit or loss, net” in the accompanying income statements (see Note 37). The changes in the own credit risk of the liabilities designated under the fair value option is presented in “Accumulated other comprehensive income (loss) – Items that will not be reclassified to profit or loss – Fair value changes of financial liabilities at fair value through profit or loss attributable to changes in their credit risk” (see Note 27), unless this treatment brings about or increases an asymmetry in the income statement. “Financial liabilities at amortized cost” The liabilities under this category are subsequently measured at amortized cost, using the “effective interest rate” method. Hybrid financial liabilities When a financial liability contains an embedded derivative, BBVA analyzes whether the economic characteristics and risks of the embedded derivative and the host instrument are closely related. If the characteristics and risks of the host and the derivative are closely related, the instrument as a whole will be classified and measured according to the general rules for financial liabilities. If, on the other hand, the economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics and risks of the host, its terms meet the definition of a derivative and the hybrid contract is not measured at fair value with changes in fair value recognized in profit or loss, the embedded derivative shall be separated from the host and accounted for as a derivative separately at fair value with changes in profit and loss and the host instrument classified and measured according to its nature. 2.2.3“Derivatives-Hedge Accounting” and “Fair value changes of the hedged items in portfolio hedges of interest-rate risk” BBVA uses financial derivatives as a tool for managing financial risks, mainly interest rates and exchange rates (see Note 5). When these transactions meet certain requirements, they are considered "hedging instruments". Hedging financial derivatives are used to hedge changes in the value of assets and liabilities, changes in cash flows, or the net investment in a foreign business. Fair value hedging is established for fixed rate financial instruments, and cash flow hedges are used for variable rate financial instruments. The Bank also carries out exchange risk hedging operations. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 18 In some hedging relationships, the Group additionally designates inflation risk as a contractually specified component in a debt instrument (for example, inflation-referenced bonds). Hedging accounting follows the standard, and the effectiveness of hedges is evaluated both retrospectively and prospectively, so that they remain within a range between 80% and 125%. The ineffectiveness of hedges, defined as the difference between the change in value of the hedging instrument and the hedged item in each period, attributable to the hedged risk, is recognized in the income statement. This includes both the amount of the ineffectiveness of the hedges established to manage interest rate risk in the period, as well as the ineffectiveness of the hedges established to manage exchange risk, which is mainly attributable to the temporary value of hedges established to manage exchange rate risk (see Notes 13 and 37). Changes occurring subsequent to the designation of the hedging relationship in the measurement of financial instruments designated as hedged items as well as financial instruments designated as hedge accounting instruments are recognized as follows: – In fair value hedges, the changes in the fair value of the derivative and the hedged item attributable to the hedged risk are recognized under the heading “Gains (losses) from hedge accounting, net” in the income statement (see Note 37), with a corresponding offset under the headings where hedging items ("Hedging derivatives") and the hedged items are recognized, as applicable, except for interest-rate risks hedges (which are almost all of the hedges used by the Bank) for which the valuation changes are recognized under the headings “Interest and other income” or “Interest expense”, as appropriate, in the accompanying income statement (see Note 33). – In fair value hedges of interest rate risk of a portfolio of financial instruments (portfolio-hedges), the gains or losses that arise in the measurement of the hedging instrument are recognized in the income statement with the corresponding offset on the headings “Derivatives – Hedge accounting”, and the gains or losses that arise from the change in the fair value of the hedged item (attributable to the hedged risk) are also recognized in the income statement (in both cases under the heading “Gains (losses) from hedge accounting, net” (see Note 37), using, as a corresponding offset, the headings "Fair value changes of the hedged items in portfolio hedges of interest rate risk" in the balance sheets, as applicable. – In cash flow hedges, the gain or loss on the hedging instruments relating to the effective portion is recognized temporarily under the heading ”Accumulated other comprehensive income (loss) – Items that may be reclassified to profit or loss - Hedging derivatives. Cash flow hedges” (effective portion) in the balance sheets, with a corresponding offset under the heading “Hedging derivatives” of the Assets or Liabilities of the balance sheets as applicable. These differences are recognized under the heading “Interest and other income” or “Interest expense” at the time when the gain or loss in the hedged instrument affects profit or loss, when the forecast transaction is executed or at the maturity date of the hedged item. Almost all of the cash flow hedges carried out by the Bank are for interest rate risk and inflation of financial instruments, so their differences are recognized under the heading "Interest and other income" or "Interest expense" in the accompanying income statement (see Note 33). – Differences in the measurement of the hedging items corresponding to the ineffective portions of cash flow hedges are recognized directly in the heading “Gains (losses) from hedge accounting, net” in the accompanying income statement (see Note 37). – In the hedges of net investments in foreign operations, the differences attributable to the effective portions of hedging items are recognized temporarily under the heading "Accumulated other comprehensive income (loss) – Items that may be reclassified to profit or loss – Hedging of net investments in foreign operations (effective portion)" in the balance sheets with a corresponding offset entry under the heading “Hedging derivatives” of the Assets or Liabilities of the balance sheets as applicable. These differences in valuation are recognized in the income statement when the investment in a foreign operation is disposed of or derecognized (see Note 37). 2.2.4Loss allowances on financial assets The “expected losses” impairment model is applied to financial assets valued at amortized cost, debt instruments valued at fair value with changes in accumulated other comprehensive income, financial guarantee contracts and other commitments. All financial instruments valued at fair value through profit or loss are excluded from the impairment model. The standard classifies financial instruments into three categories, which depend on the evolution of their credit risk from the moment of initial recognition and which establish the calculation of the credit risk allowance. – Stage 1 – Without significant increase in credit risk Financial assets which are not considered to have significantly increased in credit risk have loss allowances measured at an amount equal to the expected credit loss that arises from all possible default events within 12 months following the presentation date of the financial statements (12 month expected credit losses). – Stage 2 – Significant increases in credit risk When the credit risk of a financial asset has increased significantly since the initial recognition, the loss allowances of that financial instrument is calculated as the expected credit loss during the entire life of the asset. That is, they are the expected credit losses that result from all possible default events during the expected life of the financial instrument. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 19 – Stage 3 – Impaired When there is objective evidence that the instrument is credit-impaired, the financial asset is transferred to this category in which the provision for losses of that financial instrument is calculated, as in stage 2, as the expected credit loss during the entire life of the asset. When the recovery of any recognized amount is considered remote, such amount is written-off on the consolidated balance sheet, without prejudice to any actions that may be taken in order to collect the amount until the rights extinguish in full either because it is time-barred debt, the debt is forgiven, or other reasons. The Bank has applied the following definitions: Credit impaired asset An asset is credit-impaired (stage 3) if one or more events have occurred and they have a detrimental impact on the estimated future cash flows of the asset The definition of impaired asset under the Standard is currently aligned with that of default used by the Bank both for internal credit risk management and for regulatory purposes, in accordance with the definitions established in the European Banking Authority (hereinafter “EBA”) Guidelines and in Article 178 of Regulation (EU) No 575/2013 (CRR). This alignment facilitates the integration of both definitions in credit risk management, giving coherence and consistency in the processes. The determination of an asset as impaired and its classification in stage 3 is based exclusively on the risk of default, without considering the effects of credit risk mitigating measures such as guarantees and collaterals. Specifically, the following financial assets are classified in stage 3: 1) Impaired assets for objective reasons or delinquency: when there are unpaid amounts of principal or interest for more than 90 days. According to Circular 4/2017, the 90-days past due default is a presumption that can be rebutted in those cases where the entity considers, based on reasonable and supportable information, that it is appropriate to use a longer term. As of December 31, 2024, the Group has not used terms exceeding 90 days past due. 2) Impaired assets for subjective reasons (other than delinquency): when circumstances are identified that show, even in the absence of defaults, that it is not probable that the debtor will fully comply with its financial obligations. For this purpose, the following indicators are considered, among others: – Significant financial difficulties of the issuer or the borrower. – Granting by the lender or lenders to the borrower, for economic or contractual reasons related to the latter's financial difficulties, of concessions or advantages that they would not have otherwise granted. – Breach of contractual clauses, such as events of default or default. – Increasing probability that the borrower will go into bankruptcy or some other situation of financial reorganization. – Disappearance of an active market for the financial asset due to financial difficulties. – Others that may affect the committed cash flows such as the loss of the debtor's license or that it has committed fraud. – Generalized delay in payments. In any case, this circumstance exists when, during a continuous period of 90 days prior to the reporting date, a material amount has remained unpaid. – Sales of credit exposures of a client with a significant economic loss will imply that the rest of its operations are considered impaired. Relating to the granting of concessions due to financial difficulties, it is considered that there is an indicator of unlikeliness to pay, and therefore the client must be considered impaired, when the refinancing or restructuring measures may result in a diminished financial obligation caused by a forgiveness or material deferral of principal, interest or fees. Specifically, unless proven otherwise, transactions that meet any of the following criteria will be reclassified to the category of impaired assets: a. Irregular repayment schedule. b. Contractual clauses that delay the repayment of the loan through regular payments. Among others, grace periods of more than two years for the amortization of the principal will be considered clauses with these characteristics. c. Amounts of principal or interest written off from the balance sheet as its recovery is considered remote. In any case, a restructuring will be considered impaired when the reduction in the net present value of the financial obligation is greater than 1%. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 20 Credit risk management for wholesale counterparties is carried out at the customer (or group) level. For this reason, the classification of any of a client's material exposure as impaired, whether due to more than 90 days of default or due to any of the subjective criteria, implies the classification as impaired of all the client's exposures. Regarding retail clients, which are managed at the individual loan level, the scoring systems review their score, among other factors, in the event of breach in any of their operations or incurring generalized delays in payments, which also triggers the necessary recovery actions. Among them are the refinancing measures that, where appropriate, may lead to all the client's operations being considered impaired. Furthermore, given the granularity of the retail portfolios, the differential behavior of these clients in relation to their products and collateral provided, as well as the time necessary to find the best solution, the Bank has established as an indicator that when a transaction of a retail client is in default in excess of 90 days or shows a general delay in payments and this represents more than 20% of the client's total balance, all its transactions are considered impaired. When operations by entities related to the client fall into stage 3, including both entities of the same group and those with which there is a relationship of economic or financial dependence, the transactions of the holder will also be classified as stage 3 if after the analysis it is concluded that there are reasonable doubts about the full payment of the loans. The Stage 3 classification will be maintained for a cure period of 3 months from the disappearance of all indicators of impairment during which the client must demonstrate good payment behavior and an improvement in their credit quality in order to corroborate the disappearance of the causes that motivated the classification of the debt as impaired. In the case of refinancing and restructuring, the cure period is one year (see Appendix XI for more details). Significant increase in credit risk The objective of the impairment requirements is to recognize lifetime expected credit losses for financial instruments for which there have been significant increases in credit risk since initial recognition considering all reasonable and supportable information, including that which is forward-looking. The model developed by the Bank for assessing the significant increase in credit risk has a two-prong approach that is applied globally (for more detail on the methodology used, see Note 5.2.1): – Quantitative criterion: the Bank uses a quantitative analysis based on comparing the current expected probability of default over the life of the transaction with the original adjusted expected probability of default, so that both values are comparable in terms of expected default probability for their residual life. – Qualitative criterion: most indicators for detecting significant risk increase are included in the Bank's systems through rating and scoring systems or macroeconomic scenarios, so the quantitative analysis covers the majority of circumstances. The Bank uses additional qualitative criteria to identify significant increase in credit risk and thus, to include circumstances that are not reflected in the rating/score systems or macroeconomic scenarios used. Such qualitative criteria are the following: a. More than 30 days past due: the default of more than 30 days is a presumption that can be rebutted in those cases in which the entity considers, based on reasonable and documented information, that such non-payment does not represent a significant increase in risk. As of December 31, 2024, the Bank has not considered periods higher than 30 days. b. Watch list: they are subject to special watch by the Risk units because they show negative signs in their credit quality, even though there may be no objective evidence of impairment. c. Refinance or restructuring that does not show evidence of impairment, or that, having been previously identified, the existence of significant increase in credit risk may is still exist. Although the standard introduces a series of operational simplifications, also known as practical solutions for analyzing the increase in significant risk, the Bank does not use them as a general rule. However, for high-quality assets, mainly related to certain government institutions and bodies, the standard allows for considering that their credit risk has not increased significantly because they have a low credit risk at the presentation date. This possibility is limited to those financial instruments that are classified as having high credit quality and to contracts with a current annualized probability of default (PD) of less than 0,3%. This does not prevent these assets from being assigned the credit risk coverage that corresponds to their classification as Stage 1 based on their credit rating and macroeconomic expectations. Method for calculating Expected Credit Loss (ECL) Method for calculating expected loss In accordance with Circular 4/2017, the measurement of expected losses must reflect: – a considered and unbiased amount, determined by evaluating a range of possible results; – the time value of money; and Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 21 – reasonable and supportable information that is available without undue cost or effort and that reflects current conditions and forecasts of future economic conditions. Expected losses are measured both individually and collectively. The individualized estimate of credit losses results from calculating the difference between the expected cash flows discounted at the effective interest rate of the transaction and the carrying amount of the instrument (see Note 5.2.1). For the collective measurement of expected losses, the instruments are classified into groups of assets based on their risk characteristics. Exposure within each group is grouped according to credit risk common characteristics, which indicate the payment capacity of the borrower according to the contractual conditions. These risk characteristics have to be relevant in estimating the future flows of each group. The characteristics of credit risk may consider, among others, the following factors (see Note 5.2.1): – Type of instrument. – Rating or scoring tools. – Credit risk scoring or rating. – Type of collateral. – Amount of time at default for stage 3. – Segment. – Qualitative criteria which can have a significant increase in risk. – Collateral value if it has an impact on the probability of a default event. The estimated losses are derived from the following parameters: – PD: estimate of the probability of default in each period. – EAD: estimate of the exposure in case of default at each future period, taking into account the changes in exposure after the closing date of the financial statements. – LGD: estimate of the loss in case of default, calculated as the difference between the contractual cash flows and receivables, including guarantees. For these purposes, the probability of executing the guarantee, the moment until its ownership, and subsequent realization are achieved, the expected cash flows and the acquisition and sale costs, are considered in the estimation. – CCF: cash conversion factor is the estimate made on off-balance sheet contractual arrangements to determine the exposure subject to credit risk in the event of a default. At BBVA, the calculated expected credit losses are based on internal models developed for all portfolios within the scope of Circular 4/2017, except for the cases that are subject to individual analysis. The calculation and recognition of expected credit losses includes exposures with governments and credit institutions, for which, despite having a reduced number of defaults in the information databases, internal models have been developed, considering, as sources of information, the data provided by external rating agencies or other observed in the market, such as changes in bond yields, prices of credit default swaps or any other public information on them. Use of present, past and future information Circular 4/2017 requires incorporation of present, past and future information to detect any significant increase in risk and measure expected loss losses, which must be carried out on a weighted probability basis. The standard does not require identification of all possible scenarios for measuring expected loss. However, the probability of a loss event occurring and the probability it will not occur have to be considered, even though the possibility of a loss may be very low. To achieve this, BBVA generally evaluates the linear relationship between its estimated loss parameters (PD, LGD and EAD) with the historical and future forecasts of the macroeconomic scenarios. Additionally, when there is no linear relation between the different future economic scenarios and their associated expected losses, more than one future economic scenario must be used for the measurement. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 22 The approach taken by BBVA consists of using a methodology based on the use of three scenarios. The first is the most probable scenario (base scenario) that is consistent with that used in the Bank's internal management processes, and two additional ones, one more positive and the other more negative. The combined outcome of these three scenarios is calculated considering the weight given to each of them. The main macroeconomic variables that are valued in each of the scenarios are the Gross Domestic Product (GDP), the real estate price index, interest rates, and the unemployment rate The main goal of the Bank's approach is seeking the greatest predictive capacity with respect to the first two variables (see Note 5.2.1). Derecognition of the balance due to impairment on financial assets (write-offs) Debt instruments are classified as written-off once, after being analyzed, it is reasonably considered that their recovery is remote due to the notorious and irrecoverable deterioration of the solvency of the holder of the operation. Based on their procedures and particularities, the Bank entities recognize operations as a write-off where, following their analysis, there are no reasonable expectations of recovery of the debt, taking into account aspects such as: the time elapsed since the classification as doubtful operations due to delinquency, the coverage levels achieved, type of portfolio or product, bankruptcy status of the holder and the existence of guarantees, their valuation and execution capacity. In those cases where the guarantee is significant, there is the possibility of making partial write-offs on the non-guaranteed portion. The classification of an operation as written-off, entails the recognition of losses for the carrying amount of the related debt and results in a derecognition in the same amount from the balance sheet (see Note 5.2.5). 2.2.5Transfers and derecognition of financial assets and liabilities The accounting treatment of transfers of financial assets is determined by the form in which risks and benefits associated with the financial assets involved are transferred to third parties. Financial assets are only derecognized from the balance sheet when the cash flows that they generate are extinguished, or when their implicit risks and benefits have been substantially transferred to third parties, when the control of financial asset is transferred even in case of no physical transfer or substantial retention of such assets. In the latter case, the financial asset transferred is derecognized from the balance sheet, and any right or obligation retained or created as a result of the transfer is simultaneously recognized. Similarly, financial liabilities are derecognized from the balance sheet only if their obligations are extinguished or acquired (with a view to subsequent cancellation or renewed placement). The Bank is considered to have transferred substantially all the risks and benefits if such risks and benefits account for the majority of the risks and benefits involved in ownership of the transferred financial assets. If substantially all the risks and/or benefits associated with the transferred financial asset are retained: – The transferred financial asset is not derecognized from the balance sheet and continues to be measured using the same criteria as those used before the transfer. – A financial liability is recognized at the amount equal to the amount received, which is subsequently measured at amortized cost or fair value with changes in the income statement, whichever the case. – Both the income generated on the transferred (but not derecognized) financial asset and the expense of the new financial liability continue to be recognized. In the specific case of securitizations, this liability is recognized under the heading “Financial liabilities at amortized cost – Customer deposits” in the balance sheets (see Note 20). As these liabilities do not constitute a current obligation, when measuring such a financial liability the Bank deducts those financial instruments owned by it which constitute financing for the entity to which the financial assets have been transferred, to the extent that these instruments are deemed specifically to finance the transferred assets. The criteria followed with respect to the most common transactions of this type made by the Bank are as follows: – Purchase and sale commitments: financial instruments sold with a repurchase agreement are not derecognized from the balance sheets and the amount received from the sale is considered to be financing from third parties. – Financial instruments acquired with an agreement to subsequently resell them are not recognized in the balance sheets and the amount paid for the purchase is considered to be credit given to third parties. – Securitization: the Bank has applied the most stringent criteria for determining whether or not it retains substantially all the risk and rewards on such assets for all securitizations performed since January 1, 2004. As a result of this analysis, the Bank has concluded that none of the securitizations undertaken since that date meet the prerequisites for derecognizing the securitized assets from the balance sheets (see Note 12 and Appendix VI), as the Bank retains substantially all the expected credit risks and possible changes in net cash flows, while retaining the subordinated loans and lines of credit extended to these securitization funds. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 23 Synthetic securitizations are transactions where risk is transferred through derivatives or financial guarantees and in which the exposure of these securitizations remains in the balance sheet of the Bank. The Bank has established the synthetic securitizations through received financial guarantees. As for the commissions paid, they are accrued during the term of the financial guarantee. 2.3 Financial guarantees Financial guarantees are considered to be those contracts that require their issuer to make specific payments to reimburse the holder of the financial guarantee for a loss incurred when a specific borrower breaches its payment obligations on the terms – whether original or subsequently modified – of a debt instrument, irrespective of the legal form it may take. Financial guarantees may take the form of a deposit, bank guarantee, insurance contract or credit derivative, among others. In their initial recognition, financial guarantees are recognized as liabilities in the balance sheet at fair value, which is generally the present value of the fees, commissions and interest receivable from these contracts over the term thereof, and the Bank simultaneously recognizes a corresponding asset in the balance sheet for the amount of the fees and commissions received at the inception of the transactions and the amounts receivable at the present value of the fees, commissions and interest outstanding. Financial guarantees, irrespective of the guarantor, instrumentation or other circumstances, are reviewed periodically so as to determine the credit risk to which they are exposed and, if appropriate, to consider whether a provision is required for them. The credit risk is determined by application of criteria similar to those established for quantifying loss allowances on debt instruments measured at amortized cost (see Note 2.2.4). The provisions recognized for financial guarantees are recognized under the heading “Provisions - Provisions for contingent risks and commitments” on the liability side in the balance sheets (see Note 21). These provisions are recognized and reversed with a charge or credit, respectively, to “Provisions or reversal of provision” in the income statements (see Note 41). Income from financial guarantees is recorded under the heading “Fee and commission income” in the income statement and is calculated by applying the rate established in the related contract to the nominal amount of the guarantee (see Note 35). Synthetic securitizations made by the Bank to date meet the requirements of the accounting regulations for accounting as guarantees. 2.4 Tangible assets Tangible assets are classified according to their nature: – Property, plant and equipment for own use This heading includes the assets under ownership or acquired under lease terms (right to use), intended for future or current use by the Bank and that it expects to hold for more than one year. It also includes tangible assets received by the Bank in full or partial settlement of receivables from third parties which are expected to be held for continuing use. – Investment properties Includes the value of land, buildings and other structures that are held either for rental or for capital gain on sale, and which are not expected to be used in the ordinary course of business and are not intended for own use. – Assets leased out under an operating lease Includes assets for which the Group has granted the right of use to another company through an operating lease contract. In general, and as an accounting policy option, tangible assets are recorded in the balance sheets under the cost model, i.e., at acquisition cost, less the related accumulated depreciation and, if applicable, the estimated impairment losses resulting from comparing the net book value of each item with its corresponding recoverable value (see Note 15). The Bank uses the straight-line method to calculate depreciation over the estimated useful life of the asset. The depreciation charge for tangible assets is recorded under "Depreciation and amortization" in the income statement (see Note 40) and is basically equivalent to the following depreciation rates: General depreciation rates for tangible assets Type of assets Annual Percentage Buildings for own use 1% - 4% Furniture 8% - 10% Fixtures 6% - 12% Office supplies and hardware 8% - 25% Lease use rights The lesser of the lease term or the useful life of the underlying asset Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 24 At each reporting date, the Bank analyzes whether there are indicators that a tangible asset may be impaired and, if any, adjusts the carrying amount to its recoverable amount, modifying future depreciation charges in accordance with its revised remaining useful life. Similarly, if there is indication that the value of a tangible asset that was previously impaired has been recovered, the Bank estimates the recoverable amount of the asset and recognizes in the income statement the reversal of the impairment loss recognized in previous years and thus, adjusts the future depreciation charges. Any impairment or reversal of impairment will be recognized considering as counterpart the heading “Impairment or reversal of impairment of non-financial assets - Intangible assets” of the consolidated income statement (see Note 44). Operating and maintenance expenses relating to tangible assets for own use are recognized in the year in which they are incurred under "Administrative expenses - Property, plant and equipment" in the income statement (see Note 39.2). 2.5 Leases In general, the Bank will record assets and liabilities for lease contracts by recording a right of use (right to use the leased asset) under ''Tangible assets - Property, plant and equipment'' and ''Tangible assets - Investment property'' (see Note 15), and a lease liability (its obligation to make lease payments) under ''Financial liabilities at amortized cost - Other financial liabilities'' (see Note 20.5). The Bank applies two exceptions in the case of short-term leases and leases whose underlying asset is of low value. In these cases, lease payments are recognized under "Other operating expenses" (see Note 38) in the consolidated income statement over the term of the lease. At the initial date of the lease, the lease liability is equal to the present value of all lease unpaid payments. Subsequently, it is valued at amortized cost. The right to use assets is initially recorded at cost and are subsequently reduced by accumulated amortization and accumulated impairment. The Bank has decided to calculate depreciation using the straight-line method. Depreciation of tangible assets is recorded under "Depreciation and amortization" in the consolidated statement of income (see Note 40). The interest expense on the lease liability is recorded in the income statements under the heading “Interest expense” (see note 33). Variable payments not included in the initial measurement of the lease liability are recorded under the heading “Administration costs – Other administrative expense” (see Note 39). Operating lease and sublease incomes are recognized in the income statements under the headings “Other operating income” (see Note 38). On the other hand, when the Bank acts as a lessor, it classifies leases as finance or operating leases. In finance leases, the sum of the present values of the amounts received plus the guaranteed residual value is recorded as financing provided to third parties and is included under "Financial assets at amortized cost" in the consolidated balance sheet (see Note 12). In operating leases, the acquisition cost of the leased assets is presented under "Tangible assets - Property, plant and equipment - Assigned under operating leases" in the consolidated balance sheet (see Note 15). These assets are depreciated in accordance with the policies adopted for similar tangible assets for own use and the income and expenses arising from the lease contracts are recognized in the consolidated income statement on a straight-line basis under "other operating income" and "other operating expenses", respectively (see Note 38). If a fair value sale and leaseback results in a lease, the profit or loss generated from the effectively transferred part of the sale is recognized in the income statement at the time of sale (only for the effectively transmitted part). 2.6 Non-current assets and disposal groups classified as held for sale and liabilities included in disposal groups classified as held for sale This heading includes the carrying amount of individual items or items integrated in a group ("disposal group") or that form part of a significant business line or geographic area that is intended to be disposed of (“discontinued operation”) whose sale is highly probable to take place under the current conditions within a period of one year from the date to which the financial statements refer. Additionally, it includes assets that were expected to be disposed of within one year, but for which disposal there is a delay caused by events and circumstances beyond the Bank's control, and there is sufficient evidence that the entity remains committed to its plan for sale (see Note 19), specifically, regarding real estate assets or other assets received to cancel, in whole or in part, the payment obligations of debtors for credit operations. These assets are not amortized as long as they remain in this category. With respect to valuation, in general, foreclosed real estate assets or assets received in payment of debts are recognized both at the date of acquisition and subsequently, at the lower of their fair value less estimated costs to sell and their carrying amount, with the possibility of recognizing an impairment or reversal of impairment for the difference, if applicable. When the amount of the sale less estimated costs to sell exceeds the carrying amount, the gain is not recognized until the time of disposal and derecognition. The applicable carrying value of the financial asset is updated at the time of foreclosure, treating the foreclosed property as collateral and taking into account the corresponding credit risk hedges at the time prior to delivery. The fair value of foreclosed assets is based mainly on appraisals or valuations performed by independent experts with a maximum age of one year, or less if there are indications of impairment; in addition, by appraisal, the need to apply a discount on the asset based on its specific conditions or market conditions for such type of assets is evaluated and, in any case, the entity’s estimated sale costs are deducted. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 25 The Bank applies the rule that these appraisals may not be older than one year, and their age is reduced if there is an indication of deterioration in the assets. The Bank mainly uses the services of the following valuation and appraisal companies. None of them is linked to the BBVA Group and all are entered in the official Bank of Spain register: Global Valuation S.A.U.; Tinsa, S.A., Gesvalt, Sociedad de Tasación; JLL Valoraciones, S.A., Sociedad de Tasación Tasvalor; Eurovaloraciones, S.A. Gains/losses on disposal of these assets and impairment losses are recognized under "Gains (losses) on non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations" in the consolidated income statement (see Note 46). Other income and expenses are classified in the income statement items according to their nature, evaluating the need to apply a discount on the asset derived from the specific conditions of the asset or the market situation for these assets and in any case, deducting the company’s estimated sale costs. The income and expenses of discontinued operations generated in the year, even if they were generated prior to their classification as discontinued operations, are presented, net of the tax effect, as a single amount under "Profit (loss) after tax from discontinued operations" in the consolidated income statement. This caption also includes the results obtained on disposal (net of the tax effect). 2.7 Intangible assets Intangible assets in the financial statements of the Bank have a finite useful life. The useful life of intangible assets is, at most, equal to the period during which the entity is entitled to use the asset; If the right of use is for a limited renewable period, the useful life includes the renewal period only when there is evidence that the renewal will be carried out without a significant cost (see Note 16). Intangible assets are amortized according to the duration of this useful life, using methods similar to those used to depreciate tangible assets. The defined useful life intangible asset is made up mainly of IT applications acquisition costs which have a useful life, in general, of 5 years, also, internally developed software is recognized as an intangible asset when, among other requirements, it has the capacity to be used or sold, it is identifiable and its capacity to generate economic benefits in the future can be demonstrated. The amortization charge of these assets is recognized in the consolidated income statements under the heading "Depreciation and amortization" (see Note 40). The Bank will recognize any loss allowance on the carrying amount of these assets with charge to the heading “Impairment or reversal of impairment on non - financial assets- Intangible assets” in the accompanying income statements (see Note 44). The criteria used to recognize the impairment losses on these assets and, where applicable, the recovery of loss allowances previously recognized, are similar to those used for tangible Assets. 2.8 Tax assets and liabilities Expenses on corporate income tax applicable to the Bank are recognized expense for the period in the income statement, except when they result from transactions on which the profits or losses are recognized directly in equity, in which case the related tax effect is also recognized in equity. The total corporate income tax expense is calculated by aggregating the current tax arising from the application of the corresponding tax rate as per the tax base for the year (after deducting the tax credits or discounts allowable for tax purposes) and the change in deferred tax assets and liabilities recognized in the income statement. Deferred tax assets and liabilities include temporary differences, the carryforward of unused tax losses and carryforward of unused tax credits or discount carry forwards. These amounts are calculated by applying to each temporary difference the tax rates that are expected to apply when the asset is realized or the liability settled (see Note 17). The "Tax Assets" line item in the accompanying balance sheets includes the amount of all the assets of a tax nature, broken down into: "Current” (amounts of tax recoverable in the next twelve months) and "Deferred" (which includes the amount of tax to be recovered in future years, including those arising from tax losses or credits for deductions or rebates that can be compensated). The "Tax Liabilities" line item in the accompanying balance sheets includes the amount of all the liabilities of a tax nature, except for provisions for taxes, broken down into: "Current” (income tax payable on taxable profit for the year and other taxes payable in the next twelve months) and "Deferred" (the amount of corporate tax payable in subsequent years). Deferred tax liabilities attributable to taxable temporary differences associated with investments in subsidiaries, associates or joint venture entities are recognized as such, except where the Bank can control the timing of the reversal of the temporary difference and it is unlikely that it will reverse in the future. Deferred tax assets are only recognized to the extent that it is probable that the Bank will generate enough taxable profits to make deferred tax assets effective and do not correspond to those from initial recognition (except in the case of business combinations), which also does not affect the fiscal outcome. In those circumstances in which it is unclear how a specific requirement of the tax law applies to a particular transaction or circumstance, and the acceptability of the definitive tax treatment depends on the decisions taken by the relevant taxation authority in future, the entity recognizes current and deferred tax liabilities and assets considering whether it is probable or not that a taxation authority will accept an uncertain tax treatment. Thus, if the entity concludes that it is not probable that the taxation authority will accept an uncertain tax treatment, the entity uses the amount expected to be paid to (recovered from) the taxation authorities. The income and expense directly recognized in equity that do not increase or decrease taxable income are accounted for as temporary differences. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 26 2.9 Provisions, contingent assets and contingent liabilities This heading “Provisions” in the balance sheets includes amounts recognized to cover the Bank’s current obligations arising as a result of past events. These are certain in terms of nature but uncertain in terms of amount and/or settlement date. The settlement of these obligations is deemed likely to entail an outflow of resources embodying economic benefits (see Note 21). The obligations may arise in connection with legal or contractual provisions, valid expectations formed by the Bank relative to third parties in relation to the assumption of certain responsibilities or through virtually certain developments of particular aspects of the regulations applicable to the operation of the entities; and, specifically, future legislation to which the Bank will certainly be subject. The provisions are recognized in the balance sheets when each and every one of the following requirements is met: – They represent a current obligation that has arisen from a past event. – At the date of the financial statements, there is more probability that the obligation will have to be met than that it will not. – It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. – The amount of the obligation can be reasonably estimated. Among other items, these provisions include the commitments made to employees (mentioned in section 2.9), as well as provisions for tax and legal litigation. Contingent assets are possible assets that arise from past events and whose existence is conditional on, and will be confirmed only by, the occurrence or non-occurrence of events beyond the control of the Bank. Contingent assets are not recognized in the balance sheet or in the income statement; however, they will be disclosed, should they exist, provided that it is probable that these assets will give rise to an increase in resources embodying economic benefits (see Note 30). Contingent liabilities are possible obligations of the Bank that arise from past events and whose existence is conditional on the occurrence or non-occurrence of one or more future events beyond the control of the entity. They also include the existing obligations of the entity when it is not probable that an outflow of resources embodying economic benefits will be required to settle them; or when, in extremely rare cases, their amount cannot be measured with sufficient reliability. Contingent liabilities are not recognized in the balance sheet or the income statement (excluding contingent liabilities from business combinations) but are disclosed in the notes to the Financial Statements, unless the possibility of an outflow of resources embodying economic benefits is remote (see Note 30). 2.10 Treasury shares The value of common stock -basically, shares and derivatives on the Bank's shares held by itself that comply with the requirements to be recognized as equity instruments- is recognized as a decrease to net equity under the heading "Shareholders’ funds – Treasury stock" in the balance sheets (see Note 26). These financial assets are recognized at acquisition cost, and the gains or losses arising on their disposal are credited or debited, as appropriate, to the heading “Shareholders’ funds – Retained earning” in the balance sheet (see Note 25). In the event of a contractual obligation to acquire treasury shares, a financial liability is recorded as the present value of the amount committed (under the heading "Financial liabilities at amortized cost - Other financial liabilities") and the corresponding recognition in net equity (under the heading “Equity - Other Reserves”) (see Notes 20.5 and 25). 2.11 Equity-settled share-based payment transactions Equity –settled share-based payment transactions provided they constitute the delivery of such equity instruments once completion of a specific period of services, has occurred are recognized as an expense for services being provided by employees, with a corresponding entry under the heading “Shareholders’ funds – Other equity instruments” in the balance sheet. These services are measured at fair value for the employees’ services received, unless such fair value cannot be calculated reliably. In such case, they are measured by reference to the fair value of the equity instruments granted, taking into account the date on which the commitments were granted and the terms and other conditions included in the commitments. When the initial compensation agreement includes what may be considered market conditions among its terms, any changes in these conditions will not be reflected in the income statement, as these have already been accounted for in calculating the initial fair value of the equity instruments. Non-market vesting conditions are not taken into account when estimating the initial fair value of equity instruments, but they are taken into account when determining the number of equity instruments to be issued. This will be recognized on the income statement with the corresponding increase in equity. 2.12 Pensions and other post-employment commitments Below we provide a description of the most significant accounting policies relating to post-employment and other employee benefit commitments assumed by the Bank (see Note 22). Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 27 Short-term employee benefits Benefits for current active employees which are accrued and settled during the year and for which a provision is not required in the entity´s accounts. These include wages and salaries, social security charges and other personnel expense. Costs are charged and recognized under the heading “Administration costs – Personnel expense – Other personnel expense” of the income statement (see Note 39.1). Post-employment benefits – Defined-contribution plans The Bank sponsors defined-contribution plans for the majority of its active employees. The amount of these benefits is established as a percentage of remuneration and/or as a fixed amount. The contributions made to these plans in each year by the Bank are charged and recognized under the heading “Administration costs – Personnel expense – Defined-contribution plan expense” of the income statement (see Note 39.1). Post-employment benefits – Defined-benefit plans The Bank maintains pension commitments with employees who have already retired or taken early retirement, certain closed groups of active employees still accruing defined benefit pensions, and in-service death and disability benefits provided to most active employees. These commitments are covered by insurance contracts, pension funds and internal provisions. In addition, the Bank have offered certain employees the option to retire before their normal retirement age, recognizing the necessary provisions to cover the costs of the associated benefit commitments, which include both the liability for the benefit payments due as well as the contributions payable to external pension funds during the early retirement period. Furthermore, the Bank provides welfare and medical benefits which extend beyond the date of retirement of the employees entitled to the benefits. All of these commitments are quantified based on actuarial valuations, with the amounts recorded under the heading “Provisions – Provisions for pensions and similar obligations” and determined as the difference between the value of the defined-benefit commitments and the fair value of plan assets at the date of the financial statements (see Note 21). Current service cost is charged and recognized under the heading “Administration costs – Personnel expense – Defined-benefit plan expense” of the income statement (see Note 39.1). Interest credits/charges relating to these commitments are charged and recognized in net terms under the headings “Interest and other income” or, where appropriated, “Interest expense” of the income statement. (see Note 33). Past service costs arising from benefit plan changes as well as early retirements granted during the year are recognized under the heading “Provisions or reversals of provisions” of the income statement (see Note 41). Other long-term employee benefits In addition to the above commitments, the Bank provides long-term service awards to their employees, consisting mainly of monetary amounts or periods of vacation granted upon completion of a number of years of qualifying service. These commitments are quantified based on actuarial valuations and the amounts recorded under the heading “Provisions – Other long-term employee benefits” of the balance sheet (see Note 21). Valuation of commitments: actuarial assumptions and recognition of gains/losses The present value of these commitments is determined based on individual member data. Active employee costs are determined using the “projected unit credit” method, which treats each period of service as giving rise to an additional unit of benefit and values each unit separately. In establishing the actuarial assumptions, we take into account that: – They should be unbiased, i.e. neither unduly optimistic nor excessively conservative. – Each assumption does not contradict the others and adequately reflects the existing relationship between economic variables such as price inflation, expected wage increases, discount rates, etc. Future wage and benefit levels should be based on market expectations, at the balance sheet date, for the period over which the obligations are to be settled. – The interest rate used to discount benefit commitments is determined by reference to market yields, at the balance sheet date, on high quality bonds. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 28 The Bank recognizes actuarial gains (losses) relating to early retirement benefits, long service awards and other similar items under the heading “Provisions or reversal of provisions” of the income statement for the period in which they arise (see Note 41). Actuarial gains/losses relating to pension and medical benefits are directly charged and recognized under the heading "Accumulated other comprehensive income (loss) – Items that will not be reclassified to profit or loss – Actuarial gains (losses) on defined benefit pension plans" of equity in the balance sheet (see Note 27). 2.13 Termination benefits Termination benefits are recognized in the financial statements when the Bank agrees to terminate employment contracts with its employees or from the time the costs for a restructuring that involves the payment of compensation for the termination of contracts with its employees are recorded. This happens when there is a formal and detailed plan in which the fundamental modifications to be made are identified, and whenever said plan has begun to be executed or its main characteristics, or objective facts about its execution have been publicly announced. 2.14 Recognition of income and expense The most significant policies used by the Bank to recognize its income and expense are as follows. – Interest income and expense and similar items: As a general rule, interest income and expense and similar items are recognized on the basis of their accrual using the effective interest rate method. In the particular case of inflation-indexed bonds, interest income also includes the effect of real inflation experienced in the period. They shall be recognized within the income statement according to the following criteria, independently from the financial instruments’ portfolio which generates the income or expense: a. The interest income past-due before the initial recognition and pending to be received will form part of the gross carrying amount of the debt instrument. b. The interest income accrued after the initial recognition will form part of the gross carrying amount of the debt instrument until it will be received. In the event that a debt instrument is considered impaired, interest income will be calculated by applying the effective interest rate to the amortized cost (that is, adjusting for any impairment loss) of the financial asset. – Income from dividends received: Dividends shall be recognized within the consolidated income statement according to the following criteria, independently from the financial instruments’ portfolio which generates this income: a. When the right to receive payment has been declared before the initial recognition and when the payment is pending to be received, the dividends will not be added to the gross carrying amount of the equity instrument and will not be recognized as income. Those dividends are accounted for as financial assets separately from the net equity instrument. b. If the right to receive payment is received after the initial recognition, the dividends from the net equity instruments will be recognized within the consolidated income statement at the time the right to receive them arises, which is the time of the official announcement of receipt of the payment by the appropriate governing body of the entity. If the dividends correspond to the profits of the issuer before the date of initial recognition, they will not be recognized as income but as reduction of the gross carrying amount of the equity instrument because it represents a partial recuperation of the investment. Amongst other circumstances, the generation date can be considered to be prior to the date of initial recognition if the amounts distributed by the issuer as from the initial recognition are higher than its profits during the same period. – Income from commissions collected/paid: Financial fees are an integral part of the actual performance of a financing transaction and are collected in advance. They can be: a. Fees charged for the origination or acquisition of financing transactions that are not measured at fair value through profit or loss, such as those charged for the evaluation of the borrower's financial condition, for the analysis and recording of various collateral, as well as those charged for negotiating the terms of transactions or preparing and processing documentation and the closing of transactions, will be deferred and recognized over the life of the transaction as an adjustment to the performance of the transaction. These fees, forming part of the effective rate of the loans, will be deferred and recognized over the life of the transaction as an adjustment to the performance of the transaction. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 29 b. Fees agreed as compensation for the commitment to grant financing when it is not measured at fair value through profit or loss and it is probable that the Bank will enter into a specific loan agreement, are deferred and recognized over the life of the transaction as an adjustment to the performance of the transaction. If the commitment expires before the entity makes the loan such fee is recognized as revenue at the time of expiration. Non-financial commissions derived from the provision of financial services other than financing transactions may be: a. Related to the performance of a service rendered over time (e.g. account administration fees or fees collected in advance for the issuance or renewal of credit cards), in which case they are recognized over time based on the degree of progress in providing the service. b. Related to the performance of a service rendered at a specific time (e.g. underwriting of securities, currency exchange, advice or syndication of a loan), in which they are recognized in the income statement at the time of collection. – Non-financial income and expense: As a general rule, they are recognized on an accrual basis, that is, as the contractually committed goods or services are delivered or rendered and recognized as revenue over the life of the contract. In the event that consideration is received or there is a right to receive consideration without delivery of the contractually committed goods or services, a liability is recognized in the balance sheet until it is recognized in the income statement. In the case of collections and payments deferred over time, they are recognized for accounting purposes at the amount resulting from discounting the expected cash flows at market rates. – Commissions, fees and similar items: Income and expense relating to commissions and similar fees are recognized in the income statement using criteria that vary according to the nature of such items. The most significant items in this regard are: a. Those relating to financial assets and liabilities measured at fair value through profit or loss, which are recognized immediately in the income statement. b. Those arising from transactions or services that are provided over a period of time, which are recognized over the life of these transactions or services. c. Those relating to a singular transaction, which are recognized when this singular transaction is carried out. – Deferred collections and payments: These are recognized for accounting purposes at the amount resulting from discounting the expected cash flows at market rates. 2.15 Sales of assets and income from the provision of non-financial services The heading “Other operating income” in the income statement includes the proceeds of the sales of assets and income from the services provided by the Bank that are not financial institutions (see Note 38). 2.16 Foreign-currency transactions The currency in which the Financial Statements of the BBVA Group are presented is the euro. As such, all balances and transactions denominated in currencies other than the euro are deemed to be expressed in “foreign currency”. Assets, liabilities and derivatives The assets and liabilities in foreign currencies, including those of branches abroad, are converted to euros at the average exchange rates on the European spot currency market at the end of each period. Non-monetary items measured at historical cost have been translated at the exchange rate at the date of acquisition, and non- monetary items measured at fair value have been translated at the exchange rate at the date on which the fair value was determined. The exchange differences produced when converting these balance in foreign-currency to Euro are recognized under the heading “Exchange differences, net" in the income statement. However, the exchange differences in non-monetary items measured at fair value are recorded to equity under the heading “Accumulated other comprehensive income (loss) - Items that will not be reclassified to profit or loss - Fair value changes of equity instruments measured at fair value through other comprehensive income” (see Note 27). The breakdown of the main balances in foreign currencies as of December 31, 2024 and 2023, with reference to the most significant foreign currencies, is set forth in Appendix VIII. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 30 Structural currency positions As a general policy, the Bank’s investments in foreign subsidiaries are financed in Euros, managing open currency risk through derivatives. the future currency risk arising from these transactions. In the case of endowment funds for foreign branches, they are financed in the same currency as the investment. 2.17 Entities and branches located in countries with hyperinflationary economies None of the functional currencies of the branches located abroad relate to hyperinflationary economies as defined by Circular 4/2017 and subsequent amendments. Accordingly, as of December 31, 2024 and 2023 it was not necessary to adjust the financial statements of any branch to correct for the effect of inflation. 2.18 Statements of recognized income and expense The statements of recognized income and expense reflect the income and expenses generated each year. They distinguish between income and expense recognized as results in the income statements and “Accumulated other comprehensive income” (see Note 27) recognized directly in equity. “Accumulated other comprehensive income” include the changes that have taken place in the year in the “Accumulated other comprehensive income” broken down by item. The sum of the changes to the heading “Accumulated other comprehensive income” of the total equity and the net income of the year forms the “Accumulated other comprehensive income”. 2.19 Statements of changes in equity The statements of changes in equity reflect all the movements generated in each year in each of the headings of the equity, including those from transactions undertaken with shareholders when they act as such, and those due to changes in accounting criteria or corrections of errors, if any. The applicable regulations establish that certain categories of assets and liabilities are recognized at their fair value with a charge to equity. These charges, known as “Accumulated other comprehensive income” (see Note 27), are included in the Bank’s total equity net of tax effect, which has been recognized as deferred tax assets or liabilities, as appropriate. 2.20 Statements of cash flows The indirect method has been used for the preparation of the statement of cash flows. This method starts from the Bank’s net income and adjusts its amount for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments, and items of income or expense associated with cash flows classified as investment or finance. As well as cash, short-term, highly liquid investments subject to a low risk of changes in value, such as cash and deposits in central banks, are classified as cash and cash equivalents. When preparing these financial statements, the following definitions have been used: – Cash flows: Inflows and outflows of cash and cash equivalents. – Operating activities: The typical activities of credit institutions and other activities that cannot be classified as investment or financing activities. – Investing activities: The acquisition, sale or other disposal of long-term assets and other investments not included in cash and cash equivalents or in operating activities. – Financing activities: Activities that result in changes in the size and composition of the Bank's equity and of liabilities that do not form part of operating activities. 2.21 Recent pronouncements During the year 2024, no modification to Circular 4/2017 has come into force with an impact on these individual Financial Statements. 3. Shareholder remuneration system Amendment of Shareholder Remuneration Policy BBVA's Board of Directors announced by means of Relevant Information, on November 18, 2021, the amendment of the Bank's shareholder remuneration policy (announced on February 1, 2017 by means of Relevant Information), establishing as a policy to distribute annually between 40% and 50% of the consolidated ordinary profit for each year (excluding amounts and items of an extraordinary nature included in the consolidated income statement), compared to the previous policy that established a distribution between 35% and 40%. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 31 This policy is implemented through the distribution of an interim dividend for the year (which is expected to be paid in October of each year) and a final dividend or final distribution (which is expected to be paid at the end of the year and once the application of the result is approved, foreseeably in April of each year), with the possibility of combining cash distributions with share buybacks, all subject to the corresponding authorizations and approvals applicable at any given time. Shareholder remuneration during financial year 2023 Cash distributions During the 2023 financial year, the Annual General Shareholders' Meeting and the Board of Directors approved the payment of the following cash amounts: – The Annual General Shareholders' Meeting of BBVA held on March 17, 2023, approved, under item 1.3 of the Agenda, a cash distribution against the 2022 results as a final dividend for the year 2022 fiscal year, for an amount equal to €0.31 gross (€0.2511 net of withholding tax) per outstanding BBVA share entitled to participate in this distribution, which was paid on April 5, 2023. The total amount paid, amounted to €1,860 million. – The Board of Directors, at its meeting held on September 27, 2023, resolved the payment of a cash interim dividend of €0.16 gross (€0.1296 net of withholding tax) per outstanding share on account of the 2023 dividend, to be paid on October 11, 2023. The total amount paid, amounted to €952 million. Shareholder remuneration during financial year 2024 Cash distributions During the 2024 financial year, the Annual General Shareholders' Meeting and the Board of Directors approved the payment of the following cash amounts: – The Annual General Shareholders' Meeting of BBVA held on March 15, 2024, approved, under item 1.3 of the Agenda, a cash distribution against the 2023 results as a final dividend for the 2023 fiscal year, for an amount equal to €0.39 gross (€0.3159 net of withholding tax) per outstanding BBVA share entitled to participate in this distribution, which was paid on April 10, 2024. The total amount paid, excluding dividends paid in respect of treasury shares held by the Group's companies, amounted €2.249 million. – By means of an inside information notice (información privilegiada) dated September 26, 2024, BBVA announced that the Board of Directors, had resolved the payment of a cash interim dividend of €0.29 gross (€0.2349 net of withholding tax) per each outstanding BBVA share entitled to participate in this distribution, to be paid on October 10, 2024. The total amount paid, excluding dividends paid in respect of treasury shares held by the Group's companies, amounted to €1,671 million. The forecasted financial statement, drawn up in compliance with the applicable legal requirements, which evidenced the existence of sufficient liquidity to distribute the abovementioned amount approved by the Board of Directors of BBVA, was the following: Available amount for interim dividend payments (Millions of Euros) August 31, 2024 Profit of BBVA, S.A., after the provision for income tax 6,854 Maximum amount distributable 6,854 Amount of proposed interim dividend 1,671 BBVA cash balance available to the date 33,530 Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 32 Other shareholder remuneration On January 30, 2025, it was announced that a cash distribution in the amount of €0.41 gross per share to be paid presumably in April 2025 as the final dividend for the year 2024, and the execution of a share buyback program of BBVA for an amount of €993 million were planned to be proposed to the corresponding corporate bodies for consideration as ordinary remuneration to shareholders for 2024, subject to obtaining the corresponding regulatory authorizations and approval by the Board of Directors of the specific terms and conditions of the program, which will be communicated to the market prior to the start of its execution. Share buyback program Share buyback programs in 2023 On February 1, 2023, BBVA announced, among others, that it planned to submit for the consideration of the corresponding BBVA governing bodies the execution of a €422 million share buyback program, subject to obtaining the corresponding regulatory authorizations and to the communication of the specific terms and conditions of the share buy-back program before its execution, as an ordinary distribution of 2023. On March 17, 2023, after receiving the required authorization from the ECB, BBVA announced through an Inside Information notice the execution of a time-scheduled buyback program for the repurchase of own shares in accordance with the Regulations, aimed at reducing BBVA’s share capital by a maximum monetary amount of €422 million. The execution was carried out internally by BBVA, executing the trades through BBVA. By means of an Other Relevant Information notice dated April 21, 2023, BBVA announced the completion of the share buyback program upon reaching the maximum monetary amount of €422 million, having acquired 64,643,559 own shares, between March 20 and April 20, 2023, representing, approximately, 1.07% of BBVA's share capital as of said date. On June 2, 2023, BBVA notified through an Other Relevant Information notice a partial execution of the share capital reduction resolution adopted by the Annual General Shareholders’ Meeting of BBVA held on March 17, 2023, under item 3 of the agenda through the reduction of BBVA’s share capital in a nominal amount of €31,675,343.91 and the consequent redemption, charged to unrestricted reserves, of 64,643,559 own shares of €0.49 par value each acquired derivatively by BBVA in execution of the share buyback program and which were held in treasury shares (see Notes 23, 24, 25 and 26). On July 28, 2023, BBVA announced, by means of an Inside Information notice, its request to the ECB for the correspondent supervisory authorization in order to carry out a share buyback program of up to €1,000 million, subject to the authorization requested being granted, to the adoption of the corresponding corporate resolutions and to the communication of the specific terms and conditions of the share buyback program before its execution. This share buy-back program was considered as an extraordinary shareholder distribution. On October 2, 2023, after receiving the required authorization from the ECB, BBVA announced that it would implement a buyback program for the repurchase of own shares in accordance with the Regulations, aimed at reducing BBVA’s share capital by a maximum monetary amount of €1,000 million. The execution was carried out internally by BBVA, executing the trades through BBVA. By means of an Other Relevant Information notice dated November 29, 2023, BBVA announced the completion of the share buyback program upon reaching the maximum monetary amount of €1,000 million, having acquired 127,532,625 own shares, between October 2 and November 29, 2023, representing, approximately, 2.14% of BBVA's share capital as of said later date. On December 19, 2023, BBVA notified through an Other Relevant Information notice the second partial execution of the share capital reduction resolution adopted by the Annual General Shareholders’ Meeting of BBVA held on March 17, 2023, under item 3 of the agenda through the reduction of BBVA’s share capital in a nominal amount of €62,490,986 and the consequent redemption, charged to unrestricted reserves, of 127,532,625 own shares of €0.49 par value each acquired derivatively by BBVA in execution of the share buyback program and which were held in treasury shares (see Notes 23, 24, 25 and 26). Share buyback program in 2024 On March 4, 2024, after receiving the required authorization from the European Central Bank, BBVA announced by means of an Inside Information notice the execution of a time-scheduled buyback program for the repurchase of own shares, all in accordance with the Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse and Commission Delegated Regulation (EU) No. 2016/1052 of March 8, 2016, for a maximum monetary amount of €781 million. The execution was carried out externally by Citigroup Global Markets Europe AG. By means of an Other Relevant Information notice dated April 9, 2024, BBVA announced the completion of the share buyback program upon reaching the maximum monetary amount, having acquired a total of 74,654,915 own shares, between March 4 and April 9, 2024, representing, approximately, 1.28% of BBVA's share capital as of such date. On May 24, 2024, BBVA notified through an Other Relevant Information notice the partial execution of the share capital reduction resolution adopted by the Annual General Shareholders’ Meeting of BBVA held on March 15, 2024, under item 3 of the Agenda through the reduction of BBVA’s share capital in a nominal amount of €36,580,908.35 and the consequent redemption, charged to unrestricted reserves, of 74,654,915 own shares of €0.49 par value each acquired derivatively by BBVA in execution of the own share buyback program and which were held as treasury shares (see Notes 23, 24, 25 and 26). Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 33 Proposal on allocation of earnings for 2024 Below is included a breakdown of the distribution of the Bank´s earnings for financial year 2024, which the Board of Directors will submit to the Annual General Shareholders' Meeting for approval. Allocation of earnings (Millions of Euros) 2024 Profit (loss) for the year 10,235 Distribution Interim dividends 1,671 Final dividend 2,363 Reserves / Accumulated gains 6,200 4. Earnings per share Basic and diluted earnings per share are calculated in accordance with the criteria established by IAS 33. For more information, see Glossary. The calculation of earnings per share of BBVA is as follows: Basic and Diluted Earnings per Share 2024 2023 Numerator for basic and diluted earnings per share (millions of euros) Profit attributable to parent company 10,054 8,019 Adjustment: Additional Tier 1 securities ⁽¹⁾ (388) (345) Profit adjusted (millions of euros) (A) 9,666 7,675 Profit (loss) from continued operations (net of remuneration of Additional Tier 1 capital instruments) 9,666 7,675 Profit (loss) from discontinued operations (net of non-controlling interest) (B) — — Denominator for basic earnings per share (number of shares outstanding) Weighted average number of shares outstanding 5,793 5,988 Average treasury shares (10) (5) Share buyback program ⁽²⁾ (13) (28) Adjusted number of shares - Basic earnings per share (C) 5,769 5,954 Adjusted number of shares - diluted earnings per share (D) 5,769 5,954 Earnings (losses) per share 1.68 1.29 Basic earnings (losses) per share from continuing operations (Euros per share) A-B/C 1.68 1.29 Diluted earnings (losses) per share from continuing operations (Euros per share) A-B/D 1.68 1.29 Basic earnings (losses) per share from discontinued operations (Euros per share) B/C — — Diluted earnings (losses) per share from discontinued operations (Euros per share) B/D — — (1) Remuneration in the year related to perpetual contingent convertible securities, recognized in equity (see Note 20.4). (2) For the calculation of earnings per share: the average number of shares in a year takes into account the redemptions made in such year related to the share buyback programs announced (see Note 3). As of December 31, 2024 and 2023, there were no other financial instruments or share option commitments to employees that could potentially affect the calculation of the diluted earnings per share for the years presented. For this reason, basic and diluted earnings per share are the same. 5. Risk management 5.1 Risk factors The BBVA Group has processes in place for identifying risks and analyzing scenarios in order to enable the Group to manage risks in a dynamic and proactive way. The risk identification processes are forward looking to seek the identification of emerging risks and take into account the concerns of both the business areas, which are close to the reality of the different geographical areas, and the corporate areas and senior management. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 34 Risks are identified and measured consistently using the methodologies deemed appropriate in each case. Their measurement includes the design and application of scenario analyses and stress testing and considers the controls to which the risks are subjected. As part of this process, a forward projection of the Risk Appetite Framework (hereinafter "RAF") variables in stress scenarios is conducted in order to identify possible deviations from the established thresholds. If any such deviations are detected, measures are taken to seek to keep the variables within the target risk profile. In this context, there are a number of emerging risks that could affect the evolution of the Group’s business, including the below: – Macroeconomic and geopolitical risks The Group is sensitive to the deterioration of economic conditions, the alteration of the institutional environment of the countries in which it operates, and the Group is exposed to sovereign debt especially in Spain, Mexico and Turkey. The global economy is currently facing a number of extraordinary challenges. The war between Ukraine and Russia and the armed conflicts in the Middle East have caused significant disruptions, instability and volatility in global markets, particularly in energy markets. Uncertainty about the future development of these conflicts is high. The main risk is that they could generate new supply shocks, pushing growth downward and inflation upward, and paving the way for macroeconomic and financial instability episodes. Geopolitical and economic risks have also increased in recent years as a result of trade tensions between the United States and China, Brexit, and the rise of populism, among other factors. Growing tensions and the rise of populism may lead, among other things, to a deglobalization of the world economy, an increase in protectionism, a general reduction of international trade and a reduction in the integration of financial markets. The policies to be adopted by the new United States government, from January 20, 2025, are an additional source of uncertainty for the global economy. Some of the measures recently advocated by the incoming administration, such as the adoption of higher import tariffs and tighter immigration controls, may increase inflationary pressures and weaken economic growth. Fiscal, regulatory, industrial, foreign and other policies could also generate financial and macroeconomic volatility. In the current context, one of the main risks is that inflation remains high, either due to new supply shocks, related for example to the previously mentioned geopolitical and political risks or climate events, or due to demand factors, caused by an excessively expansionary fiscal policy, the robustness of labor markets, or other factors. Significant inflationary pressures could lead to interest rates remaining higher than currently forecasted, which could negatively affect the macroeconomic environment and financial markets. Another macroeconomic risk is the possibility of a sharp global growth slowdown. In a context marked by uncertainty and still elevated interest rates, labor markets and aggregate demand could weaken more significantly than expected. Moreover, despite increasing economic stimulus measures, growth in China could slow sharply, with a potentially negative impact on many geographical areas, due to tensions in real estate markets and economic sanctions imposed by the United States, among other factors. Furthermore, there is a growing risk of tensions in sovereign debt markets, given the high levels of public debt in many developed and emerging countries, the relatively high interest rates, and expectations of slower economic growth. The Group is exposed, among others, to the following general risks with respect to the economic and institutional environment in the countries in which it operates: a deterioration in economic activity in the countries in which it operates, including recession scenarios; more persistent inflationary pressures, which could trigger a more severe tightening of monetary conditions; stagflation due to more intense or prolonged supply shocks such as, for example, an increase in oil and gas prices to very high levels, which would have a negative impact on disposable income levels in areas that are net energy importers, such as Spain or Turkey, to which the Group is particularly exposed; changes in exchange rates; an unfavorable evolution of the real estate market; changes in the institutional environment of the countries in which the Group operates, which could give rise to sudden and sharp drops in GDP and/or changes in regulatory or government policy, including in terms of exchange controls and restrictions on the distribution of dividends or the imposition of new taxes or charges; growth in the public debt or in the external deficit could lead to a downward revision of the credit ratings of the sovereign debt and even a possible default or restructuring of such debt; the impact of the upcoming policies of the new U.S. administration, about which there is significant uncertainty; and episodes of volatility in the financial markets, which could cause significant losses for the Group. The Group’s results of operations have been particularly affected by the increases in interest rates adopted by central banks in an attempt to tame inflation, contributing to the rise in both interest revenue and interest expenses. The persistence of interest rates at relatively high levels or any increase in interest rates in the future could adversely affect the Group by reducing the demand for credit and leading to an increase in the default rate of its borrowers and other counterparties. Moreover, the Group’s results of operations have been affected by inflation in all countries in which BBVA operates, especially Turkey and Argentina. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 35 In particular, in Spain, political, regulatory and economic uncertainty has also increased since the July 2023 general elections; there is a risk that policies could have an adverse impact on the economy or the Group. There is also a risk that the impact on financial conditions of political tensions in other European countries could to some extent affect Spain. In Mexico, there is high uncertainty on the impact of the recently approved constitutional reforms, as well as on the policies that will be adopted by the new local government and by the new U.S. administration (in particular, if protective measures become more aggressive and persist over time, which could adversely impact the Group's expectations regarding the country's economic growth). In Turkey, there are increasing signs of normalization in economic policy in general, and monetary policy in particular, since the general elections held in May 2023, which may lead to a gradual correction of the current distortions. Despite the gradual improvement of macroeconomic conditions, the situation remains relatively unstable, characterized by pressures on the Turkish lira, high inflation, a significant trade deficit, low central bank’s foreign reserves and high external financing costs. There is also uncertainty about the impact of the geopolitical context in the Middle East on Turkey. In particular, recent regime changes in Syria create opportunities, such as a potential increase in exports and lower migratory pressures, but also risks, which could cause greater volatility of Turkish financial assets, among other possible effects. Continuing unfavorable economic conditions in Turkey may result in a potential deterioration in the purchasing power and creditworthiness of the clients of the Group (both individuals and corporations). In addition, official interest rates, the regulatory and macroprudential policies affecting the banking sector and the currency depreciation have affected and may continue to affect the Group’s results. In Argentina, the risk of economic and financial turbulence persists in a context in which the government has substantially modified the economic policy framework and has focused its efforts on implementing strong fiscal and monetary adjustments to reduce inflation. Finally, in Colombia and Peru, climate factors, political tensions and greater social conflict could eventually have a negative impact on the economy. Any of these factors may have a significant adverse impact on the Group’s business, financial condition and results of operations. – Regulatory and reputational risks Financial institutions are exposed to a complex and ever-changing regulatory environment defined by governments and regulators. Regulatory activity in recent years has affected multiple areas, including changes in accounting standards; strict regulation of capital, liquidity and remuneration; bank charges (such as the new tax for banks recently implemented in Spain, see Note 38) and taxes on financial transactions; regulations affecting mortgages, banking products and consumers and users; recovery and resolution measures; stress tests; prevention of money laundering and terrorist financing; market abuse; conduct in the financial markets; anti- corruption; and requirements as to the periodic publication of information. Governments, regulatory authorities and other institutions continually make proposals to strengthen the resistance of financial institutions to future crises. Further, there is an increasing focus on the climate-related financial risk management capabilities of banks (see "Environmental, social and governance (“ESG”) risks may adversely impact the Group"). Any change in the Group’s business that is necessary to comply with any particular regulations at any given time, especially in Spain, Mexico or Turkey, could lead to a considerable loss of income, limit the Group’s ability to identify business opportunities, affect the valuation of its assets, force the Group to increase its prices and, therefore, reduce the demand for its products, impose additional costs on the Group or otherwise adversely affect its business, financial condition and results of operations. The financial sector is under ever closer scrutiny by regulators, governments and society itself. In the course of activities, situations which might cause relevant reputational damage to the Group could arise and might affect the regular course of business. – New business, operational and legal risks New technologies and forms of customer relationships: Developments in the digital world and in information technologies pose significant challenges for financial institutions, entailing threats (new competitors, disintermediation, etc.) but also opportunities (new framework of relations with customers, greater ability to adapt to their needs, new products and distribution channels, etc.). Digital transformation is a priority for the Group as it aims to lead digital banking of the future as one of its objectives. Technological risks and security breaches: The Group is exposed to new threats such as cyber-attacks, theft of internal and customer databases, fraud in payment systems, etc. that require major investments in security from both the technological and human point of view. The Group gives great importance to the active operational and technological risk management and control. Any attack, failure or deficiency in the Group’s systems could, among other things, lead to the misappropriation of funds of the Group’s clients or the Group itself and the unauthorized disclosure, destruction or use of confidential information, as well as prevent the normal operation of the Group and impair its ability to provide services and carry out its internal management. In addition, any attack, failure or deficiency could result in the loss of customers and business opportunities, damage to computers and systems, violation of regulations regarding data protection and/or other regulations, exposure to litigation, fines, sanctions or interventions, loss of confidence in the Group’ s security measures, damage to its reputation, reimbursements and compensation, and additional regulatory compliance expenses and could have a significant adverse impact on the Group’ s business, financial condition and results of operations. Legal risks: The financial sector faces an environment of increasing regulatory and litigious pressure, and thus, the various Group entities are frequently party to individual or collective judicial proceedings (including class actions) resulting from their activity and operations, as well as arbitration proceedings. The Group is also party to government procedures and investigations, such as those carried out by the antitrust authorities in certain countries which, among other things, have in the past and could in the future result in sanctions, as well as lead to claims by customers and others. In addition, the regulatory framework in the jurisdictions in which the Group operates is evolving towards a supervisory approach more focused on the opening of sanctioning proceedings while some regulators are focusing their attention on consumer protection and behavioral risk. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 36 In Spain and in other jurisdictions where the Group operates, legal and regulatory actions and proceedings against financial institutions, prompted in part by certain judgments in favor of consumers handed down by national and supranational courts (with regards to matters such as credit cards and mortgage loans), have increased significantly in recent years and this trend could continue in the future. Legal and regulatory actions and proceedings faced by other financial institutions in relation to these and other matters, especially if such actions or proceedings result in favorable resolutions for the consumer, could also adversely affect the Group. There are also claims before the Spanish courts challenging the validity of certain revolving credit card agreements. Rulings in these types of proceedings, whether against the Bank or other financial institutions, could negatively affect the Group. Additionally, in relation to the ESG area, factors that may affect these new business, operational and legal risks have been identified (see "Environmental, social and governance ("ESG") risks may adversely affect the Group"). All of the above may result in a significant increase in operating and compliance costs or even a reduction of revenues, and it is possible that an adverse outcome in any proceedings (depending on the amount thereof, the penalties imposed or the procedural or management costs for the Group) could damage the Group's reputation, generate a knock-on effect or otherwise adversely affect the Group. It is difficult to predict the outcome of legal and regulatory actions and proceedings, both those to which the Group is currently exposed and those that may arise in the future, including actions and proceedings relating to former Group subsidiaries or in respect of which the Group may have indemnification obligations. Any of such outcomes could be significantly adverse to the Group. In addition, a decision in any matter, whether against the Group or against another credit entity facing similar claims as those faced by the Group, could give rise to other claims against the Group. In addition, these actions and proceedings attract resources from the Group and may occupy a great deal of attention on part of the Group's management and employees. As of December 31, 2024, the Group had €791 million in provisions for the proceedings it is facing (included in the line "Provisions for taxes and other legal contingencies" in the consolidated balance sheet), of which €610 million correspond to legal contingencies and €181 million to tax related matters. However, the uncertainty arising from these proceedings (including those for which no provisions have been made, either because the probability of an unfavorable outcome for the Group is estimated to be remote, or because it is not possible to estimate them or for other reasons) makes it impossible to guarantee that the possible losses arising from the resolution of these proceedings will not exceed, where applicable, the amounts that the Group currently has provisioned and, therefore, could affect the Group's consolidated results in a given period. As a result of the above, legal and regulatory actions and proceedings currently faced by the Group or to which it may become subject in the future or which may otherwise affect the Group, whether individually or in the aggregate, if resolved in whole or in part adversely to the Group's interests, could have a material adverse effect on the Group’s business, financial condition and results of operations. Spanish judicial authorities are investigating the activities of Centro Exclusivo de Negocios y Transacciones, S.L. (“Cenyt”). Such investigation includes the provision of services by Cenyt to BBVA. On July 29, 2019, BBVA was named as an investigated party (investigado) in a criminal judicial investigation (Preliminary Proceeding No. 96/2017 – Piece No. 9, Central Investigating Court No. 6 of the National High Court) for alleged facts which could constitute bribery, revelation of secrets and corruption. Certain current and former officers and employees of the Group, as well as former directors, have also been named as investigated parties in connection with this investigation. Since the beginning of the investigation, BBVA has been proactively collaborating with the Spanish judicial authorities, including sharing with the courts information obtained in the internal investigation hired by the entity in 2019 to contribute to the clarification of the facts. By order of the Criminal Chamber of the National High Court, the pre-trial phase ended on January 29, 2024. On June 20, 2024, the Judge issued an order authorizing the continuation of abbreviated criminal proceedings against the Bank and certain current and former officers and employees of the Bank, as well as against some former directors, for alleged facts which could constitute bribery and revelation of secrets. It is not possible at this time to predict the possible outcomes or implications for the Group of this matter, including any fines, damages or harm to the Group’s reputation caused thereby. – Environmental, social and governance (ESG) risks may adversely impact the Group ESG factors present risks associated with (i) climate change, including physical risks and transition risks (linked, among others, to changes in regulations, technologies, and market preferences associated with the transition to a less carbon-dependent economy); (ii) other environmental factors, such as biodiversity loss, water stress and other nature-related factors; (iii) social factors, such as human rights, inclusion, diversity and workplace safety; and (iv) corporate governance matters, such as the governance of environmental and social risks. ESG risks include short, medium and long-term risks that may adversely affect the Group and its customers or counterparties. Such risks are expected to increase and/or evolve over time. Among others, they include the following: Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 37 – Physical risks. The activities of the Group or those of its customers or counterparties could be adversely affected by the physical risks (including acute and chronic) arising from climate change or other environmental challenges. For example, extreme weather events may damage or destroy properties and other assets of the Group or those of its customers or counterparties, make the insurance against certain risks more expensive or unfeasible, result in increased costs, or otherwise disrupt their respective operations (for example, if supply chains are disrupted as a result), diminishing –in the case of the Group’s customers or counterparties - their repayment capacity and, if applicable, the value of assets granted as collateral to the Group. The Group is also exposed to potential long-term physical risks arising from climate change and other environmental challenges, such as any ensuing deterioration in economic conditions that results in credit-related costs, or potential impacts on the Group’s assets and operations. The Group could also be required to change its business models in response to the foregoing. – Legal and regulatory risks. Legal and regulatory changes related to how banks are required to manage climate and other ESG risks or otherwise affecting banking practices or disclosure of information may result in higher compliance, operational and credit risks and costs. The Group’s customers and counterparties may be exposed to similar risks. Further, legal and regulatory changes may result in legal uncertainty and the existence of overlapping or conflicting regulatory or other requirements. They may also give rise to regulatory asymmetries whereby some persons, including the Group and its customers and counterparties, are more heavily regulated than others, placing such persons at a disadvantage. The Group or its customers or counterparties may be unable to meet any new requirements on a timely basis or at all, including new product and service specifications, governance frameworks and practices and disclosure requirements and standards. In addition, in the case of banks, new regulation could include requirements related to lending, investing, capital and liquidity adequacy and operational resilience. The incorporation of ESG risks in the existing prudential framework is still developing and may result in increased risk weighting of certain assets. Moreover, there are significant risks and uncertainties inherent in the development of adequate risk assessment and modelling capabilities with respect to ESG- related matters and the collection of customer, third party and other data, which may result in the Group’s systems or frameworks (or those of its customers and counterparties, where applicable) being inadequate, inaccurate or susceptible to incorrect customer, third party or other data, any of which could adversely affect the Group’s disclosure and financial reporting. Further, increased regulation arising from climate change and other ESG-related challenges could result in increased litigation by different stakeholders (including non-governmental organizations (NGOs)) and regulatory investigations and actions. – Technological risks. Certain of the Group’s customers and counterparties may be adversely affected by the progressive transition to a low-carbon economy and/or risks and costs associated with new low-carbon technologies. If the Group’s customers and counterparties fail to adapt to the transition to a low-carbon economy, or if the costs of doing so adversely affect their creditworthiness, this could adversely affect the Group’s relevant loan portfolios. – Market risks. The Group and certain of the Group’s customers and counterparties may be adversely affected by changes in market preferences due to, among others, increased ESG awareness. Further, the funding costs of businesses that are perceived to be more exposed to climate change or to other ESG-related risks could increase. Any of this could result in the reduced creditworthiness of such customers and counterparties, adversely affecting the Group’s relevant loan portfolios. The Group and its customers and counterparties could also be adversely affected by changes in prices resulting from shifts in demand or supply brought by climate change or other ESG-related factors, including prices of energy and raw materials, or by their inability to foresee or hedge any such changes. – Reputational risks. The perception of climate change and other ESG-related challenges as a risk by society, shareholders, customers, governments and other stakeholders (including NGOs) continues to increase, including in relation to the financial sector’s activities. This may result in increased scrutiny of the Group’s activities, as well as its ESG-related policies, goals, disclosures or communications. The Group’s reputation and ability to attract or retain customers may be harmed if its efforts to reduce ESG-related risks are deemed to be insufficient or if a perception is generated among the different stakeholders that the Group’s statements, actions or disclosure do not fairly reflect the underlying sustainability profile of the Group, its products, services, goals and/or policies. At the same time, the Group may refrain from undertaking lending or investing activities or other services that would otherwise have been profitable in order to fulfill its obligations or avoid reputational harm. Further, divergent views on ESG policies may also have a negative impact on the Group’s reputation. Increased scrutiny of the Group’s activities, as well as its ESG-related policies, goals and disclosure may result in litigation and investigations and supervisory actions (including potential greenwashing claims). The Group has disclosed certain aspirational ESG-related goals and such goals, which are being pursued over the long-term, may prove to be considerably more costly or difficult than currently expected, or even impossible, to achieve, including as a result of changes in regulation and policy, the pace of technological change and innovation and the actions of governments and the Group’s customers and competitors. Potential greenwashing claims arising from ESG-related statements, disclosure and/or actions of the Group may also give rise to reputational risks. Any of these factors may have a material adverse effect on the Group’s business, financial condition and results of operations. 5.2 Credit risk Credit risk is the potential loss assumed by the Bank as a result of the failure by the Bank´s counterparties to meet their contractual obligations. The general principles governing credit risk management in the BBVA are: – Risks taken should comply with the general risk policy established by the Board of Directors of BBVA. – Risks taken should be in line with the level of equity and generation of recurring revenue of the BBVA prioritizing risk diversification and avoiding relevant concentrations. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 38 – Risks taken should be identified, measured and assessed and there should be management and monitoring procedures, in addition to sound mitigation and control mechanisms. – Risks should be managed in a prudent and integrated manner during their life cycle and their treatment should be based on the type of risk. In addition, portfolios should be actively managed on the basis of a common metric (economic capital). – The main criterion when granting credit risks is the capability of the borrower or obligor to fulfill on a timely basis all financial obligations with its business income or source of income without depending upon guarantors, bondsmen or pledged assets. – Improve the financial health of our clients, help them in their decision making and in the daily management of their finances based on personalized advice. – Help our clients in the transition towards a sustainable future, with a focus on climate change and inclusive and sustainable social development. Credit risk management in BBVA has an integrated structure for all its functions, allowing decisions to be taken objectively and independently throughout the life cycle of the risk. At Bank level: frameworks for action and standard rules of conduct are defined for handling risk, specifically, the channels, procedures, structure and supervision. The risk function has a decision-making process supported by a structure of committees with a solid governance scheme, which describes their purposes and functioning for a proper performance of their tasks. In addition, credit risk is affected by ESG-related risks, mainly through physical and transition risks that may impact the payment capacity of counterparties and the valuation of the collateral used and, therefore, expected credit losses (see "Environmental, social and governance (“ESG”) risks may adversely impact the Group"). In 2024, the Bank has begun incorporating climate risk factors into the process of calculating expected credit losses for loan portfolios through statistical models that consider both potential damage to collateral and the effect on customers' ability to pay due to physical and transition risk. In particular, transition risk has been assessed using an approach that allows capturing its effect on the probability of default (PD) and the impact on customers' provisions in Stage 2 as well as a transfer of exposures from Stage 1 to Stage 2 for corporate portfolios. For physical risk, an approach has been used that would allow estimating the potential deterioration in the value of collateral (real estate assets in corporate and retail portfolios) and its effect on LGD. As of December 31, 2024, the impact recorded for these risks was not significant. The Bank will continue working to incorporate in these models the information available at all times Support measures In previous years, BBVA reported information on the support measures that it provided to its customers under various legislative and sectorial initiatives. These measures included, in particular, those related to the COVID-19 pandemic, which affected several countries and geographical areas where the Group operates. In Spain, it included measures adopted under Royal Decree-Law 6/2022, to alleviate liquidity tensions due to the increases in energy prices and raw materials. These measures have not had any significant impact on the financial statements of the Bank as of and for the year ended December 31, 2024. In addition, in Spain, the Code of Good Practices regulated by Royal Decree-Law 6/2012, as well as its subsequent amendments, establishes a code of good practices to alleviate the impact of the rise in interest rates on mortgage loans for primary residences, adopting other structural measures to improve the loan market. Up to the date of preparation of these Consolidated Financial Statements, the number and amount of operations granted to clients in compliance with this Code of Good Practices remain reduced. In 2024, these support measures implemented in Spain were supplemented by those introduced by Royal Decree-Law 6/2024, which adopted urgent measures to address the damage caused by the torrential rains and floods - Isolated Depression in High Levels - (DANA) in various Spanish municipalities between October 28 and November 4, 2024, especially in the Valencian Community. These measures include the granting of state-guaranteed financing and payment deferrals for borrowers meeting specific requirements. The BBVA Group is facilitating the channelling of this financing through the so-called "DANA Guarantee Line" and granting payment in accordance with the provisions of Royal Decree-Law 6/2024. These measures have not had any significant impact on the consolidated financial statements of the Bank as of and for the year ended December 31, 2024. 5.2.1 Measurement of Expected Credit Loss Bank of Spain Circular 4/2017 requires determining the Expected Credit Loss (hereinafter "ECL") of a financial instrument in a way that reflects an unbiased estimation removing any conservatism or optimism, including the time value of money and a forward looking perspective (including the economic forecast) all this based on the information that is available at a certain point in time and that is reasonable and bearable with respect to future economic conditions. Therefore, the recognition and measurement of ECL is highly complex and involves the use of significant analysis and estimation including formulation and incorporation of forward-looking economic conditions into the ECL model. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 39 The modeling of the ECL calculation is subject to a governance system that is common to the BBVA. Within this common framework, the necessary adaptations have been made to capture the particularities of BBVA S.A. The methodology, assumptions and observations are reviewed annually, and after a validation and approval process, the outcome of this review is incorporated into the ECL calculations. Risk parameters by homogeneous groups Expected losses can be estimated both individually and collectively. Regarding the collective estimate, the instruments are distributed in homogeneous groups (segments) that share similar risk characteristics. Following the guidelines established by the Group for the development of models under the applied norm, the Bank performed the grouping based on the information available, its representativeness or relevance and compliance with the necessary statistical requirements. Depending on the portfolio or the parameter being estimated, one risk driver or another will apply and different segments will reflect differences in PDs and LGDs. Thus, in each segment, changes in the level of credit risk will respond to the impact of changing conditions on the common range of credit risk drivers. The effect on the Group’s credit risk in response to changes in forward-looking information will be considered as well. Macroeconomic modeling for each segment is carried out using some of the shared risk characteristics. These segments share credit risk characteristics such that changes in credit risk in a part of the portfolio are not concealed by the performance of other parts of the portfolio. In that sense, the methodology developed for ECL estimation indicates the risk drivers that have to be taken into account for PD segmentation purposes, depending on whether the estimation is for retail or wholesale portfolios. As an example of the variables that can be taken into consideration to determine the final models, the following stand out: – PD – Retail: Contractual residual maturity, credit risk scoring, type of product, days past due, forbearance, time on books, time to maturity, nationality of the debtor, sale channel, original term, indicator of credit card activity, percentage of initial drawn balance in credit cards. – PD – Wholesale: Credit Risk Rating, type of product, watch-list level, forbearance (client), time to maturity, industry sector, updated balance (y/n), written off, grace period. – LGD – Retail: credit Risk Scoring, segment, type of product, secured / unsecured, type of collateral, sales channel, nationality, business area, debtor’s commercial segment, forbearance (account) EAD (this risk driver could be correlated with the time on books or the LTV so, before including it, an assessment should be done in order to avoid a double counting effect), time on default of the account (for defaulted exposures), geographical location. – LGD – Wholesale: credit Risk Rating, geographical location, segment, type of product, secured / Unsecured, type of collateral, business area, forbearance (client), debtor’s commercial segment time on default of the deal (for defaulted exposures). – CCF – Wholesale/retail, percentage of initial drawn balance, debtor’s commercial segment, days past due, forbearance, credit limit activity, time on books. In BBVA, the expected losses calculated are based on the internal models developed for all the portfolios, unless clients are subject to individualized estimates. Low Default Portfolios, which include portfolios with high credit quality such as exposures to other credit institutions, sovereign debt or corporates and small client's portfolios with high exposures such as specialized lending or fixed income, are characterized by a low number of defaults, so the Group's historical bases do not contain sufficiently representative information to build impairment models based on them. However, there are external sources of information that, based on broader observations, are capable of providing the necessary inputs to develop models of expected losses. Therefore, based on the rating assigned to these exposures and taking into account the inputs obtained from these sources, the calculations of expected losses are developed internally, including their projection based on the macroeconomic perspectives. Individual estimation of Expected Credit Losses The Bank periodically and individually reviews the situation and credit rating of its customers, regardless of their classification, taking into consideration the information deemed necessary to do so. It also has procedures in place within the risk management framework to identify the factors that may lead to increased risk and, consequently, to a greater need for provisions. The monitoring model established by the Bank consists of continuously monitoring the risks to which it is exposed, which guarantees their proper classification in the different categories of the Standard. The original analysis of the exposures is reviewed through the procedures for updating the rating tools (rating and scoring), which periodically review the financial situation of clients, influencing the classification by stages of exposures. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 40 Within this credit risk management framework, the Bank has procedures that seek to guarantee the review, at least annually, of all its wholesale counterparties through the so-called financial programs, which include the current and proposed positioning of the Bank with the customer in terms of credit risk. This review is based on a detailed analysis of the client's up-to-date financial situation, which is complemented by other information available in relation to individual perspectives on business performance, industry trends, macroeconomic prospects or other public data. As a result of this analysis, the preliminary rating of the client is obtained, which, after undergoing the internal procedure, can be revised down if deemed appropriate (for example, general economic environment or evolution of the sector). These factors in addition to the information that the client can provide are used to review the ratings even before the scheduled financial plan reviews are conducted if circumstances warrant. Additionally, the Bank has established procedures to identify wholesale customers in the internal Watch List category, which is defined as that risk in which, derived from an individualized credit analysis, an increase in credit risk is observed, either due to economic or financial difficulties or because they have suffered, or are expected to suffer, adverse situations in their environment, without meeting the criteria for classification as impaired risk. Under this procedure, all a customer's Watch List exposures are considered stage 2 regardless of when they originated, if as a result of the analysis the customer is considered to have significantly increased risk. Finally, the Bank has so-called Workout Committee, which analyze not only the situation and evolution of significant clients in Watch List and impaired situations, but also those significant clients in which, although not on Watch List, may present some stage 2 rated exposure for a quantitative reason (PD comparison from origination). This analysis is carried out in order to decide if, derived from this situation, all the client's exposures should be considered in the Watch List category, which would imply the migration of all the client's operations to stage 2 regardless of the date on which they originated. With this, the Bank undertakes an individualized review of the credit quality of its wholesale counterparties, identifying the situations in which a change in the risk profile of these clients may have occurred and proceeding, where appropriate, to estimate individualized credit losses. Along with this review, the Group individually estimates the expected losses of those clients whose total exposure exceeds certain thresholds, including those that part of their operations may be classified in stage 1 and part in stage 2. In setting thresholds, each geography determines the minimum amount of a client's exposure whose expected losses must be estimated individually taking into account the following: – For clients with exposures in stage 3. The analysis of clients with total risk above this threshold implies analyzing at least 40% of the total risk of the wholesale portfolio in stage 3. Although the calibration of the threshold is done on the wholesale portfolio, clients of other portfolios must be analyzed if they exceed the threshold, staying in stage 3. – For all other situations. The analysis of clients with total risk above this threshold implies analyzing at least 20% of the total risk of the Watch List wholesale portfolio. Although the threshold calibration is carried out on the exposure classified as Watch List, wholesale clients or clients belonging to other portfolios that have exposures classified in stage 2 and whose total exposure exceeds the mentioned threshold must be analyzed individually, considering both the exposures classified in stage 1 as in stage 2. Regarding the methodology for the individual estimation of expected losses, it should be mentioned, firstly, that these are measured as the difference between the asset’s carrying amount and the estimated future cash flows discounted at the financial asset’s effective interest rate. The estimated recoverable amount should correspond to the amount calculated under the following method: – the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate; and – the estimation of the recoverable amount of a collateralized exposure reflects the cash flows that may result from the settlement of the collateral, as well as prospective information the analyst may implicitly include in the analysis. The estimated future cash flows depend on the type of approach applied, which can be: – Going concern scenario: when the entity has updated and reliable information about the solvency and ability of payment of the holders or guarantors. The operating cash flows of the debtor, or the guarantor, continue and can be used to repay the financial debt to all creditors. In addition, collateral may be exercised to the extent it does not influence operating cash flows. The following aspects should be taken into account: a. Future operating cash flows should be based on the financial statements of the debtor. b. When the projections made on these financial statements assume a growth rate, a constant or decreasing growth rate must be used over a maximum growth period of 3 to 5 years, and subsequently constant cash flows. c. The growth rate should be based on the analysis of the evolution of the debtor's financial statements or on a sound and applicable business restructuring plan, taking into account the resulting changes in the structure of the company (for example, due to divestments or the interruption of unprofitable lines of business). d. (Re)-investments that are needed to preserve cash flows should be considered, as well as any foreseeable future cash-flow changes (e.g. if a patent or a long-term loan expires). Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 41 e. When the recoverability of the exposure relies on the realization of the disposal of some assets by the debtor, the selling price should reflect the estimated future cash flows that may result from the sale of the assets less the estimated costs associated with the disposal. – Gone concern scenario: when the entity does not have updated and reliable information, it should consider that the estimation of loan receivable flows is highly uncertain. Estimation should be carried out through the estimation of recoverable amounts from the effective real guarantees received. It will not be admissible as effective guarantees, those whose effectiveness depends substantially on the creditworthiness of the debtor or economic group in which it takes part. Under a gone concern scenario, the collateral is exercised and the operating cash flows of the debtor cease. This could be the case if: a. The exposure has been past due for a long period. There is a rebuttable presumption that the allowance should be estimated under a gone concern criterion when arrears are greater than 18 months. b. Future operating cash flows of the debtor are estimated to be low or negative. c. Exposure is significantly collateralized, and this collateral is central to cash-flow generation. d. There is a significant degree of uncertainty surrounding the estimation of the future cash flows. This would be the case if the earnings before interest, taxes, depreciation and amortization (EBITDA) of the two previous years had been negative, or if the business plans of the previous years had been flawed (due to material discrepancies in the backtesting). e. Insufficient information is available to perform a going concern analysis. Significant increase in credit risk As indicated in Note 2.1, the criteria for identifying the significant increase in risk are applied consistently, distinguishing between quantitative reasons or by comparison of probabilities of default and qualitative reasons (more than 30 days of default, watch list consideration or non-impaired refinancing). To manage credit risk, the Bank uses all relevant information that is available and that may affect the credit quality of the exposures. This information may come mainly from the internal processes of admission, analysis and monitoring of operations, from the strategy defined by the Bank regarding the price of operations or distribution by geographical areas, products or sectors of activity, from the observance of the macroeconomic environment, from market data such as interest rate curves, or prices of the different financial instruments, or from external sources of credit rating. This set of information is the basis for determining the rating and scoring (see Note 5.2.4 for more information on rating and scoring systems) corresponding to each of the exposures and which are assigned a probability of default (PD) that, as already mentioned, is subject to an annual review process that assesses its representativeness (backtesting) and is updated with new observations. Furthermore, the projection of these PDs over time has been modeled based on macroeconomic expectations, which allows obtaining the probabilities of default throughout the life of the operations. Based on this methodology, and in accordance with the provisions of the standard and the EBA guidelines on credit risk management practices, BBVA has established absolute and relative thresholds for identifying whether the expected changes in the probabilities of default have increased significantly compared to the initial moment, adapted to the particularities of each one of them in terms of origination levels, product characteristics, distribution by sectors or portfolios, and macroeconomic situation. To establish the aforementioned thresholds, a series of general principles are considered, such as: – Uniformity: Based on the rating and scoring systems that, in a homogeneous manner, are implemented in the Group's units. – Stability: The thresholds must be established to identify the significant increase in risk produced in exposures since their initial recognition and not only to identify those situations in which it is already foreseeable that they will reach the level of impairment. For this reason, it is to be expected that of the total exposures there will always be a representative group for which said increased risk is identified. – Anticipation: The thresholds must consider the identification of the increased risk in advance with respect to the recognition of the exposures as impaired or even before a real default occurs. The calibration of the thresholds should minimize the cases in which the instruments are classified in stage 3 without having previously been recognized as stage 2. – Indicators or metrics: It is expected that the classification of the exposures in stage 2 will have sufficient permanence to be able to develop an anticipatory management plan with respect to them before, where applicable, they end up migrating to stage 3. – Symmetry: standard provides for a symmetric treatment both to identify the significant increase in risk and to identify that it has disappeared, so the thresholds also work to improve the credit classification of exposures. In this sense, it is expected that the cases in which the exhibitions that improve from stage 3 are directly classified into stage 1 will be minimal. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 42 – The identification of the significant increase in risk from the comparison of the probabilities of default should be the main reason why exposures in stage 2 are recognized. Specifically, a contract will be transferred to stage 2 when the following two conditions are met by comparing the current PD values and the origination PD values: (Current PD) / (Origination PD) - 1100 >Relative Threshold (%) and Current PD – Origination PD > Absolute threshold (bps) These absolute and relative thresholds are consistently established for each portfolio, taking into account their particularities and based on the principles described. The thresholds are included within the annual review process and, generally speaking, are in the range of 180% to 200% for the relative threshold and from 30 to 100 basis points for the absolute threshold. Specifically, in BBVA, S.A.'s wholesale portfolio the relative threshold is from 180% to 200% and the absolute threshold ranges from 30 to 100 basis points; in the retail portfolio the relative threshold is 200% while the absolute threshold ranges between 50 and 100 basis points. The establishment of absolute and relative thresholds, as well as their different levels, comply with the provisions of the standard when it indicates that a certain change, in absolute terms, in the risk of a default will be more significant for a financial instrument with a lower initial risk of default compared to a financial instrument with higher initial risk of default. For existing contracts before the implementation of the standard, given the limitations in the information available on them, the thresholds are calibrated based on the PDs obtained from the prudential or economic models for calculating capital. Risk Parameters Adjusted by Macroeconomic Scenarios Expected Credit Loss (ECL) must include forward looking information, in accordance with Circular 4/2017 which states that the comprehensive credit risk information must incorporate not only historical information but also all relevant credit information, also including forward-looking macroeconomic information. BBVA uses the typical credit risk parameters PD, LGD and EAD in order to calculate the ECL for the credit portfolios. BBVA methodological approach in order to incorporate the forward looking information aims to determine the relation between macroeconomic variables and risk parameters following three main steps: – Step 1: Analysis and transformation of time series data. – Step 2: For each dependent variable find conditional forecasting models that are economically consistent. – Step 3: Select the best conditional forecasting model from the set of candidates defined in Step 2, based on their forecasting capacity. How economic scenarios are reflected in the calculation of ECL The forward looking component is added to the calculation of the ECL through the introduction of macroeconomic scenarios as an input. Inputs highly depend on the particular combination of region and portfolio, so inputs are adapted to available data regarding each of them. Based on economic theory and analysis, the main indicators most directly relevant for explaining and forecasting the selected risk parameters (PD, LGD and EAD) are: – The net income of families, corporates or public administrations. – The outstanding payment amounts on the principal and interest on the financial instruments. – The value of the collateral assets pledged to the loan. The Bank approximates these variables by using a proxy indicator from the set included in the macroeconomic scenarios provided by the BBVA Research department. Only a single specific indicator for each of the three categories can be used and only one of the following core macroeconomic indicators should be chosen as first option: – The real GDP growth for the purpose of conditional forecasting can be seen as the only “factor” required for capturing the influence of all potentially relevant macro-financial scenarios on internal PDs and LGD. – The most representative short term interest rate (typically the policy rate or the most liquid sovereign yield or interbank rate) or exchange rates expressed in real terms. – A comprehensive and representative index of the price of real estate properties expressed in real terms in the case of mortgage loans and a representative and real term index of the price of the relevant commodity for corporate loan portfolios concentrated in exporters or producers of such commodity. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 43 Real GDP growth is given priority over any other indicator not only because it is the most comprehensive indicator of income and economic activity but also because it is the central variable in the generation of macroeconomic scenarios. Multiple scenario approach under Circular 4/2017 Bank of Spain Circular 4/2017 requires calculating an unbiased probability weighted measurement of ECL by evaluating a range of possible outcomes, including forecasts of future economic conditions. BBVA Research produces forecasts of the macroeconomic variables under the baseline scenario, which are used in the rest of the related processes of the Group, such as budgeting, ICAAP (Internal Capital Adequacy Assessment Process) and Risk Appetite Framework, stress testing, etc. Additionally, the BBVA Research teams produce alternative scenarios to the baseline scenario so as to meet the requirements under the Circular 4/2017. Alternative macroeconomic scenarios – For each of the macro-financial variables, BBVA Research produces three scenarios. – BBVA Research tracks, analyzes and forecasts the economic environment to provide a consistent forward looking assessment about the most likely scenario and risks that impact BBVA’s footprint. To build economic scenarios, BBVA Research combines official data, econometric techniques and expert judgment. – Each of these scenarios corresponds to the expected value of a different area of the probabilistic distribution of the possible projections of the economic variables. – The non-linearity overlay is defined as the ratio between the probability-weighted ECL under the alternative scenarios and the baseline scenario, where the scenario’s probability depends on the distance of the alternative scenarios from the base one. – The Bank establishes equally weighted scenarios, being the probability 34% for the baseline scenario, 33% for the unfavorable alternative scenario and 33% for the favorable alternative scenario. The approach in the BBVA consists on using the scenario that is the most likely scenario, which is the baseline scenario, consistent with the rest of internal processes (ICAAP, Budgeting, etc.) and then applying an overlay adjustment that is calculated by taking into account the weighted average of the ECL determined by each of the scenarios. This effect is calculated taking into account the average weight of the expected loss determined for each scenario. It is important to note that in general, it is expected that the effect of the overlay is to increase the ECL. It is possible to obtain an overlay that does not have that effect, whenever the relationship between macro scenarios and losses is linear. On the other hand, BBVA also takes into account the range of possible scenarios when defining its significant increase in credit risk. Thus, the PDs used in the quantitative process to identify the significant increase in credit risk will be those that result from making a weighted average of the PDs calculated under the three scenarios. Macroeconomic scenarios The forward-looking information incorporated in the calculation of expected losses is in line with the macroeconomic perspectives published by BBVA Research, which are quarterly updated. BBVA Research forecasts a maximum of five years for the macroeconomic variables. The following forecasts (favorable, base and unfavorable scenarios) of the Gross Domestic Product (GDP) growth, unemployment rate and House Price Index (HPI), carried out by BBVA Research, were used for the calculation of the ECL as of December 31, 2024: Main BBVA, S.A. variables. Date GDP negative scenario GDP base scenario GDP positive scenario HPI negative scenario HPI base scenario HPI positive scenario Unemployment negative scenario Unemployment base scenario Unemployment positive scenario 2024 3.05 % 3.09 % 3.13 % 2.97 % 2.99 % 3.01 % 11.88 % 11.43 % 10.97 % 2025 1.18 % 2.29 % 3.48 % 3.15 % 4.32 % 5.55 % 12.71 % 10.75 % 8.78 % 2026 (1.30) % 1.69 % 5.02 % (0.53) % 2.99 % 6.98 % 12.50 % 10.35 % 8.17 % 2027 (2.50) % 1.86 % 6.65 % (2.81) % 2.24 % 7.96 % 12.24 % 9.95 % 7.64 % 2028 (3.11) % 1.80 % 7.05 % (3.87) % 1.61 % 7.69 % 11.88 % 9.55 % 7.21 % 2029 (2.86) % 1.80 % 6.70 % (3.55) % 1.41 % 6.81 % 11.53 % 9.25 % 6.96 % Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 44 The estimate for the next five years of the following rates, used in the measurement of the expected loss as of December 31, consistent with the latest estimates made public at that date, was: Main BBVA, S.A. variables. Date GDP negative scenario GDP base scenario GDP positive scenario HPI negative scenario HPI base scenario HPI positive scenario Unemployme nt negative scenario Unemployme nt base scenario Unemployme nt positive scenario 2023 2.21 % 2.36 % 2.52 % (2.28) % (1.93) % (1.61) % 12.40 % 12.13 % 11.84 % 2024 0.86 % 1.48 % 2.12 % (2.54) % (0.92) % 0.89 % 13.23 % 11.80 % 10.32 % 2025 2.25 % 2.47 % 2.70 % 1.00 % 1.94 % 2.96 % 12.77 % 11.20 % 9.58 % 2026 2.48 % 2.53 % 2.55 % 1.22 % 1.74 % 2.11 % 11.98 % 10.40 % 8.81 % 2027 2.30 % 2.34 % 2.34 % 0.93 % 1.69 % 2.14 % 11.34 % 9.63 % 8.22 % 2028 2.09 % 2.13 % 2.13 % 0.67 % 1.43 % 1.88 % 10.57 % 8.98 % 7.67 % Sensitivity to macroeconomic scenarios A sensitivity exercise has been carried out on the expected losses due to variations in the key hypotheses as they are the ones that introduce the greatest uncertainty in estimating such losses. As a first step, GDP and the House Price Index have been identified as the most relevant variables. These variables have been subjected to shocks of +/- 100 bps in their entire window with impact of the macro models. Independent sensitivities have been assessed, under the assumption of assigning a 100% probability to each determined scenario with these independent shocks. Variation in expected loss is determined both by re-staging (that is: in worse scenarios due to the recognition of lifetime credit losses for additional operations that are transferred to stage 2 from stage 1 where 12 months of losses are valued: or vice versa in improvement scenarios) as well as variations in the collective risk parameters (PD and LGD) of each financial instrument due to the changes defined in the macroeconomic forecasts of the scenario. The variation in the expected loss and the main portfolios is shown below: Expected loss variation as of December 31, 2024 GDP Total Portfolio Companies Retail -100pb 28 8 20 +100pb (26) (8) (18) Housing price -100pb 28 +100pb (27) Expected loss variation as of December 31, 2023 GDP Total Portfolio Companies Retail -100pb 61 14 47 +100pb (58) (13) (45) Housing price -100pb 32 +100pb (32) Additional adjustments to expected loss measurement The Bank periodically reviews its individual estimates and its models for the collective estimate of expected losses as well as the effect of macroeconomic scenarios on them. In addition, the Bank may supplement such expected losses to account for the effects that may not be included, either by considering additional risk factors, or by the incorporation of sectorial particularities or particularities that may affect a set of operations or borrowers, following a formal internal approval process established for this purpose, including among others the relevant Global Risk Management Committee (among the GRMC committees) as described in the general risk management and control model chapter of the. As of December 31, 2023, €227 million were recorded as adjustments in Spain due to the review of the Loss Given Default (LGD) of certain specific operations considered unlikely to pay mainly related to the mortgage portfolio, and €25 million in adjustments were recorded at a contract level in Turkey, due to the reclassification to Stage 2 of the credit exposure recorded in the five cities most affected by the February 2023 earthquake. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 45 As of December 31, 2024, adjustments totaled €33 million at a Group level, and were the result of new adjustments recorded in Spain as result of the damage caused by the torrential rains and floods - Isolated Depression at High Levels (DANA) - in different Spanish municipalities between October 28 and November 4, 2024, the elimination of the adjustments related to Spain referred to in the preceding paragraph, given that the criteria for making such adjustments was incorporated as part of the models for estimating expected loss, following the annual exercise of parameter recalibration for estimating expected loss. 5.2.2 Credit risk exposure BBVA’s maximum credit risk exposure (see definition below) by headings in the balance sheets as of December 31, 2024 and 2023 is provided below. It does not consider the loss allowances and the availability of collateral or other credit enhancements to ensure compliance with payment obligations. The details are broken down by category of financial instruments: Maximum credit risk exposure (Millions of Euros) Notes December 2024 Stage 1 Stage 2 Stage 3 Financial assets held for trading 52,762 Equity instruments 8 6,457 Debt securities 8 11,805 Government 9,154 Credit institutions 915 Other sectors 1,737 Loans and advances 8 34,499 Non-trading financial assets mandatorily at fair value through profit or loss 895 Equity instruments 9 626 Debt securities 9 269 Government 185 Credit institutions 50 Other sectors 34 Loans and advances to customers 9 — Financial assets designated at fair value through profit or loss 10 — Derivatives (trading and hedging) (1) 43,897 Financial assets at fair value through other comprehensive income 14,842 Equity instruments 11.2 1,193 Debt securities 11.3 13,649 13,638 11 Government 7,796 7,796 — — Credit institutions 585 585 — — Other sectors 5,268 5,257 — 11 Financial assets at amortized cost 300,144 276,925 15,637 7,582 Debt securities 45,854 45,852 — 2 Loans and advances to central banks 33 33 — — Loans and advances to credit institutions 18,782 18,780 — 2 Loans and advances to customers 235,475 212,259 15,637 7,579 Total financial assets risk 412,540 Total loan commitments and financial guarantees 167,658 163,995 3,235 427 Loan commitments given 29 108,206 106,046 2,064 96 Financial guarantees given 29 21,811 21,474 237 101 Other commitments given 29 37,641 36,476 935 230 Total maximum credit exposure 580,198 (1) Without considering derivatives whose counterparty are BBVA Group companies. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 46 Maximum credit risk exposure (Millions of Euros) Notes December 2023 Stage 1 Stage 2 Stage 3 Financial assets held for trading 83,891 Equity instruments 8 3,339 Debt securities 8 11,018 Government 9,121 Credit institutions 739 Other sectors 1,158 Loans and advances 8 69,534 Non-trading financial assets mandatorily at fair value through profit or loss 730 Equity instruments 9 507 Debt securities 9 223 Government 130 Credit institutions 49 Other sectors 44 Loans and advances 9 — Financial assets designated at fair value through profit or loss 10 — Derivatives (trading and hedging) (1) 39,987 Financial assets at fair value through other comprehensive income 19,426 — — Equity instruments 11.2 1,019 Debt securities 11.3 18,407 18,396 — 11 Government 12,069 12,069 — — Credit institutions 683 683 — — Other sectors 5,655 5,644 — 11 Financial assets at amortized cost 266,347 235,327 22,953 8,067 Debt securities 34,911 34,909 — 2 Loans and advances to central banks — — — Loans and advances to credit institutions 13,080 13,079 — 1 Loans and advances to customers 218,356 187,339 22,953 8,065 Total financial assets risk 410,382 Total loan commitments and financial guarantees 147,464 142,477 4,385 601 Loan commitments given 29 98,667 95,971 2,586 109 Financial guarantees given 29 18,784 18,120 526 137 Other commitments given 29 30,013 28,386 1,272 355 Total maximum credit exposure 557,846 (1) Without considering derivatives whose counterparty are BBVA Group companies. The maximum credit exposure presented in the table above is determined by type of financial asset as explained below: – In the case of financial instruments recognized in the balance sheets, exposure to credit risk is considered equal to its carrying amount (not including loss allowances) with the only exception of trading and hedging derivatives. – The maximum credit risk exposure on financial commitments and guarantees granted is the maximum that BBVA would be liable for if these guarantees were called in, or the higher amount pending to be disposed from the customer in the case of commitments. – The calculation of risk exposure for derivatives is based on the sum of two factors: the derivatives fair value and their potential risk (or "add-on"). As of December 31, 2024, there are no financial assets classified as purchased or originated credit impaired in the balance sheets of BBVA S.A. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 47 The breakdown by counterparty of the maximum credit risk exposure, the accumulated allowances recorded, as well as the carrying amount by stages of loans and advances to customers as of December 31, 2024 and 2023 is shown below: December 2024 (Millions of Euros) Gross exposure Accumulated allowances Net amount Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Public administrations 13,196 13,155 17 23 (11) (4) — (7) 13,185 13,152 17 16 Other financial corporations 14,710 14,360 342 7 (17) (8) (3) (6) 14,693 14,352 339 1 Non-financial corporations 109,892 99,370 7,568 2,953 (2,030) (246) (272) (1,513) 107,861 99,125 7,296 1,441 Households 97,678 85,373 7,709 4,595 (2,599) (252) (360) (1,986) 95,079 85,121 7,349 2,609 Loans and advances to customers (1) 235,475 212,259 15,637 7,579 (4,657) (510) (635) (3,512) 230,818 211,749 15,002 4,067 Of which: individual (509) (89) (420) Of which: collective (4,148) (510) (546) (3,092) (1) The amount of the accumulated impairment includes the provisions recorded for credit risk over the remaining expected lifetime of purchased financial instruments. Those provisions were determined at the moment of the Purchase Price Allocation and were originated mainly in the acquisition of Catalunya Banc, S.A. (as of December 31, 2024, the remained balance was €107 million). These valuation adjustments are recognized in the income statement during the residual life of the relevant instruments or value corrections are made when the losses materialize. December 2023 (Millions of Euros) Gross exposure Accumulated allowances Net amount Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Public administrations 13,261 13,199 37 25 (14) (4) (3) (7) 13,247 13,195 34 18 Other financial corporations 11,671 11,495 168 8 (10) (3) (3) (5) 11,660 11,492 165 3 Non-financial corporations 97,404 84,450 9,924 3,030 (1,808) (205) (282) (1,321) 95,596 84,245 9,642 1,709 Households 96,020 78,194 12,825 5,002 (2,738) (259) (432) (2,048) 93,282 77,936 12,393 2,954 Loans and advances to customers (1) 218,356 187,339 22,953 8,065 (4,571) (470) (719) (3,381) 213,786 186,869 22,234 4,683 Of which: individual (552) (130) (422) Of which: collective (4,018) (470) (589) (2,959) (1) The amount of the accumulated impairment includes the provisions recorded for credit risk over the remaining expected lifetime of purchased financial instruments. Those provisions were determined at the moment of the Purchase Price Allocation and were originated mainly in the acquisition of Catalunya Banc S.A. (as of December 31, 2023 the remained balance was €142 million). These valuation adjustments are recognized in the income statement during the residual life of the relevant instruments or value corrections are made when the losses materialize. The breakdown by type of counterparty and product net of loss allowances and the gross carrying amount by type of counterparty as of December 31, 2024 and 2023 is shown below: December 2024 (Millions of Euros) Central banks General governments Credit institutions Other financial corporations Non- financial corporations Households Total Gross carrying amount On demand and short notice — 3 — 1 32 40 76 127 Credit card debt — — — 1 160 2,812 2,973 3,099 Commercial debtors — 987 67 1,237 23,525 34 25,850 26,057 Finance leases — 107 — 9 6,254 173 6,543 6,664 Reverse repurchase loans — — 8,486 44 — — 8,530 8,532 Other term loans — 11,976 5,913 10,369 76,996 91,856 197,111 201,270 Advances that are not loans 33 112 4,308 3,031 893 164 8,541 8,541 LOANS AND ADVANCES 33 13,185 18,774 14,693 107,861 95,079 249,625 254,290 By secured loans Of which: mortgage loans collateralized by immovable property 228 — 629 10,018 71,274 82,150 83,748 Of which: other collateralized loans — — 9,450 43 1,932 332 11,757 11,813 By purpose of the loan Of which: credit for consumption 16,354 16,354 17,339 Of which: lending for house purchase 71,729 71,729 72,880 By subordination Of which: project finance loans 3,435 3,435 3,498 Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 48 December 2023 (Millions of Euros) Central banks General governments Credit institutions Other financial corporations Non- financial corporations Households Total Gross carrying amount On demand and short notice — — — 27 128 30 186 247 Credit card debt — 1 — 1 162 2,579 2,743 2,851 Commercial debtors — 947 71 580 19,595 35 21,229 21,368 Finance leases — 133 — 10 5,751 182 6,076 6,179 Reverse repurchase loans — — 4,181 92 — — 4,273 4,273 Other term loans — 12,051 3,616 8,740 69,313 90,307 184,027 188,192 Advances that are not loans — 115 5,206 2,210 646 149 8,325 8,326 Loans and advances — 13,247 13,074 11,660 95,596 93,282 226,860 231,436 By secured loans Of which: mortgage loans collateralized by immovable property 240 — 483 8,887 70,879 80,489 82,238 Of which: other collateralized loans — — 4,080 137 1,453 369 6,039 6,101 By purpose of the loan Of which: credit for consumption 15,174 15,174 16,163 Of which: lending for house purchase 71,184 71,184 72,389 By subordination Of which: project finance loans 3,619 3,619 3,684 5.2.3 Mitigation of credit risk, collateralized credit risk and other credit enhancements In certain cases, maximum credit risk exposure is reduced by collateral, credit enhancements and other actions which mitigate the Bank’s exposure. The BBVA applies a credit risk hedging and mitigation policy deriving from a banking approach focused on relationship banking. The existence of guarantees could be a necessary but not sufficient instrument for accepting risks, as the assumption of risks by the Bank requires prior evaluation of the debtor’s capacity for repayment, or that the debtor can generate sufficient resources to allow the amortization of the risk incurred under the agreed terms. The policy of accepting risks is therefore organized into three different levels in BBVA: – analysis of the financial risk of the transaction, based on the debtor’s capacity for repayment or generation of funds; – the constitution of guarantees that are adequate, or at any rate generally accepted, for the risk assumed, in any of the generally accepted forms: monetary, secured, personal or hedge guarantees; and – assessment of the repayment risk (asset liquidity) of the guarantees received. This is carried out through a prudent risk policy that consists of the analysis of the financial risk, based on the capacity for reimbursement or generation of resources of the borrower, the analysis of the guarantee, assessing, among others, the efficiency, the robustness and the risk, the adequacy of the guarantee with the operation and other aspects such as the location, currency, concentration or the existence of limitations. Additionally, the necessary tasks for the constitution of guarantees must be carried out - in any of the generally accepted forms (collaterals, personal guarantees and financial hedge instruments) - appropriate to the risk assumed. The procedures for the management and valuation of collateral are set out in the corporate general policies (retail and wholesale), which establish the basic principles for credit risk management, including the management of collaterals assigned in transactions with customers. The criteria for the systematic, standardized and effective treatment of collateral in credit transaction procedures in BBVA wholesale and retail banking are included in the Specific Collateral Rules. The methods used to value the collateral are in line with the best market practices and imply the use of appraisal of real-estate collateral, the market price in market securities, the trading price of shares in mutual funds, etc. All the collaterals received must be correctly assigned and entered in the corresponding register. They must also have the approval of the BBVA’s legal units. The valuation of the collateral is taken into account in the calculation of the expected losses. The Bank has developed internal models to estimate the realization value of the collaterals received, the time that elapses until then, the costs for their acquisition, maintenance and subsequent sale, from real observations based on its own experience. This modeling is part of the LGD estimation processes that are applied to the different segments, and is included within the annual review and validation procedures. The following is a description of the main types of collateral for each financial instrument class: – Debt instruments held for trading: The guarantees or credit enhancements obtained directly from the issuer or counterparty are implicit in the clauses of the instrument (mainly guarantees of the issuer). Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 49 – Derivatives and hedging derivatives: In derivatives, credit risk is minimized through contractual netting agreements, where positive- and negative-value derivatives with the same counterparty are offset for their net balance. There may likewise be other kinds of guarantees and collaterals, depending on counterparty solvency and the nature of the transaction (mainly collaterals). – The summary of the offsetting effect (via netting and collateral) for derivatives and securities operations as of December 31, 2024 is presented in Note 5.4.2. – Other financial assets designated at fair value through profit or loss and financial assets at fair value through other comprehensive income: The guarantees or credit enhancements obtained directly from the issuer or counterparty are inherent to the structure of the instrument (mainly personal guarantees). As of December 31, 2024 and 2023 BBVA had no credit risk exposure of impaired financial assets at fair value through other comprehensive income (see Note 5.2.2). – Financial assets at amortized cost: a. Loans and advances to credit institutions: These usually have the counterparty’s personal guarantee or pledged securities in the case of repos. b. Loans and advances to customers: Most of these loans and advances are backed by personal guarantees extended by the customer. There may also be collateral to secure loans and advances to customers (such as mortgages, cash collaterals, pledged securities and other collateral), or to obtain other credit enhancements (bonds or insurances). c. Debt securities: The guarantees or credit enhancements obtained directly from the issuer or counterparty are inherent to the structure of the instrument. – Financial guarantees, other contingent risks and drawable by third parties: these have the counterparty’s personal guarantee or other types of collaterals. The disclosure of impaired loans and advances at amortized cost covered by collateral (see Note 5.2.5), by type of collateral, as of December 31, 2024 and 2023, is the following: Impaired loans and advances at amortized cost covered by collateral (Millions of Euros) Maximum exposure to credit risk Of which secured by collateral Residential properties Commercial properties Cash Others Financial December 2024 7,579 1,810 325 4 6 3 December 2023 8,065 2,166 490 1 5 6 The maximum credit risk exposure of impaired financial guarantees and other commitments as of December 31, 2024 and 2023 amounts to €427 and € 601 million (see Note 5.2.2). 5.2.4 Credit quality of financial assets that are neither past due nor impaired The BBVA has tools that enable it to rank the credit quality of its transactions and customers based on an assessment and its correspondence with the probability of default (“PD”) scales. To analyze the performance of PD, the Bank has a series of tracking tools and historical databases that collect the pertinent internally generated information. These tools can be grouped together into scoring and rating models. Scoring Scoring is a decision-making model that contributes to both the arrangement and management of retail loans: consumer loans, mortgages, credit cards for individuals, etc. Scoring is the tool used to decide to originate a loan, what amount should be originated and what strategies can help establish the price, because it is an algorithm that sorts transactions by their credit quality. This algorithm enables the BBVA Group to assign a score to each transaction requested by a customer, on the basis of a series of objective characteristics that have statistically been shown to distinguish between the quality and risk of this type of transactions. The advantage of scoring lies in its simplicity and homogeneity: all that is needed is a series of objective data for each customer, and this data is analyzed automatically using an algorithm. There are three types of scoring, based on the information used and on its purpose: – Reactive scoring: measures the risk of a transaction requested by an individual using variables relating to the requested transaction and to the customer’s socio-economic data available at the time of the request. The new transaction is approved or rejected depending on the score. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 50 – Behavioral scoring: scores transactions for a given product in an outstanding risk portfolio of the entity, enabling the credit rating to be tracked and the customer’s needs to be anticipated. It uses transaction and customer variables available internally. Specifically, variables that refer to the behavior of both the product and the customer. – Proactive scoring: gives a score at customer level using variables related to the individual’s general behavior with the entity, and to his/her payment behavior in all the contracted products. The purpose is to track the customer’s credit quality and it is used to pre-approve new transactions. Rating Rating tools, as opposed to scoring tools, focus on the rating of customers: companies, corporations, SMEs, general governments, etc. A rating tool is an instrument that, based on a detailed financial study, helps determine a customer’s ability to meet his/her financial obligations. The final rating is usually a combination of various factors: on one hand, quantitative factors, and on the other hand, qualitative factors. It is a middle road between an individual analysis and a statistical analysis. The main difference between ratings and scorings is that the latter are used to assess retail products, while ratings use a wholesale banking customer approach. Moreover, scorings only include objective variables, while ratings add qualitative information. And although both are based on statistical studies, adding a business view, rating tools give more weight to the business criterion compared to scoring tools. For portfolios where the number of defaults is low (sovereign risk, corporates, financial entities, etc.) the internal information is supplemented by “benchmarking” of the external rating agencies (Moody’s, Standard & Poor’s and Fitch). To this end, each year the PDs compiled by the rating agencies at each level of risk rating are compared, and the measurements compiled by the various agencies are mapped against those of the BBVA master rating scale. The probability of default of transactions or customers is calibrated with a long-term view, since its purpose is to measure the risk quality beyond its time of estimation, seeking to capture information representative of the behavior of the portfolios during a complete economic cycle (a long-term average probability of default). This probability is mapped to the master scale developed by the Bank in order to facilitate a homogeneous classification of its different risk portfolios. These different levels and their probability of default were calculated by using as a reference the rating scales and default rates provided by the external agencies Standard & Poor’s and Moody’s. These calculations establish the levels of probability of default for the BBVA Group’s Master Rating Scale. Although this scale is common to the entire Group, the calibrations (mapping scores to PD sections/Master Rating Scale levels) are carried out at tool level for each country in which the Group has tools available. The table below outlines the distribution of exposure, including derivatives, by default probability and internal ratings, to corporates, financial entities and institutions (excluding sovereign risk), of the main BBVA Group entities as of December 31, 2024 and 2023: Credit Risk Distribution by Internal Rating 2024 2023 PD Amount (Millions of Euros) % Amount (Millions of Euros) % AAA/AA 0 to 5 76,481 17.80 % 137,186 27.20 % A 5 to 11 139,384 32.50 % 173,710 34.40 % BBB+ 11 to 17 59,714 13.90 % 54,551 10.80 % BBB 17 to 24 48,218 11.20 % 50,731 10.00 % BBB- 24 to 39 43,009 10.00 % 38,914 7.70 % BB+ 39 to 67 24,784 5.80 % 14,700 2.90 % BB 67 to 116 13,882 3.20 % 12,238 2.40 % BB- 116 to 194 9,438 2.20 % 8,989 1.80 % B+ 194 to 335 4,757 1.10 % 4,786 0.90 % B 335 to 581 3,057 0.70 % 2,985 0.60 % B- 581 to 1061 1,565 0.40 % 1,750 0.30 % C 1061 to 2121 1,983 0.50 % 1,761 0.30 % D >2121 2,437 0.60 % 2,528 0.50 % Total 428,708 100 % 504,830 100 % Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 51 5.2.5 Impaired loan risks The breakdown of loans and advances within financial assets at amortized cost by type of counterparty, including their respective gross carrying amount, impaired amount and accumulated impairment as of December 31, 2024 and 2023 is as follows: December 2024 (Millions of Euros) Gross carrying amount Impaired loans and advances Accumulated impairment Central banks 33 — — General governments 13,196 23 (11) Credit institutions 18,782 2 (8) Other financial corporations 14,710 7 (17) Non-financial corporations 109,892 2,953 (2,030) Households 97,678 4,595 (2,599) LOANS AND ADVANCES 254,290 7,581 (4,665) December 2023 (Millions of Euros) Gross carrying amount Impaired loans and advances Accumulated impairment Central banks — — — General governments 13,261 25 (14) Credit institutions 13,080 1 (6) Other financial corporations 11,670 8 (10) Non-financial corporations 97,404 3,030 (1,808) Households 96,020 5,002 (2,738) LOANS AND ADVANCES 231,436 8,065 (4,576) The changes during the years 2024 and 2023 of impaired financial assets and guarantees given are as follows: Changes in impaired financial assets and contingent risks (Millions of Euros) 2024 2023 Balance at the beginning 8,557 8,075 Additions 3,258 3,759 Decreases (1) (3,250) (2,250) Net additions 8 1,509 Amounts written-off ⁽²⁾ (427) (541) Exchange differences and other (225) (487) Balance at the end 7,912 8,557 Recoveries on entries (%) 100% 60% (1) Reflects the total amount of impaired loans derecognized from the balance sheet throughout the year as a result of mortgage foreclosures and real estate assets received in lieu of payment as well as monetary recoveries (see Note 19). (2) In 2024, it includes €243 million of debt write-offs. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 52 The changes during the years 2024 and 2023 in financial assets derecognized from the accompanying balance sheet as their recovery is considered unlikely ("write-offs"), is shown below: Changes in impaired financial assets written-off from the balance sheet (Millions of Euros) Notes 2024 2023 Balance at the beginning 17,316 17,155 Increase 333 830 Assets of remote collectability 184 541 Past-due and not collected income 149 289 Decrease (607) (665) Re-financing or restructuring — (1) Cash recovery 42 (207) (193) Foreclosed assets (1) (3) Sales (1) (154) (196) Debt forgiveness (241) (221) Time-barred debt and other causes (5) (51) Net exchange differences 2 (3) Balance at the end 17,044 17,316 (1) Includes principal and interest. As indicated in Note 2.2.4, although they have been derecognized from the balance sheet, the BBVA continues to attempt to collect on these written-off financial assets, until the rights to receive them are fully extinguished, either because it is a time-barred financial asset, the financial asset is forgiven, or other reason. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 53 5.2.6 Gross carrying amount and loss allowances Movements, measured over a 12-month period, in gross accounting balances and accumulated allowances for loan losses during 2024 and 2023 are recorded on the accompanying balance sheet as of December 31, 2024 and 2023, in order to cover the estimated loss allowances in loans and advances and debt securities measured at amortized cost. Changes in gross carrying amount of loans and advances at amortized cost. Year 2024 (Millions of Euros) Stage 1 Stage 2 Stage 3 Total Balance at the beginning 200,418 22,953 8,065 231,436 Transfers of financial assets: 795 (1,604) 809 — from stage 1 to stage 2 (5,664) 5,664 — — from stage 2 to stage 1 7,230 (7,230) — — to stage 3 (893) (1,195) 2,088 — from stage 3 122 1,157 (1,279) — Net annual origination of financial assets 29,190 (5,731) (867) 22,591 Becoming write-offs ⁽¹⁾ — — (427) (427) Foreign exchange 669 19 1 689 Modifications that do not result in derecognition — — — — Other — — — — Balance at the end 231,072 15,637 7,581 254,289 (1) In 2024 includes €243 million of debt write-offs. During 2024, the criteria for identifying significant increases in credit risk were reviewed and updated. As part of this update, certain short-term portfolio transactions, as well as those meeting the expanded definition of the low credit risk exception were excluded from transfer based on quantitative criteria. These changes have led to a significant reduction in the Stage 2 during the last quarter of the year. Changes in allowances of loans and advances at amortized cost. Year 2024 (Millions of Euros) Stage 1 Stage 2 Stage 3 Total Balance at the beginning 476 719 3,381 4,576 Transfers of financial assets: (23) 110 304 391 from stage 1 to stage 2 (27) 161 — 134 from stage 2 to stage 1 12 (146) — (134) to stage 3 (9) — 583 574 from stage 3 1 95 (279) (183) Net annual origination of allowances 93 (20) 117 190 Becoming write-offs — — (376) (376) Other (29) (174) 87 (116) Balance at the end 517 635 3,513 4,665 For the year ended December 31,2024, the impairment charges recognized under the heading “Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification" amounted to €741 million (€677 million for the year ended December 31, 2023) (see Note 42). Changes in gross carrying amount of loans and advances at amortized cost. Year 2023 (Millions of Euros) Stage 1 stage 2 Stage 3 Total Balance at the beginning 199,328 19,678 7,461 226,467 Transfers of financial assets: (7,880) 5,746 2,134 — from stage 1 to stage 2 (11,089) 11,089 — — from stage 2 to stage 1 4,317 (4,317) — — to stage 3 (1,167) (1,718) 2,885 — from stage 3 59 692 (751) — Net annual origination of financial assets 9,211 (2,469) (989) 5,753 Becoming write-offs — — (541) (541) Foreign exchange (241) (2) — (243) Modifications that do not result in derecognition — — — — Other — — — — Balance at the end 200,418 22,953 8,065 231,436 Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 54 Changes in allowances of loans and advances at amortized cost. Year 2023 (Millions of Euros) Stage 1 Stage 2 Stage 3 Total Balance at the beginning 479 765 3,586 4,830 Transfers of financial assets: (10) 133 519 642 from stage 1 to stage 2 (19) 209 — 190 from stage 2 to stage 1 16 (114) — (98) to stage 3 (7) (20) 710 683 from stage 3 — 58 (191) (133) Net annual origination of allowances 47 (47) (288) (288) Becoming write-offs — — (469) (469) Foreign exchange — — — — Modifications that do not result in derecognition — — — — Other (40) (132) 33 (139) Balance at the end 476 719 3,381 4,576 The loss allowances recorded in the attached balance sheet to cover the impairment estimated in the debt securities amounted to €20 and €21 million as of December 31, 2024 and 2023 respectively. The variation is mainly due to changes due to variation in credit risk. Additionally, the loss allowances recorded in the attached balance sheet to cover the impairment estimated in the commitments and guarantees given amounted to €178 and € 240 million as of December 31, 2024 and 2023 respectively (see Note 21). 5.3 Structural risk The structural risks are defined, in general terms, as the possibility of suffering losses in the banking book due to adverse movements in market risk factors. In the BBVA, the following types of structural risks are defined, according to their nature: interest rate risk, credit spread risk, exchange rate risk and equity risk. The scope of structural risks in the Bank excludes market risks in the trading book that are clearly delimited and separated and make up the type of Market Risks. The Assets and Liabilities Committee (ALCO) is the main responsible body for the management of structural risks regarding liquidity/ funding, interest rate, credit spread, currency, equity and solvency. Every month, with the participation of the CEO and representatives from the areas of Finance, Risks and Business Areas, this committee monitors the structural risks and is presented with proposals with regard to action plans related with its management for its approval. These management proposals are made by the Finance area with a forward-looking focus, maintaining the alignment with the Risk Appetite Framework, trying to guarantee the recurrence of results and financial stability, as well as to preserve the solvency of the entity. All balance sheet management units have a local ALCO, which is permanently attended by members of the Corporate Center, and there is a corporate ALCO where management strategies are monitored and presented in the Group's subsidiaries. The GRM area acts as an independent unit, ensuring adequate separation between the management and risk control functions, and is responsible for ensuring that the structural risks in the Group are managed according to the strategy approved by the Board of Directors. Consequently, GRM deals with the identification, measurement, monitoring and control of those risks and their reporting to the corresponding corporate bodies. Through the GRMC, it performs the function of control and risk assessment and is responsible for developing the strategies, policies, procedures and infrastructure necessary to identify, evaluate, measure and manage the significant risks that the BBVA Group faces. To this end, GRM, through the corporate unit of Structural Risks, proposes a scheme of limits that defines the risk appetite set for each of the relevant structural risk types, both at Group level and by management units, which will be reviewed annually, reporting the situation periodically to the Group's corporate bodies as well as to the GRMC. Additionally, both the management system and the control and measurement system for structural risks are necessarily adjusted to the Group's internal control model, complying with the evaluation and certification processes that comprise it. In this sense, the tasks and controls necessary for its scope of action have been identified and documented, supporting a regulatory framework which includes specific processes and measures for structural risks, from a broad geographical perspective. Within the three lines of defense scheme in which BBVA's internal control model is based according to the most advanced standards in terms of internal control, the first line of defense is maintained by the Finance area, which is responsible for managing the structural risk. As a second line of defense, GRM is in charge of identifying risks, and establishing policies and control models, periodically evaluating their effectiveness. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 55 In the second line of defense, there are also the Internal Risk Control units, which independently review the Structural Risk control, and Internal Financial Control, which carries out a review of the design and effectiveness of the operational controls over structural risk management. The third line of defense is represented by the Internal Audit area, an independent unit within BBVA Group, which is responsible for reviewing specific controls and processes. 5.3.1 Interest rate risk and credit spread in the banking book The structural interest-rate risk (hereinafter "IRRBB") is related to the potential impact that variations in market interest rates may have on an entity's earnings, through the impact on net interest income and on the valuation of instruments accounted for at fair value, as well as on the equity. In order to properly measure IRRBB, BBVA Group takes into account all the main sources of this risk: repricing risk, yield curve risk, option risk and basis risk. Furthermore, the credit spread risk in the banking book ("CSRBB") arises from the potential impact on the entity´s earnings and/or the value of equity of the banking book produced by a variation in the level of market credit spreads that are not explained by default or migration risk or by movements in market interest rates. IRRBB and CSRBB management is carried out from a double perspective, the economic value of equity and earnings, including the management of net interest income and the monitorization of banking book instruments accounted at fair value with an impact on the income statement and/or on equity. In addition, the banking book instruments recorded based on their market value (fair value) are subject to specific monitoring, due to their impact on risk and on capital, through other comprehensive income or the income statement. The exposure of a financial entity to adverse interest rates and credit spreads movements is a risk inherent to the development of the banking business, which is also, in turn, an opportunity to create economic value. Therefore, interest rate risk must be effectively managed so that they are limited in accordance with the entity’s equity and in line with the expected economic result. In BBVA, the purpose of IRRBB risk management is to maintain the recurrent generation of earnings in the event of market interest rate fluctuations, through the contribution to the net interest income and the control of the potential impacts on the mark-to-market of the fair value accounted portfolios, as well as to limit the capital consumption due to structural interest rate risk. Likewise, the spread risk management in banking book portfolios is aimed at limiting the impact on equity derived from changes in the valuation of fixed income instruments, which are used for balance sheet liquidity and interest rate risk management purposes in order to increase diversification, and maintaining the spread risk at levels aligned with the total volume of the investment portfolio and the equity of the Bank, as well as limiting the impact on earnings when market credit spreads change. These functions fall to the Global Asset & Liability Management (hereinafter "ALM") unit, within the Finance area, which, through ALCO, aims to guarantee the recurrence of results and preserve the solvency of the entity, always adhering to the risk profile defined by the management bodies of the Bank. IRRBB management is decentralized, and is carried out in each entity included in the structural balance sheet (banking book) of the Bank with the supervision and coordination from the corporate unit of Global ALM, keeping the exposure to interest rates and credit spreads movements aligned with the strategy and the target risk profile of the Bank, and in compliance with the regulatory requirements of the EBA guidelines. Nature of interest rate risk and credit spread risk Repricing risk arises due to the difference between the repricing or maturity terms of the assets and liabilities, and represents the most frequent interest rate risk faced by financial entities. However, other sources of risk such as changes in the slope and shape of the yield curve, the reference to different indexes and the optionality risk embedded in certain banking transactions, are also taken into account by the risk control system. BBVA's structural interest-rate risk management and control process includes a set of metrics and tools that enable the capture of additional sources to properly monitor the risk profile of the Bank, backed-up by assumptions that aim to characterize the behavior of the balance sheet items with the maximum accuracy. The IRRBB and CSRBB measurement is carried out on a monthly basis, and includes probabilistic measures based on simulation methods of interest rate curves and credit spread shocks. The corporate methodology enables to capture additional sources of risk to the interest rate parallel shifts, such as the changes in slope shape and the basis of yield curves. Additionally, sensitivity analysis to multiple parallel shocks of different magnitude are also assessed on a regular basis. The process is run separately for each currency to which the Bank is exposed, considering, at a later stage, the diversification effect among currencies and business units. The risk measurement model is complemented by the assessment of ad-hoc scenarios, stress tests and reverse stress. Stress tests incorporate extreme scenarios both in market interest rates and in behavioral assumptions, in addition to the assessment of market scenarios by BBVA Research and the set of prescriptive scenarios defined according to EBA guidelines. The internal measurement systems and models are subjected to a process of review and continuous improvement in order to keep them aligned with EBA guidelines. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 56 Key assumptions of the model In order to measure structural interest rate risk, the setting of assumptions on the evolution and behavior of certain balance sheet items is particularly relevant, especially those related to products without an explicit or contractual maturity which characteristics are not established in their contractual terms and must be therefore estimated. The assumptions that characterize these balance sheet items must be understandable for the areas and bodies involved in risk management and control and remain duly updated, justified and documented. The modeling of these assumptions must be conceptually reasonable and consistent with the evidence based on historical experience, reviewed at least once a year and, if any, the behavior of the customers induced by the business areas. In order to provide the required dynamism to enhance the accuracy of assumptions and reflect specific market or management circumstances, risk models and metrics may incorporate parameters or adjustments based on expert judgment, subject to the internal governance measures established in this regard. Assumptions are regularly subject to a sensitivity analysis to assess and understand the impact of the modelling on the risk metrics. The approval and update of the IRRBB behavioral models is subject to the corporate governance under the scope of GRM analytics. Thus, all the models must be duly inventoried and catalogued and comply with the requirements for their development, updating and changes management set out in the internal procedures. They are also subject to the corresponding internal validations and follow-up requirements established based on their relevance, as well as to backtesting procedures against experience to ratify the validity of the assumptions applied. The balance sheet behavioral assumptions stand out those established for the treatment of items without contractual maturity, mainly for demand customer deposits, and those related to the expectations on the exercise of interest rate options, especially relating to loans and deposits subject to prepayment risk. For the modelling of demand deposits, a segmentation of the accounts in several categories is previously carried out depending on the characteristics of the customer (retail / wholesale) and the product (type of account / transactionality / remuneration), in order to outline the specific behavior of each segment. In order to establish the remuneration of each segment, the relationship between the evolution of market interest rates and the interest rates of managed accounts is analyzed, with the aim of determining the translation dynamic (percentages and lags) of interest rates variations to the remuneration of the accounts. In this regard, consideration is given to the potential limitations in the repricing of these accounts in scenarios of low or negative rates, with special attention to retail customers, through the establishment of floors in the remuneration. The behavior assigned to each category of accounts is determined by an analysis of the historical evolution of the balances and the probability of cancellation of the accounts. For this, the volatile part of the balance assigned to a short-term maturity is isolated, thus avoiding fluctuations in the level of risk caused by specific variations in the balances and promoting stability in the management of the balance. Once the stable part is identified, a medium / long term maturity model is applied through a decay distribution based on the average term of the accounts and the conditional cancellation probabilities throughout the life of the product. In addition, the behavior modeling incorporates, where appropriate, the relationship between the evolution of the balance of deposits and the levels of market interest rates. Consequently, the effect of rate variations on the stability of the deposits as well as the potential migration between the different types of products (on demand and time deposits) in each interest rate scenario are incorporated. Equally relevant is the treatment of early cancellation options embedded in credit loans, mortgage portfolios and customer deposits. The evolution of market interest rates may condition, along with other variables, the incentive that customers have to prepay loans or deposits, modifying the future behavior of the balance amounts with respect to the forecasted contractual maturity schedule. The detailed analysis of the historical information related to prepayment data, both partial and total prepayment, combined with other variables such as interest rates, allows estimating future amortizations and, where appropriate, their behavior linked to the evolution of such variables through the relationship between the incentive of the customer to prepay and the early cancellation speed. At an aggregate level, BBVA continues to maintain a limited risk profile, in accordance with the established objective within an environment of a cycle shift towards lower interest rates, having positive sensitivity to interest rate hikes in the net interest income. In 2024, the actual and expected evolution of inflation, as well as the response of central banks to it, in addition to geopolitical events, have been the focus of the market's attention. In this sense, expectations regarding the number of rate cuts and their speed have been changing throughout the year, with some episodes of certain volatility. Thus, while the ECB began its cycle of rate cuts in June and continued at its September, October and December meetings, the Federal Reserve cut rates in September with an initial 50 basis points, followed by an additional 25 basis points at its November meeting. Over the year as a whole, yield curves steepened, generally with falls in the short end and rises in the longer end. Spreads on peripheral curves continued to be well supported and narrowed during the year. The positivity observed in the American and European curves also carried over to Mexico and much of South America. Turkey, for its part, experienced a rebound in both real and nominal rates during the year. All in all, the Group's debt security portfolios performed heterogeneously during the year, with a notable increase in valuations in Spain, while they fell in Turkey. The most relevant aspects are the following: Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 57 – Spain has a balance sheet characterized by a lending portfolio with a high proportion of variable-rate loans (mortgages and corporate lending) and liabilities composed mainly by customer demand deposits. The ALCO portfolio acts as a management lever and hedge for the balance sheet, mitigating its sensitivity to interest rate fluctuations. In an environment of high rates, the exposure of net interest income to movements in interest rates remains limited. – The reference interest rate in the Eurozone stood at 3.15% at the end of December 2024, the deposit facility rate at 3.00% and the marginal credit facility rate at 3.40%. Additionally, as announced in March 2024, the ECB reduced the differential between the reference interest rate and the deposit facility rate to 15 basis points in September 2024. Regarding reinvestments under the Pandemic Emergency Purchase Program (PEPP), they were ended at the end of 2024. 5.3.2 Equity risk in the banking book Equity risk in the banking book refers to the possibility of suffering losses in the value of positions in shares and other equity instruments held in the banking book with long or medium term investment horizons due to fluctuations in the value of equity indexes or shares. BBVA Group's exposure to structural equity risk arises largely from minority shareholdings held on industrial and financial companies, and in new business (innovation). This exposure is modulated in some portfolios with positions held on derivative instruments on the same underlying assets, in order to adjust the portfolio sensitivity to potential changes in equity prices. The structural equity risk management is aimed at increasing the income-generating capacity of those shares held by the Group, limiting the capital requirements for equity risk and narrowing the impact on the solvency level through a proactive management of the portfolio using hedges. The function of managing the main structural equity portfolios is a responsibility of the specialized units of the corporate areas of Global ALM, Strategy & M&A and Client Solutions (Banking for Growth Companies). Their activity is subject to the corporate structural equity risk management policy, complying with the defined management principles and Risk Appetite Framework. The structural equity risk metrics, designed by GRM according to the corporate model, contribute to the effective monitoring of the risk by estimating the sensitivity and the capital necessary to cover the possible unexpected losses due to changes in the value of the shareholdings in the Group's investment portfolio, with a level of confidence that corresponds to the objective rating of the entity, taking into account the liquidity of the positions and the statistical behavior of the assets to be considered. In order to analyze the risk profile in depth, stress tests and scenario analysis of sensitivity to different simulated scenarios are carried out. They are based on both past crisis situations and forecasts made by BBVA Research. These analyses are carried out regularly to assess the vulnerabilities of structural equity exposure not contemplated by the risk metrics and to serve as an additional tool when making management decisions. Backtesting is carried out on a regular basis on the risk measurement model used. Equity markets performed very positively in 2024 but with more modest gains in Europe than in the United States, reflecting the differences in economic dynamism in both blocks. The monetary easing cycle initiated by central banks supported stock market increases, but were prevented from converging towards official targets by persistent inflation. The technology sector led the increases in the United States, driven by the adoption of artificial intelligence solutions, while in Europe, the banking sector performed exceptionally well, enabling it to lead the European stock markets. At the local level, the Spanish stock market presented one of the best performances at the European level, although with less dynamism than in 2023.Telefónica, where the Group holds a stake classified as equity in its banking book, performed in line with the evolution of the European telecommunications sector. Structural equity risk, measured in terms of economic capital, has increased during the last year due to the higher exposure taken. The aggregate sensitivity of the BBVA Group’s consolidated equity to a 1% fall in the price of shares of the companies making up the equity portfolio amounted to €-27 million as of December 31, 2024 , compared to €-24 million as of December 31, 2023. This estimation takes into account the exposure in shares valued at market prices, or if not applicable, at fair value (excluding the positions in the Treasury Area portfolios) and the net delta-equivalent positions in derivatives on the same underlyings. 5.4 Market risk Market risk originates from the possibility of experiencing losses in the value of positions held as a result of movements in market variables that affect the valuation of financial assets and liabilities. Market risk in the Bank's trading portfolios stems mainly from the portfolios originated by Global Markets valued at fair value and held for the purpose of trading and generating short-term results. Market risk in the field of banking book is clearly and distinctly addressed and can be broken down into structural risks relating to interest rate, exchange rate and equity (see Note 5.3). Additionally, market risk may be affected by ESG factors due to the effect they may have on the Bank, clients and counterparties (see Note 5.1). Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 58 5.4.1 Market risk in trading portfolios The main risks in the trading portfolios can be classified as follows: – Interest-rate risk: This arises as a result of exposure to movements in the different interest-rate curves involved in trading. Although the typical products that generate sensitivity to the movements in interest rates are money-market products (deposits, interest-rate futures, call money swaps, etc.) and traditional interest-rate derivatives (swaps and interest-rate options such as caps, floors, swaptions, etc.), practically all the financial products are exposed to interest-rate movements due to the effect that such movements have on the valuation of the financial discount. – Equity risk: This arises as a result of movements in share prices. This risk is generated in spot positions in shares or any derivative products whose underlying asset is a share or an equity index. Dividend risk is a sub-risk of equity risk, arising as an input for any equity option. Its variation may affect the valuation of positions and it is therefore a factor that generates risk on the books. – Exchange-rate risk: This is caused by movements in the exchange rates of the different currencies in which a position is held. As in the case of equity risk, this risk is generated in spot currency positions, and in any derivative product whose underlying asset is an exchange rate. In addition, the quanto effect (operations where the underlying asset and the instrument itself are denominated in different currencies) means that in certain transactions in which the underlying asset is not a currency, an exchange-rate risk is generated that has to be measured and monitored. – Credit-spread risk: Credit spread is an indicator of an issuer's credit quality. Spread risk occurs due to variations in the levels of spread of both corporate and government issues, and affects positions in bonds and credit derivatives. – Volatility risk: This occurs as a result of changes in the levels of implied price volatility of the different market instruments on which derivatives are traded. This risk, unlike the others, is exclusively a component of trading in derivatives and is defined as a first-order convexity risk that is generated in all possible underlying assets in which there are products with options that require a volatility input for their valuation. The metrics developed to control and monitor market risk in the Bank are aligned with market practices and are implemented consistently across all the local market risk units. Measurement procedures are established in terms of the possible impact of negative market conditions on the trading portfolio of the Bank's Global Markets units, both under ordinary circumstances and in situations of heightened risk factors. The standard metric used to measure market risk is Value at Risk (hereinafter “VaR”), which indicates the maximum loss that may occur in the portfolios at a given confidence level (99%) and time horizon (one day).This statistic value is widely used in the market and has the advantage of summing up in a single metric the risks inherent to trading activity, taking into account how they are related and providing a prediction of the loss that the trading book could sustain as a result of fluctuations in equity prices, interest rates, foreign exchange rates and credit spreads. Additionally, for certain positions, other risks need to be considered, such as a credit spread, base, volatility or correlation risk. With respect to the risk measurement models used by the BBVA, the Supervisor has authorized the use of the internal market risk model to determine bank capital requirements deriving from risk positions on the BBVA S.A. The current management structure includes the monitoring of market-risk limits, consisting of a scheme of limits based on specific metrics according to market activities, (VaR (Value at Risk), economic capital, as well as stop-loss limits for each of the Bank’s business units). The model used estimates VaR in accordance with the historical simulation methodology, which involves estimating losses and gains that would have taken place in the current portfolio if the changes in market conditions that took place over a specific period of time in the past were repeated. Based on this information, it predicts the maximum expected loss of the current portfolio within a given confidence level. This model has the advantage of reflecting precisely the historical distribution of the market variables and not assuming any specific distribution of probability. The historical period used in this model is two years. The VaR figures are estimated based on the VaR without smoothing methodology, which awards equal weight to the daily information for the previous two years. This is currently the official methodology for measuring market risks for the purpose of monitoring compliance with risk limits. The VaR stress metric is obtained in an analogous way (99% percentile, with 1-day loss), with a fixed window of 1 year within the established stress period, subject to revision and being specific to each geographical area to represent its stress period. The use of VaR by historical simulation methodology as a risk metric has many advantages, but also certain limitations, among which it is worth highlighting: – The estimate of the maximum daily loss of the Global Markets portfolio positions (with a confidence level of 99%) depends on the market movements of the last two years, not picking up the impact of large market events if they have not occurred within that historical window. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 59 – The use of the 99% confidence level does not consider potential losses that can occur beyond this level. To mitigate this limitation, different stress exercises are also performed, as described later. At the same time, and following the guidelines established by the Spanish and European authorities, BBVA incorporates metrics in addition to VaR with the aim of meeting the Bank of Spain's regulatory requirements with respect to the calculation of bank capital for the trading book. Specifically, the measures incorporated in the Group since December 2011 (stipulated by Basel 2.5) are: – VaR: In regulatory terms, the VaR charge incorporates the stressed VaR charge, and the sum of the two (VaR and stressed VaR) is calculated. This quantifies the losses associated with the movements of the risk factors inherent to market operations (including interest-rate risk, exchange-rate risk, equity risk and credit risk, among others). Both VaR and stressed VaR are rescaled by a regulatory multiplier (between three and four) and by the square root of ten to calculate the capital charge. – Specific Risk - Incremental Risk Capital (“IRC”): Quantification of the risks of default and changes of the credit ratings of the bond and derivative positions and debt funds with daily look-through or significant benchmark (correlation > 90%) in the trading portfolio. The IRC charge is exclusively applied in entities in respect of which the internal market risk model is used (i.e. BBVA, S.A. and BBVA Mexico). The IRC charge is determined based on the associated losses (calculated at 99.9% confidence level over a one-year horizon under the hypothesis of constant risk) due to a rating change and/or default of the issuer with respect to an asset. In addition, the price risk is included in sovereign positions for the specified items. – Specific Risk: Securitization, correlation portfolios and Investment funds without look-through. Capital charges for securitizations and correlation portfolios are assessed based on the potential losses associated with the occurrence of a credit event in the underlying exposures. They are calculated by the standard model. The scope of the correlations portfolios refers to the First To Default (FTD)-type market operation and/or tranches of market CDOs and only for positions with an active market and hedging capacity. Capital charge for Funds include losses associated with volatility and credit risk of the underling positions of the fund. All charges are calculated by the standard model. Validity tests are performed regularly on the risk measurement models used by the Bank. They estimate the maximum loss that could have been incurred in the assessed positions with a certain level of probability (backtesting), as well as measurements of the impact of extreme market events on risk positions (stress testing). As an additional control measure, backtesting is conducted at a trading desk level in order to enable more specific monitoring of the validity of the measurement models. Market risk in 2024 The Bank’s market risk related to its trading portfolio remained in 2024 at low levels compared to other risks managed by BBVA, particularly credit risk. This is due to the nature of the business. In 2024, the market risk of trading book has decreased versus the previous year and, in terms of VaR, stood at €11 million at the close of the period. The average VaR for 2024 stood at €12 million, decreasing slightly compared to 2023 , with a high for the year on February 19, 2024 at €20 million. By type of market risk assumed by the Bank’s trading portfolio, the main risk factor in BBVA at the end of 2024 is still linked to the interest rates (this figure includes the spread risk) which represents a 63% of the total weight, increasing its relative weight compared to the year end 2023 (60%). The weight associated with the exchange rate and variable income risk is 17% and 7% respectively, at the end of the 2024 financial year, varying compared to the end of the 2023 financial year, where they represented 12% and 9% respectively. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 60 The risk related to volatility and correlation accounts represent 13% of the total weight at the end of 2024, decreasing its proportion with respect to the end of the 2023 (19%). Market risk by risk factor (Millions of euros) 2024 2023 Interest + credit spread 13 20 Exchange rate 3 4 Equity 2 3 Volatility 3 6 Diversification effect (1) (9) (19) Total 11 15 Average VaR 12 12 Maximum VaR 20 17 Minimum VaR 7 8 (1) The diversification effect is the difference between the sum of the average individual risk factors and the total VaR figure that includes the implied correlation between all the variables and scenarios used in the measurement. Validation of the internal market risk model The internal market risk model is validated on a regular basis by backtesting in BBVA S.A. The aim of backtesting is to validate the quality and precision of the internal market risk model used by BBVA Group to estimate the maximum daily loss of a portfolio, at a 99% level of confidence and a 250-day time horizon, by comparing the Group's results and the risk measurements generated by the internal market risk model. These tests showed that the internal market risk model of BBVA, S.A. is adequate and precise. Two types of backtesting have been carried out in 2024 and 2023: – "Hypothetical" backtesting: the daily VaR is compared with the results obtained, not taking into account the intraday results or the changes in the portfolio positions. This validates the appropriateness of the market risk metrics for the end-of-day position. – "Real" backtesting: the daily VaR is compared with the total results, including intraday transactions, but discounting the possible minimum charges or fees involved. This type of backtesting includes the intraday risk in portfolios. In addition, each of these two types of backtesting was carried out at a risk factor or business type level, thus making a deeper comparison of the results with respect to risk measurements. Between January 1, 2024 and December 31, 2024, and for the year ended December 31, 2024, the backtesting of the internal VaR calculation model was carried out, comparing the daily results obtained to the risk level estimated by the internal VaR calculation model. In that period, there were none negative exception in BBVA S.A. At the end of the year the comparison showed the internal VaR calculation model was working correctly, thus validating the internal VaR calculation model, as has been the case each year since the internal market risk model was approved for the Bank. Stress testing analysis A number of stress tests are carried out on BBVA's trading portfolios. First, global and local historical scenarios are used that replicate the behavior of an extreme past event, such as for example the collapse of Lehman Brothers or the "Tequilazo" crisis. These stress tests are complemented with simulated scenarios, where the aim is to generate scenarios that have a significant impact on the different portfolios, but without being anchored to any specific historical scenario. Finally, for some portfolios or positions, fixed stress tests are also carried out that have a significant impact on the market variables affecting these positions. Historical scenarios The historical benchmark stress scenario for BBVA is Lehman Brothers, whose sudden collapse in September 2008 led to a significant impact on the behavior of financial markets at a global level. The following are the most relevant effects of this historical scenario: – Credit shock: reflected mainly in the increase of credit spreads and downgrades in credit ratings. – Increased volatility in most of the financial markets giving rise to a great deal of variation in the prices of different assets (currency, equity, debt). – Liquidity shock in the financial systems, reflected by a major movement in interbank curves, particularly in the shortest sections of the euro and dollar curves. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 61 Simulated scenarios Unlike the historical scenarios, which are fixed and therefore not suited to the composition of the risk portfolio at all times, the scenario used for the exercises of economic stress is based on resampling methodology. This methodology is based on the use of dynamic scenarios that are recalculated periodically depending on the main risks affecting the trading portfolios. On a data window wide enough to collect different periods of stress (data are taken from January 1, 2008 until the date of the assessment), a simulation is performed by resampling of historic observations, generating a distribution of losses and gains that serve to analyze extreme market events within the selected historical window. The advantage of this methodology is that the period of stress is not predetermined, but depends on the portfolio maintained at each time, and making a large number of simulations (10,000 simulations) allows a greater richness of information for the analysis of expected shortfall than what is available in the scenarios included in the calculation of VaR. The main features of this approach are: a) the generated simulations respect the correlation structure of the data, b) there is flexibility in the inclusion of new risk factors and c) it allows the introduction of a lot of variability in the simulations (desirable for considering extreme events). 5.4.2 Financial instruments offset Financial assets and liabilities may be netted in certain cases. In particular, they are presented for a net amount on the balance sheet only when the Bank satisfy the provisions of Bank of Spain Circular 4/2017 and IAS 32, so they have both the legal right to net recognized amounts, and the intention of settling the net amount or of realizing the asset and simultaneously paying the liability. In addition, the Bank has presented as gross amounts assets and liabilities on the balance sheet for which there are master netting arrangements in place, but for which there is no intention of settling the net amount. The most common types of events that trigger the netting of reciprocal obligations are bankruptcy of the entity, surpassing certain level of indebtedness threshold, failure to pay, restructuring and dissolution of the entity. In the current market context, derivatives are contracted under different framework contracts being the most widespread the ones developed by the International Swaps and Derivatives Association (“ISDA”) and, for the Spanish market, the Framework Agreement on Financial Transactions (“CMOF”). Almost all portfolio derivative transactions have been concluded under these framework contracts, including in them the netting clauses mentioned in the preceding paragraph as "Master Netting Agreement", greatly reducing the credit exposure on these instruments. Additionally, in contracts signed with counterparties, the collateral agreement annexes called Credit Support Annex (“CSA”) in ISDA and Appendix III in CMOF are included, thereby minimizing exposure to a potential default of the counterparty. Moreover, many of the transactions involving assets purchased or sold under a repurchase agreement are transacted through clearing houses that articulate mechanisms to reduce counterparty risk, as well as through the signing of various master agreements for bilateral transactions, the most widely used being the Global Master Repurchase Agreement (GMRA), published by the International Capital Market Association (“ICMA”), to which the clauses related to the collateral exchange are usually added within the text of the master agreement itself. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 62 A summary of the effect of offsetting (via netting and collateral) for derivatives and securities operations is presented below as of December 31, 2024 and 2023: Effect of offsetting for derivatives and securities operation (Millions of Euros) 2024 2023 Gross amounts not offset in the balance sheets Gross amounts not offset in the balance sheets Gross amounts recognized (A) Gross amounts offset in the balance sheets (B) Net amount presented in the balance sheets (C=A-B) Financial instruments Cash collateral received/ Pledged Net amount ⁽¹⁾ Gross amounts recognized (A) Gross amounts offset in the balance sheets (B) Net amount presented in the balance sheets (C=A-B) Financial instruments Cash collateral received/ Pledged Net amount ⁽¹⁾ Trading and hedging derivatives 45,551 8,362 37,189 26,664 10,525 — 42,583 8,866 33,717 25,851 7,866 — Reverse repurchase, securities borrowing and similar agreements 62,083 19,397 42,687 42,687 — — 73,343 — 73,343 73,343 — — Total assets 107,635 27,759 79,876 69,351 10,525 — 115,926 8,866 107,059 99,194 7,866 — Trading and hedging derivatives 40,185 8,362 31,823 26,664 5,159 — 39,556 8,866 30,690 25,851 4,839 — Repurchase, securities lending and similar agreements 68,933 19,397 49,537 49,537 — — 88,768 — 88,768 88,768 — — Total liabilities 109,119 27,759 81,360 76,201 5,159 — 128,324 8,866 119,458 114,619 4,839 — (1) It corresponds to the aggregation of the net amounts presented in the balance sheet, less the gross amount which is not offset in the balance sheet, that records a deficit in this regard. Financial assets and liabilities are offset, and consequently are presented in the balance sheet at their net value under the derivatives, repurchase agreements and reverse repurchase agreements captions for which the Bank maintains netting agreements and its intention to settle the net amount. Regarding certain repurchase agreements and reverse repurchase agreements, since 2024, the Bank fulfills both conditions. In the event that such agreements do not exist, the balance sheet of those repurchase agreements and reverse repurchase agreements includes the market value of those products. 5.5 Liquidity and Funding risk Liquidity and funding risk is defined as the incapacity of a bank in meeting its payment commitments due to lack of funds or that, to face those commitments, should have to make use of funding under burdensome terms. 5.5.1 Liquidity and Funding Strategy and Planning BBVA is a multinational financial institution whose business is focused mainly on retail and commercial banking activities. In addition to the retail business model, which forms its core business, the Group engages in corporate and investment banking, through the global CIB (Corporate & Investment Banking) division. Liquidity and Funding Risk Management aims to maintain a solid balance sheet structure which allows a sustainable business model. The Group’s liquidity and funding strategy is based on the following pillars: – The principle of the funding self-sufficiency of its subsidiaries, meaning that each of the Liquidity Management Units (hereinafter "LMU") must cover its funding needs independently on the markets where it operates. This avoids possible contagion due to a crisis affecting one or more of the Group’s LMU. – Stable customer deposits as the main source of funding in all the LMU, in accordance with the Group’s business model. – Diversification of the sources of wholesale funding, in terms of maturity, market, instruments, counterparties and currencies, with recurring access to the markets. – Compliance with regulatory requirements, ensuring the availability of ample liquidity buffers, of high quality, as well as sufficient instruments as required by regulations with the capacity to absorb losses. – Compliance with the internal Liquidity Risk and Funding metrics, while adhering to the Risk Appetite level established for each LMU at any time. Liquidity and Funding Risk Management aims, in the short term, to prevent an entity from having difficulties in meeting its payment commitments in due time and form or that, to meet them, it has to resort to obtaining funds in burdensome conditions that deteriorate the image or reputation of the entity. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 63 In the medium term, its objective is to ensure the suitability of the Group's financial structure and its evolution, within the framework of the economic situation, the markets and regulatory changes. This management of structural and liquidity funding is based on the principle of financial self-sufficiency of the entities that comprise it. This approach helps prevent and limit liquidity risk by reducing the Group’s vulnerability during periods of high risk. This decentralized management prevents possible contagion from a crisis affecting only one or a few Group entities, which must act independently to meet their liquidity requirements in the markets where they operate. Within this strategy, the BBVA Group is organized into eight LMU composed of the parent company and the bank subsidiaries in each geographical area, plus the branches that depend on them. In addition, the policy for managing liquidity and funding risk is also based on the model’s robustness and on the planning and integration of risk management into the budgeting process of each LMU, according to the liquidity and funding risk appetite that it decides to assume in its business. Liquidity and funding planning is part of the strategic processes for the Group’s budgetary and business planning. This objective is to allow a recurrent growth of the banking business with suitable maturities and costs within the established risk tolerance levels by using a wide range of instruments which allow the diversification of the funding sources and the maintenance of a high volume of available liquid assets. 5.5.2 Governance, monitoring and mitigation measures The responsibility for liquidity and funding management in the development of normal business activity lies with the Finance area as a first line of defense in managing the risks inherent to this activity, in accordance with the principles established by the EBA and in line with the most demanding standards, policies, procedures and controls in the framework established by the governing bodies. Finance, through the Balance-Sheet Management area, plans and executes the funding of the structural long-term gap of each LMU and proposes to the ALCO the actions to be taken on this matter, in accordance with the policies established by the Risk Committee in line with the metrics of the Risk Appetite Framework approved by the Board of Directors. Finance is also responsible for preparing the regulatory reporting of liquidity, coordinating the necessary processes to cover the requirements at corporate and regulatory level, ensuring the integrity of the information provided. GRM is responsible for ensuring that the liquidity and financing risk in the Bank is managed in accordance with the framework established by governing bodies. It also deals with the identification, measurement, monitoring and control of such risks and their communication to the relevant corporate bodies. In order to carry out this task properly, the risk function in the Bank has been configured as a single, global function, independent of the management areas. Additionally, the Bank has, in its second line of defense, an Internal Risk Control unit, which performs an independent review of the control of Liquidity and Funding Risk, and a Financial Internal Control Unit that reviews the design and effectiveness of the controls operations on liquidity management and reporting. As the third line of defense of the Group's internal control model, Internal Audit is in charge of reviewing specific controls and processes in accordance with a work plan that is drawn up annually. The Bank’s fundamental objectives regarding the liquidity and funding risk are determined through the Liquidity Coverage Ratio (LCR) and through the Loan-to-Stable Customer Deposits (LtSCD) ratio. The LCR ratio is a regulatory metric that aims to guarantee the resilience of entities in a scenario of liquidity tension within a time horizon of 30 days. Within its risk appetite framework and system of limits and alerts, BBVA has established a required LCR compliance level. The internal levels required are aimed at efficiently meeting the regulatory requirement, at a loose level above 100% as a mitigation measure. The LtSCD ratio measures the relationship between net lending and stable customer funds. The aim is to preserve a stable funding structure in the medium term, taking into account that maintaining an adequate volume of stable customer funds is key to achieving a sound liquidity profile. In geographical areas with dual-currency balances, the indicator is also controlled by currency to manage the mismatches that might occur. Stable customer funds are considered to be the financing obtained and managed among their target customers. Those funds are characterized by their low sensitivity to market changes and by their less volatile behavior at aggregated level per operation due to the loyalty of the customer to the entity. The stable resources are calculated by applying to each identified customer segment a haircut determined by the analysis of the stability if the balances by which different aspects are evaluated (concentration, stability, level of loyalty). The main source of stable resources arises from wholesale funding and retail customer funds. In order to establish the target (maximum) levels of LtSCD and provide an optimal funding structure reference in terms of risk appetite, the Structural Risks of GRM identifies and assesses the economic and financial variables that condition the funding structures. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 64 Additionally, liquidity and funding risk management aims to achieve a proper diversification of the funding structure, avoiding excessive dependence on short-term funding by establishing a maximum level for the short-term funds raised, including both wholesale financing and the least stable proportion of customer funds In relation to long-term financing, the maturity profile does not present significant concentrations, which makes it possible to adapt the schedule of the planned issuance plan to the best financial conditions in the markets. Lastly, concentration risk is monitored with the aim of ensuring a correct diversification of both the counterparty and type of instrument. One of the fundamental metrics within the general management framework of the liquidity and funding risk is the maintenance of a liquidity buffer consisting of high quality assets free of charges which can be sold or offered as collateral to obtain funding, either under normal market conditions or in stress situations. The Finance area is responsible for the collateral management and determining the liquidity buffer within BBVA. In addition, the liquidity buffer must be aligned with the liquidity and funding risk tolerance as well as the management limits set and approved for each case. In this context, the short-term resistance of the liquidity risk profile is promoted, to ensure that each LMU has sufficient collateral to deal with the risk of the closing of wholesale markets. Basic capacity is the internal metric for the management and control of short- term liquidity risk, which is defined as the relationship between the explicit assets available and the maturities of wholesale liabilities and volatile resources, at different time periods up to one year, with special relevance at 30 and 90 days, with the objective of preserving the survival period above 3 months with the available buffer, without considering the balance inflows. As a fundamental element of the liquidity and financing risk monitoring scheme, stress tests are carried out. They enable to anticipate deviations from the liquidity targets and the limits set in the appetite, and to establish tolerance ranges in the different management areas. They also play a major role in the design of the Liquidity Contingency Plan and the definition of specific measures to be adopted to rectify the risk profile if necessary. For each scenario, it is checked whether BBVA has a sufficient stock of liquid assets to guarantee its capacity to meet the liquidity commitments/outflows in the different periods analyzed. The analysis considers four scenarios: one central and three crisis-related (systemic crisis; unexpected internal crisis with a considerable rating downgrade and/or affecting the ability to issue in wholesale markets and the perception of business risk by the banking intermediaries and the entity’s clients; and a mixed scenario, as a combination of the two aforementioned scenarios). Each scenario considers the following factors: existing market liquidity, customer behavior and sources of funding, the impact of rating downgrades, market values of liquid assets and collateral, and the interaction between liquidity requirements and the development of BBVA's credit quality. The stress tests conducted on a regular basis by GRM reveal that BBVA maintains a sufficient buffer of liquid assets to deal with the estimated liquidity outflows in a scenario resulting from the combination of a systemic crisis and an unexpected internal crisis, during a period of longer than 3 months in general, including in the scenario of a significant downgrade of the Bank’s rating by up to three notches. Together with the results of the stress tests and the risk metrics, the early warning indicators play an important role within the corporate model and the Liquidity Contingency Plan. Finance is the area responsible for the elaboration, monitoring, execution and update of the liquidity and funding plan and of the market access strategy to guarantee and improve the stability and diversification of the wholesale funding sources. In order to implement and establish management in an anticipated manner, limits are set on an annual basis for the main management metrics that form part of the budgeting process for the liquidity and funding plan. This framework of limits contributes to the planning of the joint future performance of: – The loan book, considering the types of assets and their degree of liquidity, as well as their validity as collateral in collateralized funding. – Stable customer funds, based on the application of a methodology for establishing which segments and customer balances are considered to be stable or volatile funds based on the principle of sustainability and recurrence of these funds. – Projection of the credit gap, in order to require a degree of self-funding that is defined in terms of the difference between the loan-book and stable customer funds. – Incorporating the planning of securities portfolios into the banking book, which include both fixed-interest and equity securities, and are classified as financial assets at fair value through other comprehensive income and at amortized cost, and additionally on trading portfolios. – The structural gap projection, as a result of assessing the funding needs generated both from the credit gap and by the securities portfolio in the banking book, together with the rest of on-balance-sheet wholesale funding needs, excluding trading portfolios. This gap therefore needs to be funded with customer funds that are not considered stable or on wholesale markets. As a result of these funding needs, BBVA plans the target wholesale funding structure according to the tolerance set. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 65 Thus, once the structural gap has been identified and after resorting to wholesale markets, the amount and composition of wholesale structural funding is established in subsequent years, in order to maintain a diversified funding mix and guarantee that there is not a high reliance on short-term funding (short-term wholesale funding plus volatile customer funds). In practice, the execution of the principles of planning and self-funding at the different LMU results in BBVA’s main source of funding being customer deposits, which consist mainly of demand deposits, savings deposits and time deposits. As sources of funding, customer deposits are complemented by access to the interbank market and the domestic and international capital markets in order to address additional liquidity requirements, implementing domestic and international programs for the issuance of commercial paper and medium and long-term debt. The process of analysis and assessment of the liquidity and funding situation and of the inherent risks is a process carried out on an ongoing basis at BBVA, with the participation of all the Group areas involved in liquidity and funding risk management. This process is carried out at both local and corporate level. It is incorporated into the decision- making process for liquidity and funding management, with integration between the risk appetite strategy and establishment and the planning process, the funding plan and the limits scheme. The table below shows the liquidity available by instrument as of December 31, 2024 and 2023 for the most significant entities based on prudential supervisor’s information (Commission Implementing Regulations (EU) 2017/2114 of November 9, 2017): December (Millions of Euros) BBVA, S.A. 2024 2023 Cash and withdrawable central bank reserves 16,004 43,931 Level 1 tradable assets 50,199 31,606 Level 2A tradable assets 194 919 Level 2B tradable assets 3,762 2,916 Other tradable assets 46,537 44,324 Non tradable assets eligible for central banks 11 — Cumulated counterbalancing capacity 116,706 123,696 The Net Stable Funding Ratio (NSFR), defined as the ratio between the amount of stable funding available and the amount of stable funding required, and requires banks to maintain a stable funding profile in relation to the composition of their assets and off-balance- sheet activities. This ratio should be at least 100% at all times. The LCR, NSFR and LtSCD of BBVA at December 31, 2024, is 156%, 119% and 101%, respectively. Below is a breakdown by contractual maturity of the balances of certain headings in the accompanying balance sheets, excluding any valuation adjustments or loss allowances: Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 66 December 2024. Contractual maturities (Millions of Euros) Demand Up to 1 month 1 to 3 months 3 to 6 months 6 to 9 months 9 to 12 months 1 to 2 years 2 to 3 years 3 to 5 years Over 5 years Total ASSETS Cash, cash balances at central banks and other demand deposits 3,542 14,786 — — — — — — — — 18,328 Deposits in credit entities — 233 427 964 494 703 825 332 — 428 4,406 Deposits in other financial institutions — 1,763 1,083 749 614 895 1,127 1,203 1,091 2,565 11,090 Reverse repo, securities borrowing and margin lending — 31,340 10,604 5,025 1,911 3,138 5,782 3,675 3,008 122 64,606 Loans and advances — 17,654 15,274 13,761 8,271 10,398 23,920 19,352 30,351 73,986 212,967 Securities' portfolio settlement — 346 1,001 916 1,167 3,277 13,535 8,172 15,073 37,860 81,347 December 2024. Contractual maturities (Millions of Euros) Demand Up to 1 month 1 to 3 months 3 to 6 months 6 to 9 months 9 to 12 months 1 to 2 years 2 to 3 years 3 to 5 years Over 5 years Total LIABILITIES Wholesale funding — 1,905 3,653 4,524 2,041 2,857 5,513 7,693 4,701 17,602 50,490 Deposits in financial institutions 1,087 3,368 435 240 60 186 105 77 118 453 6,129 Deposits in other financial institutions and international agencies 5,916 4,338 1,358 846 531 512 1,619 1,447 1,601 4,772 22,940 Customer deposits 198,025 18,049 11,885 5,825 2,204 2,530 997 234 574 695 241,018 Security pledge funding — 52,526 13,947 5,284 2,299 4,077 2,080 292 561 253 81,319 Derivatives, net — (341) (278) (90) (99) (113) 155 (225) (149) (178) (1,318) Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 67 December 2023. Contractual maturities (Millions of Euros) Demand Up to 1 month 1 to 3 months 3 to 6 months 6 to 9 months 9 to 12 months 1 to 2 years 2 to 3 years 3 to 5 years Over 5 years Total ASSETS Cash, cash balances at central banks and other demand deposits 3,732 42,715 — — — — — — — 46,446 Deposits in credit entities — 502 251 446 497 450 570 114 — 399 3,229 Deposits in other financial institutions — 1,191 480 859 270 539 1,803 733 520 2,888 9,283 Reverse repo, securities borrowing and margin lending — 32,854 21,694 6,706 3,398 2,596 3,319 3,817 2,133 139 76,657 Loans and advances — 14,474 12,325 12,732 7,858 10,177 23,648 19,555 25,470 71,673 197,913 Securities' portfolio settlement — 330 3,359 1,316 893 8,649 3,376 9,988 14,629 29,119 71,658 December 2023. Contractual maturities (Millions of Euros) Demand Up to 1 month 1 to 3 months 3 to 6 months 6 to 9 months 9 to 12 months 1 to 2 years 2 to 3 years 3 to 5 years Over 5 years Total LIABILITIES Wholesale funding — 530 3,051 7,030 3,986 3,390 7,624 5,353 7,791 15,420 54,173 Deposits in financial institutions 1,448 2,757 1,000 199 85 89 309 2 89 471 6,449 Deposits in other financial institutions and international agencies 6,967 3,809 2,863 769 774 707 1,456 1,210 1,255 3,755 23,566 Customer deposits 185,072 18,323 6,047 3,948 2,139 3,430 726 642 417 879 221,622 Security pledge funding — 63,646 30,984 5,913 2,207 1,213 2,456 967 250 551 108,188 Derivatives, net — (115) (193) (63) (171) (412) (192) (81) (272) (2,569) (4,069) Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 68 With regard to the financing structure, the loan portfolio is mostly financed by retail deposits. The “demand” maturity bucket mainly contains the retail customer sight accounts whose behavior historically showed a high level of stability and little concentration. According to a behavior analysis which is done every year in every entity, this type of account is considered to be stable and for liquidity risk purposes receives a better treatment. BBVA, S.A. has maintained a position with a large high-quality liquidity buffer, having repaid the entire TLTRO III program, maintaining at all times the regulatory liquidity metrics well above the set minimums. During 2024, commercial activity has shown dynamism, experiencing growth in lending, higher than growth in customer deposits. The main wholesale financing transactions carried out by BBVA S.A. during 2024 are listed below: Issuer Type of issue Date of issue Nominal (millions) Currency Coupon Early redemption Maturity date BBVA, S.A. Senior preferred Jan-24 1,250 EUR 3.875% — Jan-34 Tier 2 Feb-24 1,250 EUR 4.875% Nov-30 to Feb-31 Feb-36 Senior preferred Mar-24 1,000 USD 5.381% — Mar-29 Senior non- preferred Mar-24 1,000 USD 6.033% Mar-34 Mar-35 Senior preferred (green bond) Mar-24 1,000 EUR 3.500% — Mar-31 Senior preferred Jun-24 1,000 EUR 3 month Euribor rate + 45 basis points — Jun-27 Senior preferred Jun-24 750 EUR 3.625% — Jun-30 AT1 (CoCo) Jun-24 750 EUR 6.875% Dec-30 to Jun-31 Perpetual Tier 2 Aug-24 1,000 EUR 4.375% May-31 to Aug-31 Aug-36 Additionally, BBVA, S.A. redeemed two capital issuances in 2024: in February 2024, a Tier 2 issuance of subordinated bonds issued in February 2019, for an amount of €750 million and, in March 2024, on its first date of optional redemption, an AT1 issued in 2019, for an amount of €1 billion (see Note 20). Likewise, in December 2024, a redemption of a Tier 2 issuance of subordinated bonds issued in January 2020, for an amount of €1 billion, was announced and it was effectively redeemed in January 2025. Furthermore, on January 14, 2025, BBVA, S.A. issued an AT1 for an amount of USD 1 billion, with an early redemption option after seven years. On January 28, 2025, BBVA announced its irrevocable decision to fully redeem on March 5, 2025, an AT1 issued in 2019 for USD 1 billion (see Note 20.4). 5.5.3 Asset encumbrance As of December 31, 2024 and 2023, the encumbered (those provided as collateral for certain liabilities) and unencumbered assets are broken down as follows: Encumbered and unencumbered assets (Millions of Euros) Encumbered assets Unencumbered assets Book value Fair value Book value Fair value 2024 2023 2024 2023 2024 2023 2024 2023 Equity instruments 834 592 695 346 7,624 4,454 7,624 4,454 Debt securities 24,289 32,647 21,448 29,434 47,281 31,906 47,183 32,906 Loans and advances and other assets 19,105 21,496 — — 369,164 399,820 — — The committed value of "Loans and Advances and other assets" corresponds mainly to loans linked to the issue of covered bonds, territorial bonds or long-term securitized bonds (see Note 20) as well as, to a lesser extent, those used as a guarantee to access certain funding transactions with central banks. Debt securities and equity instruments correspond to underlying that are delivered in repos with different types of counterparties, mainly clearing houses or credit institutions, and to a lesser extent central banks. Collateral provided to guarantee derivative transactions is also included as committed assets. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 69 As of December 31, 2024 and 2023, collateral pledges received mainly due to repurchase agreements and securities lending, and those which could be committed in order to obtain funding are provided below: Collateral received (Millions of Euros) Fair value of encumbered collateral received or own debt securities issued Fair value of collateral received or own debt securities issued available for encumbrance Fair value of collateral received or own debt securities issued not available for encumbrance 2024 2023 2024 2023 2024 2023 Collateral received 35,460 70,988 13,819 8,297 1,151 996 Equity instruments 201 1,009 162 51 — — Debt securities 35,259 69,978 13,657 8,245 1,151 996 Own debt securities issued other than own covered bonds or ABSs — — 66 74 — — The guarantees received in the form of reverse repurchase agreements or security lending transactions are committed by their use in repurchase agreements, as is the case with debt securities. As of December 31, 2024 and 2023, financial liabilities issued related to encumbered assets in financial transactions as well as their book value were as follows: Sources of encumbrance (Millions of Euros) Matching liabilities, contingent liabilities or securities lent Assets, collateral received and own debt securities issued other than covered bonds and ABSs encumbered 2024 2023 2024 2023 Book value of financial liabilities 78,380 124,125 79,396 125,204 Derivatives 11,162 11,034 10,900 10,684 Deposits 59,037 103,998 58,065 104,966 Outstanding subordinated debt 8,182 9,094 10,431 9,554 Other sources 291 237 291 519 6. Fair value of financial instruments Framework and processes control The process for determining the fair value established in the Bank seeks to ensure that financial assets and liabilities are properly recorded following the fair value criteria, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market or most advantageous market, at the measurement date. BBVA has established, at a geographic level, a structure of Risk Operational Admission and Product Governance Committees responsible for validating and approving new products or types of financial assets and liabilities before being contracted. Local management responsible for valuation, which are independent from the business (see Management Report - Risk) are members of these committees. These areas are required to ensure, prior to the approval stage, the existence of not only technical and human resources, but also adequate informational sources to measure the fair value of these financial assets and liabilities, in accordance with the rules established by the valuation global area and using models that have been validated and approved by the responsible areas. Fair value hierarchy All financial instruments, both assets and liabilities are initially recognized at fair value, which at that point is equivalent to the transaction price, unless there is evidence to the contrary in the market. Subsequently, depending on the type of financial instrument, it may continue to be recognized at amortized cost or fair value through adjustments in the income statement or equity. When possible, the fair value is determined as the market price of a financial instrument. However, for many of the financial assets and liabilities of the Bank, especially in the case of derivatives, there is no market price available, so its fair value is estimated on the basis of the price established in recent transactions involving similar instruments or, in the absence thereof, by using mathematical measurement models that are sufficiently tried and trusted by the international financial community. The estimates of the fair value derived from the use of such models take into consideration the specific features of the asset or liability to be measured and, in particular, the various types of risk associated with such asset or liability. However, the limitations inherent in the measurement models and possible inaccuracies in the assumptions and parameters required by these models may mean that the estimated fair value of an asset or liability does not exactly match the price for which the asset or liability could be exchanged or settled on the date of its measurement. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 70 Additionally, for financial assets and liabilities that show significant uncertainty in inputs or model parameters used for valuation, criteria are established to measure said uncertainty and activity limits are set based on these. Finally, these measurements are compared, as much as possible, against other sources such as the measurements obtained by the business teams and/or those obtained by other market participants. The process for determining the fair value requires the classification of the financial assets and liabilities according to the measurement processes used as set forth below: – Level 1: Valuation using directly the quotation of the instrument, observable and readily and regularly available from independent price sources and referenced to active markets that the entity can access at the measurement date. The instruments classified within this level are fixed-income securities, equity instruments and certain derivatives. – Level 2: Valuation of financial instruments with commonly accepted techniques that use inputs obtained from observable data in markets. – Level 3: Valuation of financial instruments with valuation techniques that use significant unobservable inputs in the market. As of December 31, 2024, the affected instruments at fair value accounted for approximately 0.73% of financial assets and 0.35% of the Bank’s financial liabilities. Model selection and validation is undertaken by control areas outside the business areas. 6.1. Fair value of financial instruments recognized at fair value, according to valuation criteria Below are the different elements used in the valuation technique of financial instruments. Active Market BBVA considers an active market as a market that allows the observation of bid and offer prices representative of the levels to which the market participants are willing to negotiate an asset, with sufficient frequency and volume. Furthermore, BBVA considers as traded in an “Organized Market” quotations for assets or liabilities from Over The Counter (OTC) markets when they are obtained from independent sources, observable on a daily basis and fulfil certain conditions. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 71 The fair value of the Group's financial instruments recognized at fair value in the consolidated balance sheets is presented below, broken down according to the valuation method used to determine their fair value, and their respective book value as of December 31, 2024 and 2023: Fair value of financial instruments recognized at fair value by levels. December 2024 (Millions of Euros) Notes Book value Fair value Level 1 Level 2 Level 3 ASSETS Financial assets held for trading 8 89,167 16,857 70,449 1,861 Derivatives 36,405 643 35,462 300 Equity instruments 6,457 6,363 76 19 Debt securities 11,806 9,852 1,423 530 Loans and advances 34,500 — 33,488 1,011 Non-trading financial assets mandatorily at fair value through profit or loss 9 895 385 32 479 Equity instruments 626 200 1 426 Debt securities 269 185 31 53 Loans and advances — — — — Financial assets designated at fair value through profit or loss 10 — — — — Debt securities — — — — Financial assets at fair value through other comprehensive income 11 14,842 13,703 386 753 Equity instruments 1,193 1,121 — 72 Debt securities 13,649 12,582 386 680 Loans and advances to credit institutions — — — — Derivatives – Hedge accounting 13 784 — 784 — LIABILITIES Financial liabilities held for trading 8 70,943 9,861 60,171 912 Trading derivatives 30,287 756 29,290 241 Short positions 9,635 9,105 515 15 Deposits 31,022 — 30,366 656 Financial liabilities designated at fair value through profit or loss 10 2,955 — 2,390 564 Deposits from credit institutions — Customer deposits 2,955 — 2,390 564 Debt certificates issued — — — — Other financial liabilities — — — — Derivatives – Hedge accounting 13 1,536 — 1,513 23 Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 72 Fair value of financial Instruments recognized at fair value by levels. December 2023 (Millions of Euros) Notes Book value Fair value Level 1 Level 2 Level 3 ASSETS Financial assets held for trading 8 116,828 13,090 101,740 1,999 Derivatives 32,937 144 32,571 222 Equity instruments 3,339 3,321 — 18 Debt securities 11,018 9,625 1,304 89 Loans and advances 69,534 — 67,864 1,669 Non-trading financial assets mandatorily at fair value through profit or loss 9 730 160 143 427 Equity instruments 507 141 — 366 Debt securities 223 19 143 61 Loans and advances to customers — — — — Financial assets designated at fair value through profit or loss 10 — — — — Debt securities — — — — Financial assets at fair value through other comprehensive income 11 19,426 18,350 662 415 Equity instruments 1,019 987 — 32 Debt securities 18,407 17,362 662 383 Loans and advances to credit institutions — — — — Derivatives – Hedge accounting 13 780 — 780 — LIABILITIES Financial liabilities held for trading 8 108,349 10,495 97,177 677 Trading derivatives 28,615 191 28,206 218 Short positions 11,849 10,305 1,501 44 Deposits 67,885 — 67,470 415 Financial liabilities designated at fair value through profit or loss 10 2,361 — 2,054 307 Deposits from credit institutions — — — — Customer deposits 2,361 — 2,054 307 Debt certificates issued — — — — Other financial liabilities — — — — Derivatives – Hedge accounting 13 2,075 — 2,036 39 The following table sets forth the main valuation techniques, hypothesis and inputs used in the estimation of fair value of the financial instruments recognized at fair value classified under Levels 2 and 3, based on the type of financial asset and liability and the corresponding balances as of December 31, 2024 and 2023: Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 73 Fair Value of financial Instruments by Levels Valuation techniques in Levels 2 and 3 Observable inputs in Levels 2 and 3 Unobservable inputs in Levels 2 and 3 ASSETS Financial assets held for trading Equity instruments Comparable pricing (Observable price in a similar market) Net asset value - Brokers quotes - Market operations - NAVs published NAV provided by the administrator of the fund Debt securities Present-value method (Discounted future cash flows) Observed prices in non active markets - Issuer´s credit risk - Current market interest rates - Non active markets prices - Prepayment rates - Issuer´s credit risk - Recovery rates Loans and advances Present-value method (Discounted future cash flows) - Issuer´s credit risk - Current market interest rates - Interest rates for the financing of assets - Exchange rates - Prepayment rates - Issuer´s credit risk - Recovery rates Derivatives Interest rate Interest rate products (Interest rate Swaps, call money Swaps y FRA): Discounted cash flows Caps/Floors: Black 76 y SABR Bond Options: Black 76 Swaptions: Black 76, SABR y LGM Other Interest rate options: Black, SABR y Libor Market Model Constant maturity Swaps: SABR - Exchange rates - Market quoted future prices - Market interest rates - Underlying assets prices: shares, funds, commodities - Market observable volatilities - Issuer credit spread levels - Quoted dividends - Market listed correlations - Beta - Implicit correlations between tenors - Interest rates volatility Equity Future and Equity Forward: Discounted future cash flows Equity Options: Local Volatility, Balck 76, Momentum adjustment and Heston - Volatility of volatility - Implicit assets correlations - Long term implicit correlations - Implicit dividends and long term repos Foreign exchange and gold Future and Equity forward: Discounted future cash flows Foreign exchange Options: Black 76, Local Volatility, moments adjustment - Volatility of volatility - Implicit assets correlations - Long term implicit correlations Credit Credit Derivatives: Default model and Gaussian copula - Correlation default - Credit spread - Recovery rates - Interest rate yield - Default volatility Commodities Commodities: Momentum adjustment and discounted cash flows Non-trading financial assets mandatorily at fair value through profit or loss Equity instruments Comparable pricing (Observable price in a similar market) Net asset value - Brokers quotes - Market operations - NAVs published - NAV provided by the administrator of the fund Debt securities Present-value method (Discounted future cash flows) - Issuer credit risk - Current market interest rates Prepayment rates - Issuer credit risk - Recovery rates Loans and advances Specific liquidation criteria regarding losses of the EPA proceedings PD and LGD of the internal models, valuations and specific criteria of the EPA proceedings - Issuer credit risk - Current market interest rates - Interest rates for the financing of assets - Exchange rates - Property valuation Financial assets at fair value through other comprehensive income Equity instruments Comparable pricing (Observable price in a similar market) Net asset value - Brokers quotes - Market operations - NAVs published - NAV provided by the administrator of the fund Debt securities Present-value method (Discounted future cash flows) Observed prices in non-active markets - Issuer´s credit risk - Current market interest rates - Non active market prices - Prepayment rates - Issuer credit risk - Recovery rates Hedging derivatives Interest rate Interest rate products (Interest rate Swaps, call money Swaps y FRA): Discounted cash flows Caps/Floors: Black 76 y SABR Bond Options: Black 76 Swaptions: Black 76, SABR y LGM Other Interest rate options: Black, SABR y Libor Market Model Constant maturity Swaps: SABR - Exchange rates - Market quoted future prices - Market interest rates - Underlying assets prices: shares, funds, commodities - Market observable volatilities - Issuer credit spread levels - Quoted dividends - Market listed correlations Equity Future and Equity Forward: Discounted future cash flows Equity Options: Local volatility, Black 76, Momentum adjustment and Heston Foreign exchange and gold Future and Equity Forward: Discounted future cash flows Foreign exchange Options: Black 76, Local volatility, moments adjustment Credit Credit Derivatives: Default model and Gaussian copula Commodities Commodities: Momentum adjustment and Discounted cash flows Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 74 Fair Value of Financial Instruments by Levels Valuation techniques in Levels 2 and 3 Observable inputs in Levels 2 and 3 Unobservable inputs in Levels 2 and 3 LIABILITIES Financial liabilities held for trading Deposits Present-value method (Discounted future cash flows) - Interest rate yield - Funding interest rates observed in the market or in consensus services - Exchange rates - Funding interest rates observed in the market or in consensus services Derivatives Interest rate Interest rate products (Interest rate Swaps, call money Swaps y FRA): Discounted cash flows Caps/Floors: Black 76 y SABR Bond Options: Black 76 Swaptions: Black 76, SABR y LGM Other Interest rate options: Black, SABR y Libor Market Model Constant maturity Swaps: SABR - Exchange rates - Market quoted future prices - Market interest rates - Underlying assets prices: shares, funds, commodities - Market observable volatilities - Issuer credit spread levels - Quoted dividends - Market listed correlations - Beta - Correlation between tenors - Interest rates volatility Equity Future and Equity Forward: Discounted future cash flows Equity options: Local volatility, momentum adjustment and Heston - Volatility of volatility - Assets correlation Foreign exchange and gold Future and Equity Forward: Discounted future cash flows Foreign exchange options: Black 76, Local volatility, moments adjustment - Volatility of volatility - Assets correlation Credit Credit Derivatives: Default model and Gaussian copula - Correlation default - Credit spread - Recovery rates - Interest rate yield - Default volatility Commodities Commodities: Momentum adjustment and discounted cash flows Short positions Present-value method (Discounted future cash flows) - Correlation default - Credit spread - Recovery rates - Interest rate yield Financial liabilities designated at fair value through profit or loss Present-value method (Discounted future cash flows) - Prepayment rates - Issuer´s credit risk - Current market interest rates - Prepayment rates - Issuer credit risk - Current market interest rates Derivatives – Hedge accounting Interest rate Interest rate products (Interest rate Swaps, call money Swaps y FRA): Discounted cash flows Caps/Floors: Black 76 y SABR Bond Options: Black 76 Swaptions: Black 76, SABR y LGM Other Interest rate options: Black, SABR y Libor Market Model Constant maturity Swaps: SABR - Exchange rates - Market quoted future prices - Market interest rates - Underlying assets prices: shares, funds, commodities - Market observable volatilities - Issuer credit spread levels - Quoted dividends - Market listed correlations - Beta - Implicit correlations between tenors - interest rates volatility Equity Future and Equity forward: Discounted future cash flows Equity options: Local Volatility, Black 76, momentum adjustment and Heston - Volatility of volatility - Implicit assets correlations - Long term implicit correlations - Implicit dividends and long term repos Foreign exchange and gold Future and Equity Forward: Discounted future cash flows Foreign exchange Options: Black 76, local volatility, moments adjustment - Volatility of volatility - Implicit assets correlations - Long term implicit correlations Credit Credit Derivatives: Default model and Gaussian copula - Correlation default - Credit spread - Recovery rates - Interest rate yield - Default volatility Commodities Commodities: Momentum adjustment and discounted cash flows Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 75 Main valuation techniques The main techniques used for the assessment of the majority of the financial instruments classified in level 3, and its main unobservable inputs, are described below: – The net present value (net present value method): This technique uses the future cash flows of each financial instrument, which are established in the different contracts, and discounted to their present value. This technique often includes many observable inputs, but may also include unobservable inputs, as described below: a. Credit Spread: This input represents the difference in yield of a debt security and the reference rate, reflecting the additional return that a market participant would require to take the credit risk of that debt security. Therefore, the credit spread of the debt security is part of the discount rate used to calculate the present value of the future cash flows. b. Recovery rate: This input represents the percentage of principal and interest recovered from a debt instrument that has defaulted. – Comparable prices (similar asset prices): This input represents the prices of comparable financial instruments and benchmarks used to calculate a reference yield based on relative movements from the entry price or current market levels. Further adjustments to account for differences that may exist between financial instrument being valued and the comparable financial instrument may be added. It can also be assumed that the price of the financial instrument is equivalent to the comparable instrument. – Net asset value: This technique utilizes certain assumptions to use net asset value as representative of fair value, which is equal to the total value of the assets and liabilities of a fund published by the managing entity. – Gaussian copula: This model is used to integrate default probabilities of credit instruments referenced to more than one underlying CDS (Credit Default Swaps). The joint density function used to value the instrument is constructed by using a Gaussian copula that relates the marginal densities by a normal distribution, usually extracted from the correlation matrix of events approaching default by CDS issuers. – Black 76: variant of Black Scholes model, whose main application is the valuation of bond options, cap floors and Swaptions where the behavior of the Forward and not the Spot itself, is directly modeled. – Black Scholes: The Black Scholes model postulates log-normal distribution for the prices of securities, so that the expected return under the risk neutral measure is the risk free interest rate. Under this assumption, the price of vanilla options can be obtained analytically, so that inverting the Black- Scholes formula, the implied volatility for process of the price can be calculated. – Heston: This model, typically applied to equity OTC options, assumes stochastic behavior of volatility. According to which, the volatility follows a process that reverts to a long-term level and is correlated with the underlying equity instrument. As opposed to local volatility models, in which the volatility evolves deterministically, the Heston model is more flexible, allowing it to be similar to that observed in the short term today. – Libor market model: This model assumes that the dynamics of the interest rate curve can be modeled based on the set of forward contracts that compose the underlying interest rate. The correlation matrix is parameterized on the assumption that the correlation between any two forward contracts decreases at a constant rate, beta, to the extent of the difference in their respective due dates. The input “Credit default volatility” is a volatility input of the credit factor dynamic applied in rate/credit hybrid operative. The multifactorial frame of this model makes it ideal for the valuation of instruments sensitive to the slope or curve, including interest rate option. – Local Volatility: In the local volatility models, the volatility, instead of being static, evolves deterministically over time according to the level of moneyness (i.e. probability that the option has a positive value on its date of expiration) of the underlying, capturing the existence of volatility smiles. The volatility smile of an option is the empirical relationship observed between its implied volatility and its strike price. These models are appropriate for options whose value depends on the historical evolution of the underlying which use Monte Carlo simulation technique for their valuation. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 76 Unobservable inputs Quantitative information of unobservable inputs used to calculate level 3 valuations is presented below as of December 31, 2024 and 2023: Unobservable inputs. December 2024 Financial instrument Valuation technique(s) Significant unobservable inputs Min Average Max Units Debt Securities Present value method Credit spread — 113 3,907 bp Recovery rate 0 % 39 % 40 % % Comparable Pricing 0 % 95 % 233 % % Equity/Fund instruments (1) Net Asset Value Comparable Pricing Loans and advances Present value method Repo funding curve 2.09 % 3.70 % 7.11 % % Credit Derivatives Gaussian Copula Correlation default 19 % 59 % 92 % % Black 76 Price volatility — — — Vegas Equity Derivatives Option models on equities, baskets of equity, funds Dividends (2) Correlations (88 %) 48 % 99 % % Volatility 5.07 30.90 122.35 Vegas FX Derivatives Option models on FX underlyings Volatility 3.93 9.46 14.91 Vegas IR Derivatives Option models on IR underlyings Beta 3.00 % 5.00 % 11.00 % % Correlation rate/credit (100 %) 100% % Correlation rate/inflation 42 % 74 % 95 % % (1) Due to the diversity of valuation models of equity valuations, we would not include all the unobservable inputs or the quantitative ranges of them. (2) The range of unobservable dividends is too wide range to be relevant. Unobservable inputs. December 2023 Financial instrument Valuation technique(s) Significant unobservable inputs Min Average Max Units Debt Securities Present value method Credit spread — 136 4,369 bp Recovery rate 0 % 39 % 40 % % Comparable Pricing 0 % 99 % 237 % % Equity/Fund instruments (1) Net Asset Value Comparable Pricing Loans and advances Present value method Repo funding curve 2.26 % 3.74 % 5.76 % % Credit Derivatives Gaussian Copula Correlation default 26 % 60 % 85 % % Black 76 Price volatility — — — Vegas Equity Derivatives Option models on equities, baskets of equity, funds Dividends (2) Correlations (88 %) 52 % 99 % % Volatility 8.47 29.41 70.94 Vegas FX Derivatives Option models on FX underlyings Volatility 4.31 10.24 18.52 Vegas IR Derivatives Option models on IR underlyings Beta 3.00 % 5.00 % 11.00 % % Correlation rate/credit (100 %) 100 % % Correlation rate/inflation 52% 60% 74% % (1) Due to the diversity of valuation models of equity valuations, we would not include all the unobservable inputs or the quantitative ranges of them. (2) The range of unobservable dividends is too wide range to be relevant. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 77 Adjustments to the valuation Under Circular 4/2017, the entity must estimate the value taking into account the assumptions and conditions that market participants would have when setting the price of the asset or liability on the valuation date. In order to comply with the fair value requirements, the entity applies adjustments to the fair valuation considering inherent and counterparties´ default criteria, funding valuation risk and valuation risks due to valuation uncertainty and related to the prudent valuation criteria aligned with the regulatory requirements and considers the model risk, liquidity risk (Bid/Offer) and price uncertainty risk. Adjustments to the valuation for risk of default The fair value of liabilities should reflect the entity's default risk, which includes, among other components, its own credit risk. Taking this into account, the Bank makes valuation adjustments for credit risk in the estimates of the fair value of its assets and liabilities. These adjustments are calculated by estimating Exposure At Default, Probability of Default and Loss Given Default, which are based on the recovery levels for all derivative products on any instrument, deposits and repos at the legal entity level (all counterparties under a same master agreement), in which BBVA has exposure. Credit Valuation Adjustment (hereinafter “CVA”) and Debit Valuation Adjustments (hereinafter “DVA”) are included in the valuation of derivatives, both assets and liabilities, to reflect the impact on the fair value of the counterparty credit risk and its own, respectively. The Bank incorporates in its valuation, for all exposures classified in any of the categories valued at fair value, both the counterparty credit risk and its own. In the trading portfolio, and in the specific case of derivatives, credit risk is recognized through such adjustments. As a general rule, the calculation of CVA is the sum of the expected positive exposure in time t, the probability of default between t-1 and t, and the Loss Given Default of the counterparty. Consequently, the DVA is calculated as the sum of the expected negative exposure in time t, the probability of default of BBVA between t-1 and t, and the Loss Given Default of BBVA. Both calculations are performed throughout the entire period of potential exposure. The calculation of the expected positive and negative exposure is done through a Montecarlo simulation of the market variables involved in all trades’ valuation under the same legal netting set. The information needed to calculate the probability of default and the loss given default of a counterparty comes from the credit markets. The counterparty’s Credit Default Swaps are used if liquid quotes are available. If a market price is not available, BBVA has implemented a mapping process based on the sector, rating and geography of the counterparty to assign probabilities of default and loss given default calibrated directly to market. An additional adjustment for Own Credit Adjustment (hereinafter “OCA”) is applied to the instruments accounted for by applying the Fair Value Option permitted by the standard. The amounts recognized in the balance sheet as of December 31, 2024 and 2023 related to "OCA” were €393 million and € 406 million respectively. The amounts recognized in the balance sheet as of December 31, 2024 and 2023 related to the valuation adjustments to the credit assessment of the derivative asset as “Credit Valuation Adjustments” (“CVA”) were €-167 million and €-111 million respectively, and the valuation adjustments to the derivative liabilities as “Debit Valuation Adjustment” (DVA) were €60 million and €64 million respectively. The impact recorded under “Gains (losses) on financial assets and liabilities held for trading, net” in the income statement for the year ended December 31, 2024 and 2023 corresponding to the mentioned adjustments were a net impact of €15 million and €12 million respectively. As a result of the value variations of the inherent credit risk, which is included in the deposits classified as liabilities designated at fair value through profit and loss, the amount recognized in the heading “Accumulated other comprehensive income” has amounted to €-24 million and €78 million as of December 31, 2024 and 2023, respectively. Valuation adjustments for financing risk The fair value of the positions recorded at fair value must reflect the entity's financing risk. Taking into account the above, the Bank makes adjustments for financing risk valuation (Funding Valuation Adjustment FVA) in the estimates of the fair value of its assets and liabilities. The adjustment to the valuation for financing risk incorporates the cost of financing implicit in the valuation of positions at fair value. This adjustment reflects the cost of funding for non-collateralized or partially collateralized operations. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 78 Additionally, as of December 31, 2024 and 2023, €-19 million and €-16 million related to the “Funding Valuation Adjustments” (“FVA”) in derivatives operations, the adjustment has remained stable in the year 2023. Valuation adjustments for valuation uncertainty The fair value of the positions recorded at fair value must reflect the valuation risk derived from the uncertainty in the valuation for concepts of pure uncertainty of prices, liquidity risk and model risks. This adjustment is aligned with the regulatory requirements for prudent valuation via valuation adjustments with an impact on CET1, and meets the requirements. The adjustment to the valuation for liquidity incorporates an adjustment for Bid / Offer spreads in the valuation of positions that do not meet the necessary conditions to be considered a Market Maker operation. The adjustment to the valuation for model risk captures the uncertainty in the price associated with the products valued with the use of a valuation model ("Mark to Model") given the existence of more than one possible model applicable to the valuation of the product or the calibration of its parameters from the observations of inputs in the market. The adjustment to the valuation for price uncertainty includes the uncertainty associated with the dispersion in the values observed in the market for the prices taken in the valuation of assets or as inputs in the valuation models. The impact recorded under “Gains (losses) on financial assets and liabilities held for trading, net” in the consolidated income statement for the year ended December 31, 2024 corresponding to the mentioned adjustments was a net impact of €-50 million (€ -50 million in 2023). An adjustment was also made as of December 31, 2024 on financial asset at fair value through other comprehensive income for a total of €-9 million (€-7 million in 2023). Financial assets and liabilities classified as Level 3 The changes in the balance of Level 3 financial assets and liabilities included in the accompanying balance sheets are as follows: Financial assets Level 3. Changes in the year (Millions of Euros) 2024 2023 Assets Liabilities Assets Liabilities Balance at the beginning 2,840 1,023 2,752 1,142 Changes in fair value recognized in profit and loss (1) 418 273 38 174 Changes in fair value not recognized in profit and loss 11 — (18) — Acquisitions, disposals and liquidations (34) 160 (132) (97) Net transfers to Level 3 (143) 42 200 (196) Exchange differences and others — — — — Balance at the end 3,092 1,499 2,840 1,023 (1) Profit or loss that is attributable to gains or losses relating to those financial assets and liabilities held as of December 31, 2024 and 2023 . Valuation adjustments are recorded under the heading “Gains (losses) on financial assets and liabilities (net)”. During 2024, there was an increase in positions classified as level 3, mainly concentrated in cash fixed-income positions due to unobservability in market prices applied in their valuation. No significant changes were observed in other positions, such as derivatives, reverse repurchase agreements and cash variable-income positions. In 2023, as a result of the implementation of the multifactor criteria in the classification, which considered all the risk factors of the exposures, their observability and uncertainty, there was a reduction in exposure to level 3 derivatives, offset by an increase in exposure classified at level 3 in repurchase agreements positions due to unobservability in the inputs used in their valuation. The increase in Level 3 exposure was mainly related to cash positions of variable income and fixed income due to unobservability in their prices. For the years ended December 31, 2024, and 2023, the profit/loss on sales of financial instruments classified as level 3 recognized in the income statement was not material. Transfers among levels The Global Valuation Area has established the rules for an appropriate financial instruments held for trading classification according to the fair value hierarchy defined by international accounting standards. On a monthly basis, derivative positions, deposits, loans and advances from the portfolio are classified, according to this criterion, by the subsidiaries. Then, there is a quarterly review of the portfolio in order to analyze the need for a change in classification of any of these assets. On a quarterly basis, the positions of equity instruments and debt securities are classified, following these criteria, by the local areas in coordination with Global Markets Valuation. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 79 The financial instruments transferred among the different levels of measurement for the years are at the following amounts in the accompanying balance sheets as of December 31, 2024 and 2023: Transfer among levels (Millions of Euros) 2024 2023 From: Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 To: Level 2 Level 3 Level 1 Level 3 Level 1 Level 2 Level 2 Level 3 Level 1 Level 3 Level 1 Level 2 ASSETS Financial assets held for trading 109 — 482 38 6 160 437 3 55 661 — 460 Non-trading financial assets mandatorily at fair value through profit or loss — — — — 1 — — 1 — 33 — 14 Financial assets at fair value through other comprehensive income — — 237 — 13 — 85 21 29 11 — 56 Derivatives – Hedge accounting — — — — — — — — — — — — Total 109 — 719 38 20 160 522 26 84 705 — 530 LIABILITIES Financial liabilities held for trading 4 — 389 41 11 101 498 3 36 119 1 251 Financial liabilities designated at fair value through profit or loss — — — 140 — 27 — — — 196 — 262 Derivatives – Hedge accounting — — — — — — — — — — — — Total 4 — 389 181 11 128 498 3 36 315 1 513 The amount of the financial instruments in the fair value portfolio that were transferred among the different valuation levels during 2023 from Level 1 to Level 2 mainly correspond to the review of the classification among levels due to the implementation of a mark to model valuation in the short-term maturities of the listed options, only for those positions for which it is guaranteed that the inputs applied from real OTC market transactions are complied with the corroboration criteria. Additionally, there is a transfer of exposure Level 1 to Level 2 in cash positions in debt securities and equities, partially netted by a transfer of exposure Level 2 to Level 1, all directly related to the observability of the inputs. The volume of positions transferred from Level 2 to Level 3 is partly offset by positions moving from Level 3 to Level 2, mainly in cash positions in debt securities, equities and loans and advances. The amount of financial instruments that were transferred among levels of valuation during the year ended December 31, 2024 corresponds to the above changes in the classification among levels since such financial instruments modified some of their features. Specifically, transfers among Levels 1 and 2 occurred mainly in derivatives and debt securities. Transfers from Level 2 to Level 3 were mainly related to derivatives and deposits at fair value through profit or loss, and in relation to transfers from Level 3 to Level 2, this generally affected derivatives and loans and advances held for trading. Sensitivity analysis Sensitivity analysis is performed on financial instruments with significant unobservable inputs (financial instruments included in level 3), in order to obtain a reasonable range of possible alternative valuations. This analysis is carried out based on the criteria defined by the Global Valuation area in line with the official regulatory requirements for Prudent Valuation metrics, taking into account the nature of the methods used for the assessment and the reliability and availability of inputs and proxies used. In order to establish, with a sufficient degree of certainty, the valuation risk that is incurred in such assets without applying diversification criteria between them. As of December 31, 2024, the effect on profit for the year and total equity of changing the main unobservable inputs used for the measurement of level 3 financial instruments for other reasonably possible unobservable inputs, taking the highest (most favorable input) or lowest (least favorable input) value of the range deemed probable, would be as follows: Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 80 Financial instruments Level 3: sensitivity analysis (Millions of Euros) Potential impact on income statement Potential impact on other comprehensive income Most favorable hypothesis Least favorable hypothesis Most favorable hypothesis Least favorable hypothesis 2024 2023 2024 2023 2024 2023 2024 2023 ASSETS Financial assets held for trading 46 18 (74) (48) — — — — Loans and advances 4 2 (4) (2) — — — — Debt securities 36 9 (61) (22) — — — — Equity instruments — — (4) (17) — — — — Derivatives 5 6 (5) (6) — — — — Non-trading financial assets mandatorily at fair value through profit or loss 9 5 (85) (114) — — — — Loans and advances — — — — — — — — Debt securities 3 3 (7) (21) — — — — Equity instruments 6 2 (78) (92) — — — — Financial assets at fair value through other comprehensive income — — — — 48 34 (90) (89) Total 55 23 (159) (161) 48 34 (90) (89) LIABILITIES Financial liabilities held for trading 10 12 (10) (17) — — — — Total 10 12 (10) (17) — — — — 6.2. Fair value of financial instruments recognized at amortized cost according to valuation method The valuation technique used to calculate the fair value of financial assets and liabilities carried at cost are presented below: Financial assets – Cash, balances at central banks and other demand deposits / loans to central banks / short-term loans to credit institutions/ repurchase agreements: in general, their fair value approximates to their book value, due to the nature of the counterparty and because they are mainly short-term balances in which the book value is the most reasonable estimation of the value of the asset. – Loans to credit institutions which are not short-term and loans to customers: In general, these financial assets will be valued by discounting future cash flows using the interest rate curve adjusted by the market spread at the time of valuation and considering any behavioral hypothesis considered to be relevant (early prepayments, optionality, etc.). Therefore, their valuations will be conditioned by the interest rates and spreads of the portfolios and their durations. – Debt securities: Fair value estimated based on the available market price or by using internal valuation methodologies. Financial liabilities – Deposits from central banks: for recurrent liquidity auctions and other monetary policy instruments of central banks / short-term deposits, from credit institutions / repurchase agreements / short term customer deposits: their book value is considered to be the best estimation of their fair value. – Deposits of credit institutions which are not short-term and term customer deposits: these deposits are valued by discounting future cash flows using the interest rate curve in effect at the time of the adjustment adjusted by the credit spread and incorporating any behavioral assumptions considered to be relevant (early repayments, optionalities, etc.). – Debt certificate (Issuances): The fair value estimation of these liabilities is based on the availability of market prices or the present value method: discount of future cash flows, using market interest rates at valuation time and taking into account the credit spread. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 81 The following tables present the fair value of the Bank's financial instruments from the attached balance sheets carried at amortized cost broken down according to the valuation method used to estimate their fair value, and their corresponding book value, as well as the main methods valuation, hypotheses and inputs used in level 2 and level 3 a s of December 31, 2024 and 2023: Fair value of financial instruments recognized at amortized cost by levels. December 2024 (Millions of Euros) Notes Book value Fair value Carrying amount presented as fair value ⁽¹⁾ Level 1 Level 2 Level 3 Total ASSETS Cash, cash balances at central banks and other demand deposits 7 20,755 20,755 — — — 20,755 Financial assets at amortized cost 12 295,471 19,163 42,165 16,993 216,273 294,594 Debt securities 45,846 42,165 3,387 731 46,283 Loans and advances 249,625 19,163 — 13,605 215,542 248,311 LIABILITIES Financial liabilities at amortized cost 20 349,381 231,118 40,428 39,050 39,458 350,054 Deposits 292,037 220,860 1,201 30,452 39,458 291,971 Debt certificates issued 47,086 39,227 8,597 — 47,825 Other financial liabilities 10,258 10,258 — — — 10,258 (1) Financial instruments whose book value is presented as an approximation to their fair value, mainly short-term financial instruments. Fair value of financial Instruments recognized at amortized cost by levels. December 2023 (Millions of Euros) Notes Book value Fair value Carrying amount presented as fair value ⁽¹⁾ Level 1 Level 2 Level 3 Total ASSETS Cash, cash balances at central banks and other demand deposits 7 49,213 49,213 — — — 49,213 Financial assets at amortized cost 12 261,765 23,459 29,771 8,556 196,785 258,572 Debt securities 34,905 — 29,771 4,770 616 35,157 Loans and advances 226,860 23,459 — 3,786 196,169 223,415 LIABILITIES Financial liabilities at amortized cost 20 339,476 223,401 36,354 77,565 2,451 339,771 Deposits 279,279 213,336 — 63,263 2,451 279,050 Debt certificates issued 50,132 — 36,354 14,303 — 50,657 Other financial liabilities 10,065 10,064 — — — 10,064 1) Financial instruments whose book value is presented as an approximation to their fair value, mainly short-term financial instruments The fair value of the “Financial assets at amortized cost” has been estimated mainly using the valuation techniques of the Present- value method (discounted future cash flows). The main inputs considered for Levels 2 and 3, are the interest rate yield, the prepayment rates and the credit spread. In the case of “Financial liabilities at amortized cost”, the fair value is also obtained mainly through the Present-value method (discounted future cash flows). The main inputs considered for, at levels 2 and 3, the issuer's credit risk, the interest rate yield and the prepayment rate. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 82 7. Cash, cash balances at central banks and other demand deposits The breakdown of the balance under the heading “Cash, cash balances at central banks and other demand deposits” in the accompanying balance sheets is as follows: Cash, cash balances at central banks and other demand deposits (Millions of Euros) Notes 2024 2023 Cash on hand 1,027 990 Cash balances at central banks ⁽¹⁾ 17,603 45,653 Other demand deposits 2,124 2,570 Total 6.2 20,755 49,213 (1) The variation is mainly due to the evolution of the balances held in the Bank of Spain. 8. Financial assets and liabilities held for trading 8.1 Breakdown of the balance The breakdown of the balance under these headings in the accompanying balance sheets is as follows: Financial assets and liabilities held-for-trading (Millions of Euros) Notes 2024 2023 ASSETS Derivatives 36,405 32,937 Equity instruments 5.2.2 6,457 3,339 Credit institutions 466 282 Other sectors 4,516 2,293 Shares in the net assets of mutual funds 1,475 764 Debt securities 5.2.2 11,806 11,018 Issued by central banks — — Issued by public administrations 9,154 9,121 Issued by financial institutions 915 739 Other debt securities 1,737 1,158 Loans and advances 5.2.2 34,499 69,534 Loans and advances to central banks 556 2,808 Reverse repurchase agreement 556 2,808 Loans and advances to credit institutions 19,265 52,441 Reverse repurchase agreement ⁽¹⁾ 19,245 52,411 Loans and advances to customers 14,679 14,285 Reverse repurchase agreement 14,354 13,850 Total assets 6.1 89,167 116,828 LIABILITIES Derivatives 30,287 28,615 Short positions 9,635 11,849 Deposits 31,022 67,885 Deposits from central banks 360 4,698 Repurchase agreement 360 4,698 Deposits from credit institutions 15,026 42,710 Repurchase agreement ⁽¹⁾ 14,736 42,050 Customer deposits 15,636 20,476 Repurchase agreement 15,358 20,371 Total liabilities 6.1 70,943 108,349 (1) The variation is mainly due to the evolution of "Reverse repurchase agreement" partially offset by the evolution of "Repurchase agreement". As of December 31, 2024 and 2023 “Short positions” include €8,899 and €11,219 million, respectively, held with general governments. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 83 8.2 Derivatives The derivatives portfolio arises from the Bank’s need to manage the risks it is exposed to in the normal course of business and also to market products amongst the Bank’s customers. As of December 31, 2024 and 2023, most of the derivatives were mainly contracted in over-the-counter (OTC) markets, with counterparties, consisting primarily of credit institutions and other financial institutions. These derivatives are linked to foreign-exchange rate risk, interest-rate risk and changes in equity. Below is a breakdown by type of risk and market, of the fair value and notional amounts of financial derivatives recognized in the accompanying balance sheets, divided into organized and OTC markets: Derivatives by type of risk / by product or by type of market (Millions of Euros) 2024 2023 Assets Liabilities Notional amount - Total Assets Liabilities Notional amount - Total Interest rate 12,602 6,772 4,422,049 12,308 8,169 4,296,633 OTC 12,602 6,772 4,407,156 12,308 8,169 4,282,955 Organized market — — 14,893 — — 13,678 Equity instruments 3,803 3,119 77,945 2,598 2,638 70,937 OTC 1,543 1,164 41,603 1,224 1,467 49,289 Organized market 2,260 1,955 36,342 1,374 1,172 21,649 Foreign exchange and gold 19,626 19,972 909,642 17,491 17,281 708,553 OTC 19,626 19,972 909,642 17,491 17,281 708,553 Organized market — — — — — — Credit 350 374 41,256 540 527 29,790 Credit default swap 348 374 40,784 540 527 29,790 Commodities 24 49 1,906 — — 136 Other — — — — — — DERIVATIVES 36,405 30,287 5,452,798 32,937 28,615 5,106,049 Of which: OTC - credit institutions 23,356 22,961 1,397,276 22,289 22,122 1,156,636 Of which: OTC - other financial corporations 7,485 2,671 3,868,017 6,493 2,896 3,798,816 Of which: OTC - other 3,305 2,699 135,255 2,781 2,425 115,135 9. Non-trading financial assets mandatorily at fair value through profit or loss The breakdown of the balance under this heading in the accompanying balance sheets is as follows: Non-trading financial assets mandatorily at fair value through profit or loss (Millions of Euros) Notes 2024 2023 Equity instruments 5.2.2 626 507 Debt securities 5.2.2 269 223 Loans and advances 5.2.2 — — Total 6.1 895 730 10. Financial assets and liabilities designated at fair value through profit or loss As of December 31, 2024 and 2023 there was no balance in the heading “Financial assets designated at fair value through profit or loss, has no balance (See Note 5.2.2). As of December 31, 2024 and 2023 the heading “Financial liabilities designated at fair value through profit or loss” included customer deposits for an amount of €2,955 and €2,361 million respectively. The recognition of assets and liabilities in these headings is made to reduce inconsistencies (asymmetries) in the valuation of those operations and those used to manage their risk. 11. Financial assets at fair value through other comprehensive income Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 84 11.1. Breakdown of the balance The breakdown of the balance of financial assets at fair value through other comprehensive income by type of financial instrument as of December 31, 2024 and 2023 is as follows: Financial assets designated at fair value through other comprehensive income (Millions of Euros) Notes 2024 2023 Equity instruments 5.2.2 1,193 1,019 Debt securities ⁽¹⁾ 13,649 18,407 Loans and advances to credit institutions 5.2.2 — — Total 6.1 14,842 19,426 Of which: loss allowances of debt securities (12) (15) 1) During financial years 2024 and 2023, there have been no significant reclassifications from the heading “Financial assets at fair value through other comprehensive income” to other headings or from other headings to “Financial assets at fair value through other comprehensive income”. 11.2. Equity instruments The breakdown of the balance under the heading "Equity instruments" of the accompanying balance sheets as of December 31, 2024 and 2023, is as follows: Financial assets at fair value through other comprehensive income. Equity instruments (Millions of Euros) 2024 2023 Listed equity instruments Spanish companies shares 1,100 987 Foreign companies shares — — Subtotal listed equity instruments 1,100 987 Unlisted equity instruments Spanish companies shares 44 11 Credit institutions — — Other entities 44 11 Foreign companies shares 49 21 The United States 21 — Other countries 28 21 Subtotal unlisted equity instruments 93 32 Total 1,193 1,019 Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 85 11.3. Debt securities The breakdown of the balance under the heading “Debt securities” of the accompanying financial statements as of December 31, 2024 and 2023, broken down by issuers, is as follows: Financial assets at fair value through other comprehensive income. Debt securities (Millions of Euros) 2024 2023 Domestic debt securities Government and other government agency 2,384 6,050 Central banks — — Credit institutions 150 194 Other issuers 124 170 Subtotal 2,658 6,414 Foreign debt securities Mexico 76 103 Government and other government agency — — Central banks — — Credit institutions — — Other issuers 76 103 The United States 3,605 3,837 Government and other government agency 1,427 1,389 Central banks — — Credit institutions — 55 Other issuers 2,178 2,393 Other countries 7,188 8,053 Other foreign governments and government agency 3,896 4,549 Central banks 89 80 Credit institutions 435 434 Other issuers 2,768 2,990 Subtotal 10,991 11,993 Total 13,649 18,407 The credit ratings of the issuers of debt securities as of December 31, 2024 and 2023 , are as follows: Debt securities by rating 2024 2023 Fair value (Millions of Euros) % Fair value (Millions of Euros) % AAA 635 4.7% 337 1.8% AA+ 1,446 10.6% 1,417 7.7% AA 170 1.2% 197 1.1% AA- 479 3.5% 477 2.6% A+ 503 3.7% 1,302 7.1% A 1,243 9.1% 1,130 6.1% A- 3,348 24.5% 7,448 40.5% BBB+ 1,226 9.0% 1,621 8.8% BBB 4,388 32.1% 4,171 22.7% BBB- 89 0.7% 178 1.0% BB+ or below 22 0.2% 22 0.1% Unclassified 100 0.7% 106 0.6% Total 13,649 100.0% 18,407 100.0% Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 86 11.4. Gains/losses The changes in the gains/losses (net of taxes) in December 31, 2024 and 2023 of debt securities recognized under the equity heading “Accumulated other comprehensive income (loss) – Items that may be reclassified to profit or loss – Fair value changes of debt instruments measured at fair value through other comprehensive income” and equity instruments recognized under the equity heading “Accumulated other comprehensive income (loss) – Items that will not be reclassified to profit or loss –Fair value changes of equity instruments measured at fair value through other comprehensive income” in the accompanying balance sheets are as follows: Other comprehensive income - Changes in the gains / losses (Millions of Euros) Notes Debt securities Equity instruments 2024 2023 2024 2023 Balance at the beginning (275) (464) (1,213) (1,256) Valuation gains and losses 63 302 146 43 Amounts transferred to income (47) (31) — — Income tax and other (5) (82) (8) — Balance at the end 27 (264) (275) (1,075) (1,213) In 2024 and 2023, equity instruments presented an increase of €138 million and an increase of €42 million, respectively, in the heading “Gains and losses from valuation - Accumulated other comprehensive income - Items that will not be reclassified to profit and loss - Fair value changes of equity instruments measured at fair value through other comprehensive income”, mainly due to changes in Telefonica’s share price. Likewise, the valuations of debt securities have been affected mainly by the evolution of interest rates. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 87 12. Financial assets at amortized cost 12.1. Breakdown of the balance The breakdown of the balance under this heading in the balance sheets, according to the nature of the financial instrument, is as follows: Financial assets at amortized cost (Millions of Euros) Notes 2024 2023 Debt securities 45,846 34,905 Government 42,096 31,514 Credit institutions 2,231 2,139 Other financial and non-financial corporations 1,519 1,251 Loans and advances to central banks 33 — Loans and advances to credit institutions 18,774 13,074 Reverse repurchase agreements 8,486 4,181 Other loans and advances 10,288 8,893 Loans and advances to customers 5.2.2 230,818 213,786 Government 13,185 13,247 Other financial corporations 14,693 11,660 Non-financial corporations 107,861 95,596 Other 95,079 93,282 Total 6.2 295,471 261,765 Of which: impaired assets of loans and advances to customers 5.2.5 7,579 8,065 Of which: loss allowances of loans and advances 5.2.5 (4,665) (4,576) Of which: loss allowances of debt securities (8) (6) 12.2. Debt securities The breakdown of the balance under the heading “Debt securities” in the balance sheets, according to the issuer of the debt securities, is as follows: Financial assets at amortized cost. Debt securities (Millions of Euros) 2024 2023 Domestic debt securities Government and other government agencies 35,643 25,838 Credit institutions 1,099 1,028 Other issuers 367 230 Subtotal 37,108 27,095 Foreign debt securities The United States 2,076 1,885 Government and other government agencies 2,044 1,855 Credit institutions 19 18 Other issuers 13 12 Other countries 6,662 5,925 Other foreign governments and government agencies 4,409 3,821 Central banks — — Credit institutions 1,113 1,093 Other issuers 1,140 1,010 Subtotal 8,738 7,810 Total 45,846 34,905 Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 88 As of December 31, 2024 and 2023, the distribution according to the credit quality (ratings) of the issuers of debt securities classified as financial assets at amortized cost, was as follows: Debt securities by rating 2024 2023 Carrying amount (Millions of Euros) % Carrying amount (Millions of Euros) % AAA 1,779 3.9% 1,739 5.0% AA+ 2,965 6.5% 2,723 7.8% AA 65 0.1% 63 0.2% AA- 953.542 2.1% — —% A+ 8 —% 7.731 —% A 492 1.1% 439 1.3% A- 34,609 75.5% 24,720 70.8% BBB+ 1,088 2.4% 1,105 3.2% BBB 3,394 7.4% 3,774 10.8% BBB- 230 0.5% 99 0.3% BB+ or below 264 0.6% 237 0.7% Unclassified — —% — —% Total 45,846 100.0% 34,905 100.0% 12.3. Loans and advances to customers The breakdown of the balance under this heading in the accompanying balance sheets, according to their nature, is as follows: Loans and advances to customers (Millions of Euros) 2024 2023 On demand and short notice 76 186 Credit card debt 2,973 2,743 Trade receivables 25,783 21,158 Finance leases 6,543 6,076 Reverse repurchase agreements 44 92 Other term loans 191,198 180,411 Advances that are not loans 4,200 3,120 Total 230,818 213,786 As of December 31, 2024 and 2023, 45.3% and 43,3%, respectively, of "Loans and advances to customers" with maturity greater than one year have fixed-interest rates and 54.7 % and 56,7%, respectively, have variable interest rates. This heading also includes some loans that have been securitized and not derecognized since the risks or substantial benefits related to them are retained because the Bank granted subordinated loans or other types of credit enhancements that substantially keep all the expected credit losses for the transferred asset or the probable variation of its net cash flows. The balances recognized in the accompanying balance sheets corresponding to these securitized loans are as follows: Securitized loans (Millions of Euros) 2024 2023 Securitized mortgage assets 19,537 20,406 Other securitized assets 8,702 8,493 Total 28,239 28,899 The heading of Loans and advances to customers includes a deposit with the Bank of France associated with the contribution to the Single Resolution Fund for the years 2018, 2017 and 2016, which was made in the form of an irrevocable payment commitment, given that its amount is considered to be recoverable as of December 31, 2024. The resolution of the appeal filed with the Court of Justice of the European Union by a financial institution outside the Group against the decision of the Court of Justice of the European Union rejecting the return of amounts deposited is pending. This could lead to a claim by the Single Resolution Board. In any case, BBVA Group balance of this deposit as of December 31, 2024 is not significant. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 89 13. Derivatives – Hedge accounting and fair value changes of the hedged items in portfolio hedges of interest rate risk The breakdown of the balance of these headings in the accompanying balance sheets is as follows: Derivatives – Hedge accounting and fair value changes of the hedged items in portfolio hedge of interest rate risk (Millions of Euros) 2024 2023 ASSETS Derivatives – hedge accounting 784 780 Fair value changes of the hedged items in portfolio hedges of interest rate risk (65) (97) LIABILITIES Derivatives – hedge accounting 1,536 2,075 Fair value changes of the hedged items in portfolio hedges of interest rate risk — — As of December 31, 2024 and 2023, the main positions hedged by the Bank and the derivatives designated to hedge those positions were: – Fair value hedging: a. Fixed-interest debt securities at fair value through other comprehensive income and at amortized cost: The interest rate risk of these debt securities is hedged using interest rate derivatives (fixed-variable swaps) and forward sales. b. Long-term fixed-interest debt securities issued by the Bank: The interest rate risk of these debt securities is hedged using interest rate derivatives (fixed-variable swaps). c. Fixed-interest loans: The equity price risk of these instruments is hedged using interest rate derivatives (fixed-variable swaps). d. Fixed-interest and/or embedded derivative deposit portfolio hedges: It covers the interest rate risk through fixed- variable swaps. The valuation of the borrowed deposits corresponding to the interest rate risk is in the heading "Fair value changes of the hedged items in portfolio hedges of interest rate risk”. – Cash-flow hedges: Most of the hedged items are floating interest-rate loans and asset hedges linked to the inflation of the amortized cost portfolio and the financial assets at fair value through other comprehensive income portfolio. This risk is hedged using foreign-exchange, interest-rate swaps, inflation and FRA ("Forward Rate Agreement"). – Net foreign-currency investment hedges: These hedged risks are foreign-currency investments in the Group’s foreign subsidiaries. This risk is hedged mainly with foreign-exchange options and forward currency sales and purchases (see Note 27). Note 5 analyzes the Bank’s main risks that are hedged using these financial instruments. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 90 The details of the net positions by hedged risk of the fair value of the hedging derivatives recognized in the accompanying balance sheets are as follows: Derivatives - Hedge accounting. Breakdown by type of risk and type of hedge. (Millions of Euros) 2024 2023 Assets Liabilities Assets Liabilities Interest rate 174 82 329 173 OTC 174 82 329 173 Organized market — — — — Equity instruments — — — — Foreign exchange and gold — — — — Credit — — — — Commodities — — — — Other — — — — FAIR VALUE HEDGES 174 82 329 173 Interest rate 542 1,332 421 1,761 OTC — — — — Organized market 542 1,332 421 1,761 Equity instruments — — — — Foreign exchange and gold — — — — OTC — — — — Organized market — — — — Credit — — — — Commodities — — — — Other — — — — CASH FLOW HEDGES 542 1,332 421 1,761 HEDGE OF NET INVESTMENTS IN A FOREIGN OPERATION 66 122 27 136 PORTFOLIO FAIR VALUE HEDGES OF INTEREST RATE RISK 2 — 3 5 PORTFOLIO CASH FLOW HEDGES OF INTEREST RATE RISK — — — — DERIVATIVES-HEDGE ACCOUNTING 784 1,536 780 2,075 Of which: OTC - credit institutions 654 1,085 682 1,865 Of which: OTC - other financial corporations 130 451 98 211 Of which: OTC - other — — — — Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 91 Below there is a breakdown of the items covered by fair value hedges: Hedged items in fair value hedges (Millions of Euros) Carrying amount Hedge adjustments included in the carrying amount of assets/ liabilities ⁽¹⁾ Remaining adjustments for discontinued micro hedges including hedges of net positions ⁽¹⁾ Hedged items in portfolio hedge of interest rate risk Recognized ineffectiveness in profit or loss 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 ASSETS Financial assets measured at fair value through other comprehensive income 7,440 9,063 (406) (646) 152 165 — — 6 — Debt securities 7,440 9,063 (406) (646) 152 165 — — Interest rate 7,440 9,063 (406) (646) 152 165 — — Foreign exchange and gold — — — — — — — — — Other — — — — — — — — — Loans and advances — — — — — — — — — Interest rate — — — — — — — — — Foreign exchange and gold — — — — — — — — Other — — — — — — — — Financial assets measured at amortized cost 2,514 2,675 (28) (119) 519 685 753 936 (4) (8) Debt securities 2,232 2,300 (48) (148) 519 685 — — Interest rate 2,232 2,300 (48) (148) 519 685 — — Foreign exchange and gold — — — — — — — — Loans and advances 282 375 20 28 — — 753 936 Interest rate 282 375 20 28 — — 753 936 Foreign exchange and gold — — — — — — — — LIABILITIES Financial liabilities measured at amortized costs 38,830 42,396 95 517 1 — — — (1) 3 Deposits 2,745 8,986 172 (83) — — — — Interest rate 2,745 8,986 172 (83) — — — — Foreign exchange and gold — — — — — — — — Debt certificates 36,086 33,410 (76) 600 — — — — Interest rate 36,086 33,410 (76) 600 — — — — Foreign exchange and gold — — — — — — — — (1) The balance of discontinued hedges is not significant. The following is the breakdown, by their notional maturities, of the hedging instruments as of December 31, 2024 Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 92 Calendar of the notional maturities of the hedging instruments (Millions of Euros) 3 months or less From 3 months to 1 year From 1 to 5 years More than 5 years Total FAIR VALUE HEDGES 5,160 9,795 18,863 16,576 50,394 Of which: Interest rate 5,160 9,795 18,863 16,576 50,394 CASH FLOW HEDGES 4,000 16,475 10,247 2,625 33,347 Of which: Interest rate 4,000 16,475 10,247 2,625 33,347 HEDGE OF NET INVESTMENTS IN A FOREIGN OPERATION 12,222 861 — 150 13,233 PORTFOLIO FAIR VALUE HEDGES OF INTEREST RATE RISK 893 179 1,364 406 2,842 PORTFOLIO CASH FLOW HEDGES OF INTEREST RATE RISK — — — — — DERIVATIVES-HEDGE ACCOUNTING 22,275 27,310 30,474 19,757 99,816 In 2024 and 2023, there was no reclassification in the accompanying income statements of any amount corresponding to cash flow hedges that was previously recognized in equity (see Note 37). The amount of the derivatives designated as accounting hedges that did not pass the effectiveness test in the years ended December 31, 2024 and 2023 was not material. 14. Investments in joint ventures and associates 14.1. Investments in subsidiaries The heading “Investments in subsidiaries, joint venture and associates- Subsidiaries” in the accompanying balance sheets includes the carrying amount of the shares of companies forming part of the BBVA Group. The percentages of direct and indirect ownership and other relevant information on these companies are provided in Appendix II. The breakdown, by currency and listing status, of this heading in the accompanying balance sheets is as follows: Investments in subsidiaries (Millions of Euros) 2024 2023 Subsidiaries By currency 38,202 38,496 In euros 19,394 19,587 In foreign currencies 18,808 18,909 By share price 38,202 38,496 Listed 8,148 7,694 Unlisted 30,054 30,802 Loss allowances (13,519) (15,859) Total 24,683 22,637 Garanti Bank In accordance with the accounting standards applicable to the individual financial statements, the Bank maintains the interest in Garanti BBVA A.S. valued at historical cost (weighted average price in euros of the various acquisitions made since 2011) and at each closing the recoverability of the investment in euros is assessed in case of indications of impairment. In 2024, Garanti's growth expectations in Turkey, which have led to an increase in the value of the stake, together with a lower-than- expected depreciation of the Turkish lira, have led to a recovery of part of the impairment recorded in previous years. This recovery had a positive impact on the Bank's standalone result of €2,221 million in 2024. As of 31 December 2024, the total impairment of the stake in Garanti amounts to €223 million. In 2023, although the Turkish lira has continued to depreciate, the positive growth expectations of Garanti in Turkey together with the positive effect of the hedges, led to a recovery of part of the impairment recorded in previous years. This recovery had a positive impact on the Bank's individual result of €132 million in 2023 (€647 million in 2022). As of December 31, 2023, the total impairment of the stake in Garanti is €2,445 million. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 93 These impairments or recoveries of the interest in the Bank's individual financial statements had no impact on the consolidated financial statements of the BBVA Group, since foreign currency translation differences are recorded under the heading "Other accumulated comprehensive income" of the Group's Consolidated Net Equity, in accordance with the accounting standards applicable to the consolidated financial statements, therefore the depreciation of the Turkish Lira was already recorded, reducing the consolidated Total Equity of the Group. Movements The changes in 2024 and 2023 in the balance under this heading in the balance sheets, disregarding the balance of the loss allowances, are as follows: Investments in subsidiaries: changes in the year (Millions of Euros) 2024 2023 Balance at the beginning 38,496 37,621 Acquisitions and capital increases 660 373 Disposals and capital reductions ⁽¹⁾ (711) (548) Transfers — — Exchange differences and others (243) 1,050 Balance at the end 38,202 38,496 (1) In 2024 financial year, the movement corresponds mainly to returns of contributions from Anida Grupo Inmobiliario, S.L. for an amount of €281 million and Tree Inversiones Inmobiliarias, S.A.U. for an amount of €140 million. In 2023, the movement corresponded mainly to a return of contributions from Tree Inversiones Inmobiliarias, S.A.U. which represented a reduction of €500 million in the book value of said participation. Changes in the holdings in Group entities Significant transactions in 2024 During the year 2024 no significant or relevant corporate operations have been completed, without prejudice to the announcement of the voluntary tender offer for the acquisition of all of the issued shares of Banco de Sabadell, S.A. Other relevant additional information 2024 Announcement of the voluntary tender offer for the acquisition of all of the issued shares of Banco de Sabadell, S.A. On April 30, 2024, due to a media report, BBVA published an inside information notice (información privilegiada) stating that it had informed the chairman of the Board of Directors of Banco de Sabadell, S.A. (the "Target Company") of the interest of BBVA’s Board of Directors in initiating negotiations to explore a possible merger between the two entities. On the same date, BBVA sent to the chairman of the Target Company the written proposal for the merger of the two entities. The content of the written proposal sent to the Board of Directors of the Target Company was published on May 1, 2024 by BBVA through the publication of an inside information notice (información privilegiada) with the Spanish Securities and Exchange Commission (hereinafter “CNMV”). On May 6, 2024, the Target Company published an inside information notice (información privilegiada) informing of the rejection of the proposal by its Board of Directors. Following such rejection, on May 9, 2024, BBVA announced, through the publication of an inside information notice (información privilegiada) (the "Prior Announcement"), the decision to launch a voluntary tender offer (the "Offer") for the acquisition of all of the issued shares of the Target Company, being a total of 5,440,221,447 ordinary shares with a par value of €0.125 each (representing 100% of the Target Company’s share capital). The consideration initially offered by BBVA to the shareholders of the Target Company consisted of one (1) newly issued share of BBVA for each four and eighty-three hundredths (4.83) ordinary shares of the Target Company, subject to certain adjustments in the case of dividend distributions in accordance with what was indicated in the Prior Announcement. In accordance with the Prior Announcement of the Offer and as a consequence of the interim dividend against the 2024 financial year results in the amount of €0.08 per share paid by the Target Company to its shareholders on October 1, 2024, BBVA proceeded to adjust the Offer consideration. Therefore, after applying the adjustment in the terms set forth in the Prior Announcement, the consideration offered by BBVA to the shareholders of the Target Company under the Offer was adjusted, as result of the dividend payment of the Target Company, to one (1) newly issued ordinary share of BBVA for each five point zero one nine six (5.0196) ordinary shares of the Target Company. Additionally, as a result of the interim dividend against the 2024 financial year results in the amount of €0.29 per share paid by BBVA to its shareholders on October 10, 2024, BBVA proceeded to adjust again the Offer consideration. Therefore, also in accordance with the provisions of the Prior Announcement, the Offer consideration was adjusted to one (1) newly issued ordinary share of BBVA and €0.29 in cash for every five point zero one nine six (5.0196) ordinary shares of the Target Company. Pursuant to the provisions of Royal Decree 1066/2007, of July 27, on the rules governing tender offers ("Royal Decree 1066/2007"), the Offer is subject to mandatory clearance by the CNMV (“CNMV Clearance”). Additionally, pursuant to the provisions of Law 10/2014 and Royal Decree 84/2015, the acquisition by BBVA of control of the Target Company resulting from the Offer is subject to the duty of prior notification to the Bank of Spain and the obtention of the non-opposition of the European Central Bank (a condition that was satisfied on September 5, 2024, as described below). Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 94 In addition, completion of the Offer is also subject to the satisfaction of the conditions specified in the Prior Announcement, in particular (i) the acceptance of the Offer by a number of shares that allows BBVA to acquire at least more than half of the effective voting rights of the Target Company at the end of the Offer acceptance period (therefore excluding the treasury shares that the Target Company may hold at that time), as this condition was amended by BBVA in accordance with the publication of the inside information notice (información privilegiada) dated January 9, 2025, (ii) approval by BBVA’s General Shareholders’ Meeting of the increase of BBVA’s share capital through the issue of new ordinary shares through non-cash contributions in an amount that is sufficient to cover the consideration in shares offered to the shareholders of the Target Company (which condition was satisfied on July 5, 2024, as described below), (iii) the express or tacit authorization of the economic concentration resulting from the Offer by the Spanish antitrust authorities, and (iv) the express or tacit authorization of the indirect acquisition of control of the Target Company’s banking subsidiary in the United Kingdom, TSB Bank PLC, by the United Kingdom Prudential Regulation Authority (“PRA”) (a condition that was satisfied on September 2, 2024, as described below). On July 5, 2024, the BBVA’s Extraordinary General Shareholders' Meeting resolved to authorize, with 96% votes in favor, an increase in the share capital of BBVA of up to a maximum nominal amount of €551,906,524.05 through the issuing and putting into circulation of up to 1,126,339,845 ordinary shares of €0.49 par value each to cover the consideration in shares offered to the shareholders of the Target Company. On September 3, 2024, BBVA announced, through the publication of an inside information notice (información privilegiada), that, on September 2, 2024, it received the authorization from the PRA for BBVA's indirect acquisition of control of TSB Bank PLC as a result of the Offer. On September 5, 2024, BBVA announced, through the publication of an inside Information notice (información privilegiada), that it received the decision of non-opposition from the European Central Bank to BBVA's taking control of the Target Company as a result of the Offer. On November 12, 2024, BBVA announced, through the publication of Other Relevant Information notice (otra información relevante), that it received the resolution of the Spanish National Markets and Competition authority (CNMC) in which it decided to initiate the second phase of the analysis of the economic concentration resulting from the Offer. The Offer is subject to approval by the CNMV and to the approval of the economic concentration resulting from the Offer by the Spanish competition authorities. The detailed terms of the Offer will be set out in the prospectus, which was submitted to the CNMV together with the request for the authorization of the Offer on May 24, 2024, and will be published after obtaining CNMV Clearance. Significant transactions in 2023 During the year 2023 no significant corporate transactions were carried out. 14.2. Investments in joint ventures and associates The breakdown of the balance of “Joint ventures and associates” in the consolidated balance sheets is as follows: Joint ventures and associates (Millions of Euros) 2024 2023 Associates By currency 790 650 In euros 411 271 In foreign currencies 379 379 By share price 790 650 Listed 388 239 Unlisted 402 411 Loss allowances (244) (292) Subtotal 545 358 Joint ventures By currency 24 24 In euros 24 24 In foreign currencies — — By share price 24 24 Listed — — Unlisted 24 24 Loss allowances — — Subtotal 24 24 Total 569 382 The investments in joint ventures and associates as of December 31, 2024 are shown in Appendix III. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 95 The following is a summary of the gross changes in 2024 and 2023 under this heading in the accompanying balance sheets: Joint ventures and associates: changes in the year (Millions of Euros) 2024 2023 Balance at the beginning 674 621 Acquisitions and capital increases 164 75 Disposals and capital reductions (18) (22) Balance at the end 814 674 During the year 2024, the most significant movement in the "Joint ventures and associates" section corresponds to the transfer of 17.3 million Metrovacesa shares from the entity "Anida Operaciones Singulares, S.A." (belonging to the BBVA Group) to BBVA to unify all the Group's participation. During the year 2023, the most significant changes under the heading "Joint ventures and associates" correspond to capital increases in Atom Holdco Limited. 14.3. Notifications about acquisition of holdings Appendix IV provides notifications on acquisitions and disposals of holdings in subsidiaries, joint ventures and associates, in compliance with Article 155 of the Corporations Act and Article 125 of the Securities Market Act 4/2015. 14.4. Impairment The breakdown of the changes in loss allowances in 2024 and 2023 under this heading is as follows: Impairment (Millions of Euros) Notes 2024 2023 Balance at the beginning 16,151 16,282 Increase in loss allowances charged to income 43 141 60 Decrease in loss allowances credited to income ⁽¹⁾ 43 (2,387) (178) Amount used (74) (13) Balance at the end 13,763 16,151 (1) See Note 14.1 Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 96 15. Tangible assets The breakdown of, and changes in, the balances under this heading in the accompanying balance sheets, according to the nature of the related items, is as follows: Tangible assets. Breakdown by type of assets and changes in the year 2024 (Millions of Euros) Right to use asset Total Notes Land and Buildings Work in Progress Furniture, Fixtures and Vehicles Tangible asset of own use Investment Properties Investment Properties Revalued cost Balance at the beginning 1,022 — 2,662 3,342 237 11 7,274 Additions — — 132 390 2 — 524 Retirements — — (37) (177) (32) — (246) Transfers 2 — (3) (44) 44 (11) (11) Exchange difference and other — — 2 — — — 2 Balance at the end 1,024 — 2,756 3,512 251 — 7,543 Accrued depreciation Balance at the beginning 199 — 2,205 938 93 2 3,437 Additions 40 13 — 81 207 19 — 321 Retirements — — (35) (59) — — (94) Transfers 1 — (2) 22 (22) (2) (2) Exchange difference and other — — 1 — — — 1 Balance at the end 213 — 2,251 1,108 91 (1) 3,662 Impairment Balance at the beginning 70 — — 328 61 5 464 Additions 44 — — 2 13 22 — 36 Retirements 44 — — — (30) (2) — (32) Transfers — — — — — (5) (5) Exchange difference and other — — (3) (96) — — (99) Balance at the end 70 — (1) 214 81 — 364 Net tangible assets Balance at the beginning 753 — 456 2,077 83 4 3,373 Balance at the end 741 — 506 2,189 78 1 3,516 Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 97 Tangible assets. Breakdown by type of assets and changes in the year 2023 (Millions of Euros) Right to use asset Total Notes Land and Buildings Work in Progress Furniture, Fixtures and Vehicles Tangible asset of own use Investment Properties Investment Properties Revalued cost Balance at the beginning 1,028 — 2,601 3,323 213 12 7,177 Additions 1 — 76 169 10 — 256 Retirements — — (15) (135) — (1) (150) Transfers (7) — — (15) 14 — (9) Exchange difference and other — — — — — — — Balance at the end 1,022 — 2,662 3,342 237 11 7,274 Accrued depreciation Balance at the beginning 187 — 2,136 758 69 2 3,152 Additions 40 13 — 84 202 21 — 320 Retirements — — (14) (19) — — (33) Transfers (1) — — (3) 3 — (1) Exchange difference and other — — (1) — — — (1) Balance at the end 199 — 2,205 938 93 2 3,437 Impairment Balance at the beginning 70 — — 369 50 5 494 Additions 44 — — 1 5 11 — 17 Retirements 44 — — — (34) — — (34) Transfers — — — — — — — Exchange difference and other — — (1) (11) — — (12) Balance at the end 70 — — 328 61 5 464 Net tangible assets Balance at the beginning 771 — 465 2,196 94 5 3,531 Balance at the end 753 — 456 2,077 83 4 3,373 The right to use asset consists mainly of the rental of commercial real estate premises for central services and the network branches. The clauses included in rental contracts correspond to a large extent to rental contracts under normal market conditions. As of December 31, 2024 and 2023, the cost of fully amortized tangible assets that remained in use were €1,726 million and €1,705 million, respectively. The main activity of the Bank is carried out through a network of bank branches located geographically as shown in the following table: Branches by geographical location (Number of branches) 2024 2023 Spain 1,881 1,882 Rest of the world 24 24 Total 1,905 1,906 Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 98 16. Intangible assets The breakdown of the balance under this heading in the balance sheets as of December 31, 2024 and 2023 relates mainly to the net balance of the disbursements made on the acquisition of computer software. The average life of the Bank's intangible assets is 5 years. The breakdown of the balance under this heading in the balance sheets, according to the nature of the related items, is as follows: Other intangible assets (Millions of Euros) 2024 2023 Transactions in progress 977 875 Accruals 6 19 Total 983 894 The breakdown of the changes in 2024 and 2023 in the balance under this heading in the balance sheets is as follows: Other intangible assets. Changes over the year (Millions of Euros) 2024 2023 Notes Computer software Other intangible assets Total of intangible assets Computer software Other intangible assets Total of intangible assets Balance at the beginning 875 19 894 825 31 855 Additions 417 — 417 382 — 382 Amortization in the year 40 (308) (13) (321) (319) (12) (331) Net variation of impairment through profit or loss 44 (7) — (7) (12) — (12) Balance at the end 977 6 983 875 19 894 17. Tax assets and liabilities The balance of the heading “Tax Liabilities” in the accompanying balance sheets contains the liability for applicable taxes, including the provision for corporation tax of each year, net of tax with holdings and prepayments for that period, and the provision for current period corporation tax in the case of companies with a net tax liability. The amount of the tax refunds due to Group companies and the tax with holdings and prepayments for the current period are included under “Tax Assets” in the accompanying balance sheets. Banco Bilbao Vizcaya Argentaria, S.A. and its tax-consolidable subsidiaries file consolidated tax returns. The subsidiaries of Argentaria, which had been in Tax Group 7/90, were included in Tax Group 2/82 from 2000. On December, 30, 2002, the pertinent notification was made to the Ministry of Economy and Finance to extend its taxation under the consolidated taxation regime indefinitely, in accordance with current legislation. Similarly, on the occasion of the acquisition of Unnim Group in 2012, the companies composing the Tax Group No. 580/11 which met the requirements became part of the Tax Group 2/82 from January 1, 2013. On the occasion of the acquisition of Catalunya Banc Group in 2015, the companies composing the Tax Group No. 585/11 which met the requirements became part of the Tax Group 2/82 from January 1, 2016. In previous years, the Bank has participated in various corporate restructuring operations covered by the special regime for mergers, divisions, transfers of assets and exchange of securities under the terms provided in the Corporate Tax Law in force in each of the years corresponding. These operations are explained in detail in the financial statements, part of the annual accounts for the respective years. Similarly, the information requirements under the above legislation are included in the financial statements corresponding to the year in which the mentioned operations were carried out, as well as in the merger by absorption deed, other official documents or in the internal records of the Bank, available to the tax authorities. 17.1 Years open for review by the tax authorities As December 31, 2024, the Bank was undergoing inspection in connection with the years 2017 to 2020, with respect to the taxes applicable to it. Notwithstanding the above, the application of the temporary tax on credit institutions by BBVA, S.A. for the year 2023 is being reviewed by the Tax Administration. With regard to the coverage, if applicable, of the tax risks identified in the accounting, it may involve either the recording of a provision or a lower deferred tax asset to the extent that the risk being hedged had previously given rise to the registration of a deferred tax asset or tax credit. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 99 In this regard, in the terms indicated in the previous paragraph, the Group has established provisions that, without prejudice to the uncertainty associated with any procedures, it considers appropriate taking into account the identified risks that are covered (in accordance with the evaluation and estimation possibilities of the same) that, in no case, are considered individually significant. Without prejudice to the foregoing, due to the possible different interpretations that may be given to certain tax regulations, the results of the inspections that, where appropriate, are carried out by the tax authorities are likely to reveal other contingent tax liabilities, the amount of which It is not possible to quantify it objectively at present. However, the Bank estimates that the possibility of these contingent liabilities materializing is remote and, in any case, the tax debt that could arise from them would not significantly affect the accompanying financial statements. 17.2 Reconciliation of the tax expense The reconciliation of the corporation tax expense resulting from the application of the standard tax rate to the recognized corporation tax expense in the attached income statement is as follows: Reconciliation of the Corporate Tax Expense Resulting from the Application of the Standard Rate and the Expense Registered by this Tax (Millions of Euros) 2024 2023 Corporation tax 3,477 1,664 Increases due to permanent differences 193 130 Decreases due to permanent differences (2,616) (1,376) Tax credits and tax relief at consolidated Companies (31) (58) Other items net 80 86 Net increases (decreases) due to temporary differences (98) (94) Charge for income tax and other taxes — — Deferred tax assets and liabilities recorded (utilized) 98 94 Income tax and other taxes accrued in the period 1,105 447 Adjustments to prior years' income tax and other taxes ⁽¹⁾ 251 293 Income tax and other taxes 1,355 740 (1) This is the net of several tax effects that include, among others, i) in 2024, the accounting record of the impact associated with the declaration of unconstitutionality of certain measures relating to Corporate Tax introduced by Royal Decree-Law 3/2016, ii) foreign taxes. The heading “Decreases due to permanent differences” of the previous table in 2024 includes mainly the tax effect on dividends and capital gains, which are exempt in order to avoid double taxation at 95%, for an amount of €5,869 million and available of non- deductible impairments for an amount of €2,348 million. In 2023, the effect of those concepts were €3,871 and €251 million, respectively. The Bank avails itself of the tax credits for investments in new fixed assets (in the scope of the Canary Islands tax regime, for a non- material amount), tax relief, R&D tax credits, donation tax credits and double taxation tax credits, in conformity with corporate income tax legislation. Under the regulations in force until December 31, 2001, the Bank and the savings banks which would form Unnim Banc and Catalunya Banc were available to the tax deferral for reinvestment. The information related to this tax credit can be found in the corresponding annual reports. From 2002 to 2014, the Bank and the savings banks which would form Unnim Banc and Catalunya Banc were available to the tax credit for reinvestment of extraordinary income obtained on the transfer for consideration of properties and shares representing ownership interests of more than 5%. The information related to this tax credit can be found in the corresponding financial statements. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 100 17.3 Income tax recognized in equity In addition to the income tax registered in the income statements, at the end of 2024 and 2023 the Bank recognized the following amounts in equity: Tax recognized in total equity (Millions of Euros) 2024 2023 Charges to total equity Debt securities — — Equity instruments (11) (3) Other (108) (10) Subtotal (119) (13) Credits to total equity Debt securities 120 94 Equity instruments — — Other — — Subtotal 120 94 Total 1 81 17.4 Tax assets and liabilities The balance under the heading "Tax assets" in the accompanying balance sheets includes the balances receivable from the tax authorities relating to current and deferred tax assets. The balance under the “Tax liabilities” heading includes the balances payable corresponding to the Bank's various deferred tax liabilities. The details of the most important tax assets and liabilities are as follows: Tax Assets and Liabilities (Millions of Euros) 2024 2023 Variation Tax assets- Current tax assets 2,890 2,145 745 Deferred tax assets 9,410 10,271 (861) Pensions 112 123 (11) Financial Instruments 149 161 (12) Other assets 32 41 (9) Impairment losses 208 242 (34) Other 503 532 (29) Secured tax assets (1) 7,979 8,534 (555) Tax losses 427 639 (212) Total 12,300 12,416 (116) Tax Liabilities- Current tax liabilities 225 197 28 Deferred tax liabilities 912 795 117 Charge for income tax and other taxes 912 795 117 Total 1,137 992 145 (1) The Law guaranteeing the deferred tax assets was approved in Spain in 2013. Based on the available information, including historical profit levels of benefits and projected results available to the Bank, the Bank has carried out an analysis of its recovery of deferred tax assets and liabilities and it is considered that there is sufficient positive evidence, in excess of the negative evidence, that sufficient positive taxable income will be generated for the recovery of the aforementioned unsecured deferred tax assets when they become deductible in accordance with tax legislation. In this respect, in the specific case of the tax Group in Spain, the Group estimates that it will be able to generate sufficient taxable income to offset the tax loss carryforwards and deductions recorded for accounting purposes within a period under 10 years. The changes in deferred tax assets and liabilities in 2024 were mainly attributable to: – The increase of Current tax assets is due to higher debtor Public Treasury due to the return of the 2024 Corporation Tax payments made during the year. – The increase in assets for deferred tax liabilities related to financial instruments are mainly due to valuation adjustments in Total Equity. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 101 – The other changes in deferred tax assets and liabilities are mainly due to the adjustments on the corporate income tax finally presented for year 2023 and the estimation for 2024. – The decrease in guaranteed tax assets and tax losses are due to the offset of the Corporate Tax corresponding to the year 2024, as well as due to the effects associated with the declaration of unconstitutionality of certain measures relating to Corporate Tax introduced by Royal Decree Law 3/2016. On the deferred tax assets and liabilities shown above, those included in Note 17.3 above have been recognized against the entity's equity, and the rest against earnings for the year or reserves. From the guaranteed tax assets contained in the above table, the detail of the items and amounts guaranteed by the Spanish Government is as follows: Secured tax assets (Millions of Euros) 2024 2023 Pensions 1,622 1,622 Loss allowances 6,357 6,912 Total 7,979 8,534 On the other hand, BBVA, S.A., has not recognized for accounting purposes (or, as the case may be, has been subject to a valuation adjustment) certain deferred taxes for an amount of €1.567 million in quota for which, in general, there is no legal period for offsetting, which are mainly originated by Catalunya Banc. In connection with the above, it should be noted that within the framework of the ongoing process of rationalization of the Group’s corporate structure, which, among others, could provide for the future dissolution and liquidation of companies, the materialization of the aforementioned deferred tax assets not recognized for accounting purposes may take place in the Entity, as a consequence of tax adjustments made in the past, associated with the participation being liquidated, which most supposes the materialization of deferred tax assets not recognized in accounting terms either in the entity itself that holds the status of partner, or in the company object of dissolution and liquidation. In addition, BBVA, S.A., in relation to the Branches abroad, has deferred taxes not recognized in accounting for amount of €12.939 thousand in France, €7.573 thousand in Portugal, €2.766 thousand in Japan, €171 thousand in Singapore and €64 thousand in China (all in quota). 17.5 Other contributions and taxes Temporary tax on credit institutions in Spain On December 28, 2022, the Law for the establishment of the temporary tax on credit institutions and financial credit establishments was published in the Official State Gazette. This law establishes an obligation to pay a non-taxable equity benefit of public nature during the years 2023 and 2024 on those credit institutions that operate in Spain whose aggregate interest income and fee and commission income in 2019 was €800 million or more. The amount of the non-taxable equity benefit to be paid is the result of applying the percentage of 4.8% to the sum of the net interest income and fee and commission income and expense derived from the activity carried out in Spain, as shown in the income statement of the tax consolidation group to which the credit institutions belongs, corresponding to the calendar year prior to the year in which the obligation to make such a payment arose. The payment obligation arises on the first day of the calendar year of fiscal years 2023 and 2024. The impact of the payment required to be made by BBVA on account of this benefit in 2024 amounted to €285 million and was recorded under "Other operating expense" in the consolidated income statement (see Note 38). Tax on net interest income and commissions of certain financial institutions in Spain On December 21, 2024, Law 7/2024 was published in the Official State Gazette, the ninth Final Provision of which regulates a new tax on the interest margin and commissions of certain financial entities, including BBVA, S.A. The tax is levied on the interest and commission margin obtained by credit institutions derived from the activity they carry out in Spanish territory and is applicable in the first three consecutive tax periods that begin on January 1, 2024. Subsequently, Royal Decree-Law 9/2024, which came into force on December 25, 2024, modified certain aspects of the tax approved by Law 7/2024, among other things, the tax period and the accrual of the new tax. However, this Royal Decree-Law has not been validated by the Congress of Deputies so, as of the date of preparation of these Financial Statements, it is repealed. No impact associated with this tax has been recorded in the Financial Statements for the year ended December 31, 2024. Complementary tax to ensure a global minimum top up tax for multinational groups and large domestic groups (Pillar Two) On December 20, 2024, Law 7/2024 of December 20, 2024 was approved in Spain, establishing a Complementary Tax to guarantee an overall minimum level of taxation for multinational groups and large domestic groups, a Tax on the net interest income and fee and commission of certain financial institutions and a Tax on liquids for electronic cigarettes and other tobacco-related products, and amending other tax regulations. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 102 This law transposes Council Directive (EU) 2022/2523 of December 15, 2022, which incorporates the Pillar Two rules into the European legal framework. The aforementioned Law has been approved with effect for tax periods beginning on or after December 31, 2023. Consequently, at the end of the year 2024, the Group is subject to the Pillar Two rules. In compliance with current legislation, the Group has calculated the estimated impact of the Complementary Tax based on the Transitional Safe Harbor analysis and on the basis of the figures used in the preparation of the Group's consolidated financial statements in each of its constituent jurisdictions. As a result of this estimated calculation, it has been determined that most of the jurisdictions in which the Group operates, with the exception of a small number of countries representing an immaterial percentage of the BBVA Group's profit (loss) before tax, exceed the minimum effective tax rate of 15% and, therefore, do not accrue Complementary Tax. For those jurisdictions that do not meet this threshold, BBVA, S.A., as the ultimate parent company of the Group, as of December 31, 2024, has recognized as a current tax expense the corresponding estimated supplementary tax associated with those jurisdictions, the amount of which is very immaterial. Finally, it should be noted that the BBVA Group applies the mandatory exception to the recognition and disclosure of deferred tax assets and liabilities in relation to Pillar Two. 18. Other assets and liabilities The breakdown of the balances of these headings of the accompanying balance sheets is as follows: Other assets and liabilities (Millions of Euros) Notes 2024 2023 ASSETS Insurance contracts linked to pensions 22 1,260 1,321 Inventories ⁽¹⁾ 1,302 132 Rest of other assets 1,501 569 Transactions in progress 439 17 Accruals 416 392 Other items 647 161 Total 4,064 2,023 LIABILITIES Transactions in progress 283 96 Accruals 1,097 1,012 Other items 1,072 1,700 Total 2,454 2,808 (1) The variation compared to 2023 corresponds mainly to the stock of CO2 emission rights. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 103 19. Non-current assets and disposal groups classified as held for sale The composition of the balances under the headings “Non-current assets and disposal groups classified as held for sale” in the accompanying balance sheets, broken down by the origin of the assets, is as follows: Non-current assets and disposal groups classified as held for sale: Breakdown by items (Millions of Euros) 2024 2023 Foreclosures and recoveries 408 558 Foreclosures 373 522 Recoveries from financial leases 35 37 Assets from tangible assets 175 422 Accrued amortization (1) (34) (79) Loss allowances (219) (389) Total non-current assets and disposal groups classified as held for sale 331 512 (1) Corresponds to the accumulated depreciation of assets before classification as “Non-current assets and disposal groups classified as held for sale". Non-current assets and disposal groups classified as held for sale The changes in the balances under this heading in 2024 and 2023 are as follows: Non-current assets and disposal groups classified as held for sale. Changes in the year (Millions of Euros) Notes Foreclosed assets From own use assets (1) Business sale - assets Total Cost (1) 2024 2023 2024 2023 2024 2023 2024 2023 Balance at the beginning 558 728 343 371 — — 901 1,099 Additions 121 80 — — — 121 80 Retirements (sales and other decreases) (240) (227) (211) (34) — — (451) (261) Transfers, other movements and exchange differences (31) (23) 9 6 — — (22) (17) Balance at the end 408 558 141 343 — — 549 901 Impairment (2) Balance at the beginning 176 214 213 234 — — 389 448 Net variations through profit and loss 46 8 16 19 1 — — 27 17 Retirements (sales and other decreases) (50) (51) (153) (22) — — (203) (73) Transfers, other movements and exchange differences — (3) 5 — — — 5 (3) Balance at the end 134 176 84 213 — — 218 389 Balance at the end of Net carrying value (1)-(2) 274 382 57 130 — — 331 512 (1) Net of accumulated amortizations until their classification as "Non-current assets and disposable groups of elements that have been classified as held for sale". As indicated in Note 2.3, “Non-current assets and disposal groups held for sale” and “liabilities included in disposal groups classified as held for sale” are valued at the lower amount between its fair value less costs to sell and its book value. As of December 31, 2024 and 2023, practically all of the carrying amount of the assets recorded at fair value on a non-recurring basis coincides with their fair value. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 104 Assets from foreclosures or recoveries The table below shows the main non-current assets held for sale from foreclosures or recoveries: Non-current assets and disposal groups classified as held for sale. From foreclosures or recoveries (Millions of Euros) 2024 2023 Residential assets 203 278 Industrial assets 66 94 Agricultural assets 3 8 Total 272 380 The table below shows the length of time for which the main assets from foreclosures or recoveries that were on the balance sheet as of December 31, 2024 and 2023 had been held: Assets from foreclosures or recoveries. Period of ownership (Millions of Euros) 2024 2023 Up to one year 31 27 From 1 to 3 years 48 72 From 3 to 5 years 43 91 Over 5 years 150 190 Total 272 380 In 2024 and 2023, some of the sales of these assets were financed by the Bank. The amount of the loans granted to the buyers of these assets in those years totaled €8 and €11 million respectively, with a mean percentage financed of 69% and 79%, respectively, of the price of sale. The total nominal amount of these loans and receivables, which are recognized under “Financial assets at amortized cost” was €1,368 and €1,393 million, as of December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, there were no gains not recognized in the income statement from the sale of assets financed by the Bank. 20. Financial liabilities at amortized cost 20.1. Breakdown of the balance The breakdown of the balance under this heading in the accompanying balance sheets is as follows: Financial liabilities measured at amortized cost (Millions of Euros) 2024 2023 Deposits 292,037 279,279 Deposits from central banks 6,985 10,962 Demand deposits 657 158 Time deposits and other 6,328 10,804 Deposits from Credit Institutions 24,686 33,563 Demand deposits 5,716 5,922 Time deposits and other 7,451 7,222 Repurchase agreements 11,519 20,419 Customer deposits 260,366 234,754 Demand deposits 205,871 195,004 Time deposits and other 46,931 38,519 Repurchase agreements 7,564 1,231 Debt certificates 47,086 50,132 Other financial liabilities 10,258 10,065 Total 349,381 339,476 Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 105 As of December 31, 2024, all drawdowns of the TLTRO III program have been repaid. As of December 31 2023, the amount recorded in "Deposits from central banks - Time deposits and other" included the drawdowns of the TLTRO III facilities of the ECB, mainly by BBVA, S.A., amounting to €3,490 million. 20.2. Deposits from credit institutions The breakdown by geographical area and the nature of the related instruments of this heading in the balance sheets is as follows: Deposits from credit institutions (Millions of Euros) Demand deposits Time deposits and other Repurchase agreements Total December 2024 Spain 955 2,303 538 3,796 Rest of Europe 2,835 2,095 10,950 15,880 Mexico 177 — — 177 South America 477 196 — 673 Rest of the world 1,265 2,857 31 4,153 Total 5,716 7,451 11,519 24,686 December 2023 Spain 1,270 1,611 899 3,779 Rest of Europe 2,945 2,087 19,260 24,292 Mexico 286 — — 286 South America 302 451 — 753 Rest of the world 1,119 3,073 260 4,452 Total 5,922 7,222 20,419 33,563 20.3. Customer deposits The breakdown of this heading in the accompanying balance sheets, by type of instrument and geographical area, is as follows: Customer deposits (Millions of Euros) Demand deposits Time deposits and other ⁽¹⁾ Repurchase agreements Total December 2024 Spain 188,203 21,054 6,469 215,726 Rest of Europe 13,884 17,657 1,095 32,636 Mexico 172 450 — 622 South America 1,458 1,117 — 2,575 Rest of the world 2,154 6,653 — 8,807 Total 205,871 46,931 7,564 260,366 December 2023 Spain 182,485 16,664 — 199,149 Rest of Europe 10,197 16,892 1,231 28,320 Mexico 146 284 — 430 South America 932 960 — 1,892 Rest of the world 1,244 3,719 — 4,963 Total 195,004 38,519 1,231 234,754 (1) Subordinated deposits are included amounting to €8 million as of December 31, 2024. As of December 31, 2023, no subordinated deposits were recorded under this heading. Previous table includes as of 31, December 2024 and 2023 deposits amounted to €189 and €177 million, respectively, linked to issues of subordinated debt made by BBVA Global Finance Ltd. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 106 20.4. Debt certificates The breakdown of the balance under this heading, by type of financial instrument and by currency, is as follows: Debt certificates issued (Millions of Euros) 2024 2023 In Euros 33,362 40,753 Promissory bills and notes 1,343 5,320 Non-convertible bonds and debentures 17,698 16,675 Mortgage Covered bonds 4,632 5,626 Other securities 1,030 6,182 Accrued interest and others (1) 263 (116) Subordinated liabilities 8,395 7,066 Convertible perpetual securities 2,750 3,000 Other non- convertible subordinated liabilities 5,550 4,051 Valuation adjustments (1) 95 15 In Foreign Currency 13,724 9,379 Promissory bills and notes 2,487 145 Non-convertible bonds and debentures 5,195 3,125 Mortgage Covered bonds 93 98 Other securities 1,067 1,479 Accrued interest and others (1) 110 35 Subordinated liabilities 4,771 4,498 Convertible perpetual securities 2,888 2,715 Other non-convertible subordinated liabilities 1,868 1,768 Valuation adjustments (1) 15 14 Total 47,086 50,132 (1) Accrued interest but pending payment, valuation adjustments and issuance costs included. As of December 31, 2024 and 2023, 67% and 73% of “Debt certificates” have fixed-interest rates, and 33% and 27% have variable interest rates, respectively. The total cost of the accrued interest under “Debt securities issued” in 2024 and 2023 totaled €1,546 million and €1,123 million, respectively. As of December 31, 2024 and 2023 the accrued interest pending payment from promissory notes and bills and bonds and debentures amounted to €613 million and €500 million, respectively. The heading “Nonconvertible bonds and debentures” as of December 31, 2024 includes several issues, the latest maturing in 2039. The heading “Mortgage Covered Bonds" as of December 31, 2024 includes issues with various maturities, the latest in 2037. Subordinated liabilities included in this heading and in Note 20.3, and accordingly, for debt seniority purposes, they rank behind ordinary debt, but ahead of the Bank’s shareholders, without prejudice to any different seniority that may exist between the different types of subordinated debt instruments according to the terms and conditions of each issue. The breakdown of this heading in the accompanying balance sheets, disregarding valuation adjustments, by currency of issuance and interest rate is shown in Appendix VII. The balance variances are mainly due to the following transactions: Perpetual Contingent Convertible Securities The Annual General Shareholders' Meeting of BBVA held on April 20, 2021, resolved, under agenda item five, to authorize the Board of Directors of BBVA, with sub-delegation powers, to issue convertible securities, whose conversion is contingent and which are intended to meet regulatory requirements for their eligibility as capital instruments (CoCo), in accordance with the solvency regulations applicable from time to time, subject to the legal and statutory provisions that may be applicable at any time. The Board of Directors may make issues on one or several times within the maximum term of five years from the date on which this resolution was adopted, up to the maximum overall amount of €8 billion or its equivalent in any other currency. The Board of Directors may also resolve to exclude, either fully or partially, the pre-emptive subscription rights of shareholders within the framework of a concrete issuance, complying in all cases with the legal requirements and limitations established for this purpose at any given time. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 107 Under that delegation, BBVA has made the following contingently convertible issuances that qualify as additional tier 1 capital of the Bank and the Group in accordance with Regulation (EU) 575/2013 throughout the financial years 2023 and 2024: – On June 21, 2023, BBVA carried out an issuance of perpetual contingent convertible securities with exclusion of shareholders' pre-emptive subscription rights, for a total nominal amount of €1 billion. This issuance is listed in the Global Exchange Market of Euronext Dublin and was targeted only at qualified investors, not being offered or sold to any retail clients. – On September 19, 2023, BBVA carried out an issuance of perpetual contingent convertible securities with exclusion of shareholders' pre-emptive subscription rights, for a total nominal amount of USD 1 billion. This issuance is listed on the New York Stock Exchange and was targeted only at qualified investors, not being offered or sold to any retail clients. – On June 13, 2024, BBVA carried out an issuance of perpetual contingent convertible securities with exclusion of shareholders' pre-emptive subscription rights, for a total nominal amount of €750 million. This issuance is listed in the Global Exchange Market of Euronext Dublin and was targeted only at qualified investors, not being offered or sold to any retail clients. Additionally, on January 14, 2025, BBVA carried out an issuance of perpetual contingent convertible securities with exclusion of shareholders' pre-emptive subscription rights, for a total nominal amount of USD 1 billion. This issuance is listed on the New York Stock Exchange and was targeted only at qualified investors, not being offered or sold to any retail clients. These perpetual securities issued, where appropriate, must be converted into newly issued ordinary shares of BBVA if the CET 1 ratio of the Bank or the Group is less than 5.125%, in accordance with their respective terms and conditions. These type of issuances made by the Bank may be fully redeemed at BBVA's option only in the cases contemplated in their respective terms and conditions and, in any case, in accordance with the provisions of the applicable legislation. In particular, throughout the financial years 2023 and 2024 the Bank has early redeemed the following issues: – On September 24, 2023, the Bank early redeemed the issuance of contingently convertible preferred securities (which qualified as additional tier 1 instruments) carried out by the Bank on September 24, 2018, for an amount of €1 billion on the First Reset Date and once the prior consent from the Regulator was obtained. – On March 29, 2024, the Bank early redeemed the issuance of contingently convertible preferred securities (which qualified as additional tier 1 instruments) carried out by the Bank on March 29, 2019, for an amount of €1 billion on the First Reset Date and once the prior consent from the Regulator was obtained. – Additionally, on January 28, 2025, the Bank announced its irrevocable decision to redeem in whole on March 5, 2025, the issuance of contingently convertible preferred securities (which qualified as additional tier 1 instruments) carried out by the Bank on September 5, 2019, for an amount of USD 1 billion on the First Reset Date and once the prior consent from the Regulator was obtained. Convertible Securities The Annual General Shareholders' Meeting of BBVA held on March 18, 2022, resolved, under agenda item five, to confer authority on the Board of Directors of BBVA, with sub-delegation powers, to issue securities convertible into new BBVA shares (other than contingently convertible securities, envisaged to meet regulatory requirements for their eligibility as capital instruments (CoCo) referred to in the resolutions adopted by BBVA's Annual General Shareholders' Meeting held on April 20, 2021, under agenda item five), subject to provisions in the law and in BBVA's bylaws that may be applicable at any time, on one or several occasions within the maximum term of five years to be counted as from the date on which the resolution was adopted, up to a maximum total amount of €6 billion, or the equivalent in any other currency. The Board of Directors may also resolve to exclude, either fully or partially, the pre- emptive subscription rights of shareholders within the framework of a specific issuance, limiting power limited to the extent that the nominal amount of the capital increases agreed or executed in order to satisfy conversion of the issues carried out excluding the pre- emptive subscription right by virtue of this power (without prejudice to anti-dilution adjustments) and any agreed or executed in use of the power under the item 4 of the Agenda of the same General Meeting, described in Note 23, excluding the pre-emptive subscription right, do not exceed a maximum aggregated nominal amount of 10% of BBVA's share capital at the time the resolution was adopted. As of the date hereof the Bank has not made use of the authority granted by the BBVA Annual General Shareholders' Meeting held on March 18, -2022. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 108 20.5. Other financial liabilities The breakdown of the balance under this heading in the accompanying balance sheets is as follows: Other financial liabilities (Millions of Euros) 2024 2023 Lease liabilities 2,795 2,744 Creditors for other financial liabilities 3,473 2,860 Collection accounts 2,432 2,825 Creditors for other payment obligations 1,558 1,636 Total 10,258 10,065 A breakdown of the maturity of the lease liabilities, due after December 31, 2024 is provided below: Maturity of future payment obligations (Millions of Euros) Up to 1 year 1 to 3 years 3 to 5 years Over 5 years Total Operating leases 188 366 362 1,878 2,794 The information required by Final Provision second of Law 31/2014 of December 3, which amends the Corporate Law to improve corporate governance modifies Additional Provision third of Law 15/2010, of July 5, amending the Law 3/2004 of December 29, through which measures for combating late payment in commercial transactions are set, is as follows: Payments made and pending payments (Millions of Euros) 2024 2023 Average payment period to third parties (days) 28 23 Ratio of outstanding payment transactions (days) (1) 28 23 Ratio outstanding payment transactions (days) (1) 19 18 Total payments 3,028 3,053 Total outstanding payments 166 136 (1) To obtain these ratios, the total number of registered invoices is taken into account. Including other BBVA Group companies in Spain, the total payments made for the years 2024 and 2023 amounted to 3,033 and 3,058 million. The data shown in the table above on payments to suppliers refer to those which by their nature are trade creditors for the supply of goods and services, so data relating to "Other financial liabilities - Creditors for other payment obligations " is included in the balance. As of December 31, 2023, according to Law 18/2022, of September 28, on creation and development of entities, BBVA paid a total of 131,378 invoices (representing 89.6% of the total invoices received) with a total amount of €2,071 million (representing 95.5% of the volume invoiced) in a period less than or equal to the maximum established in the delinquency regulations. 21. Provisions The breakdown of the balance under this heading in the accompanying balance sheets, based on type of provisions, is as follows: Provisions: Breakdown by concepts (Millions of Euros) Notes 2024 2023 Provisions for pensions and similar obligations 22 1,673 1,871 Other long term employee benefits 22 351 404 Provisions for taxes and other legal contingencies 419 396 Provisions for contingent risks and commitments 29 178 240 Other provisions (1) 201 221 Total 2,823 3,131 (1) Individually non-significant provisions, for various concepts. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 109 Below are the changes in 2024 and 2023 in the balances under this heading: Provisions for pensions and other post-employment obligations for defined benefit plans and other long term employee benefits. Changes over the year (Millions of Euros) 2024 2023 Balance at the beginning 2,275 2,518 Charges to income for the year 35 42 Interest expense and similar charges 27 37 Personnel expense 7 3 Provision expense 2 1 Charges (Credits) to equity (1) 22 24 Transfers and other changes — — Benefit payments (226) (262) Employer contributions (77) (39) Unused amounts reversed during the period (4) (8) Balance at the end 2,024 2,275 (1) Corresponds to actuarial losses (gains) arising from certain post-employment defined-benefit commitments for pensions (see Note 2.12). Provisions for taxes, legal contingencies and other provisions. Changes over the year (Millions of Euros) 2024 2023 Balance at beginning 857 866 Additions 353 328 Unused amounts reversed during the year (219) (207) Amount used and other variations (193) (130) Balance at the end 798 857 Ongoing legal proceedings and litigation The financial sector faces an environment of increased regulatory pressure and litigation. In this environment, the various Group entities are often subject to lawsuits and involved in individual or collective legal proceedings and litigation arising from their activity and operations, including proceedings arising from their lending activity, from their labor relations and from other commercial, regulatory or tax issues, as well as in arbitration. On the basis of the information available, the Group considers that, as of December 31, 2024, the provisions made in relation to judicial proceedings and arbitrations, where so required, are adequate and reasonably cover the liabilities that might arise, if any, from such proceedings and arbitrations. Furthermore, on the basis of the information available and with the exceptions indicated in Note 5.1 "Risk factors", BBVA considers that the liabilities that may arise from the resolution of such proceedings will not have, individually, a significant adverse effect on the Group's business, financial situation or results of operations. 22. Post-employment and other employee benefit commitments As stated in Note 2.12, the Bank has assumed commitments with employees including short-term employee benefits (Note 39.1), defined contribution and defined benefit plans (see Glossary), healthcare and other long-term employee benefits. The main Employee Welfare System has been implemented in Spain. Under the collective labor agreement, Spanish banks are required to supplement the social security benefits received by employees or their beneficiary right-holders in the event of retirement (except for those hired after March 8, 1980), permanent disability, death of spouse or death of parent. The Employee Welfare System in place at the Bank supersedes and improves the terms and conditions of the collective labor agreement for the banking industry; including benefits in the event of retirement, death and disability for all employees, including those hired after March 8, 1980. The Bank externally funded all its pension commitments with active and retired employees pursuant to Royal Decree 1588/1999, of October 15. These commitments are instrumented in external pension plans, insurance contracts with non-Group companies and insurance contracts with BBVA Seguros, S.A. de Seguros y Reaseguros, which is 99.96% owned by the Banco Bilbao Vizcaya Argentaria Group. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 110 The table below shows a breakdown of recorded balance sheet liabilities relating to defined benefit plans as at December 31, 2024 and 2023: Net defined benefit liability (asset) on the balance sheet (Millions of Euros) Notes 2024 2023 Pension commitments 2,025 2,108 Early retirement commitments 268 407 Other long-term employee benefits 351 404 Total commitments 2,644 2,919 Pension plan assets 620 644 Total plan assets 620 644 Total net liability/asset 2,024 2,275 Of which: provisions- provisions for pensions and similar obligations 21 1,673 1,871 Of which: provisions-other long-term employee benefits 21 351 404 Other net assets in pension plans — — Of which: Insurance contracts linked to pensions 18 (1,260) (1,321) The following table shows defined benefit post-employment commitments recorded in the income statement for fiscal years 2024 and 2023: Income Statement and equity impact (Millions of Euros) Notes 2024 2023 Interest and similar expense 27 37 Interest expense 27 37 Interest income — — Personnel expense 65 58 Defined contribution plan expense 39 58 54 Defined benefit plan expense 39 1 1 Other benefit expense 3 3 Provisions or reversal of provisions 41 (2) (5) Early retirement expense — — Past service cost expense — — Remeasurements (1) (2) (7) Other provision expense — 2 Total effects in income statements: debit (credit) 90 90 Total effects on equity: debit (credit) (2) 22 24 (1) Actuarial losses (gains) on remeasurement of the net defined benefit liability relating to early retirements in Spain and other long-term employee benefits that are charged to the income statement (see Note 2.12). (2) Correspond to the update of the valuation of the net obligation for defined benefits arising from pension commitments before their tax effect (see Note 2.12). Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 111 22.1 Defined benefit plans Defined benefit commitments relate mainly to employees who have already retired or taken early retirement, certain closed groups of active employees still accruing defined benefit pensions, and in-service death and disability benefits provided to most active employees. For the latter, the Bank pays the required premiums to fully insure the related liability. The change in these commitments as of December 31, 2024 and 2023 is presented below: Defined Benefit Plans (Millions of Euros) 2024 2023 Defined benefit obligation Plan assets Net liability (asset) Insurance contracts linked to pensions Defined benefit obligation Plan assets Net liability (asset) Insurance contracts linked to pensions Balance at the beginning 2,515 644 1,871 1,321 2,827 742 2,085 1,337 Current service cost 4 — 4 — 4 — 4 — Interest income or expense 80 21 59 44 100 26 74 51 Contributions by plan participants — — — — — — — — Employer contributions — 20 (20) — — 28 (28) — Past service costs (1) 3 — 3 — 3 — 3 — Remeasurements: 31 (8) 39 21 60 (10) 70 54 Return on plan assets (2) — (8) 8 21 — (10) 10 54 From changes in demographic assumptions — — — — (2) — (2) — From changes in financial assumptions 35 — 35 — 67 — 67 — Other actuarial gain and losses (4) — (4) — (5) — (5) — Benefit payments (348) (65) (283) (126) (412) (75) (337) (121) Settlement payments — — — — (74) (75) 1 — Business combinations and disposals — — — — — — — — Effect on changes in foreign exchange rates — — — — 2 2 — — Other effects 8 8 — — 5 6 (1) — Balance at the end 2,293 620 1,673 1,260 2,515 644 1,871 1,321 (1) Including gains and losses arising from settlements. (2) Excluding interest, which is recorded under "Interest income or expense". The balance under the heading “Provisions – Pensions and other post-employment defined benefit obligations” of the accompanying balance sheet as of December 31, 2024 includes €200 million for commitments for post-employment benefits maintained with previous members of the Board of Directors and the Bank’s Management Committee (see Note 50). Both the costs and the present value of the commitments are determined by independent qualified actuaries using the “projected unit credit” method. In order to achieve the good governance of these plans, the Bank has established specific benefits committees. These benefit committees include members from the different areas of the business to ensure that all decisions are made taking into consideration all of the associated impacts. The following table sets out the key actuarial assumptions used in the valuation of these commitments as of December 31, 2024 and 2023: Actuarial Assumptions. Commitments in Spain 2024 2023 Discount rate 3.25% 3.43% Rate of salary increase — — Mortality tables PER 2020 PER 2020 The discount rate shown as of December 31, 2024, corresponds to the discount rate for long-term commitments, with the discount rate used for short-term commitments being 2.75%. The discount rate used to value future benefit cash flows has been determined by reference to Eurozone high quality corporate bonds. The expected return on plan assets has been set in line with the adopted discount rate. Assumed retirement ages have been set by reference to the earliest age at which employees are entitled to retire or the contractually agreed age in the case of early retirements. Changes in the actuarial main assumptions can affect the calculation of the commitments. Should the discount rate have increased or decreased by 50 basis points, an impact on equity for the commitments in Spain would have been registered amounting to approximately an increase or decrease of €7 million net of tax. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 112 In addition to the commitments to employees shown above, the Bank has other less material long-term employee benefits. These include leaves and long-service awards, which consist of either an established monetary award or shares in Banco Bilbao Argentaria A.A. granted to employees when they complete a given number of years of qualifying services. Additionally, this heading included a fund related to the collective layoff procedure that was carried out in the bank in 2021. As of December 31, 2024 and 2023 the value of these commitments amounted to €351 and €404 million respectively. These amounts are recorded under the heading "Provisions - Other long-term employee benefits" of the accompanying balance sheet (see Note 21). Information on the various commitments is provided in the following sections: Pension commitments These commitments relate mainly to retirement, death and disability pension payments. They are covered by insurance contracts, pension funds and internal provisions. The change in pension commitments as of December 31, 2024 and 2023 is as follows: Pensions commitments (Millions of Euros) 2024 2023 Defined Benefit Obligation Plan Assets Net Liability (asset) Insurance contracts linked to pensions Defined Benefit Obligation Plan Assets Net Liability (asset) Insurance contracts linked to pensions Balance at the beginning 2,108 644 1,464 1,321 2,227 742 1,485 1,337 Net commitments addition — — — — — — — — Current service cost 4 — 4 — 4 — 4 — Interest income or expense 70 21 49 44 83 26 57 51 Contributions by plan participants — — — — — — — — Employer contributions — 20 (20) — — 28 (28) — Past service costs (1) 3 — 3 — 3 — 3 — Remeasurements: 35 (8) 43 21 67 (10) 77 54 Return on plan assets (2) — (8) 8 21 — (10) 10 54 From changes in demographic assumptions — — — — (2) — (2) — From changes in financial assumptions 33 — 33 — 64 — 64 — Other actuarial gain and losses 2 — 2 — 5 — 5 — Benefit payments (203) (65) (138) (126) (209) (75) (134) (121) Settlement payments — — — — (74) (75) 1 — Business combinations and disposals — — — — — — — — Defined contribution transformation — — — — — — — — Effect on changes in foreign exchange rates — — — — 2 2 — — Other effects 8 8 — — 5 6 (1) — Balance at the end 2,025 620 1,405 1,260 2,108 644 1,464 1,321 Of Which: Vested benefit obligation relating to current employees 1,909 — — — 1,998 — — — Of Which: Vested benefit obligation relating to retired employees 116 — — — 110 — — — (1) Including gains and losses arising from settlements. (2) Excluding interest, which is recorded under "Interest income or expense". In Spain, local regulation requires that pension and death benefit commitments must be funded, either through a qualified pension plan or an insurance contract. These pension commitments are insured through policies with the insurer belonging to the Group, and with other unrelated insurers whose policyholder is BBVA. There are also commitments in the Group's insurance company whose policyholder is the BBVA Employment Pension Plan. All the policies meet the requirements established by the accounting regulations regarding the non-recoverability of contributions. However, the policies whose policyholder is the Entity that have been carried out with BBVA Seguros –a BBVA related party – and consequently these policies cannot be considered plan assets under the applicable standards. For this reason, the liabilities insured under these policies are fully recognized under the heading "Provisions – Pensions and other post-employment defined benefit obligations" of the accompanying balance sheet (see Note 21), while the related assets held by the insurance company are included under the heading “Insurance contracts linked to pensions “. Additionally, there are commitments in insurance policies of the Pension Plan and with insurance companies not related to the Bank. In this case the accompanying balance sheet reflects the value of the obligations net of the fair value of the qualifying insurance policies. As of December 31, 2024 and 2023, the plan assets related to the aforementioned insurance contracts equaled the amount of the commitments covered; therefore, no amount for this item is included in the accompanying balance sheets. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 113 Pension benefits are paid by the insurance companies with whom BBVA has insurance contracts and to whom all insurance premiums have been paid. The premiums are determined by the insurance companies using “cash flow matching” techniques to ensure that benefits can be met when due, guaranteeing both the actuarial and interest rate risk. The Bank signed a Social Benefit Standardization Agreement for its employees in Spain. The agreement standardizes the existing social benefits for the different groups of employees and, in some cases where a service was provided, quantified it as an annual amount in cash. In addition, some overseas branches of the Bank maintain defined-benefit pension commitments with some of their active and inactive personnel. These arrangements are closed to new entrants who instead participate in defined-contribution plans. Early retirement commitments In addition, there are commitments with the Bank's early-retired personnel. These commitments to early retirees include the compensation and indemnities and contributions to external pension funds payable during the period of early retirement. As of December 31, 2024 and 2023, the value of these commitments amounted to €268 million and €407 million respectively. The change in these commitments during financial years 2024 and 2023 is shown below: Early retirement commitments (Millions of Euros) 2024 2023 Defined Benefit Obligation Plan assets Net liability (asset) Defined benefit obligation Plan assets Net liability (asset) Balance at the beginning 407 — 407 600 — 600 Current service cost — — — — — — Interest income or expense 10 — 10 17 — 17 Contributions by plan participants — — — — — — Employer contributions — — — — — — Past service costs (1) — — — — — — Remeasurements: (4) — (4) (7) — (7) Return on plan assets (2) — — — — — — From changes in demographic assumptions — — — — — — From changes in financial assumptions 2 — 2 3 — 3 Other actuarial gain and losses (6) — (6) (10) — (10) Benefit payments (145) — (145) (203) — (203) Settlement payments — — — — — — Business combinations and disposals — — — — — — Defined contribution transformation — — — — — — Effect on changes in foreign exchange rates — — — — — — Other effects — — — — — — Balance at the end 268 — 268 407 — 407 (1) Including gains and losses arising from settlements. (2) Excluding interest, which is recorded under "Interest income or expense". The valuation and account treatment of these commitments is the same as that of the pension commitments, except for the treatment of actuarial gains and losses (see Note 2.12). Estimated benefit payments As of December 31, 2024 the estimated payments over the next ten years are as follows: Estimated future payments (Millions of Euros) 2025 2026 2027 2028 2029 2030 - 2034 Commitments in Spain 422 278 242 210 181 618 Of which: Early retirements 101 73 49 31 18 8 22.2 Defined contribution plans The Bank sponsors defined contribution plans, in some cases with employees making contributions which are matched by the employer. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 114 These contributions are accrued and charged to the income statement in the corresponding financial year. No liability is therefore recognized in the accompanying balance sheets for this purpose (see Note 2.12). 23. Capital As of December 31, 2024 and 2023 BBVA’s share capital amounted to €2,824,009,877.85 and €2,860,590,786.20 divided into 5,763,285,465 and 5,837,940,380 shares respectively, at €0.49 par value each one, in both periods. The shares were fully subscribed and paid-up registered, all of the same class and series represented through book-entry accounts. The decrease was as of result of the partial executions of the share capital reduction resolution adopted by the Ordinary Annual Shareholders' Meeting of BBVA held on March 17, 2023, under item 3 of the agenda notified on June 2, 2023 and on December 19, 2023 (see Note 3). All of the Bank´s shares carry the same voting and dividend rights, and no single stockholder enjoys special voting rights. Each and every share is part of the Bank’s capital. The Bank’s shares are traded on the stock markets of Madrid, Barcelona, Bilbao and Valencia through the Sistema de Interconexión Bursátil Español (Mercado Continuo), as well as on the London and Mexico stock markets. BBVA American Depositary Shares (ADSs) traded on the New York Stock Exchange under the ticker “BBVA”. Additionally, as of December 31, 2024, the shares of Banco BBVA Peru, S.A., BBVA Banco Provincial, S.A., Banco BBVA Colombia, S.A., Banco BBVA Argentina, S.A., and Garanti BBVA A.S., were listed on their respective local stock markets. Banco BBVA Argentina, S.A. was also quoted in the Latin American market (Latibex) of the Madrid Stock Exchange and the New York Stock Exchange. Also, the Depositary Receipts (“DR”) of Garanti BBVA, A.S. are listed in the London Stock Exchange. BBVA is also currently included, amongst other indexes, in the IBEX 35® Index, which is made up by the 35 most liquid securities traded on the Spanish Market and, technically, it is a price index that is weighted by capitalization and adjusted according to the free float of each company comprised in the index. As of December 31, 2024, State Street Bank and Trust Company, JPMorgan Chase, The Bank of New York Mellon and Northern Trust Company, in their capacity as international custodian/depositary banks, held 13.82%, 12.57%, 10.76%, and 3.25% of BBVA common stock, respectively. Of said positions held by the custodian banks, BBVA is not aware of any individual shareholders with direct or indirect holdings greater than or equal to 3% of BBVA common stock outstanding. On October 4, 2024, Blackrock, Inc. reported to the Spanish Securities and Exchange Commission (CNMV) that it had an indirect holding of BBVA common stock totaling 6.800%, of which 6.680% were voting rights attributed to shares and 0.120% were voting rights held through financial instruments. On March 26, 2024, Capital Research and Management Company reported to the CNMV that it had an indirect holding of BBVA common stock totaling 5.027 %, corresponding to voting rights attributed to shares. On November 25, 2024, Europacific Growth Fund reported to the CNMV that it had a direct holding of BBVA common stock totaling 3.010 %, corresponding to voting rights attributed to shares. BBVA is not aware of any direct or indirect interests through which control of the Bank may be exercised. Furthermore, BBVA has not received any information on stockholder agreements including the regulation of the exercise of voting rights at its Annual General Shareholders' Meetings or restricting or placing conditions on the free transferability of BBVA shares. No agreement is known to BBVA that could give rise to changes in the control of the Bank. Resolutions adopted by the Annual General Shareholders' Meeting Capital increase BBVA's Annual General Shareholders' Meeting held on March 18, 2022 resolved, under agenda item four, to confer authority on the Board of Directors of BBVA to increase BBVA's share capital, on one or several occasions, within the legal term of five years to be counted as from the date on which this resolution was adopted, up to the maximum amount corresponding to 50% of BBVA's share capital at the time of this authorization. Likewise, the Annual General Shareholders' Meeting resolved to confer on the Board of Directors authority to totally or partially exclude shareholders' pre-emptive subscription rights within the framework of a specific issue of shares that may be made thereunder. However, the power to exclude pre-emptive subscription rights was limited, such that the nominal amount of any share capital increases resolved or effectively carried out with the exclusion of pre-emptive subscription rights and those that may be resolved or carried out to cover the conversion of convertible issuances that may equally be made with the exclusion of pre-emptive subscription rights in use of the authority delegated to issue convertible securities (other than contingently convertible securities, envisaged to meet regulatory requirements for their eligibility as capital instruments (CoCo)) as resolved by BBVA's Annual General Shareholders' Meeting held on March 18, 2022 under agenda item five and which is described in Note 22.4.1 (without prejudice to anti-dilution adjustments), may not exceed the nominal maximum overall amount of 10% of BBVA's share capital at the time of this authorization. This authority repealed the authority conferred by the Annual General Shareholders' Meeting held on March 17, 2017 under its agenda item four, which BBVA did not use. As of the date of this document, the Bank has not made use of the delegation granted by the General Shareholders' Meeting. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 115 The Extraordinary General Shareholders' Meeting of BBVA held on July 5, 2024 resolved, under item one of the agenda, to authorize an increase in BBVA’s share capital for up to a maximum nominal amount of €551,906,524.05 by issuing and putting into circulation up to 1,126,339,845 ordinary shares with a par value of €0.49 each, of the same class and series, and with the same rights as the outstanding shares at such date, represented in book-entry form, with non-cash contributions for the purposes of covering the consideration of the voluntary tender offer for the acquisition of up to 100% of the shares of Banco de Sabadell, S.A. announced by BBVA (see Note 14), pending its execution as of the date of this document. Capital Decrease BBVA's Annual General Shareholders' Meeting held on March 17, 2023 resolved, under agenda item three, to approve the share capital reduction of BBVA by up to a maximum amount of 10% of the share capital on the date of this resolution, through the redemption of own shares acquired derivatively by BBVA by virtue of the authorization granted by the General Shareholders' Meeting held on March 18, 2022 under item six of the agenda, through any mechanism whose objective or purpose is redemption. Pursuant to the resolution, its implementation period ended on the date of the following Annual General Shareholders' Meeting, being rendered null and void from that date in respect of the amount not executed. The Annual General Shareholders' Meeting conferred authority on the Board of Directors of BBVA, with sub-delegation powers, to totally or partially execute the aforementioned share capital reduction, on one or more occasions, repealing the resolution adopted by the Annual General Shareholders' Meeting held on March 18, 2022, under agenda item seven, whose executions are described above. In the execution of said resolution, (see Note 3), BBVA has executed the following share capital reductions: – On June 2, 2023, BBVA notified the partial execution of the resolution through the reduction of BBVA’s share capital in a nominal amount of €31,675,343.91 and the consequent redemption, charged to unrestricted reserves, of 64,643,559 own shares of €0.49 par value each acquired derivatively by the Bank in execution of a share buyback program and which were held as treasury shares. – On December 19, 2023, BBVA notified the second partial execution of the resolution through the reduction of BBVA’s share capital in a nominal amount of €62,490,986.25 and the consequent redemption, charged to unrestricted reserves, of 127,532,625 own shares of €0.49 par value each acquired derivatively by the Bank in execution of a share buyback program and which were held as treasury share. BBVA Annual General Shareholders' Meeting held on March 15, 2024 resolved, under agenda item three, to approve the share capital reduction of BBVA by up to a maximum amount of 10% of the share capital on the date of this resolution, through the redemption of own shares acquired derivatively by BBVA by virtue of the authorization granted by the General Shareholders' Meeting held on March 18, 2022 under item six of the agenda, through any mechanism whose objective or purpose is redemption. Pursuant to the resolution, its implementation period will end on the date of the following Annual General Shareholders' Meeting, being rendered null and void from that date in respect of the amount not executed. The Annual General Shareholders' Meeting conferred authority on the Board of Directors of BBVA, with sub-delegation powers, to totally or partially execute the aforementioned share capital reduction, on one or more occasions, repealing the resolution adopted by the Annual General Shareholders' Meeting held on March 17, 2023, under agenda item three, whose executions are described above. In the execution of the Annual General Shareholders' Meeting held on March 15, 2024, BBVA has executed the following share capital reduction (see Note 4): – On May 24, 2024 BBVA notified the partial execution of the resolution through the reduction of BBVA's share capital in a nominal amount of €36,580,908.35 and the consequent redemption, charged to unrestricted reserves, of 74,654,915 own shares of €0.49 par value each acquired derivatively by the Bank in execution of a share buyback program and which were held as treasury shares. Convertible and/or exchangeable securities: Note 20.4 introduces the details of the convertible and/or exchangeable securities. 24. Share premium As of December 31, 2024 and 2023, the balance under this heading in the accompanying balance sheets was € 19,184 million and €19,769 million, respectively (see Note 3). The amended Spanish Corporation Act expressly permits the use of the share premium balance to increase capital and establishes no specific restrictions as to its use (see Note 23). Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 116 25. Retained earnings, revaluation reserves and other reserves 25.1. Breakdown of the balance The breakdown of the balance under this heading in the accompanying balance sheets is as follows: Retained earnings, revaluation reserves and other reserves (Millions of Euros) 2024 2023 Restricted reserves Legal reserve 565 572 Restricted reserve for retired capital 582 561 Revaluation Royal Decree-Law 7/1996 — — Voluntary reserves Voluntary and others 6,470 5,478 Total 7,616 6,612 25.2. Legal reserve Under the amended Spanish Corporations Act, 10% of any profit made each year must be transferred to the legal reserve. The transfer must be made until the legal reserve reaches 20% of the common stock. The legal reserve can be used to increase the common stock provided that the remaining reserve balance does not fall below 10% of the increased capital. While it does not exceed 20% of the common stock, it can only be allocated to offset losses exclusively in the case that there are not sufficient reserves available. 25.3. Restricted reserves As of December 31, 2024 and 2023, the Bank’s restricted reserves are as follows: Restricted reserves. Breakdown by concepts (Millions of Euros) 2024 2023 Restricted reserve for retired capital 531 495 Restricted reserve for Parent Company shares and loans for those shares 49 65 Restricted reserve for redenomination of capital in euros 2 2 Total 582 561 The restricted reserve for retired capital includes the partial executions of the capital reduction resolutions adopted by BBVA's General Shareholders' Meeting held on March 15, 2024, March 17, 2023 and March 18, 2022, respectively (see Note 23). The second heading corresponds to restricted reserves related to the amount of shares issued by the Bank in its possession at each date, as well as the amount of customer loans outstanding at those dates that were granted for the purchase of, or are secured by, the parent company shares. Finally, pursuant to Law 46/1998 on the Introduction of the Euro, a restricted reserve is recognized as a result of the rounding effect of the redenomination of the parent company common stock in euros. 25.4. Revaluation and regularizations of the balance sheet Prior to the merger, Banco de Bilbao, S.A. and Banco de Vizcaya, S.A. availed themselves of the legal provisions applicable to the regularization and revaluation of balance sheets. Thus, on December 31, 1996, Banco Bilbao Vizcaya, S.A. revalued its tangible assets pursuant to Royal Decree-Law 7/1996 of June 7 by applying the maximum coefficients authorized, up to the limit of the market value arising from the existing valuations. As a result of these updates, the increases in the cost and depreciation of tangible fixed assets were calculated and allocated as follows. Following the review of the balance of the “Revaluation reserve pursuant to Royal Decree-Law 7/1996 of June 7" account by the tax authorities in 2000, this balance could only be used, free of tax, to offset recognized losses and to increase share capital until January 1, 2007. From that date, the remaining balance of this account can also be allocated to unrestricted reserves, provided that the surplus has been depreciated or the revalued assets have been transferred or derecognized. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 117 The breakdown of the calculation and movement to voluntary reserves under this heading are: Revaluation and Regularization of the Balance Sheet (Millions of Euros) Legal revaluations and regularizations of tangible assets: — Cost 187 Less: Single revaluation tax (3%) (6) Balance as of December 31, 1999 181 Rectification as a result of review by the tax authorities in 2000 (5) Transfer to voluntary reserves (176) Total as of December 2023 and 2024 — 26. Treasury shares In 2024 and 2023 the Group companies performed the following transactions with shares issued by the Bank: Treasury shares (Millions of Euros) 2024 2023 Number of Shares Millions of Euros Number of Shares Millions of Euros Balance at beginning 4,386,625 34 5,485,414 29 + Purchases 154,564,499 1,528 301,882,728 2,166 - Sales and other changes (152,284,268) (1,497) (302,981,517) (2,161) Balance at the end 6,666,856 66 4,386,625 34 Of which: Held by BBVA, S.A. 410,370 7 — 3 Held by Corporación General Financiera, S.A. 6,256,486 59 4,354,004 31 Held by other subsidiaries — — 32,621 — Average purchase price in Euros 9.89 — 7.18 — Average selling price in Euros (including other changes) 9.89 — 7.14 — Net gains or losses on transactions (Shareholders' funds-Reserves) 10 1 During the years 2024 and 2023, transactions were recorded for the share buyback program (see Note 3). The percentages of treasury shares held by BBVA in the years ended 2024 and 2023 are as follows: Treasury Stock 2024 2023 Min Max Closing Min Max Closing % treasury stock 0.076% 1.513% 0.116% 0.038% 2.214% 0.075% The number of BBVA shares accepted by the Bank in pledge of loans as of December 31, 2024 and 2023 is as follows: Shares of BBVA accepted in pledge 2024 2023 Number of shares in pledge 13,308,677 17,492,194 Nominal value (Euros) 0.49 0.49 % of share capital 0.23% 0.29% Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 118 The number of BBVA shares owned by third parties but under management of a company within the Group as of December 31, 2024 and 2023 is as follows: Shares of BBVA Owned by Third Parties but Managed by the Group 2024 2023 Number of shares owned by third parties 11,834,596 13,258,994 Nominal value (Euros) 0.49 0.49 % of share capital 0.21% 0.23% 27. Accumulated other comprehensive income (loss) The breakdown of the balance under this heading in the accompanying balance sheets is as follows: Accumulated other comprehensive income (loss). Breakdown by concepts (Millions of Euros) Notes 2024 2023 Items that will not be reclassified to profit or loss (1,140) (1,212) Actuarial gains (losses) on defined benefit pension plans (48) (54) Fair value changes of equity instruments measured at fair value through other comprehensive income 11.4 (1,075) (1,213) Hedge ineffectiveness of fair value hedges for equity instruments measured at fair value through other comprehensive income — — Fair value changes of financial liabilities at fair value through profit or loss attributable to changes in their credit risk (17) 55 Items that may be reclassified to profit or loss (14) (230) Hedge of net investments in foreign operations (effective portion) — — Foreign currency translation — — Hedging derivatives. Cash flow hedges (effective portion) 251 45 Fair value changes of debt instruments measured at fair value through other comprehensive income 11.4 (264) (275) Hedging instruments (non-designated items) — — Non-current assets and disposal groups classified as held for sale — — Total (1,154) (1,443) The balances recognized under these headings are presented net of tax. 28. Capital base and capital management As of December 31, 2024 and 2023, own funds are calculated in accordance with the applicable regulation of each year on minimum capital requirements for Spanish credit institutions –both as individual entities and as consolidated group– that establish how to calculate them, as well as the various required internal capital adequacy assessment processes and the information required to be disclosed to the market. After the latest SREP (Supervisory Review and Evaluation Process) decision, applicable as from January 1, 2025, the ECB has informed the Bank that it must maintain a total capital ratio of 12.14% and a CET1 capital ratio of 7.98% and at the individual level, including a Pillar 2 requirement of 1.50% (at least 0.84% must be CET1). Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 119 A reconciliation of the main figures between the accounting and regulatory own funds as of December 31, 2024 and 2023 is shown below: Eligible capital resources (Millions of Euros) Notes 2024 2023 Capital 23 2,824 2,861 Share premium 24 19,184 19,769 Retained earnings, revaluation reserves and other reserves 25.1 7,616 6,612 Other equity instruments, net 40 40 Treasury shares 26 (7) (3) Profit (loss) for the year 10,235 4,807 Attributable dividend (1,671) (952) Total Equity 38,220 33,134 Accumulated other comprehensive income (loss) (1,154) (1,443) Shareholders´ equity 37,066 31,691 Intangible assets (405) (318) Fin. treasury shares (38) (51) Deductions (443) (369) Temporary CET 1 adjustments — — Equity not eligible at solvency level — — Other adjustments and deductions (4,808) (4,810) Common Equity Tier 1 (CET 1) 31,815 26,512 Additional Tier 1 before regulatory adjustments 5,638 5,715 Tier 1 37,453 32,227 Tier 2 5,876 5,461 Total Capital (Total Capital=Tier 1 + Tier 2) 43,329 37,688 Total Minimum equity required 28,075 26,244 Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 120 The Bank’s own funds in accordance with the aforementioned applicable regulation as of December 31, 2024 and 2023 is shown below: Amount of capital CC1 (Millions of Euros) 2024 2023 Capital and share premium 22,008 22,629 Retained earnings and equity instruments 8,310 7,306 Other accumulated income and other reserves (2,042) (2,226) Provisional profit ⁽¹⁾ 5,207 1,579 Ordinary Tier 1 (CET 1) before other reglamentary adjustments 33,483 29,288 Goodwill and intangible assets (405) (318) Direct and indirect holdings in equity (236) (329) Deferred tax assets (427) (639) Other deductions and filters ⁽²⁾ (600) (1,491) Total common equity Tier 1 reglamentary adjustments (1,668) (2,776) Common equity TIER 1 (CET1) 31,815 26,512 Equity instruments and share premium classified as liabilities 5,638 5,715 Additional Tier 1 (CET 1) before regulatory adjustments 5,638 5,715 Transitional CET 1 adjustments — — Total regulatory adjustments of additional equity l Tier 1 — — Additional equity Tier 1 (AT1) 5,638 5,715 Tier 1 (Common equity TIER 1+ additional TIER 1) 37,453 32,227 Equity instruments and share premium accounted as Tier 2 5,629 5,214 Credit risk adjustments 257 257 Tier 2 before regulatory adjustments 5,886 5,471 Tier 2 regulatory adjustments (10) (10) Tier 2 5,876 5,461 Total capital (Total capital=Tier 1 + Tier 2) 43,329 37,688 Total RWA's 232,024 216,897 CET 1 (phased-in) 13.71% 12.22% Tier 1 (phased-in) 16.14% 14.86% Total capital (phased-in) 18.67% 17.38% (1) As of December 31, 2024 the total shareholder remuneration corresponding to the year 2024, including the cash amount and the share repurchase program, is deducted from the foreseeable dividend and subject to its approval at the General Shareholders' Meeting. As of December 31, 2023 the cash dividends approved by their respective General Shareholders' Meetings are deducted form the total shareholder remuneration corresponding to the year 2023.and 2022. (2) As of December 31, 2023 the amounts of the share repurchase programs, considered as dividends approved by their respective General Shareholders' Meetings, were deducted from the total shareholder remuneration corresponding to the year 2023 (see Note 3). The Bank's CET1 ratio has increased by 149 basis points mainly by the positive generation of results in the year, net of shareholder remuneration and coupon payments on contingent convertible instruments (CoCos), and by the positive evolution of the rest of the elements that make up the CET1. Offset by the growth of risk-weighted assets (RWAs), derived from the organic growth of the activity. The Bank's fully-loaded additional Tier 1 capital ratio (AT1) stood at 2.43% as of December 31, 2024, 20 basis points lower than in 2023. During the period, BBVA S.A. issued instruments that could be eventually converted into shares (CoCo) for a value of €750 million in June 2024. Additionally, in March 2024, a call was made to redeem another issue of eventually convertible preferred shares for a nominal amount of €1,000 million. The Tier 2 fully-loaded ratio stood at 2.53%, which represents an increase of 1 basis points compared to 2023, mainly explained by the subordinated issuances in February and August, worth €1.25 billion and €1 billion, respectively. On the other hand, a subordinated debt issue worth €750 million has been amortized. As a consequence of the foregoing, the total fully-loaded equity ratio stands at 18.67% as of December 31, 2024. Additionally, on January 1, 2025, the bulk of the articles of the new Capital Requirements Regulation (Regulation (EU) 2024/1623), more commonly known as "CRR III," came into force, aiming to implement the Basel III framework reform in Europe. At the date of preparation of the Financial Statements, no significant impact is anticipated from its application. Capital management The aim of capital management within BBVA and the Group is to ensure that both BBVA and the Group have the necessary capital at any given time to develop the corporate strategy reflected in the Strategic Plan, in line with the risk profile set out in the Group Risk Appetite Framework (RAF). Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 121 In this regard, BBVA's capital management is also part of the most relevant forward-looking strategic decisions in the Group's management and monitoring, which include the Budget and the Liquidity and Funding Plan, with which it is coordinated — all with the aim of achieving the Group's overall strategy. Capital must be allocated optimally in order to meet the need to preserve the solvency of BBVA and the Group at all times. Together with the Group's solvency risk profile included in the RAF, this optimal allocation serves as a guide for the Group's capital management and seeks a solid capital position that makes it possible to: – anticipate ordinary and extraordinary consumption that may occur, even under stress; – promote the development of the Group's business and align it with capital and profitability objectives by allocating resources appropriately and efficiently; – cover all risks —including potential risks— to which it is exposed; – comply with regulatory and internal management requirements at all times; and – remunerate BBVA shareholders in accordance with the Shareholder Remuneration Policy in force at any given time. The areas involved in capital management in the Group shall follow and respect the following principles in their respective areas of responsibility: – ensuring that capital management is integrated and consistent with the Group's Strategic Plan, RAF, Budget and other strategic-prospective processes, to help achieve the Group's long-term sustainability; – taking into account both the applicable regulatory and supervisory requirements and the risks to which the Group is —or may be— exposed when conducting its business (economic view), when establishing a target capital level, all while adopting a forward-looking vision that takes adverse scenarios into consideration; – carrying out efficient capital allocation that promotes good business development, ensuring that expectations for the evolution of activity meet the strategic objectives of the Group and anticipating the ordinary and extraordinary consumption that may occur; – ensuring compliance with the solvency levels, including the MREL, required at any given time; – compensating BBVA shareholders in an adequate and sustainable manner; and – optimizing the cost of all instruments used for the purpose of meeting the target capital level at any given time. To achieve the aforementioned principles, capital management will be based on the following essential elements: – an adequate governance and management scheme, both at the corporate body level and at the executive level; – planning, managing and monitoring capital properly, using the measurement systems, tools, structures, resources and quality data necessary to do so; – a set of metrics, which is duly updated, to facilitate the tracking of the capital situation and to identify any relevant deviations from the target capital level; – a transparent, correct, consistent and timely communication and dissemination of capital information outside the Group; – an internal regulatory body, which is duly updated, including with respect to the regulations and procedures that ensure adequate capital management. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 122 29. Commitments and guarantees given The breakdown of the off-balance sheet exposures included in the memorandum item is as follows: Commitments and guarantees given (Millions of Euros) Notes 2024 2023 Loan commitments given 108,206 98,667 Of which: impaired 96 109 Central banks 254 — General governments 3,189 2,765 Credit institutions 13,423 15,582 Other financial corporations 8,408 6,893 Non-financial corporations 70,005 60,670 Households 12,927 12,757 Financial guarantees given 21,811 18,784 Of which: impaired 101 137 Central banks — — General governments 74 16 Credit institutions 443 462 Other financial corporations 11,631 9,806 Non-financial corporations 9,575 8,389 Households 88 111 Other commitments given 37,641 30,013 Of which: impaired 230 355 Central banks — — General governments 137 81 Credit institutions 4,312 2,016 Other financial corporations 3,323 1,824 Non-financial corporations 29,738 25,974 Households 131 118 Total 5.2.2 167,658 147,464 The amount registered recorded in the balance sheet as of December 31, 2024, for loan commitments given, financial guarantees given and other commitments given is € 65 million, €49 million and €63 million, respectively. In 2023 it amounted to €68 million, €52 million and € 120 million respectively (see Note 21). Since a significant portion of the amounts above will expire without any payment being made by the entities, the aggregate balance of these commitments cannot be considered the actual future requirement for financing or liquidity to be provided by the Bank to third parties. In the years 2024 and 2023, no issuance of debt securities carried out by associates of the BBVA, joint venture entities or non-Group entities have been guaranteed. 30. Other contingent assets and liabilities As of December 31, 2024 and 2023, there were no material contingent assets or liabilities other than those disclosed in the accompanying Notes to the financial statements. 31. Purchase and sale commitments and future payment obligations The purchase and sale commitments of BBVA are disclosed in notes 8, 12 and 20. Future payment obligations mainly correspond to leases payable derived from operating lease contracts, as detailed in Note 20.5, and estimated employee benefit payments, as detailed in Note 22.1. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 123 32. Transactions on behalf of third parties As of December 31, 2024 and 2023 the details of the relevant transactions on behalf of third parties are as follows: Transactions on behalf of third parties. Breakdown by concepts (Millions of Euros) 2024 2023 Financial instruments entrusted by third parties 384,566 333,653 Conditional bills and other securities received for collection 5,862 5,190 Securities lending 7,557 8,206 Total 397,985 347,049 33. Net interest income 33. 1. Interest and other income The breakdown of the interest and similar income recognized in the accompanying income statement is as follows: Interest income. Breakdown by origin (Millions of Euros) 2024 2023 Financial assets held for trading 3,237 2,628 Financial assets designated at fair value through profit or loss 116 54 Financial assets at fair value through other comprehensive income 383 399 Financial assets at amortized cost 12,200 11,653 Hedging derivatives 320 (192) Cash flow hedges (effective portion) (191) (742) Fair value hedges 511 549 Other assets ⁽¹⁾ 1,310 6 Liabilities interest income 19 22 Total 17,586 14,569 (1) Includes interest on demand deposits at central banks and credit institutions. The amounts recognized in equity in connection with hedging derivatives for the years ended December 31, 2024 and 2023 and the amounts derecognized from the equity and taken to the income statements during those years are included in the accompanying statements of recognized income and expense. 33.2. Interest expense The breakdown of the balance under this heading in the accompanying income statements is as follows: Interest expense. Breakdown by origin (Millions of Euros) 2024 2023 Financial liabilities held for trading 2,768 2,447 Financial liabilities designated at fair value through profit or loss 180 139 Financial liabilities at amortized cost 7,458 5,783 Hedging derivatives and interest rate risk 751 574 Other liabilities 30 40 Assets interest expense 4 21 Total 11,190 9,005 Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 124 34. Dividend income The breakdown of the balance under this heading in the accompanying income statements is as follows: Dividend income (Millions of Euros) 2024 2023 Investments in associates 4 3 Investments in joint venture — 6 Investments in subsidiaries 5,319 3,381 Other shares and dividend income 95 94 Total 5,417 3,483 35. Fee and commission income The breakdown of the balance under this heading in the accompanying income statements is as follows: Fee and commission income. Breakdown by origin (Millions of Euros) 2024 2023 Bills receivables 12 13 Demand accounts 194 212 Credit and debit cards and OPS 575 535 Checks 2 4 Transfers and other payment orders 215 212 Insurance product commissions 236 204 Loan commitments given 172 153 Other commitments and financial guarantees given 245 217 Asset management 220 185 Securities fees 31 36 Custody securities 116 106 Other fees and commissions 918 813 Total 2,936 2,689 36. Fee and commission expense The breakdown of the balance under this heading in the accompanying income statements is as follows: Fee and commission expense. Breakdown by origin (Millions of Euros) 2024 2023 Credit and debit cards 264 236 Transfers and other payment orders 13 18 Custody securities 16 15 Other fees and commissions 402 345 Total 695 613 Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 125 37. Gains (losses) on financial assets and liabilities, hedge accounting and exchange differences, net The breakdown of the balance under this heading, by source of the related items, in the accompanying income statement is as follows: Gains (losses) on financial assets and liabilities, hedge accounting and exchange differences, net. Breakdown by heading (Millions of Euros) 2024 2023 Gains (losses) on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 76 24 Financial assets at amortized cost 28 — Other financial assets and liabilities 48 24 Gains (losses) on financial assets and liabilities held for trading, net 684 (12) Reclassification of financial assets from fair value through other comprehensive income — — Reclassification of financial assets from amortized cost — — Other gains (losses) 684 (12) Gains (losses) on non-trading financial assets mandatorily at fair value through profit or loss, net 77 200 Reclassification of financial assets from fair value through other comprehensive income — — Reclassification of financial assets from amortized cost — — Other gains (losses) 77 200 Gains (losses) on financial assets and liabilities designated at fair value through profit or loss, net 174 16 Gains (losses) from hedge accounting, net 2 (6) Subtotal gains (losses) on financial assets and liabilities and hedge accounting 1,014 222 Exchange Differences 258 23 Total 1,272 245 The breakdown of the balance (excluding exchange rate differences) under this heading in the consolidated income statements by the nature of the financial instrument is as follows: Gains (losses) on financial assets and liabilities. Breakdown by nature of the financial instrument (Millions of Euros) 2024 2023 Debt instruments (18) 84 Equity instruments 518 672 Loans and advances to customers 260 144 Derivatives 157 (595) Derivatives held for trading 155 (590) Interest rate agreements 273 377 Security agreements 49 (418) Commodity agreements 30 9 Credit derivative agreements (188) (84) Foreign-exchange agreements (9) (474) Hedging Derivatives Ineffectiveness 2 (6) Fair value hedges 2 (5) Hedging derivative 128 (342) Hedged item (127) 337 Cash flow hedges — (1) Customer deposits 96 (76) Other 1 (7) Total 1,014 222 Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 126 38. Other operating income and expense The breakdown of the balance under the heading “Other operating income” and in the accompanying income statements is as follows: Other operating income (Millions of Euros) 2024 2023 Real estate income 35 41 Financial income from non-financial services 474 358 Other operating income 54 56 Total 563 455 The breakdown of the balance under the heading “Other operating expense” in the accompanying income statements is as follows: Other operating expense (Millions of Euros) Notes 2024 2023 Contributions to guaranteed banks deposits funds ⁽¹⁾ 1.7 12 449 Real estate agencies 23 34 Other operating expense ⁽²⁾ 480 322 Total 516 804 (1) In 2024, no contributions were made to the European Single Resolution Fund (SRF) since the constitution phase of the fund has been completed. Likewise, the Deposits Guarantee Fund of Credit Institutions in Spain reached in 2023 the minimum coverage level established by the European Regulation with respect to covered deposits, so that no additional contribution was necessary for this purpose during 2024, although prior contributions related to the deposited securities are maintained. (2) For the year ended December 2024 and 2023, it includes €285 and 215 million respectively, corresponding to the total annual amount disbursed under the temporary tax on credit institutions and financial credit establishments, according to Law 38/2022 of December 27, 2022 (See Note 17.5). 39. Administration costs 39.1 Personnel expense The breakdown of the balance under this heading in the accompanying income statements is as follows: Personnel expense (Millions of Euros) Notes 2024 2023 Wages and salaries 1,988 1,867 Social security costs 416 378 Defined contribution plan expense 22 58 54 Defined benefit plan expense 22 1 1 Other personnel expense 150 125 Total 2,613 2,425 39.1.1Share-based employee remuneration The amounts recognized under the heading “Administration costs - Personnel expense - Other personnel expense” in the income statements for the year ended December 31, 2024 and 2023, corresponding to the remuneration plans based on equity instruments in each year, amounted to €22 million and € 23 million for BBVA, respectively. These amounts have been recognized with a corresponding entry under the heading “Shareholders’ funds - Other equity instruments” in the accompanying balance sheets, net of tax effect. The characteristics of the Group's remuneration plans based on equity instruments are described below. Variable remuneration in shares BBVA has a specific remuneration scheme applicable to those employees whose professional activities have a material impact on the risk profile of BBVA and/or its Group (hereinafter “Identified Staff”) involving the delivery of BBVA shares or instruments linked to BBVA shares, designed within the framework of applicable regulations to credit institutions and considering best practices and recommendations at the local and international levels in this matter. Thus, according to the applicable remuneration policies, the variable remuneration for the variable remuneration for the Identified Staff members is subject, principally, to the following rules: – The Annual Variable Remuneration for Identified Staff members for each financial year will not accrue or will be reduced upon accrual, if certain profit and capital ratio levels are not achieved. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 127 – A maximum of 40% of the Annual Variable Remuneration for those members of the Identified Staff who receive particularly high amounts of variable remuneration and members of BBVA’s Senior Management and 60% for the rest of the Identified Staff (the “Upfront Portion” of the Annual Variable Remuneration) shall vest and be paid, provided the relevant conditions for payment are met, as a general rule, in the first quarter of the following financial year to which the Annual Variable Remuneration corresponds. – The remaining amount, and at least 60% of the Annual Variable Remuneration for those members of the Identified Staff who receive particularly high amounts of variable remuneration and members of BBVA’s Senior Management, and 40% for the rest of the Identified Staff, will be deferred over a period of 4 years (the “Deferred Portion” of the Annual Variable Remuneration). However, for members of BBVA’s Senior Management the deferral period shall be 5 years. In both cases, the Deferred Portion will be paid, provided the relevant conditions are met, once each of the years of deferral has elapsed. In no event will this Deferred Portion be paid faster than in a proportionate way. – Both the Upfront Portion and the Deferred Portion of the Annual Variable Remuneration of each member of the Identified Staff will be paid 50% in cash and 50% in BBVA shares or in instruments linked to BBVA shares. For members of BBVA’s Senior Management, the Deferred Portion will be paid 40% in cash and 60% in BBVA shares and/or in instruments linked to BBVA shares. – Shares or instruments received as Annual Variable Remuneration shall be withheld for one year running from date of delivery. The foregoing shall not apply to those shares that are sold, where appropriate, in order to meet the payment of taxes accruing on delivery of the shares and/or instruments. – The Deferred Portion of the Annual Variable Remuneration may undergo certain ex post risk adjustments, meaning that it will not vest, or may be reduced, if certain capital and liquidity thresholds are not met. – Up to 100% of the Annual Variable Remuneration of each member of the Identified Staff corresponding to each financial year, both in cash and in shares or instruments, will be subject to arrangements for the reduction of variable remuneration (malus) and arrangements for the recovery of variable remuneration already paid (clawback), which will remain in effect during the applicable deferral and retention period, and will be applicable in the event of the occurrence of any of the circumstances expressly named in the remuneration policies. – The cash amounts of the Deferred Portion of the Annual Variable Remuneration that ultimately vest will be updated by applying the consumer price index (CPI) measured as the year-on-year change in prices, or any other criteria established for that purpose by the Board of Directors. – Identified Staff members may not use personal hedging strategies or insurance in connection with the Annual Variable Remuneration and responsibility that may undermine the effects of alignment with prudent risk management. – If the members of the Identified Staff are entitled to receive any variable remuneration other than the Annual Variable Remuneration but which qualifies as variable remuneration, such variable remuneration shall be subject to the rules regarding accrual, award, vesting and payment in accordance with the type and nature of the remuneration component itself. – The variable remuneration of the Identified Staff for a financial year (understood as the sum of all variable remuneration) shall be limited to a maximum amount of 100% of the fixed component (understood as the sum of all fixed remuneration) of the total remuneration, unless the BBVA General Shareholders’ Meeting resolves to increase this percentage up to a maximum of 200%. – In this regard, the General Shareholders’ Meeting of BBVA held on March 15, 2024 resolved to increase this limit to a maximum level of 200% of the fixed component of the total remuneration for a given number of the Identified Staff members, in the terms indicated in the report issued for this purpose by the Board of Directors dated February 6, 2024. In 2024, this remuneration scheme is reflected in the following remuneration policies: – BBVA Group General Remuneration Policy, approved by the Board of Directors on March 29, 2023, that applies to employees and BBVA Senior Management (excluding BBVA executive directors) and at Group companies with respect to which BBVA exercises control over management. This policy includes the specific rules applicable to the members of the Identified Staff, including BBVA Senior Management. – BBVA Directors’ Remuneration Policy, approved by the General Shareholders’ Meeting of BBVA held on March 17, 2023, that is applicable to the members of the Board of Directors of BBVA. The remuneration system for executive directors corresponds, generally, with the applicable system to the Identified Staff, incorporating some particularities of their own, derived from their condition of directors. The delivery of shares in 2024 to the members of the Identified Staff is derived from the settlement of the Annual Variable Remuneration for 2023 and deferred variable remuneration from previous years, which are subject to the vesting and payment rules established in the remuneration policies applicable in the year to which they correspond. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 128 According to the remuneration policy applicable in 2023, during 2024 a total amount of 1,591,480 BBVA shares or instruments linked to BBVA shares corresponding, mostly, to the Upfront Portion of 2023 Annual Variable Remuneration and to other variable components of remuneration, were delivered. In addition, according to the remuneration policy applicable in 2018, during 2024 a total amount of 138,172 BBVA shares corresponding to the third and last payment of the Deferred Portion of 2018 Annual Variable Remuneration of the Chair and other members of BBVA's Senior Management, were delivered. Additionally, according to the remuneration policy applicable in 2019, during 2024 a total amount of 208,019 BBVA shares were delivered, corresponding mostly to the second payment of the Deferred Portion of 2019 Annual Variable Remuneration of the executive directors and other members of BBVA's Senior Management, and to other variable components of remuneration. Likewise, according to the remuneration policy applicable in 2020, during 2024 a total amount of 1,252,244 BBVA shares were delivered, corresponding, mainly, to the entire Deferred Portion of 2020 Annual Variable Remuneration of certain members of the Identified Staff, as well as to other variable components of remuneration. In 2020, the executive directors and other members of BBVA's Senior Management, as a gesture of responsibility and commitment in response to the exceptional circumstances arising from the COVID-19 crisis, waived their entire 2020 Annual Variable Remuneration. In accordance with the remuneration policy applicable in 2021, during 2024 a total of 521,098 BBVA shares were delivered, the majority corresponding to the second payment of the Deferred Portion of 2021 Annual Variable Remuneration of the Identified Staff, among which executive directors and other members of BBVA's Senior Management are included, as well as to other variable components of remuneration. Lastly, according to the remuneration policy applicable in 2022, during 2024 a total amount of 484,856 BBVA shares were delivered, corresponding, mainly, to the first payment of the Deferred Portion of 2022 Annual Variable Remuneration of the Identified Staff, which includes executive directors and the rest of the members of BBVA's Senior Management, as well as to other variable components of remuneration. Detailed information on the delivery of shares to executive directors and the rest of the members of BBVA's Senior Management who held this position as of December 31, 2024, is included in Note 50. 39.2 Other administrative expense The breakdown of the balance under this heading in the accompanying income statements is as follows: Other administrative expense. Breakdown by main concepts (Millions of Euros) 2024 2023 Technology and systems 930 802 Communications 69 55 Advertising 113 106 Property, fixtures and materials 116 119 Taxes 49 69 Surveillance and cash courier services 39 36 Other expense 610 546 Total 1,927 1,733 40. Amortization The breakdown of the balance under this heading in the accompanying income statements is as follows: Amortization (Millions of Euros) Notes 2024 2023 Tangible assets 15 321 320 For own use 94 97 Right-of-use assets 226 223 Intangible assets 16 321 331 Total 641 651 Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 129 41. Provisions or reversal of provisions For the years ended December 31, 2024 and 2023 , the net provisions recognized in this income statement line item were as follows: Provisions or reversal of provisions (Millions of Euros) Notes 2024 2023 Pensions and other post-employment defined benefit obligations 22 (2) (5) Commitments and guarantees given (66) (36) Other Provisions 201 157 Total 132 116 42. Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification The breakdown of impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification by the nature of those assets in the accompanying income statements is as follows: Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification (Millions of Euros) Notes 2024 2023 Financial assets at fair value through other comprehensive income (3) (6) Financial assets at amortized cost 744 682 Of which: Recovery of written-off assets by cash collection 5.2.5 (207) (193) Total 741 677 43. Impairment or reversal of impairment of investments in subsidiaries, joint ventures and associates The impairment losses on non-financial assets and investments in subsidiaries, joint ventures or associates broken down by the nature of these assets in the accompanying income statements is as follows: Impairment or reversal of impairment of Investments in subsidiaries, joint ventures and associates (Millions of Euros) 2024 2023 Investments in subsidiaries, joint ventures and associates (1) (2,246) (118) Total (2,246) (118) (1) Includes reversal of impairment recorded in 2023 and 2024 in Garanti BBVA (see Note 14). 44. Impairment or reversal of impairment on non-financial assets The impairment losses on non-financial assets broken down by the nature of those assets in the accompanying income statements are as follows: Impairment or reversal of impairment on non-financial assets (Millions of Euros) Notes 2024 2023 Tangible assets 15 5 (17) Intangible assets 16 7 12 Other — — Total 11 (5) 45. Gains (losses) on derecognition of non-financial assets and investments, net The heading “Gains (losses) on derecognition of non-financial assets and investments, net” recorded a gain of €50 million in fiscal year 2024. In fiscal year 2023, this heading recorded a gain of €3 million. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 130 46.Gains (losses) from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations The main items included in the balance under this heading in the accompanying income statements are as follows: Gains (losses) from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations (Millions of Euros) Notes 2024 2023 Gains on sale of real estate 13 19 Impairment of non-current assets held for sale 19 (27) (17) Gains (losses) on sale of investments classified as non-current assets held for sale — — Total (14) 2 47.Statements of cash flows The table below shows the breakdown of the main cash flows related to financing activities as of December 31, 2024 and 2023: Main Cash Flows in financing activities 2024 (Millions of Euros) December 31, 2024 December 31, 2023 Net Cash Flows Foreign Exchange movements and other Subordinated deposits 189 177 Issuances of subordinated liabilities 13,166 11,564 Total 13,355 11,741 1,250 364 Main cash flows in financing activities 2023 (Millions of Euros) December 31, 2023 December 31, 2022 Net Cash Flows Foreign Exchange movements and other Subordinated deposits 177 184 Issuances of subordinated liabilities 11,564 8,922 Total 11,741 9,106 2,529 106 48.Accountant fees and services The details of the fees for the services contracted by BBVA for the year ended December 31, 2024 , with their respective auditors and other audit entities are as follows: Fees for Audits Conducted and other related services ⁽¹⁾ (Millions of Euros) 2024 0.002023 Audits of the companies audited by firms belonging to the EY worldwide organization and other reports related with the audit ⁽²⁾ 17.2 15.7 Other reports required pursuant to applicable legislation and tax regulations issued by the national supervisory bodies of the countries in which the Group operates, reviewed by firms belonging to the EY worldwide organization 0.3 0.3 Fees for audits conducted by other firms 0.1 0.1 (1) Regardless of the billed period. (2) Including fees pertaining to annual legal audits (€ 13.3 million as of December 31, 2024) In addition, in 2024 the Bank contracted services (other than audits) as follows: Other services rendered (Millions of Euros) 2024 2023 Firms belonging to the EY worldwide organization — — Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 131 This total of contracted services includes the detail of the services provided by Ernst & Young, S.L. to BBVA, S.A. at the date of preparation of these financial statements as follows: Fees for Audits Conducted (1) (Millions of Euros) 2024 2023 Legal audit of BBVA,S.A. 7.0 6.3 Other audit services of BBVA, S.A. 5.6 5.4 Limited Review of BBVA, S.A. 2.0 1.9 Reports related to issuances 1.2 1.0 Assurance services and other required by the regulator 1.0 0.6 (1) Services provided by Ernst & Young, S.L. to companies located in Spain, to the branch of BBVA in New York, the branch of BBVA in London and the branch of BBVA in Frankfurt. Information related to the services provided by Ernst & Young, S.L., to companies controlled by BBVA, S.A., during the year ended December 31, 2024 , is in the accompanying Consolidated financial statements as of December 31, 2024. The services provided by the auditors meet the independence requirements of the external auditor established under Audit of Accounts Law (Law 22/2015) and under the Sarbanes-Oxley Act of 2002 adopted by the SEC. 49.Related-party transactions As a financial institution, BBVA engages in transactions with related parties in the normal course of business. These transactions are not relevant and are carried out under normal market conditions. As of December 31, 2024 and 2023 the following are the transactions with related parties: 49.1.Transactions with significant shareholders As of December 31, 2024 and 2023 there were no shareholders considered significant (see Note 23). 49.2.Transactions with BBVA Group entities The balances of the main captions in the accompanying balance sheets arising from the transactions carried out by the Group companies, which consist of ordinary business and financial transactions carried out under normal market conditions, are as follows: Balances arising from transactions with BBVA Group entities (Millions of Euros) 2024 2023 Assets: Debt securities 512 424 Loans and advances to credit institutions 753 836 Loans and advances to customers 2,674 4,379 Liabilities: Deposits from credit institutions 1,105 1,070 Customer deposits 11,906 24,103 Memorandum accounts: Financial guarantees given 9,610 8,472 Contingent commitments 682 767 Other commitments given 1,081 752 Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 132 The balances of the main captions in the accompanying income statements resulting from transactions carried out by the Bank with Group companies, which consist of ordinary business and financial transactions carried out under normal market conditions, are as follows: Balances of income statement arising from transactions of BBVA Group entities (Millions of Euros) 2024 2023 Income statement: Financial Incomes 394 366 Financial Costs 1,027 919 Fee and commission income 698 628 Fee and commission expense 190 155 There were no other material effects in the financial statements arising from dealings with these entities, and from the insurance policies to cover pension or similar commitments, which are described in Note 22. In addition, as part of its normal activity, the Bank has entered into agreements and commitments of various types with shareholders of subsidiaries and associates, which have no material effects on the financial statements. 49.3. Transactions with members of the Board of Directors and Senior Management The transactions entered into between BBVA or its Group companies with members of the Board of Directors and Senior Management of the Bank or their related parties were within the scope of the ordinary course of business of the Bank and were immaterial, defined as transactions the disclosure of which is not necessary to present a true and fair view of the Bank's equity, financial position and results, and were concluded on normal markets terms or on terms applicable to the rest of employees. The amount and nature of the main transactions carried out with members of the Board of Directors and Senior Management of the Bank, or their respective related parties, are shown below. Balance at 31st December of each year (thousands of Euros) 2024 2023 Directors Related parties of Directors Senior Management ⁽¹⁾ Related parties of Senior Management Directors Related parties of Directors Senior Management ⁽¹⁾ Related parties of Senior Management Loans and credits 2,176 210 4,664 668 531 243 5,553 727 Bank guarantees _ _ 10 _ _ _ 10 _ (1) Excluding executive directors. Information on remuneration paid and other benefits granted to members of the Board of Directors and Senior Management of BBVA is provided in Note 50. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 133 50.Remuneration and other benefits for the Board of Directors and members of the Bank's Senior Management Remuneration of non-executive directors The remuneration of the non-executive directors corresponding to the financial years 2024 and 2023 is as follows, individually and by remuneration item: Remuneration of non-executive directors (thousands of Euros) (1) Board of Directors Executive Committee Audit Committee Risk and Compliance Committee Remuneratio n Committee Appointmen ts and Corporate Governance Committee Technology and Cybersecurit y Committee Other positions (2) Total 2024 2023 José Miguel Andrés Torrecillas 129 167 165 — — 115 — 50 625 593 Jaime Caruana Lacorte 129 167 22 107 — 31 — — 455 502 Enrique Casanueva Nárdiz (3) 107 — 44 71 — — — — 223 — Sonia Dulá 129 — 66 107 — — — — 302 223 Raúl Galamba de Oliveira 129 — — 214 — 46 43 80 512 461 Belén Garijo López 129 167 — — 36 46 — — 378 416 Connie Hedegaard Koksbang 129 — 66 — — — — — 195 173 Lourdes Máiz Carro 129 — 66 — 43 — — — 238 238 José Maldonado Ramos (4) 32 42 — — — 12 — — 85 342 Cristina de Parias Halcón (5) 107 — — — — 31 29 — 167 — Ana Peralta Moreno 129 — 66 — 43 — — — 238 238 Juan Pi Llorens(4) 32 — — 27 — 12 11 — 81 361 Ana Revenga Shanklin 129 — — 107 86 — 43 — 364 307 Susana Rodríguez Vidarte (6) — — — — — — — — — 112 Carlos Salazar Lomelín (7) 129 — — — 43 — — — 172 172 Jan Verplancke 129 — — — 43 — 43 — 214 214 Total 1,695 542 497 633 293 293 168 130 4,250 4,350 (1) Includes amounts corresponding to the positions on the Board and its various Committees, the composition of which was modified on April 26, 2024. (2) Amounts corresponding to the positions of Deputy Chair of the Board of Directors and Lead Director. (3) Director appointed by the General Shareholders' Meeting held on March 15, 2024. Remuneration in 2024 corresponding to the term in office in that financial year. (4) Directors who left office on March 15, 2024. Remuneration in 2024 corresponding to the term in office in that financial year. (5) Director appointed by the General Shareholders’ Meeting held on March 15, 2024. Remuneration in 2024 corresponding to the term in office in that financial year. In addition, the director Cristina de Parias Halcón received in the 2024 and 2023 financial years, €72 thousand and €76 thousand, respectively, as per diems for her attendance to the meetings of the management body of BBVA México, S.A. de C.V. and Grupo Financiero BBVA México, S.A. de C.V. Likewise, in 2024, she received €56 thousand and 14,697 BBVA shares corresponding to the deferred portion of 2018 and 2019 annual variable remuneration accrued in her former condition of BBVA’s member of Senior Management, including the update of its cash portion. In 2025, the last payment of the deferred portion of 2019 annual variable remuneration, including the update of its cash portion, is due to this director (€30 thousand and 7,593 BBVA shares). (6) Director who left office on March 17, 2023. Remuneration in 2023 corresponding to the term in office in that financial year. (7) In addition, in financial years 2024 and 2023, the director Carlos Salazar Lomelín received €113 thousand and €67 thousand, respectively, as per diems for his attendance to the meetings of the management body of BBVA México, S.A. de C.V. and Grupo Financiero BBVA México, S.A. de C.V. and of the strategy forum of BBVA México, S.A. de CV. Likewise, during financial years 2024 and 2023, €112 thousand and €123 thousand were paid out, respectively, in healthcare and casualty insurance premiums for non-executive directors. Remuneration system with deferred delivery of shares for non-executive directors BBVA has a fixed remuneration system with deferred delivery of shares for its non-executive directors, which was approved by the General Shareholders’ Meeting held on March 18, 2006 and extended by resolutions of the General Shareholders’ Meetings held on March 11, 2011 and March 11, 2016 for a further five-year period in each case, by the General Shareholders’ Meeting held on April 20, 2021 for a further three-year period and by the General Shareholders’ Meeting held on March 17, 2023 for a further four-year period. This system is based on the annual allocation to non-executive directors of a number of theoretical shares of BBVA equivalent to 20% of the total annual fixed allowance in cash received by each director in the previous financial year, calculated according to the average closing price of the BBVA share during the 60 trading sessions prior to the dates of the Annual General Shareholders’ Meetings approving the corresponding financial statements for each financial year. The BBVA shares, in a number equivalent to the theoretical shares accumulated by each non-executive director, will be delivered to each beneficiary, where applicable, after they leave directorship for any reason other than serious breach of their duties. The theoretical shares allocated to non-executive directors who were beneficiaries of the remuneration system with deferred delivery of shares in the 2024 and 2023 financial years, corresponding to 20% of the total annual fixed allowance in cash received by each of them in the 2023 and 2022 financial years, respectively, were as follows: Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 134 2024 2023 Theoretical shares allocated (1) Theoretical shares accumulated as of December 31 Theoretical shares allocated (1) Theoretical shares accumulated as of December 31 José Miguel Andrés Torrecillas 13,407 147,455 16,023 134,048 Jaime Caruana Lacorte 11,350 106,310 17,255 94,960 Enrique Casanueva Nárdiz (2) — — — — Sonia Dulá (3) 5,042 5,042 — — Raúl Galamba de Oliveira 10,423 40,191 10,091 29,768 Belén Garijo López 9,401 110,593 10,603 101,192 Connie Hedegaard Koksbang 3,914 7,177 3,263 3,263 Lourdes Máiz Carro 5,384 76,977 7,237 71,593 José Maldonado Ramos (4) 7,735 — 10,397 146,874 Cristina de Parias Halcón (2) — — — — Ana Peralta Moreno 5,384 47,713 7,237 42,329 Juan Pi Llorens (4) 8,157 — 13,943 148,542 Ana Revenga Shanklin 6,947 31,161 8,035 24,214 Susana Rodríguez Vidarte (5) — — 13,648 — Carlos Salazar Lomelín 3,882 21,012 5,218 17,130 Jan Verplancke 4,851 40,623 6,521 35,772 Total 95,877 634,254 129,471 849,685 (1) The number of theoretical shares was calculated according to the average closing price of the BBVA share during the 60 trading sessions prior to the dates of the General Shareholders’ Meetings of March 15, 2024 and March 17, 2023 which were €8.84 and €6.58 per share, respectively. (2) Directors appointed by the General Meeting held on March 15, 2024; accordingly, the allocation of theoretical shares is not due until 2025. (3) Director appointed by the General Meeting held on March 17, 2023; accordingly, the first allocation of theoretical shares was made in 2024. (4) Directors who left office on March 15, 2024. In application of the system, José Maldonado Ramos and Juan Pi Llorens received a total of 154,609 and 156,699 BBVA shares, respectively, after leaving office, which is equivalent to the total theoretical shares accumulated up to that date by each of them. (5) Director who left office on March 17, 2023. In application of the system, she received a total of 191,423 BBVA shares, after leaving office, which was equivalent to the total theoretical shares accumulated up to that date. Remuneration of executive directors The remuneration of executive directors for financial years 2024 and 2023 indicated below, individually and by remuneration item, are the result of applying the BBVA Directors’ Remuneration Policy approved at the General Shareholders’ Meeting held on March 17, 2023. Annual Fixed Remuneration (thousands of Euros) 2024 2023 Chair 2,924 2,924 Chief Executive Officer 2,179 2,179 Total 5,103 5,103 In addition, in accordance with the provisions established in the BBVA Directors’ Remuneration Policy and contractually, during the 2024 and 2023 financial years the Chair received, each year, the amount of €41 thousand of fixed allowances for vehicle rental and others. Meanwhile, the Chief Executive Officer received, each year, the amount of €654 thousand of fixed remuneration in cash in lieu of pension (equivalent to 30% of his Annual Fixed Remuneration), as he does not receive a retirement benefit (see section on “Pension commitments with executive directors” in this Note), and the amount of €600 thousand for his mobility allowance. Remuneration in kind (thousands of Euros) Likewise, the executive directors received remuneration in kind during the financial years 2024 and 2023, including insurance premiums and others, totaling €140 thousand and €172 thousand in the case of the Chair and €128 thousand and €131 thousand in the case of the Chief Executive Officer, respectively. Variable remuneration With regard to variable remuneration, the BBVA Directors’ Remuneration Policy approved by the General Shareholders’ Meeting in 2023 establishes a model whereby the Annual Variable Remuneration (“AVR”) of the executive directors comprises two components: a Short-Term Incentive (“STI”) and a Long-Term Incentive (“LTI”). The award of both incentives is contingent upon the achievement of the minimum profit and capital ratio thresholds approved by the Board of Directors for this purpose. The sum of the STI and the LTI constitutes the AVR for the year of each executive director. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 135 The STI will be awarded once the reference year for measuring the annual indicators used for its calculation has ended. The amount of the STI will be determined based on the results of these indicators, taking into account the targets, scales of achievement and weightings established for each of them, which may range between 0% and 150% of the “Target STI”. The “Target STI” represents the amount of the STI if 100% of the pre-established targets for these indicators are achieved. Once the aforementioned minimum profit and capital ratio thresholds have been reached, the right to the LTI will accrue, the final amount of which may range between 0% and 150% of the “Target LTI”. The “Target LTI” represents the amount of the LTI if 100% of the pre-established targets for the long-term indicators approved for its calculation are achieved. The final amount of the LTI will be determined once the last year of the measurement period of the long-term indicators has ended, based on their results and taking into account the targets, scales of achievement and weightings established for each of them. A percentage not exceeding 40% of the AVR will be vested and paid, provided that the required conditions are met, as a general rule, in the first quarter of the year following the one to which it corresponds (the “Upfront Portion”), in equal parts in cash and BBVA shares. The remaining amount, and at least 60% of the AVR, will be deferred over a five-year period and paid, if conditions are met, at the end of each of the five years of deferral, 40% in cash and 60% in BBVA shares and/or instruments linked to BBVA shares (the “Deferred Portion” or the “Deferred AVR”). Within said deferral period, the payment of the LTI shall only begin after the expiration of the measurement period of the long-term indicators’ targets, to the result of which its final amount is subject. Therefore, the LTI is part of the Deferred Portion of the AVR of executive directors. In accordance with the foregoing, in 2024 the executive directors accrued a Short-Term Incentive amounting to €2,871 thousand in the case of the Chair and €2,147 thousand in the case of the Chief Executive Officer. In addition, the executive directors accrued the right to a Long-Term Incentive for a maximum theoretical amount of €1,929 thousand in the case of the Chair and €1,443 thousand for the Chief Executive Officer, which is equivalent, in both cases, to 150% of their Target LTI. Once the measurement period for the long-term indicators established for their calculation has ended (at the end of 2027), their final amount will be determined, which may range between 0% and 150% of the “Target LTI”. Therefore, if 100% of the pre- established targets are met, this incentive will amount to €1,286 thousand in the case of the Chair and €962 thousand in the case of the Chief Executive Officer. In addition, the remaining rules applicable to the Annual Variable Remuneration of the executive directors set out in the BBVA Directors’ Remuneration Policy will apply to the Annual Variable Remuneration for financial year 2024, which include: (i) a retention period of one year following delivery of the BBVA shares or instruments linked to BBVA shares received; (ii) the prohibition of hedging strategies or insurance that may undermine the effects of alignment with prudent risk management; (iii) update of the finally vested Deferred Portion in cash in accordance with the CPI; (iv) malus and clawback arrangements throughout the whole periods of deferral and retention of the shares or instruments; and (v) the limitation of variable remuneration to a maximum amount of 200% of the fixed component of total remuneration, in accordance with the resolution approved by the General Shareholders’ Meeting held in 2024. Taking into account the above, the Upfront Portion of the AVR for the financial years 2024 and 2023 of the executive directors which is due for payment once each of said financial years has ended, in equal parts in cash and BBVA shares, is indicated below. Annual Variable Remuneration (AVR) 2024 (1) 2023 (2) In cash (thousands of Euros) In shares In cash (thousands of Euros) In shares Chair 897 92,803 897 107,835 Chief Executive Officer 671 69,408 671 80,650 Total 1,568 162,211 1,568 188,485 (1) Upfront Portion (37%) of the Annual Variable Remuneration, which represents the first payment of the Short-Term Incentive for financial year 2024 and will be paid during the first quarter of financial year 2025, in equal parts in cash and BBVA shares. The remaining amount of the 2024 Annual Variable Remuneration (which includes the 2024 Long-Term Incentive) will be deferred over a 5-year period (40% in cash and 60% in shares and/or instruments linked to shares). The final amount of the Deferred AVR will depend on the result of the long-term indicators to be used to calculate the 2024 Long- Term Incentive. Likewise, and as an ex post risk adjustment mechanism, the Deferred AVR may be reduced if the capital and liquidity thresholds established to guarantee that payment occurs only if it is sustainable, in accordance with the Bank’s payment capacity, are not reached. (2) Upfront Portion (37%) of the Annual Variable Remuneration, which represents the first payment of the Short-Term Incentive for financial year 2023 and which was paid in 2024, in equal parts in cash and BBVA shares. The remaining amount of the 2023 Annual Variable Remuneration (which includes the 2023 Long-Term Incentive) was deferred over a 5-year period (40% in cash and 60% in shares and/or instruments linked to shares). The final amount of the Deferred AVR will depend on the result of the long-term indicators to be used to calculate the 2023 Long- Term Incentive. Likewise, and as an ex post risk adjustment mechanism, the Deferred AVR may be reduced if the capital and liquidity thresholds established to guarantee that payment occurs only if it is sustainable, in accordance with the Bank’s payment capacity, are not reached. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 136 Deferred Annual Variable Remuneration from previous financial years 2024 (1) 2023 (2) Deferred AVR In cash (thousands of Euros) In shares In cash (thousands of Euros) In shares Chair 2023 221 38,821 229 56,941 2022 236 56,941 222 57,325 2021 228 57,325 0 0 2020 0 0 176 45,529 2019 181 45,529 132 35,795 2018 — — — — Subtotal 867 198,616 760 195,590 Chief Executive Officer 2023 166 29,034 176 43,793 2022 181 43,793 169 43,552 2021 173 43,552 0 0 2020 0 0 158 40,858 2019 163 40,858 — — 2018 — — — — Subtotal 683 157,237 503 128,203 Total 1,550 355,853 1,263 323,793 (1) Deferred remuneration payable after the 2024 year-end, including the update of its cash portion. Payment to the Chair and the Chief Executive Officer will take place in 2025 in accordance with the vesting and payment rules set out in the remuneration policies applicable in each financial year: • 2023 Deferred AVR: the first payment of the Deferred STI (17.9% of the Deferred Portion) is due to executive directors. Thereafter, the second payment of the Deferred STI (17.9% of the Deferred Portion) and the 2023 LTI (64.2% of the Deferred Portion) will be deferred for both executive directors. The final amount of the 2023 LTI will depend on the result of the long- term indicators approved for its calculation once its measurement period has elapsed (at the end of 2026), which may range between an achievement of 0% to 150%. If the relevant conditions are met, the second payment of the Deferred STI will be made in 2026 and the three payments of the 2023 LTI will be made in 2027, 2028 and 2029. • 2022 Deferred AVR: the second payment (20% of the Deferred Portion) is due to executive directors. Thereafter, 60% of the 2022 Deferred AVR will be deferred for both executive directors, which, if the relevant conditions are met, will be paid in 2026, 2027, and 2028. • 2021 Deferred AVR: the third payment (20% of the Deferred Portion) is due to executive directors, after having verified that no reduction had to be made according to the result of the multi-year performance indicators approved in 2021 by the Board of Directors. Thereafter, 40% of the 2021 Deferred AVR will be deferred for both executive directors which, if the relevant conditions are met, will be paid in 2026 and 2027. • 2020 Deferred AVR: given the exceptional circumstances arising from the COVID-19 crisis, executive directors voluntarily waived the whole of their 2020 AVR. • 2019 Deferred AVR: the third and final payment (20% of the Deferred Portion) is due to executive directors. Following this, payment to executive directors of the 2019 Deferred AVR will be completed. (2) Deferred remuneration which was payable after the 2023 year-end, including the update of its cash portion. Its payment to the Chair and/or the Chief Executive Officer took place in 2024, in accordance with the vesting and payment rules set out in the remuneration policies applicable in each financial year: • 2022 Deferred AVR: in 2024, the first payment (20% of the Deferred Portion) was made to executive directors. • 2021 Deferred AVR: in 2024, the second payment (20% of the Deferred Portion) was made to executive directors. • 2020 Deferred AVR: given the exceptional circumstances arising from the COVID-19 crisis, executive directors voluntarily waived the whole of their 2020 AVR. • 2019 Deferred AVR: in 2024, the second payment (20% of the Deferred Portion) was made to executive directors. • 2018 Deferred AVR: in 2024, the third and final payment (20% of the Deferred Portion) was made to the Chair. Following this, payment to the Chair of the 2018 Deferred AVR, which was associated with his former position as Chief Executive Officer, was completed. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 137 Pension commitments with executive directors The Bank has not assumed any pension commitments with non-executive directors. With regard to the executive directors, the BBVA Directors’ Remuneration Policy establishes a pension framework whereby, in the case of the Chair, he is eligible to receive a retirement pension, paid in either income or capital, when he reaches the legally established retirement age, provided that he does not leave his position as a result of serious dereliction of his duties. The amount of this pension will be determined by the annual contributions made by the Bank, together with their corresponding accumulated yields at that date. The agreed annual contribution to cover the retirement contingency under the defined contribution system for the Chair, as set out in the BBVA Directors’ Remuneration Policy, is €439 thousand. The Board of Directors may update this amount during the term of the Policy, in the same manner as it may update the Annual Fixed Remuneration, pursuant to the terms established therein. A portion of 15% of this annual contribution will be based on variable components and considered “discretionary pension benefits”. It will, therefore, be subject to the conditions regarding delivery in shares, withholding, reduction and clawback established in the applicable regulations, as well as any other conditions concerning variable remuneration that may be applicable in accordance with the BBVA Directors’ Remuneration Policy. In the event that the Chair’s contractual relationship is terminated before he reaches retirement age for reasons other than serious dereliction of duties, the retirement pension payable to the Chair upon him reaching the legally established retirement age will be calculated based on the funds accumulated through the contributions made by the Bank up to that date, as per the terms set out above, plus the corresponding accumulated yield, with no additional contributions to be made by the Bank as of the time of termination. With respect to the commitments in favor of the Chair to cover the contingencies of death and disability, the Bank will pay the corresponding annual insurance premiums in order to top up this coverage. In accordance with the foregoing, in the financial year 2024, an amount of €456 thousand was recorded, comprising the agreed annual contribution to cover the retirement contingency, which is €439 thousand, and a further amount of €17 thousand relating to the upward adjustment of the “discretionary pension benefits” for the financial year 2023, which were declared at the end of that year and which had to be included in the accumulated fund in 2024. Likewise, an amount of €252 thousand was paid in insurance premiums for the death and disability contingencies. As of December 31, 2024, the total accumulated fund to meet the retirement commitments with the Chair amounted to € 26,893 thousand. Of the annual contribution for the retirement contingency corresponding to the financial year 2024, 15% (€66 thousand) was recorded in that year as “discretionary pension benefits”. Following the end of the financial year, this amount was adjusted by applying the same criteria used to determine the Short-Term Incentive that is part of the Chair’s Annual Variable Remuneration for the 2024 financial year and was determined to amount to €83 thousand, which represents an upward adjustment of €17 thousand. These “discretionary pension benefits” will be included in the accumulated fund in the 2025 financial year and will be subject to the conditions established for them in the BBVA Directors’ Remuneration Policy. With regard to the Chief Executive Officer, in accordance with the provisions of the BBVA Directors’ Remuneration Policy and those in his contract, the Bank has not undertaken any retirement commitments, although he is entitled to an annual cash sum instead of a retirement pension (“cash in lieu of pension”) equal to 30% of his Annual Fixed Remuneration. In accordance with the above, in the 2024 financial year, the Bank paid the Chief Executive Officer the amount of the “cash in lieu of pension” fixed remuneration, as described in the “Remuneration of executive directors” section of this Note. However, the Bank has undertaken commitments to cover the death and disability contingencies with the Chief Executive Officer, for which the corresponding annual insurance premiums are paid. For these purposes, an amount €221 thousand was recognized in 2024 in this regard. Pension systems (thousands of Euros) Contributions (1) Funds accumulated Retirement Death and disability 2024 2023 2024 2023 2024 2023 Chair 456 458 252 322 26,893 24,759 Chief Executive Officer — — 221 230 — — Total 456 458 472 552 26,893 24,759 (1) Contributions recognized to meet the pension commitments with the executive directors in financial years 2024 and 2023. In the case of the Chair, these relate to the sum of the annual retirement pension contribution and the adjustment made to the “discretionary pension benefits” for the financial years 2023 and 2022, the contribution of which to the accumulated fund was to be made in the financial years 2024 and 2023, respectively, as well as to the premiums for the death and disability contingencies. In the case of the Chief Executive Officer, the contributions recognized correspond exclusively to the insurance premiums paid by the Bank in 2024 and 2023 to cover the death and disability contingencies given that, in his case, the Bank has not undertaken any commitments to cover the contingency of retirement. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 138 Payments for termination of the contractual relationship In accordance with the BBVA Directors’ Remuneration Policy, the Bank has no commitments to make severance payments to executive directors. Remuneration of Senior Management The remuneration of all Senior Management, excluding executive directors, for financial years 2024 and 2023, as indicated below, broken down by remuneration item, are the result of applying the BBVA Group’s General Remuneration Policy approved by the Board of Directors on March 29, 2023. Fixed remuneration (thousands of Euros) 2024 2023 Senior Management Total (1) 19,928 18,187 (1) 16 members at December 31, 2024 and 15 members at December 31, 2023, excluding executive directors in both cases. In addition, in accordance with the provisions established in the BBVA Group’s General Remuneration Policy and contractually, during the 2024 and 2023 financial years, the members of Senior Management collectively received fixed allowances for vehicle rental and others totaling €347 thousand and €314 thousand, respectively. Remuneration in kind (thousands of Euros) During the 2024 and 2023 financial years, remuneration in kind, including insurance premiums and others, totaling €603 thousand and €590 thousand, respectively, was collectively paid to members of Senior Management. Variable remuneration With regard to variable remuneration, the BBVA Group’s General Remuneration Policy establishes a model whereby the Annual Variable Remuneration (“AVR”) for members of Senior Management, like that of executive directors, comprises two components: a Short-Term Incentive (“STI”) and a Long-Term Incentive (“LTI”). The award of both incentives is contingent upon the achievement of the minimum profit and capital ratio thresholds approved by the Board of Directors for this purpose. The sum of the STI and the LTI constitutes the AVR for the year of each member of Senior Management. Under this model, and in the same terms as set out above for the executive directors, in 2024 financial year, all members of Senior Management accrued a Short-Term Incentive for a total combined amount of €7,271 thousand. In addition, all members of Senior Management accrued the right to a Long-Term Incentive for a maximum theoretical amount of €4,856 thousand, which is equivalent to the sum of 150% of the “Target LTI” of each beneficiary. The final amount of the LTI of each beneficiary will be determined at the end of the measurement period of the long-term indicators established for its calculation (at the end of 2027). This final amount may range between 0% and 150% of the “Target LTI”. Therefore, if 100% of the pre-established targets are achieved, it will amount to a total of €3,237 thousand. Moreover, the remaining rules applicable to the Annual Variable Remuneration of the members of the Senior Management established in the BBVA Group’s General Remuneration Policy will apply to the Annual Variable Remuneration for financial year 2024, which include: (i) a retention period of one year following delivery of the BBVA shares or instruments linked to BBVA shares received; (ii) the prohibition of hedging strategies or insurance that may undermine the effects of alignment with prudent risk management; (iii) update of the finally vested Deferred Portion in cash in accordance with the CPI; (iv) malus and clawback arrangements throughout the whole periods of deferral and retention of the shares or instruments; and (v) the limitation of variable remuneration to a maximum amount of 200% of the fixed component of total remuneration, in accordance with the resolution approved by the General Shareholders’ Meeting in 2024. Taking into account the above, the total sum of the Upfront Portion of the AVR for financial years 2024 and 2023 of the members of Senior Management, due for payment once each of said financial years has ended, in equal parts in cash and BBVA shares, is indicated below. Annual Variable Remuneration (AVR) 2024 (1) 2023 (2) In cash (thousands of Euros) In shares In cash (thousands of Euros) In shares Senior Management Total (3) 2,272 235,016 2,226 267,550 (1) Upfront Portion of the Annual Variable Remuneration, which represents the first payment of the Short-Term Incentive for financial year 2024 and will be paid during the first quarter of financial year 2025, in equal parts in cash and BBVA shares. The remaining amount of the 2024 Annual Variable Remuneration (which includes the 2024 Long-Term Incentive) will be deferred over a 5-year period (40% in cash and 60% in shares or instruments linked to shares). Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 139 The final amount of the Deferred AVR will depend on the result of the long-term indicators to be used to calculate the 2024 Long- Term Incentive. Likewise, and as an ex post risk adjustment mechanism, the Deferred AVR may be reduced if the capital and liquidity thresholds established to guarantee that payment occurs only if it is sustainable, in accordance with the Bank’s payment capacity, are not reached. (2) Upfront Portion of the Annual Variable Remuneration, which represents the first payment of the Short-Term Incentive for financial year 2023 and which was paid in 2024, in equal parts in cash and BBVA shares. The remaining amount of the 2023 Annual Variable Remuneration (which includes the 2023 Long-Term Incentive) was deferred over a 5-year period (40% in cash and 60% in shares and/or instruments linked to shares). The final amount of the Deferred AVR will depend on the result of the long-term indicators to be used to calculate the 2023 Long- Term Incentive. Likewise, and as an ex post risk adjustment mechanism, the Deferred AVR may be reduced if the capital and liquidity thresholds established to guarantee that payment occurs only if it is sustainable, in accordance with the Bank’s payment capacity, are not reached. (3) 16 members as of December 31, 2024 and 15 members as of December 31, 2023, excluding executive directors in both cases. Deferred Annual Variable Remuneration from previous financial years 2024 (1) 2023 (2) Deferred AVR In cash (thousands of Euros) In shares In cash (thousands of Euros) In shares Senior Management Total (3) 2023 576 98,636 — — 2022 526 125,129 493 122,566 2021 490 119,207 457 116,528 2020 56 14,340 1,494 289,020 2019 314 77,447 303 77,447 2018 — — 139 36,454 Total 1,963 434,759 2,885 642,015 (1) Deferred remuneration payable after 2024 year-end, including the update of its cash portion. Payment thereof to members of Senior Management who are beneficiaries will take place in 2025 in accordance with the remuneration policies applicable in each financial year and the vesting and payment rules set forth therein applicable to each member of Senior Management, based on when they became such a member: • 2023 Deferred AVR: the first payment of the Deferred STI is due to members of Senior Management. • 2022 Deferred AVR: the second payment is due to members of Senior Management. • 2021 Deferred AVR: the third payment is due to members of Senior Management, after having verified that no reduction had to be made according to the result of the multi-year performance indicators approved in 2021 by the Board of Directors. • 2020 Deferred AVR: given the exceptional circumstances arising from the COVID-19 crisis, all members of Senior Management voluntarily waived the whole of their 2020 AVR. Without prejudice to the foregoing, the second payment of the deferred portion of a success bonus on the sale of BBVA USA is due to one member of Senior Management — an executive of BBVA USA at that time —. • 2019 Deferred AVR: the third and final payment is due to the members of Senior Management that are beneficiaries. In addition, the third and final payment of the deferred portion of a retention plan is payable to one member of Senior Management. (2) Deferred remuneration which was payable after the 2023 year-end, including the update of its cash portion. Payment thereof to members of Senior Management who were beneficiaries took place in 2024 in accordance with the vesting and payment rules set forth in the remuneration policies applicable in each financial year: • 2022 Deferred AVR: in 2024, the first payment was made to members of Senior Management. • 2021 Deferred AVR: in 2024, the second payment was made to members of Senior Management. • 2020 Deferred AVR: given the exceptional circumstances arising from the COVID-19 crisis, all members of Senior Management voluntarily waived the whole of their 2020 AVR. Without prejudice to the foregoing, in 2024 the deferred portion of a success bonus on the sale of BBVA USA was paid to two members of the Senior Management — who were executives of BBVA USA at that time —. In 2024, one of them received the whole of the deferred portion and the other one received the first payment of the deferred portion, in accordance with the vesting and payment rules set out in the remuneration policies applicable to each of them in that financial year. • 2019 Deferred AVR: in 2024, the second payment was made to the members of Senior Management who were beneficiaries. In addition, the second payment of the deferred portion of a retention plan was paid to a member of Senior Management. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 140 • 2018 Deferred AVR: in 2024, the third and final payment was made to the members of Senior Management who were beneficiaries. (3) 16 members as of December 31, 2024 and 15 members as of December 31, 2023, excluding executive directors in both cases. Pension commitments with members of Senior Management In order to meet the pension commitments made to members of Senior Management (16 members as of December 31, 2024, excluding the executive directors), a total combined amount of €4,226 thousand was recognized in financial year 2024 for the contingency of retirement. This amount is equivalent to the annual contribution agreed to cover the contingency of retirement, plus a further amount of €150 thousand pertaining to the upward adjustment of the “discretionary pension benefits” for financial year 2023, which were declared at the end of that financial year and which had to be included to the accumulated fund in 2024. In addition, an aggregate total amount of €1,181 thousand was paid in premiums to cover the contingencies of death and disability. As of December 31, 2024, the total accumulated fund to meet the retirement commitments with members of Senior Management amounted to €40,549 thousand. As in the case of executive directors, 15% of the annual contributions agreed to cover the contingency of retirement for members of Senior Management, will be based on variable components and will be considered “discretionary pension benefits”, and will therefore be subject to the conditions regarding delivery in shares, withholding, reduction and recovery established in the applicable regulations, as well as to any other conditions concerning variable remuneration that may be applicable to them in accordance with the remuneration policy applicable to members of Senior Management. For these purposes, of the annual contribution for the retirement contingency recognized in the 2024 financial year, a total amount of €587 thousand was recognized in 2024 as “discretionary pension benefits”. Following the end of the financial year, and as in the case of the Chair, this amount was adjusted by applying the same criteria used to determine the Short-Term Incentive that is part of the Annual Variable Remuneration of the members of Senior Management for the 2024 financial year. As a result, the “discretionary pension benefits” for the year, corresponding to all members of Senior Management, have been calculated at a total combined amount of €741 thousand, which represents an upward adjustment of €154 thousand. These “discretionary pension benefits” will be included in the accumulated fund in the 2025 financial year, and will be subject to the conditions established for them in the remuneration policy applicable to members of Senior Management, in accordance with the regulations applicable to the Bank on this matter. Pension systems (thousands of Euros) Contributions (1) Funds accumulated Retirement Death and disability 2024 2023 2024 2023 2024 2023 Senior Management Total (2) 4,226 3,829 1,181 1,102 40,549 34,069 (1) Contributions recognized to meet pension commitments with all Senior Management in financial years 2024 and 2023, which relate to the sum of the annual retirement pension contributions and the adjustments made to the “discretionary pension benefits” for 2023 and 2022 which were included in the accumulated fund in 2024 and 2023, respectively, and to the insurance premiums paid by the Bank for death and disability contingencies. (2) 16 members as of December 31, 2024, and 15 members as of December 31, 2023, excluding executive directors in both cases. Payments for termination of the contractual relationship Regarding Senior Management, excluding the executive directors, in 2024 the Bank did not make any severance payments arising from the termination of the contractual relationship. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 141 51.Other information 51.1Environmental impact Given the activities BBVA entities engage in, the Bank has no environmental liabilities, expenses, assets, provisions or contingencies that could have a significant effect on equity, financial situation and profits. Consequently, as of December 31, 2024, there is no item included in the Consolidated Financial Statements that requires disclosure in an environmental information report pursuant to Ministry JUS/616/2022, of June 30, by which the new model for the presentation of consolidated financial statements in the Commercial Register is approved. BBVA's management of environmental impacts and risks is presented in more detail in the attached Management Report. 51.2Breakdown of agents of credit institutions Appendix XII contains a list of the Bank's agents as required by article 21 of Royal Decree 84/2015, dated February 13, of the Ministry of Economy and Finance. 51.3Report on the activity of the Customer Care Service and the Customer Ombudsman The report on the activity of the Customer Care Service and the Customer Ombudsman, required pursuant to Article 17 of Ministry of Economy Order ECO/734/2004 dated March 11, is included in the Management Report accompanying these financial statements. 51.4Reporting requirements of the Spanish National Securities Market Commission Dividends paid The table below presents the dividends per share paid in cash in 2024 and 2023 (cash basis accounting, regardless of the year in which they are accrued). For a complete analysis of all remuneration awarded to shareholders in 2024 and 2023 (see Note 3). Paid Dividends 2024 2023 % Over nominal Euros per share Amount (Millions of Euros) % Over nominal Euros per share Amount (Millions of Euros) Ordinary shares 138.78 % 0.68 3,921 95.92% 0.47 2,812 Rest of shares — — — — — — Total dividends paid in cash 138.78 % 0.68 3,921 95.92% 0.47 2,812 Dividends with charge to income 138.78 % 0.68 3,921 95.92% 0.47 2,812 Dividends with charge to reserve or share premium — — — —% — — Dividends in kind — — — — — — Flexible payment — — — — — — Interest income by geographical area The breakdown of the balance under the heading “Interest Income and similar income” in the accompanying income statements by geographical area is as follows: Interest Income. Breakdown by Geographical Area (Millions of Euros) Notes 2024 2023 Domestic 14,622 12,461 Foreign 2,964 2,108 European Union 782 558 Eurozone 782 558 No Eurozone — — Rest of countries 2,182 1,550 Total 33.1 17,586 14,569 Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 142 Number of employees The breakdown of the average number of employees in the Bank in 2024 and 2023, by gender, is as follows: Average number of employees 2024 2023 Male Female Male Female Management team 1,224 610 1,181 541 Managers 5,422 4,728 5,166 4,417 Other line personnel and clerical staff 3,980 5,816 3,941 5,937 Branches abroad 748 511 664 467 Total 11,374 11,665 10,951 11,362 As of December 31, 2024 BBVA, S.A. in Spain, had 151 handicap employees among the workforce (147 in 2023). The breakdown of the number of employees in the Bank as of December 31, 2024 and 2023 , by category and gender, is as follows: Number of employees at the end of year. Professional category and gender 2024 2023 Male Female Male Female Management team 1,268 652 1,207 587 Managers 5,479 4,774 5,336 4,656 Other line personnel and clerical staff 3,979 5,814 3,984 5,801 Branches abroad 807 557 691 479 Total 11,533 11,797 11,218 11,523 51.5.Responsible lending and consumer credit granting BBVA has incorporated the best practices of responsible lending and credit granting to Retail Customers, and has policies and procedures that contemplate these practices complying with the provisions of the Central Bank of Spain, ECB and the Ministries of Asuntos Económicos y Transformación Digital and Hacienda y Función Pública. Specifically, the Corporate Retail Credit Risk Policy (approved by the Executive Committee of the Board of Directors of the Bank on September 18, 2019) and the Rules and the Operating Frameworks derived from it, establish policies, practices and procedures in relation to responsible granting of loans and credit to Retail Customers. In compliance with the different Regulation of the Bank of Spain, ECB and the Ministries of Asuntos Económicos y Transformación Digital and Hacienda y Función Pública, the following summary of those policies contained in the Corporate Retail Credit Risk Policy BBVA is provided: – The need to adapt payment plans with sources of payment capacity; – The evaluation requirements of affordability; – The need when applicable, to take into account the existing financial obligations payments; – In cases where, for commercial reasons or the type of rate/currency, the offer to the borrowers includes contractual clauses or contracting financial products to hedge interest rate and exchange rate risks. – The need, when there is collateral, to establish a reasonable relationship between the amount of the loan and its potential extensions and value of collateral, regardless revaluations thereof; – The need for extreme caution in the use of appraisal values on credit operations that have real estate as an additional borrower's personal guarantee; – The periodic review of the value of collateral taken to hedge loans; – A number of elements of management in order to ensure independence in the activity of appraisal companies; – The need to warn customers of potential consequences in terms of cost by default interest and other expenses that would continue in default; Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Notes to the Financial Statements 143 – Debt renegotiation criteria (refinancing and restructurings); – The minimum documentation that operations should have in order to be granted and during its term. In order to maintain an effective monitoring of these policies, BBVA has the following control mechanisms: – Validations and computer controls built into the workflows of analysis, decision and contracting operations, in order to embed these principles in management; – Alignment between the specifications of the product catalog with the policies of responsible lending; – Different areas of sanction to ensure adequate hierarchy decision levels in response to the complexity of operations; – A reporting scheme that allows to monitor the proper implementation of the policies of responsible lending. 52.Subsequent events On January 14, 2025, BBVA carried out an issuance of perpetual contingent convertible securities with exclusion of shareholders' pre- emptive subscription rights, for a total nominal amount of USD 1 billion. This issuance is listed on the New York Stock Exchange and was targeted only at qualified investors, not being offered or sold to any retail clients. Likewise, on January 28, 2025, the Bank announced its irrevocable decision to redeem in whole on March 5, 2025, the issuance of contingently convertible preferred securities (which qualified as additional tier 1 instruments) carried out by the Bank on September 5, 2019, for an amount of USD 1 billion on the First Reset Date and once the prior consent from the Regulator was obtained (see Note 20.4). On January 30, 2025, it was announced that a cash distribution in the amount of €0.41 gross per share to be paid presumably in April 2025 as the final dividend for the year 2024, and the execution of a share buyback program of BBVA for an amount of €993 million were planned to be proposed to the corresponding corporate bodies for consideration as ordinary remuneration to shareholders for 2024, subject to obtaining the corresponding regulatory authorizations and approval by the Board of Directors of the specific terms and conditions of the program, which will be communicated to the market prior to the start of its execution (See Note 3) From January 1, 2025 to the date of preparation of these financial statements, no other subsequent events not mentioned above in these financial statements have taken place that could significantly affect the Bank’s earnings or its equity position. 53.Explanation added for translation into English Translation of financial statements originally issued in Spanish and prepared in accordance with Bank of Spain Circular 4/2017, and as amended thereafter, which adapts the EU-IFRS for banks. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 144 Appendices Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 145 APPENDIX I. BBVA Group Consolidated Financial Statements Consolidated balance sheets as of December 31, 2024 , 2023 and 2022 ASSETS (Millions of Euros) 2024 2023 ⁽¹⁾ 2022 ⁽¹⁾ CASH, CASH BALANCES AT CENTRAL BANKS AND OTHER DEMAND DEPOSITS 51,145 75,416 79,756 FINANCIAL ASSETS HELD FOR TRADING 108,948 141,042 110,671 Derivatives 36,003 34,293 39,908 Equity instruments 6,760 4,589 4,404 Debt securities 27,955 28,569 24,367 Loans and advances to central banks 556 2,809 1,632 Loans and advances to credit institutions 20,938 56,599 25,231 Loans and advances to customers 16,736 14,182 15,130 NON-TRADING FINANCIAL ASSETS MANDATORILY AT FAIR VALUE THROUGH PROFIT OR LOSS 10,546 8,737 6,888 Equity instruments 9,782 7,963 6,511 Debt securities 407 484 129 Loans and advances 358 290 247 FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS 836 955 913 Debt securities 836 955 913 FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME 59,002 62,205 65,374 Equity instruments 1,451 1,217 1,198 Debt securities 57,526 60,963 64,150 Loans and advances to credit institutions 25 26 26 FINANCIAL ASSETS AT AMORTIZED COST 502,400 451,732 414,421 Debt securities 59,014 49,462 36,639 Loans and advances to central banks 8,255 7,151 4,401 Loans and advances to credit institutions 22,655 17,477 16,031 Loans and advances to customers 412,477 377,643 357,351 DERIVATIVES - HEDGE ACCOUNTING 1,158 1,482 1,891 FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK (65) (97) (148) JOINT VENTURES AND ASSOCIATES 989 976 916 Joint ventures 94 93 100 Associates 895 883 816 INSURANCE AND REINSURANCE ASSETS 191 211 183 TANGIBLE ASSETS 9,759 9,253 8,737 Properties, plant and equipment 9,506 9,046 8,441 For own use 8,501 8,295 7,911 Other assets leased out under an operating lease 1,004 751 530 Investment properties 253 207 296 INTANGIBLE ASSETS 2,490 2,363 2,156 Goodwill 700 795 707 Other intangible assets 1,790 1,568 1,449 TAX ASSETS 18,650 17,501 16,725 Current tax assets 4,295 2,860 1,978 Deferred tax assets 14,354 14,641 14,747 OTHER ASSETS 5,525 2,859 2,586 Insurance contracts linked to pensions — — — Inventories 1,299 276 325 Other 4,226 2,583 2,260 NON-CURRENT ASSETS AND DISPOSAL GROUPS CLASSIFIED AS HELD FOR SALE 828 923 1,022 TOTAL ASSETS 772,402 775,558 712,092 (1) Presented for comparison purposes only. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 146 Consolidated balance sheets as of December 31, 2024, 2023 and 2022 (continued) LIABILITIES AND EQUITY (Millions of Euros) 2024 2023 ⁽¹⁾ 2022 ⁽¹⁾ FINANCIAL LIABILITIES HELD FOR TRADING 86,591 121,715 95,611 Derivatives 33,059 33,045 37,909 Short positions 13,878 15,735 13,487 Deposits from central banks 3,360 6,397 3,950 Deposits from credit institutions 16,285 43,337 28,924 Customer deposits 20,010 23,201 11,341 FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS 14,952 13,299 10,580 Customer deposits 934 717 700 Debt certificates issued 4,597 3,977 3,288 Other financial liabilities 9,420 8,605 6,592 Memorandum item: Subordinated liabilities — — — FINANCIAL LIABILITIES AT AMORTIZED COST 584,339 557,589 529,172 Deposits from central banks 14,668 20,309 38,323 Deposits from credit institutions 34,406 40,039 26,935 Customer deposits 447,646 413,487 394,404 Debt certificates issued 69,867 68,707 55,429 Other financial liabilities 17,753 15,046 14,081 Memorandum item: Subordinated liabilities 19,612 15,867 12,509 DERIVATIVES - HEDGE ACCOUNTING 2,503 2,625 3,303 FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK — — — LIABILITIES UNDER INSURANCE AND REINSURANCE CONTRACTS 10,981 12,110 10,131 PROVISIONS 4,619 4,924 4,933 Pensions and other post-employment defined benefit obligations 2,348 2,571 2,632 Other long term employee benefits 384 435 466 Provisions for taxes and other legal contingencies 791 696 685 Commitments and guarantees given 667 770 770 Other provisions 429 452 380 TAX LIABILITIES 3,033 2,554 2,935 Current tax liabilities 575 878 1,415 Deferred tax liabilities 2,458 1,677 1,520 OTHER LIABILITIES 5,370 5,477 4,909 LIABILITIES INCLUDED IN DISPOSAL GROUPS CLASSIFIED AS HELD FOR SALE — — — TOTAL LIABILITIES 712,388 720,293 661,575 (1) Presented for comparison purposes only. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 147 Consolidated balance sheets as of December 31, 2024, 2023 and 2022 (continued) LIABILITIES AND EQUITY (Continued) (Millions of Euros) 2024 2023 ⁽¹⁾ 2022 ⁽¹⁾ SHAREHOLDERS’ FUNDS 72,875 67,955 64,535 Capital 2,824 2,861 2,955 Paid up capital 2,824 2,861 2,955 Unpaid capital which has been called up — — — Share premium 19,184 19,769 20,856 Equity instruments issued other than capital — — — Other equity 40 40 63 Retained earnings 40,693 36,237 32,711 Revaluation reserves — — — Other reserves 1,814 2,015 2,345 Reserves or accumulated losses of investments in joint ventures and associates (227) (237) (221) Other 2,041 2,252 2,566 Less: treasury shares (66) (34) (29) Profit or loss attributable to owners of the parent 10,054 8,019 6,358 Less: Interim dividends (1,668) (951) (722) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (17,220) (16,254) (17,642) Items that will not be reclassified to profit or loss (1,988) (2,105) (1,881) Actuarial gains (losses) on defined benefit pension plans (1,067) (1,049) (760) Non-current assets and disposal groups classified as held for sale — — — Share of other recognized income and expense of investments in joint ventures and associates — — — Fair value changes of equity instruments measured at fair value through other comprehensive income (905) (1,112) (1,194) Hedge ineffectiveness of fair value hedges for equity instruments measured at fair value through other comprehensive income — — — Fair value changes of financial liabilities at fair value through profit or loss attributable to changes in their credit risk (17) 55 72 Items that may be reclassified to profit or loss (15,232) (14,148) (15,760) Hedge of net investments in foreign operations (effective portion) (2,329) (2,498) (1,408) Foreign currency translation (12,702) (11,419) (13,078) Hedging derivatives. Cash flow hedges (effective portion) 370 133 (447) Fair value changes of debt instruments measured at fair value through other comprehensive income (576) (357) (809) Hedging instruments (non-designated items) — — — Non-current assets and disposal groups classified as held for sale — — — Share of other recognized income and expense of investments in joint ventures and associates 5 (8) (18) MINORITY INTERESTS (NON-CONTROLLING INTERESTS) 4,359 3,564 3,623 Accumulated other comprehensive income (loss) (2,730) (3,321) (3,109) Other items 7,089 6,885 6,732 TOTAL EQUITY 60,014 55,265 50,517 TOTAL EQUITY AND TOTAL LIABILITIES 772,402 775,558 712,092 MEMORANDUM ITEM (OFF-BALANCE SHEET EXPOSURES) (Millions of Euros) 2024 2023 ⁽¹⁾ 2022 ⁽¹⁾ Loan commitments given 188,515 152,868 136,920 Financial guarantees given 22,503 18,839 16,511 Other commitments given 51,215 42,577 39,137 (1) Presented for comparison purposes only. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 148 Consolidated income statements for the years ended December 31, 2024, 2023 and 2022 CONSOLIDATED INCOME STATEMENTS (Millions of Euros) 2024 2023 ⁽¹⁾ 2022 ⁽¹⁾ Interest and other income 61,659 47,850 31,432 Interest expense (36,392) (24,761) (12,309) NET INTEREST INCOME 25,267 23,089 19,124 Dividend income 120 118 123 Share of profit or loss of entities accounted for using the equity method 40 26 21 Fee and commission income 13,036 9,899 8,260 Fee and commission expense (5,048) (3,611) (2,888) Gains (losses) on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 327 76 64 Financial assets at amortized cost 20 41 8 Other financial assets and liabilities 307 35 56 Gains (losses) on financial assets and liabilities held for trading, net 2,458 1,352 562 Reclassification of financial assets from fair value through other comprehensive income — — — Reclassification of financial assets from amortized cost — — — Other gains (losses) 2,458 1,352 562 Gains (losses) on non-trading financial assets mandatorily at fair value through profit or loss, net 179 337 (67) Reclassification of financial assets from fair value through other comprehensive income — — — Reclassification of financial assets from amortized cost — — — Other gains (losses) 179 337 (67) Gains (losses) on financial assets and liabilities designated at fair value through profit or loss, net 249 96 150 Gains (losses) from hedge accounting, net 5 (17) (45) Exchange differences, net 695 339 1,275 Other operating income 623 619 528 Other operating expense (3,951) (4,042) (3,438) Income from insurance and reinsurance contracts 3,720 3,081 2,622 Expense from insurance and reinsurance contracts (2,238) (1,821) (1,547) GROSS INCOME 35,481 29,542 24,743 Administration costs (12,660) (10,905) (9,373) Personnel expense (7,659) (6,530) (5,601) Other administrative expense (5,001) (4,375) (3,773) Depreciation and amortization (1,533) (1,403) (1,328) Provisions or reversal of provisions (198) (373) (291) Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification (5,745) (4,428) (3,379) Financial assets measured at amortized cost (5,687) (4,386) (3,303) Financial assets at fair value through other comprehensive income (58) (42) (76) NET OPERATING INCOME 15,345 12,432 10,372 Impairment or reversal of impairment of investments in joint ventures and associates 63 (9) 42 Impairment or reversal of impairment on non-financial assets 1 (54) (27) Tangible assets 29 (16) 53 Intangible assets (15) (26) (25) Other assets (13) (12) (55) Gains (losses) on derecognition of non-financial assets and subsidiaries, net 14 28 (11) Negative goodwill recognized in profit or loss — — — Gains (losses) from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations (17) 22 (108) PROFIT (LOSS) BEFORE TAX FROM CONTINUING OPERATIONS 15,405 12,419 10,268 Tax expense or income related to profit or loss from continuing operations (4,830) (4,003) (3,505) PROFIT (LOSS) AFTER TAX FROM CONTINUING OPERATIONS 10,575 8,416 6,763 Profit (loss) after tax from discontinued operations — — — PROFIT (LOSS) 10,575 8,416 6,763 ATTRIBUTABLE TO MINORITY INTERESTS (NON-CONTROLLING INTERESTS) 521 397 405 ATTRIBUTABLE TO OWNERS OF THE PARENT 10,054 8,019 6,358 (1) Presented for comparison purposes only. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 149 Consolidated income statements for the years ended December 31, 2024, 2023 and 2022 (continued) EARNINGS (LOSSES) PER SHARE (Euros) 2024 2023 ⁽¹⁾ 2022 ⁽¹⁾ EARNINGS (LOSSES) PER SHARE (Euros) 1.68 1.29 0.98 Basic earnings (losses) per share from continuing operations 1.68 1.29 0.98 Diluted earnings (losses) per share from continuing operations 1.68 1.29 0.98 Basic earnings (losses) per share from discontinued operations — — — Diluted earnings (losses) per share from discontinued operations — — — Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 150 Consolidated statements of recognized income and expense for the years ended December 31, 2024, 2023 and 2022 CONSOLIDATED STATEMENTS OF RECOGNIZED INCOME AND EXPENSE (Millions of Euros) 2024 2023 ⁽¹⁾ 2022 ⁽¹⁾ PROFIT (LOSS) RECOGNIZED IN INCOME STATEMENT 10,575 8,416 6,763 OTHER RECOGNIZED INCOME (EXPENSE) (414) 1,175 789 ITEMS NOT SUBJECT TO RECLASSIFICATION TO INCOME STATEMENT 79 (223) 190 Actuarial gains (losses) from defined benefit pension plans (78) (358) 354 Non-current assets and disposal groups held for sale — — — Share of other recognized income and expense of entities accounted for using the equity method — — — Fair value changes of equity instruments measured at fair value through other comprehensive income, net 236 100 (121) Gains (losses) from hedge accounting of equity instruments at fair value through other comprehensive income, net — — — Fair value changes of financial liabilities at fair value through profit or loss attributable to changes in their credit risk (102) (24) 100 Income tax related to items not subject to reclassification to income statement 23 59 (143) ITEMS SUBJECT TO RECLASSIFICATION TO INCOME STATEMENT (493) 1,398 599 Hedge of net investments in foreign operations (effective portion) 169 (1,095) (1,172) Valuation gains (losses) taken to equity 169 (1,095) (1,172) Transferred to profit or loss — — — Other reclassifications — — — Foreign currency translation (646) 1,379 3,413 Translation gains (losses) taken to equity (646) 1,378 3,413 Transferred to profit or loss — 1 — Other reclassifications — — — Cash flow hedges (effective portion) 331 832 72 Valuation gains (losses) taken to equity 331 832 91 Transferred to profit or loss — — (19) Transferred to initial carrying amount of hedged items — — — Other reclassifications — — — Debt securities at fair value through other comprehensive income (398) 752 (2,498) Valuation gains (losses) taken to equity (217) 757 (2,528) Transferred to profit or loss (181) (5) 30 Other reclassifications — — — Non-current assets and disposal groups held for sale — — — Valuation gains (losses) taken to equity — — — Transferred to profit or loss — — — Other reclassifications — — — Entities accounted for using the equity method 16 12 (7) Income tax relating to items subject to reclassification to income statements 36 (482) 791 TOTAL RECOGNIZED INCOME (EXPENSE) 10,161 9,591 7,552 Attributable to minority interests (non-controlling interests) 1,108 184 1,352 Attributable to the parent company 9,053 9,407 6,200 (1) Presented for comparison purposes only. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 151 Consolidated statements of changes in equity for the years ended December 31, 2024, 2023 and 2022 CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Millions of Euros) Capital Share Premium Equity instruments issued other than capital Other Equity Retained earnings Revaluation reserves Other reserves (-) Treasury shares Profit or loss attributable to owners of the parent (-) Interim dividends Accumulated other comprehensive income (loss) Minority interests Total 2024 Accumulated other comprehensiv e income (loss) Other Balances as of January 1, 2024 ⁽¹⁾ 2,861 19,769 — 40 36,237 — 2,015 (34) 8,019 (951) (16,254) (3,321) 6,885 55,265 Effect of changes in accounting policies — — — — — — — — — — — — — — Adjusted initial balance 2,861 19,769 — 40 36,237 — 2,015 (34) 8,019 (951) (16,254) (3,321) 6,885 55,265 Total income/expense recognized — — — — — — — — 10,054 — (1,001) 587 521 10,161 Other changes in equity (37) (585) — (1) 4,457 — (201) (32) (8,019) (717) 35 4 (317) (5,413) Issuances of ordinary shares — — — — — — — — — — — — — — Issuances of preferred shares — — — — — — — — — — — — — — Issuance of other equity instruments — — — — — — — — — — — — — — Settlement or maturity of other equity instruments issued — — — — — — — — — — — — — — Conversion of debt on equity — — — — — — — — — — — — — — Capital reduction (37) (585) — — 29 — (189) 781 — — — — — — Dividend distribution — — — — (2,245) — — — — (1,668) — — (345) (4,258) Purchase of treasury shares — — — — — — — (1,528) — — — — — (1,528) Sale or cancellation of treasury shares — — — — — — 10 716 — — — — — 725 Reclassification of other equity instruments to financial liabilities — — — — — — — — — — — — — — Reclassification of financial liabilities to other equity instruments — — — — — — — — — — — — — — Transfers among components of equity — — — 9 7,059 — (38) — (8,019) 951 35 4 — — Increase/Reduction of equity due to business combinations — — — — — — — — — — — — — — Share based payments — — — (26) — — — — — — — — — (26) Other increases or (-) decreases in equity — — — 16 (386) — 16 — — — — — 28 (326) Balance as of December 31, 2024 2,824 19,184 — 40 40,693 — 1,814 (66) 10,054 (1,668) (17,220) (2,730) 7,089 60,014 (1) Balances as of December 31, 2023 as originally reported in the consolidated Financial Statements for the year 2023 . Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 152 Consolidated statements of changes in equity for the years ended December 31, 2024, 2023 and 2022 (continued) CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Millions of Euros) 2023 ⁽¹⁾ Capital Share Premium Equity instruments issued other than capital Other Equity Retained earnings Revaluation reserves Other reserves (-) Treasury shares Profit or loss attributable to owners of the parent (-) Interim dividends Accumulated other comprehensive income (loss) Minority interests Total Accumulated other comprehensiv e income (loss) Other Balances as of January 1, 2023 ⁽²⁾ 2,955 20,856 — 63 32,536 — 2,345 (29) 6,420 (722) (17,432) (3,112) 6,736 50,615 Effect of changes in accounting policies ⁽³⁾ — — — — 175 — — — (62) — (210) 4 (4) (98) Adjusted initial balance 2,955 20,856 — 63 32,711 — 2,345 (29) 6,358 (722) (17,642) (3,109) 6,732 50,517 Total income/expense recognized — — — — — — — — 8,019 — 1,388 (213) 397 9,591 Other changes in equity (94) (1,087) — (22) 3,526 — (331) (5) (6,358) (228) — 1 (244) (4,842) Issuances of ordinary shares — — — — — — — — — — — — — — Issuances of preferred shares — — — — — — — — — — — — — — Issuance of other equity instruments — — — — — — — — — — — — — — Settlement or maturity of other equity instruments issued — — — — — — — — — — — — — — Conversion of debt on equity — — — — — — — — — — — — — — Capital reduction (94) (1,087) — — 75 — (316) 1,422 — — — — — — Dividend distribution — — — — (1,857) — — — — (951) — — (263) (3,071) Purchase of treasury shares — — — — — — — (2,166) — — — — — (2,166) Sale or cancellation of treasury shares — — — — — — 1 739 — — — — — 741 Reclassification of other equity instruments to financial liabilities — — — — — — — — — — — — — — Reclassification of financial liabilities to other equity instruments — — — — — — — — — — — — — — Transfers among components of equity — — — 2 5,651 — (17) — (6,358) 722 — 1 (1) — Increase/Reduction of equity due to business combinations — — — — — — — — — — — — — — Share based payments — — — (41) — — — — — — — — — (41) Other increases or (-) decreases in equity — — — 17 (344) — 2 — — — — — 20 (305) Balance as of December 31, 2023 2,861 19,769 — 40 36,237 — 2,015 (34) 8,019 (951) (16,254) (3,321) 6,885 55,265 (1) Presented for comparison purposes only. (2) Balances as of December 31, 2022 as originally reported in the consolidated Financial Statements for the year 2022. (3) The headings "Transfers among components of equity" and "Other increases or decreases in equity" include the effects of the application of IAS 29 "Financial Reporting in Hyperinflationary Economies" in the subsidiaries in Turkey (see Note 2.2.18 in the consolidated Financial Statements) for amounts of €1,873 million in "Retained earnings", €1,862 million in "Accumulated other comprehensive income (loss)" and, under the heading of "Minority interests" include, €1,621 million in "Other" and €1,480 million in "Accumulated other comprehensive income (loss)". Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 153 Consolidated statements of changes in equity for the years ended December 31, 2024, 2023 and 2022 (continued) CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Millions of Euros) Capital Share Premium Equity instruments issued other than capital Other Equity Retained earnings Revaluation reserves Other reserves (-) Treasury shares Profit or loss attributable to owners of the parent (-) Interim dividends Accumulated other comprehensive income (loss) Minority interests Total 2022 ⁽¹⁾ Accumulated other comprehensiv e income (loss) Other Balances as of January 1, 2022 ⁽²⁾ 3,267 23,599 — 60 31,841 — (1,857) (647) 4,653 (532) (16,476) (8,414) 13,267 48,760 Effect of changes in accounting policies ⁽³⁾ — — — — 178 — — — — — (186) 1 (6) (12) Adjusted initial balance 3,267 23,599 — 60 32,019 — (1,857) (647) 4,653 (532) (16,662) (8,413) 13,261 48,748 Total income/expense recognized — — — — — — — — 6,358 — (158) 947 405 7,552 Other changes in equity (313) (2,743) — 3 692 — 4,202 617 (4,653) (190) (822) 4,358 (6,935) (5,783) Issuances of ordinary shares — — — — — — — — — — — — — — Issuances of preferred shares — — — — — — — — — — — — — — Issuance of other equity instruments — — — — — — — — — — — — — — Settlement or maturity of other equity instruments issued — — — — — — — — — — — — — — Conversion of debt on equity — — — — — — — — — — — — — — Capital reduction (313) (2,743) — — 250 — (355) 3,160 — — — — — — Dividend distribution — — — — (1,463) — — — — (722) — — (185) (2,370) Purchase of treasury shares — — — — — — — (2,966) — — — — — (2,966) Sale or cancellation of treasury shares — — — — — — 9 423 — — — — — 432 Reclassification of other equity instruments to financial liabilities — — — — — — — — — — — — — — Reclassification of financial liabilities to other equity instruments — — — — — — — — — — — — — — Transfers among components of equity ⁽⁴⁾ — — — — 2,231 — 2,712 — (4,653) 532 (822) 4,358 (4,358) — Increase/Reduction of equity due to business combinations — — — — — — — — — — — — — — Share based payments — — — (22) — — — — — — — — — (22) Other increases or (-) decreases in equity ⁽⁴⁾ — — — 25 (326) — 1,836 — — — — — (2,392) (857) Balance as of December 31, 2022 2,955 20,856 — 63 32,711 — 2,345 (29) 6,358 (722) (17,642) (3,109) 6,732 50,517 (1) Presented for comparison purposes only. (2) Balances as of December 31, 2021 as originally reported in the consolidated Financial Statements for the year 2021. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 154 Consolidated statements of cash flows for the years ended December 31, 2024, 2023 and 2022 CONSOLIDATED STATEMENTS OF CASH FLOWS (Millions of Euros) 2024 2023 ⁽¹⁾ 2022 ⁽¹⁾ A) CASH FLOWS FROM OPERATING ACTIVITIES (18,190) (721) 23,718 Of which hyperinflation effect from operating activities (see Note 2.2.18) 2,593 1,884 2,692 Profit for the year 10,575 8,416 6,763 Adjustments to obtain the cash flow from operating activities 14,817 12,150 11,746 Depreciation and amortization 1,533 1,403 1,328 Other adjustments 13,283 10,747 10,418 Net increase/decrease in operating assets (54,265) (77,408) (42,900) Financial assets held for trading 28,452 (27,884) 14,658 Non-trading financial assets mandatorily at fair value through profit or loss (2,813) (1,288) (421) Other financial assets designated at fair value through profit or loss 119 (42) 179 Financial assets at fair value through other comprehensive income (1,124) 2,512 (1,014) Financial assets at amortized cost (76,759) (51,182) (55,754) Other operating assets (2,140) 476 (548) Net increase/decrease in operating liabilities 16,314 61,473 51,343 Financial liabilities held for trading (32,695) 24,435 2,907 Other financial liabilities designated at fair value through profit or loss 2,647 2,003 293 Financial liabilities at amortized cost 45,970 36,127 48,161 Other operating liabilities 392 (1,092) (17) Collection/payments for income tax (5,631) (5,353) (3,234) B) CASH FLOWS FROM INVESTING ACTIVITIES (1,423) (1,419) (3,911) Of which hyperinflation effect from investing activities (see Note 2.2.18) 753 772 759 Investment (2,039) (1,912) (4,506) Tangible assets (1,195) (1,129) (1,812) Intangible assets (816) (690) (630) Investments in joint ventures and associates (1) (93) (81) Subsidiaries and other business units (28) — (1,389) Non-current assets classified as held for sale and associated liabilities — — (594) Other settlements related to investing activities — — — Divestments 617 492 596 Tangible assets 104 92 29 Intangible assets — — — Investments in joint ventures and associates 32 58 127 Subsidiaries and other business units 73 21 — Non-current assets classified as held for sale and associated liabilities 408 321 440 Other collections related to investing activities — — — C) CASH FLOWS FROM FINANCING ACTIVITIES (2,567) (1,842) (7,563) Of which hyperinflation effect from financing activities (see Note 2.2.18) — — — Payments (8,773) (7,224) (7,996) Dividend distribution (shareholders remuneration) (3,913) (2,808) (2,185) Subordinated liabilities (2,599) (1,629) (2,258) Treasury share amortization (37) (94) (313) Treasury share acquisition (1,492) (2,072) (2,670) Other items relating to financing activities (732) (622) (571) Collections 6,205 5,383 434 Subordinated liabilities 5,514 4,672 — Treasury shares increase — — — Treasury shares disposal 691 711 434 Other items relating to financing activities — — — D) EFFECT OF EXCHANGE RATE CHANGES (2,091) (357) (288) E) NET INCREASE/DECREASE IN CASH AND CASH EQUIVALENTS (A+B+C+D) (24,271) (4,339) 11,957 F) CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR 75,416 79,756 67,799 G) CASH AND CASH EQUIVALENTS AT END OF THE YEAR (E+F) 51,145 75,416 79,756 COMPONENTS OF CASH AND EQUIVALENTS AT END OF THE YEAR (Millions of Euros) 2024 2023 ⁽¹⁾ 2022 ⁽¹⁾ Cash 8,636 7,751 6,533 Balance of cash equivalent in central banks 35,306 60,750 67,314 Other financial assets 7,202 6,916 5,909 Less: Bank overdraft refundable on demand — — — TOTAL CASH AND CASH EQUIVALENTS AT END OF THE YEAR 51,145 75,416 79,756 (1) Presented for comparison purposes only. (2) In fiscal year 2021, the balance of Group companies in the United States included in the sale to PNC is included. This Appendix is an integral part of Note 1.8 of the financial statements for the year ended December 31, 2024. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 155 APPENDIX II. Additional information on subsidiaries and structured entities composing the BBVA Group as of December 31, 2024 % share of participation (1) Millions of Euros (2) Affiliate entity data Company Location Activity Direct Indirect Total Net carrying amount Equity excluding profit (loss) 31.12.2024 Profit (loss) 31.12.2024 ACTIVOS MACORP SL SPAIN REAL ESTATE 50.64 49.36 100.00 3 3 — ADQUIRA MEXICO SA DE CV MEXICO SERVICES — 100.00 100.00 10 6 4 ALCALA 120 PROMOC. Y GEST.IMMOB. S.L. SPAIN REAL ESTATE — 100.00 100.00 19 19 — ANIDA GRUPO INMOBILIARIO SL SPAIN INVESTMENT COMPANY 100.00 — 100.00 941 916 36 ANIDA INMOBILIARIA, S.A. DE C.V. MEXICO INVESTMENT COMPANY — 100.00 100.00 16 15 1 ANIDA OPERACIONES SINGULARES, S.A. SPAIN REAL ESTATE — 100.00 100.00 874 860 14 ANIDA PROYECTOS INMOBILIARIOS, S.A. DE C.V. MEXICO REAL ESTATE — 100.00 100.00 14 13 1 ANIDAPORT INVESTIMENTOS IMOBILIARIOS, UNIPESSOAL, LTDA PORTUGAL REAL ESTATE — 100.00 100.00 22 13 3 ANTHEMIS BBVA VENTURE PARTNERSHIP LLP UNITED KINGDOM INVESTMENT COMPANY — 100.00 100.00 11 12 — ARRAHONA NEXUS, S.L. SPAIN REAL ESTATE — 100.00 100.00 56 62 — ARRELS CT FINSOL, S.A. SPAIN REAL ESTATE — 100.00 100.00 59 75 — ARRELS CT PATRIMONI I PROJECTES, S.A. SPAIN REAL ESTATE — 100.00 100.00 22 22 1 ARRELS CT PROMOU SA SPAIN REAL ESTATE — 100.00 100.00 17 24 6 BANCO BBVA ARGENTINA S.A. ARGENTINA BANKING 40.01 26.54 66.55 158 597 1,350 BANCO BBVA PERÚ SA ⁽³⁾ PERU BANKING — 47.13 47.13 1,606 2,942 465 BANCO BILBAO VIZCAYA ARGENTARIA URUGUAY SA URUGUAY BANKING 100.00 — 100.00 110 254 76 BANCO OCCIDENTAL SA SPAIN BANKING 49.43 50.57 100.00 17 19 1 BANCO PROVINCIAL OVERSEAS NV CURAÇAO BANKING — 100.00 100.00 53 46 7 BANCO PROVINCIAL SA - BANCO UNIVERSAL VENEZUELA BANKING 1.46 53.75 55.21 46 267 -6 BBV AMERICA SL SPAIN INVESTMENT COMPANY 99.80 0.20 100.00 — 659 93 BBVA (SUIZA) SA SWITZERLAND BANKING 100.00 — 100.00 115 153 9 BBVA AGENCIA DE SEGUROS COLOMBIA LTDA COLOMBIA INSURANCES SERVICES — 100.00 100.00 — — — BBVA ASSET MANAGEMENT ARGENTINA SAU SOCIEDAD GERENTE DE FONDOS COMUNES DE INVERSIÓN ARGENTINA INVESTMENT FUND MANAGEMENT — 100.00 100.00 29 — 28 BBVA ASSET MANAGEMENT MEXICO SA DE CV, SOC.OPERADORA DE FONDOS DE INVERSION, GRUPO FRO. BBVA MEXICO MEXICO INVESTMENT FUND MANAGEMENT — 100.00 100.00 38 10 29 BBVA ASSET MANAGEMENT SA SAF PERU INVESTMENT FUND MANAGEMENT — 100.00 100.00 8 6 2 BBVA ASSET MANAGEMENT SA SGIIC SPAIN INVESTMENT FUND MANAGEMENT 100.00 — 100.00 36 -84 156 BBVA ASSET MANAGEMENT SA SOCIEDAD FIDUCIARIA (BBVA FIDUCIARIA) COLOMBIA INVESTMENT FUND MANAGEMENT — 100.00 100.00 29 18 11 BBVA BOLSA SOCIEDAD AGENTE DE BOLSA S.A. PERU SECURITIES DEALER — 100.00 100.00 6 4 3 BBVA BRASIL BANCO DE INVESTIMENTO SA BRAZIL BANKING 100.00 — 100.00 14 19 -8 BBVA BROKER ARGENTINA SA ARGENTINA INSURANCES SERVICES — 99.96 99.96 — 3 11 BBVA BROKER CORREDURIA DE SEGUROS Y REASEGUROS SA SPAIN FINANCIAL SERVICES 99.94 0.06 100.00 — 4 7 BBVA COLOMBIA SA COLOMBIA BANKING 78.12 18.22 96.34 740 1,592 -84 BBVA CONSUMER FINANCE ENTIDAD DE DESARROLLO A LA PEQUEÑA Y MICRO EMPRESA EDPYME SA (BBVA CONSUMER FINANCE - EDPYME) PERU IN LIQUIDATION — 100.00 100.00 5 4 — BBVA DISTRIBUIDORA DE SEGUROS S.R.L. URUGUAY FINANCIAL SERVICES — 100.00 100.00 7 2 4 BBVA FUNDOS S.GESTORA FUNDOS PENSOES SA PORTUGAL PENSION FUND MANAGEMENT 100.00 — 100.00 11 9 2 BBVA GLOBAL FINANCE LTD CAYMAN ISLANDS OTHER ISSUANCE COMPANIES 100.00 — 100.00 — 6 — BBVA GLOBAL MARKETS BV NETHERLANDS OTHER ISSUANCE COMPANIES 100.00 — 100.00 — — — (1) In accordance with Article 3 of Royal Decree 1159/2010, of September 17, in order to determine the state, the voting power relating to subsidiaries was added to the voting power directly held by the parent. Therefore, the number of votes corresponding to the parent company (including indirect control subsidiaries), corresponds to each subsidiary holding a direct ownership interest. (2) Amount without considering the interim dividends of the year, according to the provisional financial statements of each company, generally as of December 31, 2024. In the carrying amount (net of provision and hedge in foreign operations), the Group´s ownership percentage has been applied, without considering the impairment of goodwill. Information on individual companies and foreign companies at exchange rate as of December 31, 2024 . The data of the companies in Turkey and Argentina are prior to the application of hyperinflation accounting. (3) Full consolidation method is used according to accounting rules (see Glossary). Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 156 Additional information on subsidiaries and structured entities composing the BBVA Group as of December 31, 2024 (Continued) % share of participation (1) Millions of Euros (2) Affiliate entity data Company Location Activity Direct Indirect Total Net carrying amount Equity excluding profit (loss) 31.12.2024 Profit (loss) 31.12.2024 BBVA GLOBAL SECURITIES, B.V. NETHERLANDS OTHER ISSUANCE COMPANIES 100.00 — 100.00 — — — BBVA GLOBAL WEALTH ADVISORS INC UNITED STATES FINANCIAL SERVICES 100.00 — 100.00 7 16 (10) BBVA HOLDING CHILE SA CHILE INVESTMENT COMPANY 61.22 38.78 100.00 158 290 18 BBVA INSTITUIÇAO FINANCEIRA DE CREDITO SA PORTUGAL FINANCIAL SERVICES 49.90 50.10 100.00 39 63 2 BBVA LEASING MEXICO SA DE CV MEXICO FINANCIAL SERVICES — 100.00 100.00 51 257 31 BBVA MEDIACION OPERADOR DE BANCA-SEGUROS VINCULADO, S.A. SPAIN FINANCIAL SERVICES 99.99 0.01 100.00 11 (17) 33 BBVA MEXICO SA INSTITUCION DE BANCA MULTIPLE GRUPO FINANCIERO BBVA MEXICO MEXICO BANKING — 100.00 100.00 16,766 12,067 4,699 BBVA OPERADORA MEXICO SA DE CV MEXICO SERVICES 100.00 — 100.00 72 68 7 BBVA PENSIONES MEXICO, S.A. DE C.V., GRUPO FINANCIERO BBVA MEXICO MEXICO INSURANCES SERVICES — 100.00 100.00 348 273 74 BBVA PENSIONES SA ENTIDAD GESTORA DE FONDOS DE PENSIONES SPAIN PENSION FUND MANAGEMENT 100.00 — 100.00 13 14 12 BBVA PERU HOLDING SAC PERU INVESTMENT COMPANY 100.00 — 100.00 149 1,404 219 BBVA PREVISION AFP SA ADM.DE FONDOS DE PENSIONES BOLIVIA PENSION FUND MANAGEMENT 75.00 5.00 80.00 2 5 (1) BBVA PROCESSING SERVICES INC. UNITED STATES FINANCIAL SERVICES 100.00 — 100.00 1 2 — BBVA RE INHOUSE COMPAÑIA DE REASEGUROS, S.E. SPAIN INSURANCES SERVICES 100.00 — 100.00 63 60 5 BBVA SECURITIES INC UNITED STATES FINANCIAL SERVICES 100.00 — 100.00 233 243 15 BBVA SEGUROS ARGENTINA SA ARGENTINA INSURANCES SERVICES 87.78 12.22 100.00 11 30 25 BBVA SEGUROS CA VENEZUELA INSURANCES SERVICES — 100.00 100.00 10 9 — BBVA SEGUROS COLOMBIA SA COLOMBIA INSURANCES SERVICES 94.00 6.00 100.00 10 29 10 BBVA SEGUROS DE VIDA COLOMBIA SA COLOMBIA INSURANCES SERVICES 94.00 6.00 100.00 14 131 50 BBVA SEGUROS MÉXICO SA DE CV GRUPO FINANCIERO BBVA MEXICO MEXICO INSURANCES SERVICES — 100.00 100.00 674 110 564 BBVA SEGUROS SA DE SEGUROS Y REASEGUROS SPAIN INSURANCES SERVICES 99.96 — 99.96 713 377 251 BBVA SEGUROS SALUD MEXICO SA DE CV GRUPO FRO. BBVA MEXICO. MEXICO INSURANCES SERVICES — 100.00 100.00 28 22 6 BBVA SERVICIOS ADMINISTRATIVOS MEXICO, S.A. DE C.V. MEXICO SERVICES — 100.00 100.00 25 23 2 BBVA SERVICIOS, S.A. SPAIN COMMERCIAL — 100.00 100.00 — — — BBVA SOCIEDAD TITULIZADORA S.A. PERU OTHER ISSUANCE COMPANIES — 100.00 100.00 1 1 — BBVA TECHNOLOGY AMERICA SA MEXICO SERVICES 100.00 — 100.00 219 249 17 BBVA TECHNOLOGY SLU SPAIN SERVICES 100.00 — 100.00 44 46 7 BBVA TRADE, S.A. SPAIN INVESTMENT COMPANY — 100.00 100.00 9 9 1 BBVA VALORES COLOMBIA SA COMISIONISTA DE BOLSA COLOMBIA SECURITIES DEALER — 100.00 100.00 14 11 4 BILBAO VIZCAYA INVESTMENTS SA UNIPERSONAL SPAIN INVESTMENT COMPANY 100.00 — 100.00 482 510 41 CARTERA E INVERSIONES SA SPAIN INVESTMENT COMPANY 100.00 — 100.00 92 137 1 CASA DE BOLSA BBVA MEXICO SA DE CV MEXICO SECURITIES DEALER — 100.00 100.00 85 41 44 CATALUNYACAIXA IMMOBILIARIA SA SPAIN REAL ESTATE 100.00 — 100.00 159 145 13 CATALUNYACAIXA SERVEIS SA SPAIN SERVICES 100.00 — 100.00 2 2 — CIDESSA DOS, S.L. SPAIN INVESTMENT COMPANY — 100.00 100.00 2 2 — CIERVANA SL SPAIN INVESTMENT COMPANY 100.00 — 100.00 53 83 2 COMERCIALIZADORA CORPORATIVA SAC PERU FINANCIAL SERVICES — 50.00 50.00 — — — (1) In accordance with Article 3 of Royal Decree 1159/2010, of September 17, in order to determine the state, the voting power relating to subsidiaries was added to the voting power directly held by the parent. Therefore, the number of votes corresponding to the parent company (including indirect control subsidiaries), corresponds to each subsidiary holding a direct ownership interest. (2) Amount without considering the interim dividends of the year, according to the provisional financial statements of each company, generally as of December 31, 2024. In the carrying amount (net of provision and hedge in foreign operations), the Group´s ownership percentage has been applied, without considering the impairment of goodwill. Information on individual companies and foreign companies at exchange rate as of December 31, 2024. The data of the companies in Turkey and Argentina are prior to the application of hyperinflation accounting. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 157 Additional information on subsidiaries and structured entities composing the BBVA Group as of December 31, 2024 (Continued) % share of participation (1) Millions of Euros (2) Affiliate entity data Company Location Activity Direct Indirect Total Net carrying amount Equity excluding profit (loss) 31.12.2024 Profit (loss) 31.12.2024 COMERCIALIZADORA DE SERVICIOS FINANCIEROS, S.A. COLOMBIA SERVICES — 100.00 100.00 5 5 — COMPAÑIA CHILENA DE INVERSIONES SL SPAIN INVESTMENT COMPANY 99.97 0.03 100.00 221 268 8 CONSOLIDAR A.F.J.P SA ARGENTINA IN LIQUIDATION 46.11 53.89 100.00 1 — — CONTENTS AREA, S.L. SPAIN SERVICES — 100.00 100.00 5 5 — CONTINENTAL DPR FINANCE COMPANY BV NETHERLANDS FINANCIAL SERVICES — 100.00 100.00 — — — CORPORACION GENERAL FINANCIERA SAU SPAIN INVESTMENT COMPANY 100.00 — 100.00 510 939 67 CREA MADRID NUEVO NORTE SA SPAIN REAL ESTATE — 75.54 75.54 349 466 (5) DEUTSCHE BANK MEXICO SA FIDEICOMISO F/1859 MEXICO FINANCIAL SERVICES — 100.00 100.00 — — — DEUTSCHE BANK MEXICO SA FIDEICOMISO F/1860 MEXICO FINANCIAL SERVICES — 100.00 100.00 — — — DIGITAL INVESTMENTS SL SPAIN HOLDING THAT MANAGES MOSTLY FINANCIAL SUBSIDIARIES 99.98 0.03 100.01 92 42 — ECASA, S.A. CHILE FINANCIAL SERVICES — 100.00 100.00 27 26 1 EMPRENDIMIENTOS DE VALOR S.A. URUGUAY FINANCIAL SERVICES — 100.00 100.00 3 3 (1) EUROPEA DE TITULIZACION SA SGFT SPAIN FINANCIAL SERVICES 88.24 — 88.24 2 20 3 F/11395 FIDEICOMISO IRREVOCABLE DE ADMINISTRACION CON DERECHO DE REVERSION ⁽³⁾ MEXICO REAL ESTATE — 42.40 42.40 — 1 — F/253863 EL DESEO RESIDENCIAL MEXICO REAL ESTATE — 65.00 65.00 — 1 — FIDEICOMISO 28991-8 TRADING EN LOS MCADOS FINANCIEROS MEXICO FINANCIAL SERVICES — 100.00 100.00 4 3 — FIDEICOMISO F/29764-8 SOCIO LIQUIDADOR DE OPERACIONES FINANCIERAS DERIVADAS MEXICO FINANCIAL SERVICES — 100.00 100.00 99 87 12 FIDEICOMISO F/403112-6 DE ADMINISTRACION DOS LAGOS MEXICO REAL ESTATE — 100.00 100.00 — — — FIDEICOMISO HARES BBVA BANCOMER F/ 47997-2 MEXICO REAL ESTATE — 100.00 100.00 1 — 1 FIDEICOMISO INMUEBLES CONJUNTO RESIDENCIAL HORIZONTES DE VILLA CAMPESTRE COLOMBIA REAL ESTATE — 100.00 100.00 — 1 — FIDEICOMISO LOTE 6.1 ZARAGOZA COLOMBIA REAL ESTATE — 59.99 59.99 — 2 — FIDEICOMISO SCOTIABANK INVERLAT S A F100322908 MEXICO REAL ESTATE — 100.00 100.00 — — — FOMENTO Y DESARROLLO DE CONJUNTOS RESIDENCIALES S.L. EN LIQUIDACION SPAIN IN LIQUIDATION — 60.00 60.00 — — — FORUM COMERCIALIZADORA DEL PERU SA PERU SERVICES — 100.00 100.00 1 1 — FORUM DISTRIBUIDORA DEL PERU SA PERU FINANCIAL SERVICES — 100.00 100.00 8 9 (1) FORUM DISTRIBUIDORA, S.A. CHILE FINANCIAL SERVICES — 100.00 100.00 56 47 7 FORUM SERVICIOS FINANCIEROS, S.A. CHILE FINANCIAL SERVICES — 100.00 100.00 228 218 11 G NETHERLANDS BV NETHERLANDS INVESTMENT COMPANY — 100.00 100.00 393 323 — GARANTI BANK SA ROMANIA BANKING — 100.00 100.00 252 400 27 GARANTI BBVA AS TURKEY BANKING 85.97 — 85.97 7,534 6,743 2,468 GARANTI BBVA DIJITAL VARLIKLAR ANONIM SIRKETI TURKEY FINANCIAL SERVICES — 100.00 100.00 36 33 (3) GARANTI BBVA EMEKLILIK AS TURKEY INSURANCES SERVICES — 84.91 84.91 147 69 114 GARANTI BBVA FACTORING AS TURKEY FINANCIAL SERVICES — 81.84 81.84 71 47 39 GARANTI BBVA FILO AS TURKEY SERVICES — 100.00 100.00 205 147 56 GARANTI BBVA FINANSAL TEKNOLOJILER AS TURKEY FINANCIAL SERVICES — 100.00 100.00 30 35 1 GARANTI BBVA LEASING AS TURKEY FINANCIAL SERVICES — 100.00 100.00 319 213 106 GARANTI BBVA PORTFOY YONETIMI AS TURKEY INVESTMENT FUND MANAGEMENT — 100.00 100.00 43 15 29 (1) In accordance with Article 3 of Royal Decree 1159/2010, of September 17, in order to determine the state, the voting power relating to subsidiaries was added to the voting power directly held by the parent. Therefore, the number of votes corresponding to the parent company (including indirect control subsidiaries), corresponds to each subsidiary holding a direct ownership interest. (2) Amount without considering the interim dividends of the year, according to the provisional financial statements of each company, generally as of December 31, 2024. In the carrying amount (net of provision and hedge in foreign operations), the Group´s ownership percentage has been applied, without considering the impairment of goodwill. Information on individual companies and foreign companies at exchange rate as of December 31, 2024. The data of the companies in Turkey and Argentina are prior to the application of hyperinflation accounting. (3) Full consolidation method is used according to accounting rules (see Glossary). Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 158 Additional information on subsidiaries and structured entities composing the BBVA Group as of December 31, 2024 (Continued) % share of participation (1) Millions of Euros (2) Affiliate entity data Company Location Activity Direct Indirect Total Net carrying amount Equity excluding profit (loss) 31.12.2024 Profit (loss) 31.12.2024 GARANTI BBVA YATIRIM AS TURKEY FINANCIAL SERVICES — 100.00 100.00 270 148 122 GARANTI DIVERSIFIED PAYMENT RIGHTS FINANCE COMPANY CAYMAN ISLANDS OTHER ISSUANCE COMPANIES — 100.00 100.00 — (11) (1) GARANTI FILO SIGORTA ARACILIK HIZMETLERI A.S. TURKEY FINANCIAL SERVICES — 100.00 100.00 — 1 1 GARANTI HOLDING BV NETHERLANDS INVESTMENT COMPANY — 100.00 100.00 643 393 — GARANTI KONUT FINANSMANI DANISMANLIK HIZMETLERI AS (GARANTI MORTGAGE) TURKEY SERVICES — 100.00 100.00 — — — GARANTI KULTUR AS TURKEY SERVICES — 100.00 100.00 — — — GARANTI ODEME SISTEMLERI AS (GOSAS) TURKEY FINANCIAL SERVICES — 100.00 100.00 19 10 11 GARANTI ODEME VE ELEKTRONIK PARA HIZMETLERI ANONIM SIRKETI TURKEY PAYMENT ENTITIES — 100.00 100.00 13 17 (5) GARANTI YATIRIM ORTAKLIGI AS ⁽³⁾ ⁽⁴⁾ TURKEY INVESTMENT COMPANY — 3.61 3.61 — 2 — GARANTIBANK BBVA INTERNATIONAL N.V. NETHERLANDS BANKING — 100.00 100.00 931 751 101 GESCAT GESTIO DE SOL SL SPAIN REAL ESTATE 100.00 — 100.00 7 8 (1) GESCAT LLEVANT, S.L. SPAIN REAL ESTATE — 100.00 100.00 1 1 — GESCAT LLOGUERS SL SPAIN REAL ESTATE 100.00 — 100.00 — — — GESCAT VIVENDES EN COMERCIALITZACIO SL SPAIN REAL ESTATE 100.00 — 100.00 32 29 3 GESTION DE PREVISION Y PENSIONES SA SPAIN PENSION FUND MANAGEMENT 60.00 — 60.00 9 16 6 GESTION Y ADMINISTRACION DE RECIBOS, S.A. - GARSA SPAIN SERVICES — 100.00 100.00 1 2 — GRAN JORGE JUAN SA SPAIN REAL ESTATE 100.00 — 100.00 424 461 16 GRUPO FINANCIERO BBVA MEXICO SA DE CV MEXICO FINANCIAL SERVICES 99.98 — 99.98 9,395 14,614 5,419 HANS FACTORY SL SPAIN FINANCIAL SERVICES — 100.00 100.00 5 5 (2) INMUEBLES Y RECUPERACIONES BBVA SA PERU REAL ESTATE — 100.00 100.00 39 39 — INVERAHORRO SL SPAIN INVESTMENT COMPANY 100.00 — 100.00 335 339 (4) INVERSIONES ALDAMA, C.A. VENEZUELA IN LIQUIDATION — 100.00 100.00 — — — INVERSIONES BANPRO INTERNATIONAL INC NV ⁽³⁾ CURAÇAO INVESTMENT COMPANY 48.00 — 48.00 16 48 7 INVERSIONES BAPROBA CA VENEZUELA FINANCIAL SERVICES 100.00 — 100.00 — — — INVERSIONES P.H.R.4, C.A. VENEZUELA INACTIVE — 60.46 60.46 — — — MADIVA SOLUCIONES, S.L. SPAIN SERVICES — 100.00 100.00 4 3 1 MOTORACTIVE IFN SA ROMANIA FINANCIAL SERVICES — 100.00 100.00 34 39 4 MOTORACTIVE MULTISERVICES SRL ROMANIA SERVICES — 100.00 100.00 — 4 — MOVISTAR CONSUMER FINANCE COLOMBIA SAS COLOMBIA IN LIQUIDATION — 50.00 50.00 — 16 (10) MULTIASISTENCIA, S.A. DE C.V. MEXICO INSURANCES SERVICES — 100.00 100.00 69 40 29 OPENPAY ARGENTINA SA ARGENTINA PAYMENT ENTITIES — 100.00 100.00 7 5 (2) OPENPAY COLOMBIA SAS COLOMBIA PAYMENT ENTITIES — 100.00 100.00 2 3 (2) OPENPAY PERÚ SA PERU PAYMENT ENTITIES — 100.00 100.00 17 7 (6) OPENPAY SA DE CV MEXICO PAYMENT ENTITIES — 100.00 100.00 41 35 (16) OPENPAY SERVICIOS S.A. DE C.V. MEXICO SERVICES — 100.00 100.00 — — — OPERADORA DOS LAGOS S.A. DE C.V. MEXICO SERVICES — 100.00 100.00 — — — OPPLUS OPERACIONES Y SERVICIOS SA SPAIN SERVICES 100.00 — 100.00 1 42 8 (1) In accordance with Article 3 of Royal Decree 1159/2010, of September 17, in order to determine the state, the voting power relating to subsidiaries was added to the voting power directly held by the parent. Therefore, the number of votes corresponding to the parent company (including indirect control subsidiaries), corresponds to each subsidiary holding a direct ownership interest. (2) Amount without considering the interim dividends of the year, according to the provisional financial statements of each company, generally as of December 31, 2024. In the carrying amount (net of provision and hedge in foreign operations), the Group´s ownership percentage has been applied, without considering the impairment of goodwill. Information on individual companies and foreign companies at exchange rate as of December 31, 2024. The data of the companies in Turkey and Argentina are prior to the application of hyperinflation accounting. (3) Full consolidation method is used according to accounting rules (see Glossary). (4) The percentage of voting rights owned by the Group entities in this company is 99.97%. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 159 Additional information on subsidiaries and structured entities composing the BBVA Group as of December 31, 2024 (Continued) % share of participation (1) Millions of Euros (2) Affiliate entity data Company Location Activity Direct Indirect Total Net carrying amount Equity excluding profit (loss) 31.12.2024 Profit (loss) 31.12.2024 PECRI INVERSION SL SPAIN INVESTMENT COMPANY 100.00 — 100.00 68 69 (1) PROMOTORA DEL VALLES, S.L. SPAIN REAL ESTATE — 100.00 100.00 15 20 1 PRONORTE UNO PROCAM, S.A. SPAIN REAL ESTATE — 100.00 100.00 1 1 — PROPEL EXPLORER FUND I LP UNITED STATES INVESTMENT COMPANY — 99.50 99.50 39 41 (2) PROPEL EXPLORER FUND II LP UNITED STATES INVESTMENT COMPANY — 99.50 99.50 8 9 (1) PROPEL VENTURE PARTNERS BRAZIL US LP UNITED STATES INVESTMENT COMPANY — 99.80 99.80 13 22 (7) PROPEL VENTURE PARTNERS GLOBAL US, LP UNITED STATES INVESTMENT COMPANY — 99.50 99.50 154 211 2 PROPEL VENTURE PARTNERS US FUND I, L.P. UNITED STATES VENTURE CAPITAL — 99.50 99.50 160 233 (9) PROPEL XYZ I LP UNITED STATES INVESTMENT COMPANY — 99.40 99.40 21 18 3 PRO-SALUD, C.A. VENEZUELA INACTIVE — 58.86 58.86 — — — PROVINCIAL DE VALORES CASA DE BOLSA CA VENEZUELA SECURITIES DEALER — 90.00 90.00 1 1 — PROVINCIAL SDAD.ADMIN.DE ENTIDADES DE INV.COLECTIVA CA VENEZUELA INVESTMENT FUND MANAGEMENT — 100.00 100.00 1 1 — PROVIVIENDA ENTIDAD RECAUDADORA Y ADMIN.DE APORTES, S.A. BOLIVIA PENSION FUND MANAGEMENT — 100.00 100.00 — 1 — PSA FINANCE ARGENTINA COMPAÑIA FINANCIERA SA ARGENTINA BANKING — 50.00 50.00 13 11 15 RALFI IFN SA ROMANIA FINANCIAL SERVICES — 100.00 100.00 36 10 (4) RPV COMPANY CAYMAN ISLANDS OTHER ISSUANCE COMPANIES — 100.00 100.00 — — — SATICEM GESTIO SL SPAIN REAL ESTATE 100.00 — 100.00 2 2 — SATICEM HOLDING SL SPAIN REAL ESTATE 100.00 — 100.00 5 5 — SOCIEDAD DE ESTUDIOS Y ANALISIS FINANCIERO SA SPAIN SERVICES 100.00 — 100.00 19 19 — SOCIEDAD PERUANA DE FINANCIAMIENTO SAC PERU FINANCIAL SERVICES — 50.00 50.00 3 6 (2) SPORT CLUB 18 SA SPAIN INVESTMENT COMPANY 100.00 — 100.00 20 11 9 TREE INVERSIONES INMOBILIARIAS SA SPAIN REAL ESTATE 100.00 — 100.00 1,230 195 85 TRIFOI REAL ESTATE SRL ROMANIA REAL ESTATE — 100.00 100.00 1 1 — UNNIM SOCIEDAD PARA LA GESTION DE ACTIVOS INMOBILIARIOS SA SPAIN REAL ESTATE 100.00 — 100.00 516 367 110 URBANIZADORA SANT LLORENC SA SPAIN INACTIVE 60.60 — 60.60 — — — VOLKSWAGEN FINANCIAL SERVICES COMPAÑIA FINANCIERA SA ARGENTINA BANKING — 51.00 51.00 27 21 32 (1) In accordance with Article 3 of Royal Decree 1159/2010, of September 17, in order to determine the state, the voting power relating to subsidiaries was added to the voting power directly held by the parent. Therefore, the number of votes corresponding to the parent company (including indirect control subsidiaries), corresponds to each subsidiary holding a direct ownership interest. (2) Amount without considering the interim dividends of the year, according to the provisional financial statements of each company, generally as of December 31, 2024. In the carrying amount (net of provision and hedge in foreign operations), the Group´s ownership percentage has been applied, without considering the impairment of goodwill. Information on individual companies and foreign companies at exchange rate as of December 31, 2024. The data of the companies in Turkey and Argentina are prior to the application of hyperinflation accounting. This Appendix is an integral part of Note 14.1 of the financial statements for the year ended December 31, 2024. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 160 APPENDIX III. Additional information on investments joint ventures and associates in the BBVA Group as of December 31, 2024 Most significant companies are included, which together represent 99.5% of the total investment in this group. % share of participation Millions of Euros (1) Affiliate entity data Company Location Activity Direct Indirect Total Consolid ated Net carrying amount Assets 31.12.20 24 Liabilities 31.12.202 4 Equity excluding profit (loss) 31.12.202 4 Profit (loss) 31.12.20 24 ASSOCIATES ADQUIRA ESPAÑA, S.A. SPAIN SERVICES — 44.44 44.44 5 19 9 10 1 ATOM HOLDCO LIMITED UNITED KINGDOM INVESTMENT COMPANY 49.45 — 49.45 222 9,209 8,709 491 9 BBVA ALLIANZ SEGUROS Y REASEGUROS, S.A. SPAIN INSURANCES SERVICES — 50.00 50.00 265 1,053 488 543 23 COMPAÑIA PERUANA DE MEDIOS DE PAGO SAC (VISANET PERU) PERU PAYMENT ENTITIES — 20.20 20.20 2 290 281 5 4 CORPORACION SUICHE 7B CA VENEZUELA FINANCIAL SERVICES — 19.80 19.80 2 16 4 6 6 FIDEICOMISO F/00185 FIMPE - FIDEICOMISO F/00185 PARA EXTENDER A LA SOCIEDAD LOS BENEFICIOS DEL ACCESO A LA INFRAESTRUCTURA DE LOS MEDIOS DE PAGO ELECTRONICOS MEXICO FINANCIAL SERVICES — 28.50 28.50 1 5 — 3 2 METROVACESA SA SPAIN REAL ESTATE 20.85 — 20.85 300 2,456 884 1,581 (8) PROMOCIONS TERRES CAVADES, S.A. SPAIN REAL ESTATE — 39.11 39.11 1 3 — 3 — REDSYS SERVICIOS DE PROCESAMIENTO SL SPAIN FINANCIAL SERVICES 24.90 — 24.90 20 157 78 74 5 ROMBO COMPAÑIA FINANCIERA SA ARGENTINA BANKING — 40.00 40.00 10 88 64 7 17 SBD CREIXENT, S.A. SPAIN REAL ESTATE — 23.05 23.05 1 6 — 6 — SEGURIDAD Y PROTECCION BANCARIAS SA DE CV MEXICO SERVICES — 26.14 26.14 1 4 — 4 1 SERVICIOS ELECTRONICOS GLOBALES SA DE CV MEXICO SERVICES — 46.14 46.14 43 93 — 68 25 SERVIRED SOCIEDAD ESPAÑOLA DE MEDIOS DE PAGO SA SPAIN FINANCIAL SERVICES 28.72 — 28.72 8 73 45 25 3 SISTEMAS DE TARJETAS Y MEDIOS DE PAGO SA SPAIN PAYMENT ENTITIES 20.61 — 20.61 2 482 474 6 2 TELEFONICA FACTORING ESPAÑA SA ⁽²⁾ SPAIN FINANCIAL SERVICES 30.00 — 30.00 3 80 63 7 10 TF PERU SAC PERU FINANCIAL SERVICES — 24.30 24.30 1 7 1 4 2 VERIDAS DIGITAL AUTHENTICATION SOLUTIONS S.L. SPAIN SERVICES — 29.38 29.38 5 28 12 11 4 JOINT VENTURES ALTURA MARKETS SOCIEDAD DE VALORES SA SPAIN SECURITIES DEALER 50.00 — 50.00 38 1,749 1,673 62 14 COMPAÑIA MEXICANA DE PROCESAMIENTO SA DE CV MEXICO SERVICES — 50.00 50.00 6 11 — 13 (2) CORPORACION IBV PARTICIPACIONES EMPRESARIALES, S.A. ⁽³⁾ SPAIN INVESTMENT COMPANY — 50.00 50.00 29 62 4 58 — F/ 5356 FIDEICOMISO IRREVOCABLE DE ADM. INMOBILIARIA CON DERECHO DE REVERSIÓN- FIDEICOMISO SELVA MEXICO REAL ESTATE — 42.40 42.40 7 17 — 17 — FIDEICOMISO 1729 INVEX ENAJENACION DE CARTERA ⁽³⁾ MEXICO REAL ESTATE — 44.09 44.09 9 179 — 179 — INVERSIONES PLATCO CA VENEZUELA FINANCIAL SERVICES — 50.00 50.00 6 13 1 13 (1) RCI COLOMBIA SA COMPAÑIA DE FINANCIAMIENTO COLOMBIA FINANCIAL SERVICES — 49.00 49.00 37 780 704 76 — (1) In foreign companies the exchange rate of December 31, 2024 is applied. (2) Financial Statements as of December 31, 2023. (3) Classified as Non-current asset held for sale. This Appendix is an integral part of Note 14.2 of the financial statements for the year ended December 31, 2024. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 161 APPENDIX IV. Changes and notifications of participations in the BBVA Group in 2024 Acquisitions or increases of interest ownership in consolidated subsidiaries Company (1) Type of transaction Total voting rights controlled after the disposal Effective date for the last transaction (or notification Date) BANCO BBVA PERÚ SA ACQUISITION 47.13 17-Sep-24 BBVA COLOMBIA SA CAPITAL INCREASE 96.35 12-Sep-24 (1) Variations of less than 0.1% have not been considered due to immateriality. Disposals or reduction of interest ownership in consolidated subsidiaries Company (1) Type of transaction Total voting rights controlled after the disposal Effective date for the last transaction (or notification Date) OPCION VOLCAN, S.A. MERGER — 19-Nov-24 CONTRATACION DE PERSONAL, S.A. DE C.V. MERGER — 19-Nov-24 MULTIASISTENCIA SERVICIOS S.A. DE C.V. MERGER — 25-Jan-24 MULTIASISTENCIA OPERADORA S.A. DE C.V. MERGER — 25-Jan-24 MISAPRE, S.A. DE C.V. LIQUIDATION — 10-Dec-24 SERVICIOS CORPORATIVOS DE SEGUROS, S.A. DE C.V. MERGER — 19-Nov-24 FINANCIERA AYUDAMOS S.A. DE C.V., SOFOMER LIQUIDATION — 27-Jun-24 DATA ARCHITECTURE AND TECHNOLOGY MEXICO SA DE CV MERGER — 15-Oct-24 DATA ARQUITECTURE AND TECHNOLOGY OPERADORA SA DE CV MERGER — 15-Oct-24 BBVA SERVICIOS CORPORATIVOS MEXICO, S.A. DE C.V. MERGER — 19-Nov-24 SERVICIOS EXTERNOS DE APOYO EMPRESARIAL, S.A DE C.V. MERGER — 19-Nov-24 BBVA NEXT TECHNOLOGIES, S.A. DE C.V. MERGER — 15-Oct-24 BBVA NEXT TECHNOLOGIES OPERADORA, S.A. DE C.V. MERGER — 15-Oct-24 MOMENTUM SOCIAL INVESTMENT HOLDING, S.L. LIQUIDATION — 31-Oct-24 APLICA NEXTGEN SERVICIOS S.A. DE C.V MERGER — 15-Oct-24 APLICA NEXTGEN OPERADORA S.A. DE C.V. MERGER — 15-Oct-24 ARRAHONA IMMO, S.L. LIQUIDATION — 11-Jul-24 CATALONIA PROMODIS 4, S.A. LIQUIDATION — 29-Nov-24 PROMOU CT OPENSEGRE, S.L. LIQUIDATION — 30-Nov-24 PORTICO PROCAM, S.L.(EN LIQUIDACIÓN) LIQUIDATION — 16-May-24 CAIXA MANRESA IMMOBILIARIA ON CASA SL LIQUIDATION — 30-Nov-24 SATICEM IMMOBLES EN ARRENDAMENT SL ( EN LIQUIDACIÓN) LIQUIDATION — 16-May-24 (1) Variations of less than 0.1% have not been considered due to immateriality. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 162 Changes and notifications of participations in the BBVA Group in 2024 Business combinations and other acquisitions or increases of interest ownership in associates and joint-ventures accounted for under the equity method Company (1) Type of transaction Total voting rights controlled after the disposal Effective date for the last transaction (or notification Date) PLAY DIGITAL SA CAPITAL INCREASE 12.16 31-Dec-24 (1) Variations of less than 0.1% have not been considered due to immateriality. Disposal or reduction of interest ownership in associates and joint-ventures companies accounted for under the equity method Company (1) Type of transaction Total voting rights controlled after the disposal Effective date for the last transaction (or notification Date) COMPAÑIA ESPAÑOLA DE FINANCIACION DEL DESARROLLO SA SHAREHOLDERS AGREEMENT 16.67 01-May-24 AUREA, S.A. (CUBA) LIQUIDATION — 01-Mar-24 TELEFONICA FACTORING MEXICO SA DE CV LIQUIDATION — 04-Sep-24 NUEVO MARKETPLACE, S.L. ( EN LIQUIDACIÓN) LIQUIDATION — 01-Feb-24 VERIDAS DIGITAL AUTHENTICATION SOLUTIONS S.L. DILUTION PARTIC. 29.38 12-Jan-24 SOLARIS SE DILUTION PARTIC. 14.70 31-Mar-24 EURO LENDERT, S.L. (EN LIQUIDACIÓN) LIQUIDATION — 02-May-24 (1) Variations of less than 0.1% have not been considered due to immateriality. This Appendix is an integral part of Note 14.3 of the financial statements for the year ended December 31, 2024. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 163 APPENDIX V. Fully consolidated subsidiaries with more than 10% owned by non-Group shareholders as of December 31, 2024 % of voting rights controlled by the Bank Company Activity Direct Indirect Total BANCO BBVA PERÚ SA BANKING — 47.13 47.13 BANCO PROVINCIAL SA - BANCO UNIVERSAL BANKING 1.46 53.75 55.21 INVERSIONES BANPRO INTERNATIONAL INC NV INVESTMENT COMPANY 48.00 — 48.00 PRO-SALUD, C.A. NO ACTIVITY — 58.86 58.86 INVERSIONES P.H.R.4, C.A. NO ACTIVITY — 60.46 60.46 COMERCIALIZADORA CORPORATIVA SAC FINANCIAL SERVICES — 50.00 50.00 CREA MADRID NUEVO NORTE SA REAL ESTATE — 75.54 75.54 GESTION DE PREVISION Y PENSIONES SA PENSION FUND MANAGEMENT 60.00 — 60.00 SOCIEDAD PERUANA DE FINANCIAMIENTO SAC FINANCIAL SERVICES — 50.00 50.00 F/253863 EL DESEO RESIDENCIAL REAL ESTATE — 65.00 65.00 VOLKSWAGEN FINANCIAL SERVICES COMPAÑIA FINANCIERA SA BANKING — 51.00 51.00 FIDEICOMISO LOTE 6.1 ZARAGOZA REAL ESTATE — 59.99 59.99 F/11395 FIDEICOMISO IRREVOCABLE DE ADMINISTRACION CON DERECHO DE REVERSION REAL ESTATE — 42.40 42.40 MOVISTAR CONSUMER FINANCE COLOMBIA SAS IN LIQUIDATION — 50.00 50.00 GARANTI BBVA EMEKLILIK AS INSURANCES — 84.91 84.91 FOMENTO Y DESARROLLO DE CONJUNTOS RESIDENCIALES S.L. EN LIQUIDACION IN LIQUIDATION — 60.00 60.00 PSA FINANCE ARGENTINA COMPAÑIA FINANCIERA SA BANKING — 50.00 50.00 Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 164 APPENDIX VI. BBVA Group’s structured entities as of December 31, 2024. Securitization funds Millions of Euros Securitization fund (consolidated) Company Origination date Total securitized exposures at the origination date Total securitized exposures as of December 31, 2024 TDA 19 MIXTO FTA BANCO BILBAO VIZCAYA ARGENTARIA SA 27-Feb-04 600 23 TDA 22 MIXTO FTA BANCO BILBAO VIZCAYA ARGENTARIA SA 09-Dec-04 592 32 HIPOCAT 9 FTA BANCO BILBAO VIZCAYA ARGENTARIA SA 25-Nov-05 1,016 81 HIPOCAT 10 FTA BANCO BILBAO VIZCAYA ARGENTARIA SA 05-Jul-06 1,526 120 AYT HIP MIXTO V BANCO BILBAO VIZCAYA ARGENTARIA SA 21-Jul-06 120 62 TDA 27 MIXTO FTA BANCO BILBAO VIZCAYA ARGENTARIA SA 22-Dec-06 275 104 BBVA RMBS 1 FTA BANCO BILBAO VIZCAYA ARGENTARIA SA 19-Feb-07 2,500 445 HIPOCAT 11 FTA BANCO BILBAO VIZCAYA ARGENTARIA SA 09-Mar-07 1,628 137 BBVA RMBS 2 FTA BANCO BILBAO VIZCAYA ARGENTARIA SA 26-Mar-07 5,000 838 BBVA-6 FTPYME FTA BANCO BILBAO VIZCAYA ARGENTARIA SA 10-Jun-07 1,500 23 BBVA LEASING 1 FTA BANCO BILBAO VIZCAYA ARGENTARIA SA 24-Jun-07 2,500 85 BBVA RMBS 3 FTA BANCO BILBAO VIZCAYA ARGENTARIA SA 22-Jul-07 3,000 809 TDA 28 MIXTO FTA BANCO BILBAO VIZCAYA ARGENTARIA SA 23-Jul-07 250 75 TDA TARRAGONA 1 FTA BANCO BILBAO VIZCAYA ARGENTARIA SA 30-Nov-07 397 43 GAT VPO BANCO BILBAO VIZCAYA ARGENTARIA SA 25-Jun-09 780 8 BBVA RMBS 14 FTA BANCO BILBAO VIZCAYA ARGENTARIA SA 24-Nov-14 700 244 BBVA CONSUMER AUTO 2018-1 BANCO BILBAO VIZCAYA ARGENTARIA SA 18-Jun-18 800 62 BBVA CONSUMO 10 FT BANCO BILBAO VIZCAYA ARGENTARIA SA 08-Jul-19 2,000 324 BBVA CONSUMER AUTO 2020-1 BANCO BILBAO VIZCAYA ARGENTARIA SA 15-Jun-20 1,100 321 BBVA CONSUMO 11 FT BANCO BILBAO VIZCAYA ARGENTARIA SA 12-Mar-21 2,500 505 BBVA RMBS 20 FT BANCO BILBAO VIZCAYA ARGENTARIA SA 14-Jun-21 2,500 1,751 BBVA RMBS 21 FT BANCO BILBAO VIZCAYA ARGENTARIA SA 17-Mar-22 12,400 8,884 BBVA CONSUMER AUTO 2022-1 BANCO BILBAO VIZCAYA ARGENTARIA SA 13-Jun-22 1,200 532 BBVA RMBS 22 FT BANCO BILBAO VIZCAYA ARGENTARIA SA 28-Nov-22 1,400 1,190 BBVA CONSUMO 12 FT BANCO BILBAO VIZCAYA ARGENTARIA SA 13-Mar-23 3,000 1,675 BBVA CONSUMER AUTO 2023-1 BANCO BILBAO VIZCAYA ARGENTARIA SA 08-Jun-23 800 557 BBVA LEASING 3 FT BANCO BILBAO VIZCAYA ARGENTARIA SA 27-Nov-23 2,400 1,421 BBVA CONSUMO 13 FT BANCO BILBAO VIZCAYA ARGENTARIA SA 11-Mar-24 2,000 1,520 BBVA CONSUMER 2024-1 BANCO BILBAO VIZCAYA ARGENTARIA SA 20-May-24 800 664 BBVA RMBS 23 FT BANCO BILBAO VIZCAYA ARGENTARIA SA 13-Jun-24 5,450 5,181 BBVA CONSUMER AUTO 2024-1 BANCO BILBAO VIZCAYA ARGENTARIA SA 16-Sep-24 1,000 948 Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 165 APPENDIX VII. Details of the outstanding subordinated debt and preferred securities issued by the Bank or entities in the Group consolidated as of December 31, 2024 and 2023 Issue Type and data (Millions of Euros) 2024 2023 Interest rate in force in 2024 Fix (F) or variable (V) Maturity date Non-convertible mar-07 75 74 4.24% V Perpetual mar-08 125 125 6.03% V March-33 feb-17 999 1,000 3.50% F February-27 feb-17 99 99 4.00% F February-32 mar-17 65 65 4.00% F February-32 mar-17 53 53 4.33% V March-27 mar-17 116 109 5.70% F March-32 may-17 21 22 1.60% F May-27 may-17 150 150 2.54% F May-27 may-18 287 269 5.25% F May-33 feb-19 — 750 —% V February-29 ene-20 994 994 1.00% V January-30 jul-20 362 345 3.10% V July-31 jun-23 745 741 5.75% V September-33 ago-23 361 345 8.25% V November-33 nov-23 722 679 7.88% V November-34 feb-24 1,248 — 4.88% V February-36 ago-24 996 — 4.38% V August-36 Subordinated debt - convertible nov-17 963 905 6.13% V Perpetual mar-19 — 1,000 —% V Perpetual sep-19 963 905 6.50% V Perpetual jul-20 1,000 1,000 6.00% V Perpetual jun-23 1,000 1,000 8.38% V Perpetual sep-23 963 905 9.38% V Perpetual jun-24 750 — 6.88% V Perpetual Subtotal 13,057 11,535 Subordinated deposits 189 177 Total 13,246 11,712 This Appendix is an integral part of Note 20.4 of the financial statements for the year ended December 31, 2024. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 166 APPENDIX VIII. Balance sheets held in foreign currency as of December 31, 2024 and 2023 BALANCE SHEET HELD IN FOREIGN CURRENCY (Millions of Euros) USD Pounds sterling Other currencies Total December 2024 Assets Financial assets held for trading 18,209 2,914 942 22,065 Non-trading financial assets mandatorily at fair value through profit or loss 592 — 46 638 Financial assets designated at fair value through other comprehensive income 4,794 183 260 5,237 Financial assets at amortized cost 38,641 3,466 4,294 46,401 Investments in subsidiaries, joint ventures and associates 256 222 18,288 18,766 Tangible assets 109 14 10 133 Other Assets 8,374 199 1,065 9,638 Total 70,975 6,998 24,905 102,878 Liabilities Financial assets held for trading 13,995 1,644 497 16,136 Other financial liabilities designated at fair value through profit or loss 2,180 51 399 2,630 Financial liabilities at amortized cost 49,492 3,168 2,473 55,133 Other Liabilities 658 45 55 758 Total 66,325 4,908 3,424 74,657 BALANCE SHEET HELD IN FOREIGN CURRENCY (Millions of Euros) USD Pounds sterling Other currencies Total December 2024 Assets Financial assets held for trading 22,542 2,077 611 25,230 Non-trading financial assets mandatorily at fair value through profit or loss 401 5 176 582 Financial assets designated at fair value through other comprehensive income 5,243 211 987 6,441 Financial assets at amortized cost 28,919 2,914 3,205 35,038 Investments in subsidiaries, joint ventures and associates — — 16,617 16,617 Tangible assets 62 13 7 82 Other Assets 5,065 116 1,016 6,197 Total 62,232 5,336 22,619 90,187 Liabilities Financial assets held for trading 22,566 890 590 24,046 Other financial liabilities designated at fair value through profit or loss 1,633 102 503 2,238 Financial liabilities at amortized cost 38,686 3,709 3,708 46,103 Other Liabilities 319 34 93 446 Total 63,204 4,735 4,894 72,833 This Appendix is an integral part of Note 2.16 of the financial statements for the year ended December 31, 2024. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 167 APPENDIX IX. Income statement corresponding to the first and second half of 2024 and 2023 INCOME STATEMENTS (Millions of Euros) Six months ended June 30, 2024 Six months ended June 30, 2023 Six months ended December 31, 2024 Six months ended December 31, 2023 Interest income 8,990 2,155 8,596 3,577 Financial assets and liabilities at fair value through other comprehensive income 202 182 181 316 Financial assets at amortized cost 6,053 180 6,148 3,615 Other interest income 2,735 343 2,267 (354) Interest expense (5,757) (428) (5,434) (1,521) NET INTEREST INCOME 3,233 1,727 3,163 2,056 Dividend income 4,891 898 526 1,984 Fee and commission income 1,431 1,183 1,505 1,289 Fee and commission expense (311) (204) (384) (255) Gains (losses) on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 76 61 (1) 2 Financial assets at amortized cost 28 (1) (1) — Other financial assets and liabilities 48 (1) — 2 Gains (losses) on financial assets and liabilities held for trading, net 195 229 489 223 Reclassification of financial assets from fair value through other comprehensive income — — — — Reclassification of financial assets from amortized cost — — — — Other gains or losses 195 215 489 223 Gains (losses) on non-trading financial assets mandatorily at fair value through profit or loss, net (8) 79 86 (3) Reclassification of financial assets from fair value through other comprehensive income — — — — Reclassification of financial assets from amortized cost — — — — Other gains or losses (8) (48) 86 (3) Gains (losses) on financial assets and liabilities designated at fair value through profit or loss, net 174 42 — 47 Gains (losses) from hedge accounting, net — (28) 2 (3) Exchange differences, net 105 28 152 (182) Other operating income 285 89 277 174 Other operating expense (426) (264) (90) (318) GROSS INCOME 9,647 3,840 5,726 5,014 Administrative expense (2,182) (1,816) (2,358) (1,947) Personnel expense (1,237) (1,086) (1,376) (1,177) Other administrative expense (944) (729) (982) (771) Depreciation and amortization (319) (322) (322) (322) Provisions or reversal of provisions (33) (939) (98) (39) Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification (372) (326) (368) (337) Financial assets at amortized cost (372) (166) (372) (338) Financial assets at fair value through other comprehensive income — (17) 3 1 NET OPERATING INCOME 6,740 437 2,579 2,369 Impairment or reversal of impairment of investments in subsidiaries, joint ventures and associates 192 (35) 2,054 8 Impairment or reversal of impairment on non-financial assets (1) (155) (10) (41) Tangible assets 4 47 (9) (26) Intangible assets (5) (1) (2) (15) Other assets — 1 — — Gains (losses) on derecognition of non - financial assets and subsidiaries, net 37 3 13 (1) Negative goodwill recognized in profit or loss — — — — Gains (losses) from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations (13) 110 (1) (16) PROFIT (LOSS) BEFORE TAX FROM CONTINUING OPERATIONS 6,954 360 4,636 2,320 Tax expense or income related to profit or loss from continuing operations (742) 208 (613) (107) PROFIT (LOSS) AFTER TAX FROM CONTINUING OPERATIONS 6,213 568 4,022 2,212 Profit (loss) after tax from discontinued operations — 277 — — PROFIT(LOSS) FOR THE YEAR 6,213 845 4,022 2,212 Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 168 APPENDIX X. Risks related to the developer and real-estate sector in Spain a. Policies and strategies established by the Group to deal with risks related to the developer and real-estate sector BBVA has teams specializing in the management of the Real-Estate Sector risk, given its economic importance and specific technical component. This specialization is not only in the Risk-Acceptance teams, but throughout the handling, commercial, problematic management legal, etc. Specialization has been increased and the management teams in the areas of recovery and the Real Estate Unit itself have been reinforced. The portfolio management policies, established to address the risks related to the developer and real-estate sector, aim to accomplish, among others, the following objectives: to avoid concentration in terms of customers, products and regions; to estimate the risk profile for the portfolio; and to anticipate possible worsening of the portfolio. Specific policies for analysis and admission of new real estate developer risk transactions There are guidelines for action that most of the operations follow, among which the contrast of the commercialization that guarantees the economic and financial viability of the project is of special importance. In this context, the strategy with clients in the development sector is subject, to an asset allocation limit and to an action framework that allows defining a target portfolio, both in volume and in credit quality specifications. Risk monitoring policies Monitoring Committees are held on a monthly basis in which the evolution of the real estate portfolio is reviewed, with a review of its credit quality, the ratings given to customers and the entries in arrears that have occurred. Monitoring Committees are held on a quarterly basis with the risk areas of the countries in which the development of all financed projects, their correct evolution in terms of works and sales, and compliance with the expected delivery schedules are analyzed. As for the policies relating to risk refinancing with the developer and real-estate sector, they are the same as the general policies used for all of the Group’s risks (Appendix XI). In the developer and real estate sector, they are based on clear solvency and viability criteria for projects, being demanding in obtaining additional guarantees and legal compliance with a refinancing tool that standardizes the criteria and variables to be considered in any refinancing. b. Quantitative information on activities in the real-estate market in Spain Lending for real estate development according to the purpose of the loans as of December 31, 2024 and 2023 is shown below: Financing Allocated to Construction and Real Estate Development and its Coverage (Millions of Euros) Gross amount Drawn over the guarantee value Accumulated impairment 2024 2023 2024 2023 2024 2023 Financing to construction and real estate development (including land) (Business in Spain) 2,207 2,105 473 482 (108) (126) Of which: Impaired assets 136 183 45 53 (90) (105) Memorandum item: — — — — — — Write-offs 2,100 2,097 Memorandum item: — — — — — — Total loans and advances to customers, excluding the Public Sector (Business in Spain) 179,899 174,280 Total consolidated assets (total business) 468,295 490,883 Impairment and provisions for normal exposures (1,253) (1,344) Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 169 The following is a description of the real estate credit risk based on the types of associated guarantees: Financing allocated by credit institutions to Construction and Real Estate Development and lending for house purchase (Millions of Euros) 2024 2023 Without secured loan 408 359 With secured loan 1,799 1,746 Terminated buildings 832 857 Homes 656 685 Other 177 172 Buildings under construction 869 749 Homes 843 731 Other 26 18 Land 97 139 Urbanized land 76 92 Rest of land 22 47 Total 2,207 2,105 As of December 31, 2024 and 2023, 37.7% and 40.7% of loans to developers were guaranteed with buildings (78.8% and 79.9%, are homes), and only 4.4% and 6.6% by land, of which 78.4% and 66.2% are in urban locations, respectively. The table below provides the breakdown of the financial guarantees given as of December 31, 2024 and 2023: Financial guarantees given (Millions of Euros) 2024 2023 Houses purchase loans 53 36 Without mortgage 2 3 The information on the retail mortgage portfolio risk (housing mortgage) as of December 31, 2024 and 2023 is as follows: Financing Allocated by credit institutions to Construction and Real Estate Development and lending for house purchase (Millions of Euros) Gross amount Of which: impaired loans 2024 2023 2024 2023 Houses purchase loans 71,709 71,144 2,889 3,267 Without mortgage 1,416 1,415 9 10 With mortgage 70,294 69,730 2,880 3,257 The loan to value (LTV) ratio of the above portfolio is as follows: LTV Breakdown of mortgage to households for the purchase of a home (Business in Spain) (Millions of Euros)" Total risk over the amount of the last valuation available (Loan To Value-LTV) Less than or equal to 40% Over 40% but less than or equal to 60% Over 60% but less than or equal to 80% Over 80% but less than or equal to 100% Over 100% Total December 2024 Gross amount 18,584 21,171 23,193 4,643 2,702 70,294 of which: Impaired loans 314 502 622 539 904 2,880 December 2023 Gross amount 17,201 20,302 22,850 5,856 3,519 69,729 of which: Impaired loans 307 464 642 617 1,227 3,257 Outstanding home mortgage loans for house purchase as of December 31, 2024 and 2023 had an average LTV of 41% and 42% respectively. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 170 The breakdown of foreclosed, acquired, purchased or exchanged assets from debt from loans relating to business in Spain, as well as the holdings and financing to non-consolidated entities holding such assets is as follows: Information about Assets Received in Payment of Debts (Business in Spain) (Millions of Euros) Gross Value Provisions Of which: Valuation adjustments on impaired assets, at the time of foreclosure Carrying Amount 2024 2023 2024 2023 2024 2023 2024 2023 Real estate assets from loans to the construction and real estate development sectors in Spain. 1 16 (1) (14) — (2) — 2 Terminated buildings — 1 — — — — — — Homes — — — — — — — — Other — 1 — — — — — — Buildings under construction — — — — — — — — Homes — — — — — — — — Other — — — — Land 1 15 (1) (14) — (2) — 1 Urbanized land 1 15 (1) (14) — (2) — 1 Rest of land — — — — Real estate assets from mortgage financing for households for the purchase of a home 382 528 (202) (289) (66) (90) 180 239 Rest of foreclosed real estate assets 283 364 (194) (231) (61) (76) 88 133 Equity instruments, investments and financing to non-consolidated companies holding said assets — — — — — — — — Total 666 909 (398) (535) (127) (169) 268 374 The gross book value of real-estate assets from mortgage lending to households for home purchase as of December 31, 2024 and 2023 amounted to €382 and €527 million, respectively, with an average coverage ratio of 52.9% and 54.6%, respectively. As of December 31, 2024 and 2023, the gross book value total real-estate assets (business in Spain), including other real-estate assets received as debt payment, was €667 and €908 million, respectively. The coverage ratio was 59.7% and 58.8%, respectively. This Appendix is an integral part of Note 5 of the financial statements for the year ended December 31, 2024. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 171 APPENDIX XI. Refinanced and restructured operations and other requirements under Bank of Spain Circular 6/2012 a) Policies and strategies established by the Group to deal with risks related to refinancing and restructuring operations. Refinancing and restructuring transactions (see definition in the Glossary) are carried out with customers who have requested such a transaction in order to meet their current loan payments if they are expected, or may be expected, to experience financial difficulty in making the payments in the future. The basic aim of a refinancing and restructuring transaction is to provide the customer with a situation of financial viability over time by adapting repayment of the loan incurred with the Group to the customer’s new situation of fund generation. The use of refinancing and restructuring for other purposes, such as to delay loss recognition, is contrary to BBVA Group policies. The BBVA Group’s refinancing and restructuring policies are based on the following general principles: – Refinancing and restructuring is authorized according to the capacity of customers to pay the new installments. This is done by first identifying the origin of the payment difficulties and then carrying out an analysis of the customers’ viability, including an updated analysis of their economic and financial situation and capacity to pay and generate funds. If the customer is a company, the analysis also covers the situation of the industry in which it operates. – With the aim of increasing the solvency of the transaction, new guarantees and/or guarantors of demonstrable solvency are obtained where possible. An essential part of this process is an analysis of the effectiveness of both the new and original guarantees. – This analysis is carried out from the overall customer or group perspective. – Refinancing and restructuring transactions do not in general increase the amount of the customer’s loan, except for the expense inherent to the transaction itself. – The capacity to refinance and restructure a loan is not delegated to the branches, but decided on by the risk units. – The decisions made are reviewed from time to time with the aim of evaluating full compliance with refinancing and restructuring policies. These general principles are adapted in each case according to the conditions and circumstances of each geographical area in which the Group operates, and to the different types of customers involved. In the case of retail customers (private individuals), the main aim of the BBVA Group’s policy on refinancing and restructuring a loan is to avoid default arising from a customer’s temporary liquidity problems by implementing structural solutions that do not increase the balance of the customer’s loan. The solution required is adapted to each case and the loan repayment is made easier, in accordance with the following principles: – Analysis of the viability of transactions based on the customer’s willingness and ability to pay, which may be reduced, but should nevertheless be present. Therefore, in all cases the customer shall at least make interest payments, with certain limited exceptions where grace periods are afforded in respect of both principal and interest payments. – Refinancing and restructuring of transactions is only allowed on those loans in which the BBVA Group originally entered into. – Customers subject to refinancing and restructuring transactions are excluded from marketing campaigns of any kind. In the case of non-retail customers (mainly companies, enterprises and corporates), refinancing/restructuring is authorized according to an economic and financial viability plan based on: – Forecasted future income, margins and cash flows to allow entities to implement cost adjustment measures (industrial restructuring) and a business development plan that can help reduce the level of leverage to sustainable levels (capacity to access the financial markets). – Where appropriate, the existence of a divestment plan for assets and/or operating segments that can generate cash to assist the deleveraging process. – The capacity of shareholders to contribute capital and/or guarantees that can support the viability of the plan. In accordance with the Group’s policy, the conclusion of a loan refinancing and restructuring transaction does not mean the loan is reclassified from "impaired" or "significant increase in credit risk" to normal risk. The reclassification to "significant increase in credit risk" or normal risk categories must be based on the analysis mentioned earlier of the viability, upon completion of the probationary periods described below. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 172 The Group maintains the policy of including risks related to refinanced and restructured loans as either: – "Impaired assets", as although the customer is up to date with payments, they are classified as unlikely to pay when there are significant doubts that the terms of their refinancing may not be met; or – "Significant increase in credit risk" until the conditions established for their consideration as normal risk are met. The assets classified as "Impaired assets" should comply with the following conditions in order to be reclassified to "Significant increase in credit risk": – The customer has to have paid a significant part of the pending exposure. – At least one year must have elapsed since the later of: i) the time at which the restructuring measures were extended, – The customer does not have past due payments and objective criteria, demonstrating the borrower´s ability to pay, have been verified. The conditions established for assets classified as “Significant increase in credit risk” to be reclassified out of this category are as follows: – The customer must have paid past-due amounts (principal and interest) since the date of the renegotiation or restructuring of the loan or other objective criteria, demonstrating the borrower´s ability to pay, have been verified; none of its exposures is more than 30 days past-due. – At least two years must have elapsed since completion of the renegotiation or restructuring of the loan or, if later, the date of reclassification from the deteriorated category. Regular payments must have been made during at least half of this probation period. They may be reclassified to normal risk as long as the significant increase in credit risk has been reversed within two years, although they must remain identified as refinanced/restructured until the minimum two-year trial period ends. – It is unlikely that the customer will have financial difficulties and, therefore, it is expected that the customer will be able to meet its loan payment obligations (principal and interest) in a timely manner. Renewals and renegotiations are classified as normal risk, provided that there is no significant increase in risk. This classification is applicable initially, and in the event of any deterioration, the criteria established in the existing policy are followed. In this sense, the aforementioned conditions are considered, including, among others, the requirement that the facility is not more than 30 days past due and that it has not been identified as 'unlikely to pay'. The BBVA Group’s refinancing and restructuring policy provides for the possibility of two modifications in a 24 month period for loans that are not in compliance with the payment schedule. The internal models used to determine allowances for loan losses consider the restructuring and renegotiation of a loan, as well as re- defaults on such a loan, by assigning a lower internal rating to restructured and renegotiated loans than the average internal rating assigned to non-restructured/renegotiated loans. This downgrade results in an increase in the probability of default (PD) assigned to restructured/renegotiated loans (with the resulting PD being higher than the average PD of the non- renegotiated loans in the same portfolios). In any case, a restructuring will be considered impaired when the reduction in the present net value of the financial obligation is greater than 1%. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 173 b) Quantitative information on refinancing and restructuring operations BALANCE OF FORBEARANCE (Millions of Euros)" TOTAL Unsecured loans Secured loans Accumulated impairment or accumulated losses in fair value due to credit risk Number of operations Gross carrying amount Number of operations Gross carrying amount Maximum amount of secured loans that can be considered Real estate mortgage secured Rest of secured loans 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Credit institutions General Governments 36 49 14 31 4 24 1 7 — 5 — — 4 6 Other financial corporations and individual entrepreneurs (financial business) 269 259 6 16 18 20 4 6 3 5 — — 3 4 Non-financial corporations and individual entrepreneurs (corporate non-financial activities) 37,442 35,691 2,011 2,228 3,705 4,451 936 1,283 478 712 10 59 1,026 1,093 Of which: financing the construction and property (including land) 71 85 12 12 377 474 128 194 56 101 2 — 74 98 Rest homes 51,157 53,064 729 789 33,095 36,511 3,632 3,947 2,564 2,817 — 2 1,120 1,254 Total 88,904 89,063 2,760 3,064 36,822 41,006 4,573 5,243 3,045 3,539 10 61 2,153 2,357 of which: IMAPAIRED TOTAL Unsecured loans Secured loans Accumulated impairment or accumulated losses in fair value due to credit risk Number of operations Gross carrying amount Number of operations Gross carrying amount Maximum amount of secured loans that can be considered Real estate mortgage secured Rest of secured loans 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Credit institutions General Governments 23 25 9 14 4 4 1 2 — 1 — — 4 4 Other financial corporations and individual entrepreneurs (financial business) 157 183 4 5 11 14 1 1 — 1 — — 3 2 Non-financial corporations and individual entrepreneurs (corporate non-financial activities) 26,074 27,869 1,211 1,275 2,579 3,308 614 781 225 335 6 6 920 947 Of which: financing the construction and property (including land) 63 81 12 12 280 370 86 134 23 49 — — 68 90 Rest homes 31,456 38,088 484 586 19,836 23,689 2,209 2,622 1,376 1,721 — 1 991 1,141 Total 57,710 66,165 1,708 1,880 22,430 27,015 2,825 3,406 1,602 2,058 6 7 1,919 2,094 Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 174 c) Loans and advances to customers by activity (carrying amount) December 2024 (Millions of euros) Collateralized loans and receivables -Loans and advances to customers. Loan to value Less than or equal to 40% Over 40% but less than or equal to 60% Over 60% but less than or equal to 80% Over 80% but less than or equal to 100% Over 100% 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 General governments 13,089 13,304 228 240 — 172 124 129 68 86 34 21 34 173 1 2 Other financial institutions and financial individual entrepreneurs 25,912 22,697 632 487 16,683 14,285 209 123 341 351 248 48 248 10,101 8,086 4,148 Non-financial institutions and non-financial individual entrepreneurs 110,917 99,406 10,706 9,620 2,143 2,030 5,090 4,674 3,893 3,304 1,662 1,743 1,662 833 1,296 1,098 Construction and property development 1,876 1,759 1,693 1,598 5 6 940 917 602 480 98 125 98 25 18 57 Construction of civil works 5,089 5,071 420 482 213 218 199 217 158 185 83 75 83 22 185 200 Other purposes 103,952 92,576 8,592 7,541 1,925 1,806 3,951 3,540 3,134 2,639 1,481 1,543 1,481 785 1,093 840 Large companies 78,907 68,012 3,849 2,828 1,401 1,256 1,780 1,445 1,313 814 687 724 687 594 793 507 SMEs (2) and individual entrepreneurs 25,045 24,564 4,743 4,713 525 550 2,172 2,096 1,821 1,825 794 819 794 191 300 333 Rest of households and NPISHs (**) 91,377 89,545 70,581 70,141 242 257 19,620 18,175 21,605 20,905 23,174 22,902 23,174 5,555 2,132 2,861 Housing 71,729 71,184 69,840 69,325 78 88 19,367 17,898 21,418 20,701 23,017 22,767 23,017 5,442 1,930 2,605 Consumption 16,354 15,174 64 78 95 104 53 54 39 57 27 26 27 16 25 29 Other purposes 3,293 3,187 677 739 70 66 200 224 148 147 130 109 130 97 176 228 TOTAL 241,296 224,952 82,147 80,488 19,069 16,743 25,043 23,101 25,906 24,645 25,118 24,715 25,118 16,662 11,515 8,108 MEMORANDUM: Forbearance operations (4) 5,179 5,950 3,436 3,970 34 64 817 872 795 887 721 792 721 608 651 875 (1) The amounts included in this table are net of loss allowances. (2) Small and medium enterprises (3) Nonprofit institutions serving households. (4) Net of provisions. d) Concentration of risks by activity and geographical area (carrying amount) Concentration of exposures by activity and geographical area TOTAL (1) Spain Rest of the European Union America Rest of the world 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Credit institutions 98,589 152,727 17,332 51,219 29,301 56,130 24,338 19,386 27,617 25,992 General governments 72,523 66,512 54,556 50,853 12,437 9,827 4,298 4,029 1,233 1,802 Central Administration 57,751 51,224 41,061 36,920 11,724 9,167 4,130 3,798 835 1,338 Other 14,772 15,288 13,494 13,933 713 660 167 232 398 464 Other financial institutions and financial individual entrepreneurs 71,023 61,221 11,660 11,216 28,056 27,195 18,372 16,810 12,935 6,000 Non-financial institutions and non-financial individual entrepreneurs 167,656 148,032 89,603 84,753 28,848 22,953 28,870 23,327 20,335 16,999 Construction and property development 2,835 2,621 2,835 2,621 — — — — — — Construction of civil works 9,205 8,798 6,187 6,230 1,077 842 710 748 1,232 978 Other purposes 155,616 136,613 80,581 75,902 27,772 22,111 28,160 22,579 19,103 16,020 Large companies 128,028 110,076 54,722 50,293 26,995 21,571 27,989 22,428 18,322 15,784 SMEs and individual entrepreneurs 27,588 26,537 25,859 25,609 776 540 172 152 781 236 Other households and NPISHs 91,693 89,850 90,506 88,513 926 1,027 72 78 189 233 Housing 71,730 71,184 70,761 70,073 745 839 57 65 167 207 Consumer 16,354 15,174 16,271 15,111 62 43 13 12 9 9 Other purposes 3,609 3,492 3,474 3,329 119 145 2 1 14 17 TOTAL 501,484 518,343 263,657 286,554 99,569 117,132 75,949 63,631 62,309 51,026 (1) The definition of risk for the purpose of this statement includes the following items on the public balance sheet: “Loans and advances to credit institutions”, “Loans and advances”, “Debt securities”, “Equity instruments”, “Other equity securities”, “Derivatives and hedging derivatives”, “Investments in subsidiaries, joint ventures and associates” and “Guarantees given”. The amounts included in this table are net of loss allowances. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 175 December 2023 - Spain (Millions of euros) TOTAL (1) Andalucia Aragon Asturias Baleares Canarias Cantabria Castilla La Mancha Castilla y León Cataluña 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Credit institutions 17,332 51,219 1,705 1,006 23 688 — — 37 28 — — 1,879 1,558 — 1 — — 188 241 Government agencies 54,555 50,853 2,044 1,655 270 404 352 393 215 408 842 905 5 7 174 331 1,481 1,221 1,645 1,707 Central Administration 41,061 36,920 — — — — — — — — — — — — — — — — — — Other 13,494 13,933 2,044 1,655 270 404 352 393 215 408 842 905 5 7 174 331 1,481 1,221 1,645 1,707 Other financial institutions and financial individual entrepreneurs 11,660 11,216 109 92 56 56 14 16 108 18 3 3 — — 2 2 4 6 417 365 Non-financial institutions and non- financial individual entrepreneurs 89,603 84,753 7,861 7,650 2,090 1,974 1,428 1,268 2,586 2,371 2,476 2,397 534 526 1,782 1,663 1,646 1,589 14,233 14,553 Construction and property development 2,835 2,621 472 380 60 27 37 32 37 24 105 91 19 10 57 62 25 23 525 584 Construction of civil works 6,187 6,230 612 572 156 113 49 48 120 137 119 114 47 49 234 216 106 95 959 1,008 Other purposes 80,581 75,902 6,776 6,698 1,874 1,834 1,342 1,188 2,429 2,210 2,252 2,192 468 468 1,491 1,385 1,515 1,471 12,749 12,961 Large companies 54,722 50,293 2,488 2,483 1,109 1,109 1,037 881 1,758 1,493 1,124 1,056 272 270 595 534 694 653 6,886 7,113 SMEs and individual entrepreneurs 25,859 25,609 4,288 4,215 765 725 305 307 671 717 1,128 1,137 196 197 896 851 821 818 5,864 5,848 Other households and NPISHs 90,506 88,514 14,191 13,593 1,393 1,377 1,251 1,231 1,976 1,961 3,982 3,896 874 858 2,598 2,539 3,016 2,932 26,665 26,577 Housing 70,761 70,073 11,017 10,647 1,064 1,078 901 890 1,568 1,588 2,731 2,739 708 698 1,881 1,880 2,279 2,238 21,770 21,912 Consumer 16,271 15,111 2,820 2,596 293 266 286 279 381 347 1,153 1,061 137 131 657 601 616 577 3,826 3,610 Other purposes 3,474 3,329 353 350 37 33 64 61 27 27 98 96 29 30 60 57 121 116 1,069 1,055 TOTAL 263,657 286,554 25,910 23,995 3,833 4,500 3,044 2,908 4,922 4,786 7,304 7,201 3,291 2,949 4,556 4,534 6,147 5,748 43,147 43,443 (1) The definition of risk for the purpose of this statement includes the following items on the public balance sheet: “Loans and advances to credit institutions”, “Loans and advances”, “Debt securities”, “Equity instruments”, “Other equity securities”, “Derivatives and hedging derivatives”, “Investments in subsidiaries, joint ventures and associates” and “Guarantees given”. The amounts included in this table are net of loss allowances. December 2023 - Spain (Millions of euros) Extremadura Galicia Madrid Murcia Navarra Comunidad Valenciana País Vasco La Rioja Ceuta y Melilla 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Credit institutions — — 32 393 12,206 44,610 — — — — 1,129 2,400 132 293 — — — — Government agencies 114 267 820 755 3,119 3,277 57 95 302 303 546 696 1,390 1,362 79 82 39 67 Central Administration — — — — — — — — — — — — — — — — — — Other 114 267 820 755 3,119 3,277 57 95 302 303 546 696 1,390 1,362 79 82 39 67 Other financial institutions and financial individual entrepreneurs 2 1 30 28 10,016 9,936 5 2 3 — 7 5 884 684 — — — — Non-financial institutions and non-financial individual entrepreneurs 1,023 989 3,014 2,802 34,391 30,474 1,626 1,718 1,084 1,041 6,607 5,908 6,755 7,372 353 342 115 116 Construction and property development 9 10 68 59 1,145 994 55 47 2 3 152 146 59 122 6 4 1 2 Construction of civil works 52 53 344 333 2,710 2,795 89 109 55 55 304 302 187 209 30 10 13 14 Other purposes 962 926 2,602 2,410 30,536 26,685 1,482 1,562 1,027 984 6,151 5,460 6,508 7,041 318 328 100 100 Large companies 429 403 1,611 1,448 25,872 22,366 769 806 737 686 3,789 3,010 5,386 5,826 153 139 13 17 SMEs and individual entrepreneurs 533 524 991 963 4,664 4,319 713 755 290 297 2,362 2,451 1,122 1,214 165 189 87 83 Other households and NPISHs 1,549 1,474 3,268 3,270 14,931 14,240 2,026 1,979 499 487 8,172 8,075 3,018 2,937 337 333 761 755 Housing 1,124 1,084 2,412 2,378 11,827 11,494 1,511 1,502 386 380 6,280 6,318 2,431 2,374 259 261 612 613 Consumer 384 352 731 688 2,114 1,928 478 442 98 92 1,679 1,552 416 397 65 60 137 130 Other purposes 41 38 126 204 990 818 37 34 15 15 212 206 171 165 13 12 12 11 TOTAL 2,688 2,732 7,164 7,248 74,664 102,538 3,714 3,794 1,887 1,831 16,462 17,084 12,178 12,648 770 757 914 937 Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 176 Appendix XII. Agency Network JON MIKEL LEJONA DE SOLA MARIA TERESA SEGURA MASSOT GERARD MARTINEZ ALCAÑIZ EMILIO GUSTAVO GONZALEZ GUTIERREZ MERCEDES LOZANO CALVO LLUIS CASAS CASTELLA GESTION ESTUDIO Y AUDITORIA DE EMPRESAS GEA S.R.L. CRISTINA RUBIO SEGARRA MARIA CARMEN OJEDA OSA MARIA GUTIERREZ FERNANDEZ AROA ATIENZA QUINTERO MARIA ISABEL GONZALEZ ALVAREZ SIRA ASUNCION ORUE BARASOAIN MARIA CRISTINA FERREIRO GARCIA JOSE MANUEL PAZO GARCIA CREACIONES CARLINA S.L. PEDRO PRIGMAN RUIZ ROLO GESTION E INVERSION SOCIEDAD LTDA. FERNANDO PEGUERO LANZOS ELISABET BATET CASAÑAS JORGE SANZ ARIÑO EASY MODE S C J RETA ASOCIADOS S.L. DAVID LLOPIS GINESTRA GONZALO CASTEJON DE LA ENCINA DAVID REYES HERNANDO ALEXANDRA MANGRANE RAMOS CARLOS VELEZ GOMEZ SERGIO DIENTE ALONSO LAURA BARBAZAN DURAN FRANCISCO JAVIER MARIN ALFONSO EMASFA S.L. NATALIA FERNANDEZ DEL VISO GARCIA ANTONIO MANUEL MOLERO YEPES TELEMEDIDA Y GAS S.L. NURIA NOGUERON MATAMOROS JAVIER CANALES FUENTE BEGOÑA MONICA FERNANDEZ QUILEZ ORIOL MURIA GALLEGO ANA GAROZ DURO FRANCISCO JAVIER SMITH BASTERRA MARIA GLORIA TENA BISTUE CRISTINA ACEBES PEREZ JOSE IGNACIO DE PRADO MANEIRO MARIA PILAR CALVET REVERTE PATRICIA LOPEZ SANCHEZ MARIA ENCARNACION MARTINEZ MEZQUITA MIGUEL BELLO NAVARRO ALPHALYNX CAPITAL S.L. LAURA GISTAU LATRE MARIA DOLORES SUBIRATS ESPUNY CARLOS GOMEZ EBRI MARIA ISABEL PIÑERO MARTINEZ JOSE JOAQUIN GIMENO PLA EZEQUIEL AND SANCHEZ CONSULTORES S.L. LAURA SOTOCA SANCHEZ MEDONE SERVEIS S.L. LEONILA PLUS S.L. JOSEFA FOLCRA MARTIN DAVID SOTERAS MORERA MARIANO PELLICER BARBERA JULIAN FERREIRA FRAGA FERNANDO MARIA ARTAJO JARQUE TERESA VERNET VILLAGRASA ANA MARIA CARO MARTIN JUAN MIRANDA COSTA ELISENDA FERNANDEZ RAMON ACOFI S.L. DIEGO TORRES PARRA CARLES BOSOM MORA SERGIO GONZALEZ RUIZ JOSE JUAN LAFUENTE ALMELA JESUS MARTOS LOPEZ FRANCISCO JAVIER GOMEZ CARRILLO FRANCIAMAR S L U NOELIA TORRELLAS GRAMAJE JERONIMO ESTEBAN VERA RIOS INVERSIONES IZARRA 2000, S.L. MARIA LOPEZ GALINDO ASESORES FINANCIEROS R V SABIO S L U FERNANDO MARIA ORTEGA ALTUNA CATALINA MARIA RAMIS BOYERAS LINA CAYUELA ALFONSO MARTINEZ PUJANTE ARRILUCEA 2017 S.L. MARIA ESMERALDA RUIZ ALMIRON ASESORES FINANCIEROS PADRON CHILCO GESTION S.L. JOSE IGNACIO ARIAS HERREROS INVAL 02 S.L. KOLDOBIKA HORNA VALDIVIELSO ASIER LARREA ORCOYEN SAENZ DE TEJADA ASESORES SL MANUEL SALGADO FEIJOO JUAN CARLOS RODRIGUEZ HERNANDEZ MARTA MARIA GOMEZ DE MAINTENANT DORLETA LOPEZ LOPEZ ESPERANZA MACARENA POZO GONZALEZ TERESA BARRENENGOA MENENDEZ SARA ROBLES ALONSO GESTION Y SERVICIOS SAN ROMAN DURAN S.L. ANTONIO HUMERA FERNANDEZ BEATRIZ MARIA PACHA PRIOR SANDRA BERRAL PLATERO INVERSIONES SUAREZ IBAÑEZ S.L. GESTION FINANCIERA MIGUELTURRA S.L. ALEXIA MARIA GONZALEZ LANZA MARIA DEL PILAR FERNANDEZ VERGARA PEDRO CRUCERA GARCIA ALEJANDRO NUEVO DIAZ LLUIS CERVERA SABALLS MARIA ISABEL CALVO SANCHEZ CAPAFONS Y CIA S.L. ESTELA MOLINA SANCHEZ MANUEL ANTONIO DE LAS MORENAS LOPEZ ASTILLERO PUENTE B GESTION INTEGRAL S.L. ASESORIA LEMA Y GARCIA S.L. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 177 FRANCISCO JAVIER SANCHEZ PARRA JAVIER GARCIA LORENZO LETICIA GARCIA CAMAFREITA EMPRENDE SERVICIOS FINANCIEROS S.L. CELSO GOMIS VIVES ESTHER ROIG BRAVO FRANCISCO EULOGIO ORTIZ MARTIN ROCIO BLANCO PEREIRA ESTIBALIZ REBOLLO GARCIA BLANMED ASESORES SOCIEDAD COOP. JUAN LOPEZ MARTINEZ FAMILYSF SALUFER S.L. ALVARO LLUSAR ESCOBAR VICENTE MONTESINOS CONTRERAS FEM AGENTS SCP LEOPOLDO MARTINEZ BERMUDEZ IGNACIO VALLS BENAVIDES IVAN CALLES VAQUERO BENJAMIN MONFORT GUILLAMON MIGUEL IZQUIERDO DOLS VICENC COMAS VICENS MONICA MIGUEL MOLINA JOSE MARIA GOMEZ CIDONCHA DIEGO LOPEZ PRO NURIA VAZQUEZ CARRASCO ISABEL ALVAREZ CALDERON NANOBOLSA S.L. CATARINA PARDIÑAS SUAREZ DEBCO ESTRUCTURA PROFESIONAL S L P SERVICIOS FINANCIEROS AZMU S.L. MIGUEL SUAREZ RODRIGUEZ MIGUEL DIAZ GARCIA FUENTES E R L CRISTINA CEBALLOS URCELAY MARIA TERESA DE ZAYAS CAMPOS FINFORYOU ADVISORS S.L. JAVIER ALAYON FUMERO JOSE LUIS GARCIA PRIETO PERALTA Y ARENSE ASESORES Y CONSULTORES S.L. JOSE ANDRES RAMOS SOBRIDO JOSE MIGUEL LOPEZ DAZA ANTONIO FERMIN LUNA GARCIA MINA FATIMA ROMERO FORMOSO AF ABELENDA S.L. JARAIZ SELECCION S.L. PAULA REY FERRIN BELEN FIRVIDA PLAZA CECILIA PEREZ PIQUERAS GOMEZ JESUS CARLOS LOPEZ MARTIN SILVIA ATANES GONZALEZ MARIA JESUS LOPEZ RASCON JOSE MARIA GUILLAMON CAMARERO PAULA BARCIA PEREZ AULES ASESORES SL URBANSUR GLOBAL S.L. MARIA LOPEZ PEREZ VALDELASIERRA ASESORES S.L. ESCRIVA DE ROMANI S.L. ANABEL VARELA PAZ JOSE DEL OLMO LOZANO ISABEL SOTO DE PRADO PAZGRANDIO S.L. STRAFY 4 ASSET MANAGEMENT S.L. EDUARDO ESCRIBANO DE LA ROSA MARIA JOSE RODRIGUEZ PEREZ ISAAC OLIVA RUIZ A E S T E S.L. JOSE MANUEL LOPEZ IRIARTE ANTONIO RUIZ SORIA RAUL ANTELO JALLAS DANIEL FERNANDEZ ONTAÑON ARAN PALLARS ASSESSORS S.L. HECTOR JAVIER LAGIER MATEOS ENRIQUE MATA SANTIN ASEFINSO SC ARTURO MARIA GOMEZ JUEZ JESUS MARIA TEMPRANO NODRID EDUARD RECASENS BLANCH ALEJANDRO PEREZ ANDREU JULIAN CALVO FERNANDEZ DAVID MUÑOZ GALVE JORGE LUIS RAMOS ROMAN XESCONTA ASESORIA DE EMPRESAS SOCIEDAD LTDA. LUIS ALBERTO LARA GARCIA DIEGO HERNANDEZ QUERO FRANCISCO MANUEL GOMEZ RODRIGUEZ LUIS DURO DOMENE MARBELLA CASADO RODRIGUEZ MIGUEL ANGEL LANERO PEREZ JUAN ANTONIO ASTORGA SANCHEZ ESTHER SIERRA SIERRA JAVIER ANTONIO GONZALEZ GOMEZ PEDRO RAFAEL MARTINEZ GARCIA JUAN CARLOS DUQUE MEDRANO ALZO CAPITAL S.L. NOCOC INVESTMENTS S C VIRGINIA GARCIA DEL HOYO FRANCISCO JAVIER REZA MONTES ZARIZA CONSULTORES S.L. ALERCIA INTERNATIONAL WEALTH MANAGEMENT S.L. JOSE ANTONIO SANCHEZ SANCHEZ MANUEL LUIS DEL BARCO ASENCIO VANESA SERRANO GALLEGO VERONICA RIUS VIÑALS CECILIA VERONICA CRUZ SANTANA ANTONIO LOPEZ GARCIA CRISTINA MODOL RUIZ MONTSERRAT COSTA CALAF MEDINA FINANZAS S.L. MARIA DEL PILAR LEON CABRERA JOSEP GIBERT GATELL CORCUERA ABOGADOS Y ASESORES DE PATRIMONIO S.L. JUAN FRANCISCO DIAZ FLORES TAMARA MARTIN ARQUELLADA JULIO MARCO MORERA CELDRAN ALVARO FUENTE VILLARAN SALVADOR CASELLAS GASSO IVAN RODRIGUEZ CIFUENTES REBECA GUTIERREZ FERNANDEZ FRANCESC VICENÇ RODON MARTINEZ DARIO ALFONSO GINES LAHERA BERNARDO ANDRES GIRALDO CHALARCA RUBEN SANTOS MAYORDOMO JESUS ANGEL ZUECO GIL MSJN FINANCIAL ADVISORS S.L. RAMON LINARES LOPEZ ELENA PATRICIA ALVARO LOPEZ ESTHER MONTOYA CARRASCO MARTIN GUERRERO ARPI ALBA ASENSIO REIG JUAN DIOS COBLER FERNANDEZ ANA CAÑAS BLANCO JUAN LORENZO S.L. MARIA CISTERO BOFARULL LUIS ALBERTO GRAÑON LOPEZ BEATRIZ INMACULADA JUNQUERA FRESCO ANNA DURAN VIDAL GALARRETA Y PROVEDO S.L. MORILLO-MUÑOZ CB Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Appendices 178 MARIA ANGELS MIRO SALA ESTUDIOS FISCALES Y FINANCIEROS RIOJANOS S.L. ANGEL ENRIQUE EUGENIO CUBEROS OKAPI SES SALINES S.L. CLUSTER CAPITAL S.L. GONZALO CAMPOS BRAVO RAQUEL SANCHEZ MUÑOZ TIO CODINA ASSESSORS D INVERSIONS S.L. FRANCISCO JOSE DIEGO MARTI MARIA ROSARIO SANCHEZ PALACIOS PAU CASAS AMBLAS PABLO GAGO COMES LUIS FELIPE ALVAREZ BURON GESTORA PAMASA SL IGNACIO JORDAN CHIVELI LAFUENTE SERVICIOS EXTERNOS S.L. TRUC PEBE SALLENT S.L. EDUARDO BALLESTER GOMILA PADIAN GESTORES ADMINISTRATIVOS S L P CRISTINA BLASCO PRATS JAVIER FRANCISCO TEN PEREZ MONTE AZUL CASAS S.L. ANGEL GARCIA DESCALZO MIGUEL JOSE FERNANDEZ MARDOMINGO BARRIUSO JESUS CARRASCO MORA JOSE RAMON MORSO PELAEZ MALGOFRE S.L. JAVIER ALOSETE MINGUEZ ROCIO ARCONES GARCIA SERFINESPO S.L. JOSE LUIS ORTUÑO CAMARA ENDOR INVERSIONES S.L. AFIN 7 BAGES S.L. XAVIER FABREGAS MARTORI MITJAVILA Y ASOCIADOS ESTUDIO JURIDICO FISCAL S.L. MARCOS GIL TEJADA MARC TERMES MIRANDA REGINA MARIA ARESTI MUGICA JOAN ALBERT ROS BEATRIZ MARIN ROBLES DACEZA SOLUCIONES S L U LAURA RIERA GARCIA Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Glossary 179 Glossary Additional Tier 1 Capital Includes: Preferred stock and convertible perpetual securities and deductions. Adjusted acquisition cost The acquisition cost of the securities less accumulated amortizations, plus interest accrued, but not net of any other valuation adjustments. Amortized cost The amortized cost of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured at initial recognition minus the principal repayments, plus or minus, the cumulative amortization using the effective interest rate method of any difference between the initial amount and the maturity amount and, for financial assets, adjusted for any loss allowance. Associates Companies in which the Group has a significant influence, without having control. Significant influence is deemed to exist when the Group owns 20% or more of the voting rights of an investee directly or indirectly. Baseline macroeconomic scenarios IFRS 9 requires that an entity must evaluate a range of possible outcomes when estimating provisions and measuring expected credit losses, through macroeconomic scenarios. The baseline macroeconomic scenario presents the situation of the particular economic cycle. Basic earnings per share Calculated by dividing “Profit attributable to Parent Company” corresponding to ordinary shareholders of the entity by the weighted average number of shares outstanding throughout the year (i.e., excluding the average number of treasury shares held over the year). Basis risk Risk arising from hedging exposure to one interest rate with exposure to a rate that reprices under slightly different conditions. Building Block Approach (BBA) This is one of the three measurement models for the valuation of technical provisions for insurance contracts. This model is used by default and is mandatory except when the conditions are met to apply the other two methods: Variable Fee Approach or Premium Allocation Approach. Business combination A business combination is a transaction, or any other event, through which a single entity obtains the control of one or more businesses. Business Model The assessment as to how an asset shall be classified is made on the basis of both the business model for managing the financial asset and the contractual cash flow characteristic of the financial asset (SPPI Criterion). Financial assets are classified on the basis of its business model for managing the financial assets. The Group’s business models shall be determined at a level that reflects how groups of financial assets are managed together to achieve a particular business objective and generate cash flows. Cash flow hedges Those that hedge the exposure to variability in cash flows attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction and could affect profit or loss. Commissions Income and expenses relating to commissions and similar fees are recognized in the income statement using criteria that vary according to their nature. The most significant income and expense items in this connection are: · Fees and commissions relating linked to financial assets and liabilities measured at fair value through profit or loss, which are recognized when collected. · Fees and commissions arising from transactions or services that are provided over a period of time, which are recognized over the life of these transactions or services. · Fees and commissions generated by a single act are accrued upon execution of that act. Consolidation method Method used for the consolidation of the accounts of the Group’s subsidiaries. The assets and liabilities of the Group entities are incorporated line-by-line on the consolidate balance sheets, after conciliation and the elimination in full of intragroup balances, including amounts payable and receivable. Group entity income statement income and expense headings are similarly combined line by line into the consolidated income statement, having made the following consolidation eliminations: a) income and expenses in respect of intragroup transactions are eliminated in full. b) profits and losses resulting from intragroup transactions are similarly eliminated. The carrying amount of the parent's investment and the parent's share of equity in each subsidiary are eliminated. Contingencies Current obligations of the entity arising as a result of past events whose existence depends on the occurrence or non-occurrence of one or more future events independent of the will of the entity. Contingent commitments Possible obligations of the entity that arise from past events and whose existence depends on the occurrence or non-occurrence of one or more future events independent of the entity’s will and that could lead to the recognition of financial assets. Control An investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. An investor controls an investee if and only if the investor has all the following: a) Power; An investor has power over an investee when the investor has existing rights that give it the current ability to direct the relevant activities, i.e. the activities that significantly affect the investee’s returns. b) Returns; An investor is exposed, or has rights, to variable returns from its involvement with the investee when the investor’s returns from its involvement have the potential to vary as a result of the investee’s performance. The investor’s returns can be only positive, only negative or both positive and negative. c) Link between power and returns; An investor controls an investee if the investor not only has power over the investee and exposure or rights to variable returns from its involvement with the investee, but also has the ability to use its power to affect the investor’s returns from its involvement with the investee. Correlation risk Correlation risk is related to derivatives whose final value depends on the performance of more than one underlying asset (primarily, stock baskets) and indicates the existing variability in the correlations between each pair of assets. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Glossary 180 Credit Valuation Adjustment (CVA) An adjustment to the valuation of OTC derivative contracts to reflect the creditworthiness of OTC derivative counterparties. Current service cost Current service cost is the increase in the present value of a defined benefit obligation resulting from employee service in the current period. Current tax assets Taxes recoverable over the next twelve months. Current tax liabilities Corporate income tax payable on taxable profit for the year and other taxes payable in the next twelve months. Debit Valuation Adjustment (DVA) An adjustment made by an entity to the valuation of OTC derivative liabilities to reflect within fair value the entity’s own credit risk. Debt certificates Obligations and other interest-bearing securities that create or evidence a debt on the part of their issuer, including debt securities issued for trading among an open group of investors, that accrue interest, implied or explicit, whose rate, fixed or benchmarked to other rates, is established contractually, and take the form of securities or book-entries, irrespective of the issuer. Default An asset will be considered as defaulted whenever it is more than 90 days past due. Deferred tax assets Taxes recoverable in future years, including loss carry forwards or tax credits for deductions and tax rebates pending application. Deferred tax liabilities Income taxes payable in subsequent years. Defined benefit plans Post-employment obligation under which the entity, directly or indirectly via the plan, retains the contractual or implicit obligation to pay remuneration directly to employees when required or to pay additional amounts if the insurer, or other entity required to pay, does not cover all the benefits relating to the services rendered by the employees when insurance policies do not cover all of the corresponding post- employees benefits. Defined contribution plans Defined contribution plans are retirement benefit plans under which amounts to be paid as retirement benefits are determined by contributions to a fund together with investment earnings thereon. The employer's obligations in respect of its employees current and prior years' employment service are discharged by contributions to the fund. Deposits from central banks Deposits of all classes, including loans and money market operations, received from the Bank of Spain and other central banks. Deposits from credit institutions Deposits of all classes, including loans and money market operations received, from credit entities. Deposits from customers Redeemable cash balances received by the entity, with the exception of debt certificates, money market operations through counterparties and subordinated liabilities, which are not received from either central banks or credit entities. This category also includes cash deposits and consignments received that can be readily withdrawn. Derivatives The fair value in favor (assets) or again (liabilities) of the entity of derivatives not designated as accounting hedges. Derivatives - Hedging derivatives Derivatives designated as hedging instruments in an accounting hedge. The fair value or future cash flows of those derivatives is expected to offset the differences in the fair value or cash flows of the items hedged. Diluted earnings per share Calculated by using a method similar to that used to calculate basic earnings per share; the weighted average number of shares outstanding, and the profit attributable to the parent company corresponding to ordinary shareholders of the entity, if appropriate, is adjusted to take into account the potential dilutive effect of certain financial instruments that could generate the issue of new Bank shares (share option commitments with employees, warrants on parent company shares, convertible debt instruments, etc.). Dividends and retributions Dividend income collected announced during the year, corresponding to profits generated by investees after the acquisition of the stake. Domestic activity Domestic balances are those of BBVA´s Group entities domiciled in Spain, which reflect BBVA´s domestic activities, being the allocation of assets and liabilities based on the domicile of the Group entity at which the relevant asset or liability is accounted for. Early retirements Employees that no longer render their services to the entity but which, without being legally retired, remain entitled to make economic claims on the entity until they formally retire. Economic capital Methods or practices that allow banks to consistently assess risk and attribute capital to cover the economic effects of risk-taking activities. Effective interest rate (EIR) Discount rate that exactly equals the value of a financial instrument with the cash flows estimated over the expected life of the instrument based on its contractual period as well as its anticipated amortization, but without taking the future losses of credit risk into consideration. Employee expenses All compensation accrued during the year in respect of personnel on the payroll, under permanent or temporary contracts, irrespective of their jobs or functions, irrespective of the concept, including the current costs of servicing pension plans, own share based compensation schemes and capitalized personnel expenses. Amounts reimbursed by the state Social Security or other welfare entities in respect of employee illness are deducted from personnel expenses. Equity The residual interest in an entity's assets after deducting its liabilities. It includes owner or venturer contributions to the entity, at incorporation and subsequently, unless they meet the definition of liabilities, and accumulated net profits or losses, fair value adjustments affecting equity and, if warranted, non- controlling interests. Equity instruments An equity instrument that evidences a residual interest in the assets of an entity, that is after deducting all of its liabilities. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Glossary 181 Equity instruments issued other than capital Includes equity instruments that are financial instruments other than “Capital” and “Equity component of compound financial instruments”. Equity Method It is a method of accounting whereby the investment is initially recognized at cost and adjusted thereafter for the post-acquisition change in the investor’s share of the investee’s net assets. The investor’s profit or loss includes its share of the investee’s profit or loss and the investor’s other comprehensive income includes its share of the investee’s other comprehensive income. Exchange/translation differences Exchange differences (P&L): Includes the earnings obtained in currency trading and the differences arising on translating monetary items denominated in foreign currency to the functional currency. Exchange differences (valuation adjustments): those recorded due to the translation of the financial statements in foreign currency to the functional currency of the Group and others recorded against equity. Expected Credit Loss (ECL) Expected credit losses are a probability-weighted estimate of credit losses over the expected life of the financial instrument. Hence, credit losses are the present value of expected cash shortfalls. The measurement and estimate of these expected credit losses should reflect: 1. An unbiased and probability-weighted amount. 2. The time value of money by discounting this amount to the reporting date using a rate that approximates the EIR of the asset, and 3. Reasonable and supportable information that is available without undue cost or effort. The expected credit losses must be measured as the difference between the asset’s gross carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate or an approximation thereof (forward looking). Exposure at default EAD is the amount of risk exposure at the date of default by the counterparty. Fair value The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value hedges Derivatives that hedge the exposure to changes in the fair value of assets and liabilities or firm commitments that have not be recognized, or of an identified portion of said assets, liabilities or firm commitments, attributable to a specific risk, provided it could affect the income statement. Financial Assets at Amortized Cost Financial assets that do not meet the definition of financial assets designated at fair value through profit or loss and arise from the financial entities' ordinary activities to capture funds, regardless of their instrumentation or maturity. Financial Assets at fair value through other comprehensive income Financial instruments with determined or determinable cash flows and in which the entire payment made by the entity will be recovered, except for reasons attributable to the solvency of the debtor. This category includes both the investments from the typical lending activity as well as debts contracted by the purchasers of goods, or users of services, that form part of the entity’s business. It also includes all finance lease arrangements in which the subsidiaries act as lessors. Financial guarantees Contracts that require the issuer to make specified payments to reimburse the holder for a loss it incurs when a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument, irrespective of its instrumentation. These guarantees may take the form of deposits, technical or financial guarantees, insurance contracts or credit derivatives. Financial guarantees given Transactions through which the entity guarantees commitments assumed by third parties in respect of financial guarantees granted or other types of contracts. Financial instrument A financial instrument is any contract that gives rise to a financial asset of one entity and to a financial liability or equity instrument of another entity. Financial liabilities at amortized cost Financial liabilities that do not meet the definition of financial liabilities designated at fair value through profit or loss and arise from the financial entities' ordinary activities to capture funds, regardless of their instrumentation or maturity. Foreign activity International balances are those of BBVA´s Group entities domiciled outside of Spain, which reflect our foreign activities, being the allocation of assets and liabilities based on the domicile of the Group entity at which the relevant asset or liability is accounted for. Goodwill Goodwill acquired in a business combination represents a payment made by the acquirer in anticipation of future economic benefits from assets that are not able to be individually identified and separately recognized. Hedges of net investments in foreign operations Foreign currency hedge of a net investment in a foreign operation. Held for trading (assets and liabilities) Financial assets and liabilities acquired or incurred primarily for the purpose of profiting from variations in their prices in the short term. This category also includes financial derivatives not qualifying for hedge accounting, and in the case of borrowed securities, financial liabilities originated by the firm sale of financial assets acquired under repurchase agreements or received on loan (“short positions”). Immunized portfolios This is considered to be the portfolios on which "cash flow matching" is carried out, that is, balance sheet management with the aim of trying to mitigate the risk derived from the different maturities and interest rates between assets and liabilities. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Glossary 182 Impaired financial assets An asset is credit-impaired according to IFRS 9 if one or more events have occurred and they have a detrimental impact on the estimated future cash flows of the asset. Evidence that a financial asset is credit- impaired includes observable data about the following events: a. significant financial difficulty of the issuer or the borrower, b. a breach of contract (e.g. a default or past due event), c. a lender having granted a concession to the borrower – for economic or contractual reasons relating to the borrower’s financial difficulty – that the lender would not otherwise consider, d. it becoming probable that the borrower will enter bankruptcy or other financial reorganization, e. the disappearance of an active market for that financial asset because of financial difficulties, or f. the purchase or origination of a financial asset at a deep discount that reflects the incurred credit losses. Income from equity instruments Dividends and income on equity instruments collected or announced during the year corresponding to profits generated by investees after the ownership interest is acquired. Income is recognized gross, i.e., without deducting any withholdings made, if any. Insurance contracts linked to pensions The fair value of insurance contracts written to cover pension commitments. Inventories Assets, other than financial instruments, under production, construction or development, held for sale during the normal course of business, or to be consumed in the production process or during the rendering of services. Inventories include land and other properties held for sale at the real estate development business. Investment properties Investment property is property (land or a building—or part of a building—or both) held (by the owner or by the lessee under a finance lease) to earn rentals or for capital appreciation or both, rather than for own use or sale in the ordinary course of business. Joint arrangement An arrangement of which two or more parties have joint control. Joint control The contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. Joint operation A joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets of the arrangement and obligations for the liabilities. A joint venturer shall recognize the following for its participation in a joint operation: a) its assets, including any share of the assets of joint ownership; b) its liabilities, including any share of the liabilities incurred jointly; c) income from the sale of its share of production from the joint venture; d) its share of the proceeds from the sale of production from the joint venturer; and e) its expenses, including any share of the joint expenses. A joint venturer shall account for the assets, liabilities, income and expenses related to its participation in a joint operation in accordance with IFRS applicable to the assets, liabilities, income and expenses specific question. Joint venture A joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. A joint venturer shall recognize its interest in a joint venture as an investment and shall account for that investment using the equity method in accordance with IAS 28 Investments in Associates and Joint Ventures. Leases A lease is an agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time, a stream of cash flows that is essentially equivalent to the combination of principal and interest payments under a loan agreement. a) A lease is classified as a finance lease when it substantially transfers all the risks and rewards incidental to ownership of the asset forming the subject-matter of the contract. b) A lease will be classified as operating lease when it is not a financial lease. Lease liability Lease that represents the lessee’s obligation to make lease payments during the lease term. Liabilities included in disposal groups classified as held for sale The balance of liabilities directly associated with assets classified as non-current assets held for sale, including those recognized under liabilities in the entity's balance sheet at the balance sheet date corresponding to discontinued operations. Liabilities under insurance contracts The technical reserves of direct insurance and inward reinsurance recorded by the entities to cover claims arising from insurance contracts in force at period-end. Loans and advances to customers Loans and receivables, irrespective of their type, granted to third parties that are not credit entities. Loss given default (LGD) It is the estimate of the loss arising in the event of default. It depends mainly on the characteristics of the counterparty, and the valuation of the guarantees or collateral associated with the asset. Mortgage-covered bonds Financial asset or security created from mortgage loans and backed by the guarantee of the mortgage loan portfolio of the entity. Non Performing Loans (NPL) The balance of non performing risks, whether for reasons of default by customers or for other reasons, for exposures on balance loans to customers. This figure is shown gross: in other words, it is not adjusted for value corrections (loan loss reserves) made. Non-controlling interests The net amount of the profit or loss and net assets of a subsidiary attributable to associates outside the group (that is, the amount that is not owned, directly or indirectly, by the parent), including that amount in the corresponding part of the earnings for the period. Non-current assets and disposal groups held for sale A non-current asset or disposal group, whose carrying amount is expected to be realized through a sale transaction, rather than through continuing use, and which meets the following requirements: a) it is immediately available for sale in its present condition at the balance sheet date, i.e. only normal procedures are required for the sale of the asset. b) the sale is considered highly probable. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Glossary 183 Non-monetary assets Assets and liabilities that do not provide any right to receive or deliver a determined or determinable amount of monetary units, such as tangible and intangible assets, goodwill and ordinary shares subordinate to all other classes of capital instruments. Non-trading financial assets mandatorily at fair value through Profit or loss The financial assets registered under this heading are assigned to a business model whose objective is achieved by obtaining contractual cash flows and / or selling financial assets but which the contractual cash flows have not complied with the SPPI test conditions. Option risk Risks arising from options, including embedded options. Other financial assets/ liabilities at fair value through profit or loss Instruments designated by the entity from the inception at fair value with changes in profit or loss. An entity may only designate a financial instrument at fair value through profit or loss, if doing so more relevant information is obtained, because: a) It eliminates or significantly reduces a measurement or recognition inconsistency (sometimes called "accounting mismatch") that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases. It might be acceptable to designate only some of a number of similar financial assets or financial liabilities if doing so a significant reduction (and possibly a greater reduction than other allowable designations) in the inconsistency is achieved. b) The performance of a group of financial assets or financial liabilities is managed and evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the group is provided internally on that basis to the entity´s key management personnel. These are financial assets managed jointly with “Liabilities under insurance and reinsurance contracts” measured at fair value, in combination with derivatives written with a view to significantly mitigating exposure to changes in these contracts' fair value, or in combination with financial liabilities and derivatives designed to significantly reduce global exposure to interest rate risk. These headings include customer loans and deposits effected via so-called unit-linked life insurance contracts, in which the policyholder assumes the investment risk. Other Reserves This heading is broken down as follows: i) Reserves or accumulated losses of investments in subsidiaries, joint ventures and associate: include the accumulated amount of income and expenses generated by the aforementioned investments through profit or loss in past years. ii) Other: includes reserves different from those separately disclosed in other items and may include legal reserve and statutory reserve. Other retributions to employees long term Includes the amount of compensation plans to employees long term. Own/treasury shares The amount of own equity instruments held by the entity. Past service cost It is the change in the present value of the defined benefit obligation for employee service in prior periods, resulting in the current period from the introduction of, or changes to, post-employment benefits or other long-term employee benefits. Post-employment benefits Retirement benefit plans are arrangements whereby an enterprise provides benefits for its employees on or after termination of service. Premium Allocation Approach (PAA) This is one of the three measurement models for the valuation of technical provisions for insurance contracts. This model is mandatory for contracts with direct participation of the policyholder Probability of default (PD) It is the probability of the counterparty failing to meet its principal and/or interest payment obligations. The PD is associated with the rating/scoring of each counterparty/transaction. Property, plant and equipment/tangible assets Buildings, land, fixtures, vehicles, computer equipment and other facilities owned by the entity or acquired under finance leases. Provisions Provisions include amounts recognized to cover the Group’s current obligations arising as a result of past events, certain in terms of nature but uncertain in terms of amount and/or cancellation date. Provisions for contingent liabilities and commitments Provisions recorded to cover exposures arising as a result of transactions through which the entity guarantees commitments assumed by third parties in respect of financial guarantees granted or other types of contracts, and provisions for contingent commitments, i.e., irrevocable commitments which may arise upon recognition of financial assets. Provisions for pensions and similar obligation Constitutes all provisions recognized to cover retirement benefits, including commitments assumed vis-à- vis beneficiaries of early retirement and analogous schemes. Provisions or (-) reversal of provisions Provisions recognized during the year, net of recoveries on amounts provisioned in prior years, with the exception of provisions for pensions and contributions to pension funds which constitute current or interest expense. Refinanced Operation An operation which is totally or partially brought up to date with its payments as a result of a refinancing operation made by the entity itself or by another company in its group. Refinancing Operation An operation which, irrespective of the holder or guarantees involved, is granted or used for financial or legal reasons related to current or foreseeable financial difficulties that the holder(s) may have in settling one or more operations granted by the entity itself or by other companies in its group to the holder(s) or to another company or companies of its group, or through which such operations are totally or partially brought up to date with their payments, in order to enable the holders of the settled or refinanced operations to pay off their loans (principal and interest) because they are unable, or are expected to be unable, to meet the conditions in a timely and appropriate manner. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Glossary 184 Renegotiated Operation An operation whose financial conditions are modified when the borrower is not experiencing financial difficulties, and is not expected to experience them in the future, i.e. the conditions are modified for reasons other than restructuring. Repricing risk Risks related to the timing mismatch in the maturity and repricing of assets and liabilities and off-balance sheet short and long-term positions. Restructured Operation An operation whose financial conditions are modified for economic or legal reasons related to the holder's (or holders') current or foreseeable financial difficulties, in order to enable payment of the loan (principal and interest), because the holder is unable, or is expected to be unable, to meet those conditions in a timely and appropriate manner, even if such modification is provided for in the contract. In any event, the following are considered restructured operations: operations in which a haircut is made or assets are received in order to reduce the loan, or in which their conditions are modified in order to extend their maturity, change the amortization table in order to reduce the amount of the installments in the short term or reduce their frequency, or to establish or extend the grace period for the principal, the interest or both; except when it can be proved that the conditions are modified for reasons other than the financial difficulties of the holders and, are similar to those applied on the market on the modification date for operations granted to customers with a similar risk profile. Retained earnings Accumulated net profits or losses recognized in the income statement in prior years and retained in equity upon distribution. Right of use asset Asset that represents the lessee’s right to use an underlying asset during the lease term. Securitization fund A fund that is configured as a separate equity and administered by a management company. An entity that would like funding sells certain assets to the securitization fund, which, in turn, issues securities backed by said assets. Share premium The amount paid in by owners for issued equity at a premium to the shares' nominal value. Shareholders' funds Contributions by stockholders, accumulated earnings recognized in the income statement and the equity components of compound financial instruments. Short positions Financial liabilities arising as a result of the final sale of financial assets acquired under repurchase agreements or received on loan. Significant increase in credit risk In order to determine whether there has been a significant increase in credit risk for lifetime expected losses recognition, the Group has developed a two-prong approach: a) Quantitative criterion: based on comparing the current expected probability of default over the life of the transaction with the original adjusted expected probability of default. The thresholds used for considering a significant increase in risk take into account special cases according to geographic areas and portfolios. b) Qualitative criterion: most indicators for detecting significant risk increase are included in the Group's systems through rating/scoring systems or macroeconomic scenarios, so quantitative analysis covers the majority of circumstances. The Group will use additional qualitative criteria when it considers it necessary to include circumstances that are not reflected in the rating/score systems or macroeconomic scenarios used. Significant influence Is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control of those policies. If an entity holds, directly or indirectly (i.e. through subsidiaries), 20 per cent or more of the voting power of the investee, it is presumed that the entity has significant influence, unless it can be clearly demonstrated that this is not the case. Conversely, if the entity holds, directly or indirectly (i.e. through subsidiaries), less than 20 per cent of the voting power of the investee, it is presumed that the entity does not have significant influence, unless such influence can be clearly demonstrated. A substantial or majority ownership by another investor does not necessarily preclude an entity from having significant influence. The existence of significant influence by an entity is usually evidenced in one or more of the following ways: a) representation on the board of directors or equivalent governing body of the investee; b) participation in policy-making processes, including participation in decisions about dividends or other distributions; c) material transactions between the entity and its investee; d) interchange of managerial personnel; or e) provision of essential technical information. Solely Payments of Principle and Interest (SPPI) The assessment as to how an asset shall be classified is made on the basis of both the business model for managing the financial asset and the contractual cash flow characteristic of the financial asset (SPPI Criterion). To determine whether a financial asset shall be classified as measured at amortized cost or FVOCI, a Group assesses (apart from the business model) whether the cash flows from the financial asset represent, on specified dates, solely payments of principal and interest on the principal amount outstanding (SPPI). Stages IFRS 9 classifies financial instruments into three categories, which depend on the evolution of their credit risk from the moment of initial recognition. The first category includes the transactions when they are initially recognized - without significant increase in credit risk (Stage 1); the second comprises the operations for which a significant increase in credit risk has been identified since its initial recognition - significant increase in credit risk (Stage 2) and the third one, the impaired operations Impaired (Stage 3). The transfer logic is defined in a symmetrical way, whenever the condition that triggered a transfer to Stage 2 is no longer met, the exposure will be transferred to Stage 1. In the case of forbearances transferred to stage 2, as long as the loan is flagged as forbearance it will keep its status as Stage 2. However, when the loan is not flagged as forbearance it will be transferred back to Stage 1. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Glossary 185 Statements of cash flows The indirect method has been used for the preparation of the statement of cash flows. This method starts from the entity’s profit and adjusts its amount for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments, and items of income or expense associated with cash flows classified as investment or finance. As well as cash, short-term, highly liquid investments subject to a low risk of changes in value, such as cash and deposits in central banks, are classified as cash and equivalents. When preparing these financial statements, the following definitions have been used: · Cash flows: Inflows and outflows of cash and equivalents. · Operating activities: The typical activities of credit institutions and other activities that cannot be classified as investment or financing activities. · Investing activities: The acquisition, sale or other disposal of long-term assets and other investments not included in cash and cash equivalents or in operating activities. · Financing activities: Activities that result in changes in the size and composition of the Group’s equity and of liabilities that do not form part of operating activities. Statements of changes in equity The statements of changes in equity reflect all the movements generated in each year in each of the headings of the equity, including those from transactions undertaken with shareholders when they act as such, and those due to changes in accounting criteria or corrections of errors, if any. The applicable regulations establish that certain categories of assets and liabilities are recognized at their fair value with a charge to equity. These charges, known as “Valuation adjustments” (see Note 31), are included in the Group’s total equity net of tax effect, which has been recognized as deferred tax assets or liabilities, as appropriate. Statements of recognized income and expenses The statement of recognized income and expenses reflect the income and expenses generated in each fiscal year, distinguishing between those recognized in the profit and loss accounts and the “Other recognized income and expenses”; which are recorded directly in the equity. The “Other recognized income and expenses” includes the variations that have occurred in the period in “accumulated other comprehensive income”, detailed by concepts. The sum of the variations recorded in the “accumulated other comprehensive income” caption of the equity and the profit for the year represents the “Total income and expenses”. Structured credit products Special financial instrument backed by other instruments building a subordination structure. Structured Entities A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements. A structured entity often has some or all of the following features or attributes: a) restricted activities. b) a narrow and well-defined objective, such as to effect a tax-efficient lease, carry out research and development activities, provide a source of capital or funding to an entity or provide investment opportunities for investors y passing on risks and rewards associated with the assets of the structured entity to investors. c) insufficient equity to permit the structured entity to finance its activities without subordinated financial support. d) financing in the form of multiple contractually linked instruments to investors that create concentrations of credit or other risks (tranches). Subordinated liabilities Financing received, regardless of its instrumentation, which ranks after the common creditors in the event of a liquidation. Subsidiaries Companies over which the Group exercises control. An entity is presumed to have control over another when it possesses the right to oversee its financial and operational policies, through a legal, statutory or contractual procedure, in order to obtain benefits from its economic activities. Control is presumed to exist when the parent owns, directly or indirectly through subsidiaries, more than one half of an entity's voting power, unless, exceptionally, it can be clearly demonstrated that ownership of more than one half of an entity's voting rights does not constitute control of it. Control also exists when the parent owns half or less of the voting power of an entity when there is: a) an agreement that gives the parent the right to control the votes of other shareholders; b) power to govern the financial and operating policies of the entity under a statute or an agreement; power to appoint or remove the majority of the members of the board of directors or equivalent governing body and control of the entity is by that board or body; c) power to cast the majority of votes at meetings of the board of directors or equivalent governing body and control of the entity is by that board or body. Tangible book value Tangible Book Value represents the tangible equity's value for the shareholders as it does not include the intangible assets and the minority interests (non-controlling interests). It is calculated by discounting intangible assets, that is, goodwill and the rest of consolidated intangibles recorded under the public balance sheet (goodwill and intangible assets of companies accounted for by the equity method or companies classified as non-current assets for sale are not subtracted). It is also shown as ex-dividends. Tax liabilities All tax related liabilities except for provisions for taxes. Territorial bonds Financial assets or fixed asset security issued with the guarantee of portfolio loans of the public sector of the issuing entity. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Glossary 186 Tier 1 Capital Mainly includes: Common stock, parent company reserves, reserves in companies, non-controlling interests, deductions and others and attributed net income. Tier 2 Capital Mainly includes: Subordinated, preferred shares and non- controlling interest. Unit-link This is life insurance in which the policyholder assumes the risk. In these policies, the funds for the technical insurance provisions are invested in the name of and on behalf of the policyholder in shares of Collective Investment Institutions and other financial assets chosen by the policyholder, who bears the investment risk. Write- off When the recovery of any recognized amount is considered to be remote, this amount is removed from the balance sheet, without prejudice to any actions taken by the entities in order to collect the amount until their rights extinguish in full through expiry, forgiveness or for other reasons. Value at Risk (VaR) Value at Risk (VaR) is the basic variable for measuring and controlling the Group’s market risk. This risk metric estimates the maximum loss that may occur in a portfolio’s market positions for a particular time horizon and given confidence level VaR figures are estimated following two methodologies: a) VaR without smoothing, which awards equal weight to the daily information for the immediately preceding last two years. This is currently the official methodology for measuring market risks vis-à-vis limits compliance of the risk. a. VaR with smoothing, which weighs more recent market information more heavily. This is a metric which supplements the previous one. b. VaR with smoothing adapts itself more swiftly to the changes in financial market conditions, whereas VaR without smoothing is, in general, a more stable metric that will tend to exceed VaR with smoothing when the markets show less volatile trends, while it will tend to be lower when they present upturns in uncertainty. Variable Fee Approach (VFA) This is one of the three measurement models for the valuation of technical provisions for insurance contracts. This model is optional and is used for short-term insurance contracts or those contracts whose results are similar to those of the Building Block Approach. Yield curve risk Risks arising from changes in the slope and the shape of the yield curve. Translation of the Consolidated Financial Statements originally issued in Spanish and prepared in accordance with EU-IFRS, as adopted by the European Union (see Notes 1 to 56). In the event of a discrepancy, the Spanish-language version prevails Financial Statements Legal Disclaimer 187 Legal disclaimer This document is provided for informative purposes only and is not intended to provide financial advice and, therefore, does not constitute, nor should it be interpreted as, an offer to sell, exchange or acquire, or an invitation for offers to acquire securities issued by any of the aforementioned companies, or to contract any financial product. Any decision to purchase or invest in securities or contract any financial product must be made solely and exclusively on the basis of the information made available to such effects by the relevant company in relation to each such specific matter. The information contained in this document is subject to and should be read in conjunction with all other publicly available information of the issuer. This document contains forward-looking statements that constitute or may constitute “forward-looking statements” (within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995) with respect to intentions, objectives, expectations or estimates as of the date hereof, including those relating to future targets of both a financial and non-financial nature (such as environmental, social or governance (“ESG”) performance targets). Forward-looking statements may be identified by the fact that they do not refer to historical or current facts and include words such as “believe”, “expect”, “estimate”, “project”, “anticipate”, “duty”, “intend”, “likelihood”, “risk”, “VaR”, “purpose”, “commitment”, “goal”, “target” and similar expressions or variations of those expressions. They include, for example, statements regarding future growth rates or the achievement of future targets, including those relating to ESG performance. The information contained in this document reflects our current expectations, estimates and targets, which are based on various assumptions, judgments and projections, including non-financial considerations such as those related to sustainability, which may differ from and not be comparable to those used by other companies. Forward-looking statements are not guarantees of future results, and actual results may differ materially from those anticipated in the forward-looking statements as a result of certain risks, uncertainties and other factors. These factors include, but are not limited to, (1) market conditions, macroeconomic factors, domestic and international stock market conditions, exchange rates, inflation and interest rates; (2) regulatory, oversight, political, governmental, social and demographic factors; (3) changes in the financial condition, creditworthiness or solvency of our clients, debtors or counterparties, such as changes in default rates, as well as changes in consumer spending, savings and investment behavior, and changes in our credit ratings; (4) competitive pressures and actions we take in response thereto; (5) performance of our IT, operations and control systems and our ability to adapt to technological changes; (6) climate change and the occurrence of natural or man-made disasters, such as an outbreak or escalation of hostilities; (7) our ability to appropriately address any ESG expectations or obligations (related to our business, management, corporate governance, disclosure or otherwise), and the cost thereof; and (8) our ability to successfully complete and integrate acquisitions. In the particular case of certain targets related to our ESG performance, such as, decarbonization targets or alignment of our portfolios, the achievement and progress towards such targets will depend to a large extent on the actions of third parties, such as clients, governments and other stakeholders, and may therefore be materially affected by such actions, or lack thereof, as well as by other exogenous factors that do not depend on BBVA (including, but not limited to, new technological developments, regulatory developments, military conflicts, the evolution of climate and energy crises, etc.). Therefore, these targets may be subject to future revisions. The factors mentioned in the preceding paragraphs could cause actual future results to differ substantially from those set forth in the forecasts, intentions, objectives, targets or other forward-looking statements included in this document or in other past or future documents. Accordingly, results, including those related to ESG performance targets, among others, may differ materially from the statements contained in the forward-looking statements. Recipients of this document are cautioned not to place undue reliance on such forward-looking statements. Past performance or growth rates are not indicative of future performance, results or share price (including earnings per share). Nothing in this document should be construed as a forecast of results or future earnings. BBVA does not intend, and undertakes no obligation, to update or revise the contents of this or any other document if there are any changes in the information contained therein, or including the forward-looking statements contained in any such document, as a result of events or circumstances after the date of such document or otherwise except as required by applicable law. 1 Contents 1. BBVA in brief 2 2. Non-financial Information Statement 3 2.1 General information 3 2.2 Information on customers 4 2.3 Information on employees 9 2.4 Information on social matters 19 2.5 Information on suppliers 25 2.6 Report on climate change and other environmental and social issues 26 2.7 Additional information 32 3. Financial information 41 3.1 Balance sheet, business activity and earnings 41 3.2 Capital base and solvency 41 4. Risk management 42 4.1 General risk management and control model 42 4.2 Risks associated with climate change 51 4.3 Operational risk 51 4.4 Reputational risk 56 4.5 Risk factors 56 Subsequent events 61 Annual Corporate Governance Report 62 Annual Report on Directors' Remuneration 63 Legal Disclaimer 64 Management Report BBVA in brief 2 1. BBVA in brief Banco Bilbao Vizcaya Argentaria, S.A. (hereinafter, the “Bank” or “BBVA”) is a private-law entity governed by the rules and regulations applicable to banks operating in Spain. BBVA S.A is a bank founded in 1857 and constitutes the parent company of the BBVA Group (hereafter, the Group or the Bank), a global financial services group with a vision focused on the customer and significant presence in the traditional banking business of retail banking, asset management and wholesale banking. During its 165-year history, BBVA has stood out for its leadership in the transformation of the financial industry, which is clearly reflected in the Group's Purpose: “To bring the age of opportunity to everyone”. BBVA wants to help people, families, entrepreneurs, the self-employed, businessmen, employees and society in general to take advantage of the opportunities provided by innovation and technology. BBVA, S.A., as the parent company of the BBVA Group, operates internationally, which is why it is affected by economic and regulatory trends in all the geographical areas where it operates through the entities of the BBVA Group. More information related to the economic and sector environment and perspectives, as well as a summary of the significant aspects of the regulatory environment, are included in the chapter “Macroeconomic and regulatory environment” of the BBVA Group Consolidated Management Report. Management Report Statement of Non-financial information 3 2. Non-financial Information Statement In accordance with the provisions of the Commercial Code and the Capital Companies Act, this Non-financial Information Statement (hereafter “NFIS”) includes, among other matters, the information necessary to understand the Bank's performance, results and situation; and the impact of its activity with respect to environmental and social issues, respect for human rights and the fight against corruption and bribery, as well as those relating to personnel. This Non-financial Information Statement of Banco Bilbao Vizcaya Argentaria, SA, which forms part of its individual management report, is presented in addition to the consolidated Non-financial Information Statement included in the BBVA Group 's consolidated management report and includes references to the sections of the latter when said sections contain other information to obtain a better understanding of the Bank, the BBVA Group and their respective actions in the matters described above. The NFIS has been prepared, in all its significant aspects, in accordance with the contents included in the commercial regulations in force as of December 31, 2024, taking as guidelines some selected GRI standards and following the European Commission Guidelines on non-financial reporting. In preparing the non-financial information contained in this Non-Financial Information Statement, BBVA has taken as a reference the double materiality analysis prepared for the Group, based on the Commission Delegated Regulation 2023/2772 which complements the European Corporate Sustainability Reporting Directive (CSRD). For more information on the double materiality analysis carried out at the BBVA Group level, which is also applicable to the Bank, see the “Materiality analysis” section in chapter “2.7 Additional information” of this report. The information included in the Non-Financial Information Statement has been verified by Ernst & Young Auditores, SL, in its capacity as independent provider of verification services, within the scope indicated in its Verification Report. 2.1 General information BBVA's strategy and business model encompasses the entire Group, including BBVA SA, and revolves around a single Purpose: “Bringing the opportunities of this new era to everyone,” always keeping the customer at the center of the BBVA Group's activity. the Group is also based on solid values: the customer comes first, we think big, and we are one team. BBVA's values and associated behaviors are integrated into the key models and levers that promote the Group's transformation, as well as into global people management processes: from the selection of new employees, role assignment processes, evaluation, people development and training to incentives for meeting annual objectives. These values, together with the Purpose and strategic priorities, guide all decisions and are in the DNA of all the people who are part of the BBVA Group: Guided by its Purpose and Values, BBVA's strategy is built around six strategic priorities: Information regarding progress in the execution of the strategy and objectives is broken down in the section “BBVA in brief - BBVA Group strategy” of the BBVA Group Consolidated Management Report. Management Report Statement of Non-financial information 4 2.2 Information on customers Driven by its value “The customer comes first”, the BBVA Group places its retail customers at the center of its activity, so much so that it considers them to be one of its six strategic priorities. The relationship with customers goes beyond the provision of services and is aimed at helping them in their transition towards sustainability, improving their financial health and, in short, accompanying them in the fulfillment of their objectives. In order to respond to the needs of its customers, while maintaining responsible conduct, BBVA has developed a differential value proposition thanks to innovation and new technologies that promote a transparent, clear and accessible customer experience, while strengthening and reinforcing security in the existing interactions with its customers. Conduct with customers The BBVA Group places customers at the center of its activity, with the aim of building long-lasting relationships based on mutual trust and the contribution of value, as set out in the Code of Conduct. The principles and guidelines set out in this Code are complemented, developed and specified in policies, rules and procedures whose purpose is to adequately address the interests of customers when services are provided to them or products are offered or recommended to them, through any distribution channels, and also considering the life cycle of the product or service. The Customer Conduct and Product Governance Policy establishes that BBVA will base its relationship with customers on the following principles: – Appropriate and responsible offering of products and services. – Transparency in advertising and in the information provided to customers about products and services by providing information before any product or service is arranged, as well as post-contractual information directed to customers and advertising and promotion activities for products and services. – Managing any potential conflicts of interest that are identified and that may undermine the interests of customers. – Financial inclusion and customer accessibility to the products and services offered by BBVA, taking into account their personal circumstances and avoiding any unjustified discrimination. – Prompt and diligent attention and resolution of customer queries, complaints and claims. – Adequate training of personnel involved in the manufacturing and distribution of products and in the provision of services to customers. The Policy applies to all BBVA Group entities when they design or distribute products to customers, provide services or manage collective investment vehicles. For more information on the policy and actions in the area of information transparency, see the chapter “Consumers and end users - Transparency in information to customers about products and services” within the section “Social information” of the BBVA Group Consolidated Management Report. Responsible use of data and cybersecurity Responsible use of data The BBVA Group integrates data protection as an essential pillar of its management and is committed to complying with the legislation in this area, including the General Data Protection Regulation (“GDPR”). This regulation not only applies to data controllers established in the European Union, but also to those who, although not established in the European Union, process personal data derived from an offer of goods or services aimed at citizens of the Union. In line with the above, the Group considers the fundamental right to data protection as one of its priorities in its relations with its customers, shareholders, suppliers, employees and third parties (hereinafter, the “Interested Parties”), who, as owners of their personal data, deserve the effective application of the highest standards of protection and control over them. This fundamental principle is present in all of the Group's strategic and business decisions, and is the basis of the General Data Protection Policy and the Corporate Standard on personal data protection that develops it, and which describe how the Group 's entities must treat the personal data of interested parties to ensure their protection. For more information on collaboration with clients in the area of personal data protection and other actions in this area, see the chapter “Consumers and end users - Responsible use of data” within the section “Social information” of the BBVA Group Consolidated Management Report. Cybersecurity Digital transformation and new emerging technologies mean an increase in the threats that organizations must face, as well as in the surface area of exposure to risk, which entails new challenges that affect security, privacy and, in general, digital trust, all key aspects for the better development and stability of the digital economy. Based on this, BBVA designed and implemented a series of procedures, actions and measures in the area of information security and cybersecurity that aim to ensure the protection of assets and information and, therefore, the protection of its customers' finances, as well as maintaining their trust in the Group. Management Report Statement of Non-financial information 5 For BBVA, information security is not only an essential element in ensuring operational resilience, but also one of the cornerstones in its strategy. Information security is structured around four fundamental areas of action: (I) Cybersecurity, (II) Data security, (III) Physical security and (IV) Security in business processes and fraud. A program has been designed for each of these pillars with the aim of reducing the risks to which the Group is exposed. These programs, which consider the best practices provided for in internationally recognized security standards, are periodically reviewed to assess progress and the effective impact in mitigating such risks. For more information on actions and initiatives in this area, see the chapter “Consumers and end users - Cybersecurity” within the section “Social information” of the BBVA Group Consolidated Management Report. Customer experience Providing a differentiated customer experience and improving their financial health is one of the Group's strategic priorities. An experience characterized by its simplicity, convenience and agility, always accompanied by all the necessary information and tailored advice that helps the customer make a decision tailored to their financial needs at all times. To this end, the Group has implemented new ways of working, with multidisciplinary and multi-country teams that, in a synchronized manner, develop and implement a value proposition focused on the real needs of customers through three fundamental axes: – Helping customers make the right financial decisions by providing relevant information; – Providing the best solutions that generate confidence in customers, in a way that is clear, transparent and complete, and all of this; – Through an easy and convenient experience, using digital channels or human interaction according to the customer's needs. To achieve this efficiently and satisfactorily for the customers, it is essential to listen to them. For this reason, for more than a decade, the Group has been using the globally recognized Net Promoter Score (NPS) methodology, which allows for comprehensive management of customer and non-customer feedback, collected through various channels during the year. This methodology is included in the internal regulations applicable in all countries. For years now, the NPS has been part of the strategic indicators that are monitored monthly at the Senior Management level, both at the Group level and locally, being subject to a global governance procedure and model and included in the incentive model for all Group employees. The Group internalizes and applies this methodology by continuously collecting feedback, analyzing it monthly to identify strengths and areas for improvement, and disseminating it to the Management Committees. This allows it to establish tactical and strategic action plans, while also monitoring the impact of the improvements made. It also provides a common language, both internally and with customers, which encourages the involvement of everyone and ensures that the customer voice is integrated into all of the Group's actions right from the outste. For more information on customer experience management, see the chapter “Consumers and end users - Customer experience” within the “Social information” section of the BBVA Group Consolidated Management Report. Accessibility Accessibility to products and services, through digitalization, is a key part of the BBVA Group's strategy. Throughout 2024, significant progress was made in this area, by promoting access to inclusive and sustainable financial services and products for all customers, regardless of their characteristics, capabilities or location. Improving customer experience, accessibility and inclusion through digitalization is a business strategy that has been embraced in the Strategic Plan (the “Plan”), developed over a 5 year horizon and which guides for the development and promotion of the digitalization of the Group's customers and future customers, as one of the main aspects developed by the Plan. Digitalization also stands out as an important lever to promote financial inclusion in the different geographies in which the Group operates with various digital products and services. For more information on how BBVA uses digitization as a lever to become a more accessible and sustainable bank, see the chapter “Consumers and end users - Accessibility to services and products” within the “Social information” section of the BBVA Group Consolidated Management Report. Customer care BBVA makes various customer service channels available to customers and non-customers alike (physical, telephone and digital) in order to facilitate, in the most efficient and convenient way for each user, the communication and management of any type of need, query, comment or disagreement they may have in relation to a service, product or banking transaction. To ensure that they are known, all BBVA employees are obliged, as established in the Group's Code of Conduct, to direct users to the resolution channels enabled by the Group. The Group periodically communicates the availability of these channels, which are permanently updated and available to any user, customer or non-customer, on the home page of the online banking platform specific to each geography. Management Report Statement of Non-financial information 6 Additionally, and in order to facilitate the exercise of the right to file a claim that every user of the financial services provided by BBVA has, a specific section for claims is included in the contracts, which indicates the channels available and the process to follow. Claims are managed by our own teams, all of which are governed by a model based on two key aspects: a quick resolution and, most importantly, the analysis and elimination of the origin of the causes that cause them. This model is deployed at the level of each geography, where internal guidelines are adapted to collect those aspects necessary to comply with the corresponding local regulations in relation to the attention, treatment and resolution of claims (Ministerial Order ECO / 734/2004, of March 11, of the Ministry of Economy in Spain). This model is considered to add value when it comes to improving the customer experience, generating peace of mind and strengthening customer trust, providing a quick resolution to their problems, through a simple and agile experience, and with a clear and personalized response. In compliance with the above, BBVA has a Customer Support Service in each of its geographies with banks, functioning as an internal service with sufficient autonomy so that its decisions cannot be affected by conflicts of interest. The service has technological and human resources enabling it to handle and swiftly resolve complaints received from customers and record all related information; a process that allows the Group to then identify improvements, both at the level of the management model itself, as well as specific improvements regarding the response process, cause analysis, etc. Information on the trend in the volume of complaints, response times, main reasons and root causes of these, among others, is regularly presented to: – the Board of Directors of the BBVA Group in the annual report; – Senior Management in each region for monitoring and decision-making; – the relevant regulators and supervisors (for example, at Group level in the semi-annual reports to the Bank of Spain and the European Central Bank). Customer Care Service and Customer Ombudsman in Spain The activities of the Customer Support Service (CSS) and the Customer Ombudsman in 2024 were carried out in accordance with Article 17 of Ministerial Order (OM) ECO/734/2004, of March 11, of the Ministry of Economy and in compliance with the competencies and procedures set out in the Group’s Customer Protection Regulation in Spain, approved on July 23, 2004 by the Group’s Board of Directors and successive modifications (the last one on February 25, 2021). Article 5 that this Regulation states that the CSS and the Customer Ombudsman must present, to the BBVA Board of Directors within the first quarter of each year, a joint or separate explanatory report for all the entities of the BBVA Group included in the scope of this Regulation, containing statistical summaries, the general criteria contained in the decisions issued in relation to the most frequently complained about matters and recommendations and suggestions to improve the service provided to customers and avoid bad banking practices. Based on the aforementioned regulations, the SAC is entrusted with the function of attending to and resolving complaints and claims received from customers in relation to products and services marketed and sold in Spanish territory by BBVA Group entities. Meanwhile, and also based on the aforementioned regulations, the Customer Ombudsman hears and resolves, in the first instance, the complaints and claims submitted by members and beneficiaries of pension plans, as well as those relating to insurance and other financial products that the BBVA Group’s CSS sees fit to transfer due to the amount involved or particular complexity, as established in Article 4 of the Customer Protection Regulation. In the second instance, it hears and resolves complaints and claims, within the quantitative limits established by the Regulation, that customers decide to submit for its consideration after their claim hsa been rejected by the CSS. Activity report on the Customer Care Service in Spain At BBVA, customer protection is considered a fundamental priority, and despite the best efforts made and the control measures in place, this is not an error-free activity. Therefore, it is essential to anticipate the possibility of such errors occurring and to proceed proactively to correct them. To do so, the relevant protocols and delegations must be implemented so that this process is as quick as possible without the need to file a claim. To this end, the CSS is responsible for internally transferring the criteria and recommendations that regulators make clear in their reports, promoting compliance with applicable regulations on transparency and customer protection. The service also ensures compliance with the good banking practices and customs applied at BBVA. To this end, it participates in the various internal communication channels aimed at the commercial network or in the committees that authorize the creation of new products and services, among many other forums. The CSS is also tasked with addressing and resolving complaints from BBVA Group customers in Spain in a timely manner. It thus constitutes an early alert mechanism for problems arising from the marketing of products or services and/or the relationship between the bank and its customers. The management of these claims leads to actions aimed not only at solving the particular case, but also at detecting the causes that give rise to the claim. The CSS continuously analyses data on the management of claims in order to identify and address recurring or systemic problems, along with potential legal, operational and conduct risks. As a result of this analysis and evaluation work, the SAC coordinates and heads up various committees and working groups in which BBVA's recurring, systemic or potential problems are highlighted and in which solutions aimed at the continuous improvement of the service provided by BBVA are studied, assessed and promoted. The CSS, in line with BBVA's values, provides coherence and meaning to all operations, playing an essential role in BBVA’s relationship with its customers. The number of user complaints received by the BBVA, S.A. Customer Care Service (SAC) in Spain in 2024 amounted to 264,527 (162,861 in 2023), of which 155,370 were admitted (135,302 in 2023). On the other hand, 110,146 files were not admitted for processing due to not meeting the requirements set out in OM ECO/734 (including complaints pending at the end of 2023). 1 The claims considered for the calculation of the average resolution time include the claims resolved during the 2024 financial year, including claims pending resolution at the end of 2023. Management Report Statement of Non-financial information 7 During the same period, 162,041 complaints were resolved by the Customer Care Service (SAC) (including complaints pending at the end of 2023). 3,328 complaints remained pending analysis as of December 31, 2024. The increase in claims is mainly due to the increase in claims related to the costs of formalizing mortgage loans. The average resolution time for claims in 2021 was 11 days 1, well below the legal term required. The main types of claims received in 2023 were those related to checking accounts and mortgage loans. Additional complaints data points as of December 31, 2024 and 2023 are provided below: COMPLAINTS HANDLED BY THE CUSTOMER CARE SERVICE BY COMPLAINT TYPE (BBVA, S.A. PERCENTAGE) Type 2024 2023 Resources 17 25 Credit cards 36 24 Fraud 18 21 Assets products 10 11 Financial counselling and quality service 5 6 Collection and other services 3 4 Insurances 3 2 Securities and equity portfolios 1 1 Other 7 6 Total 100 100 COMPLAINTS HANDLED BY THE CUSTOMER CARE SERVICE ACCORDING TO RESOLUTION (BBVA, S.A. NUMBER) 2024 2023 In favor of the person submitting the complaint 44,034 42,774 Partially in favor of the person submitting the complaint 5,938 6,545 In favor of the BBVA Group 112,069 80,333 Total 162,041 129,652 Activity report of the Customer Ombudsman in Spain In 2024, In 2024, 2,065 customer complaints were submitted to the Customer Ombudsman's Office (1,233 in 2023). Of these, 40 were not admitted for processing due to not meeting the requirements set out in OM ECO/734/2004, and 51 remained pending as of December 31, 2024. 26.97% of customers who filed a complaint with the Customer Ombudsman in 2024 obtained some form of satisfaction, total or partial, from a resolution by the Customer Ombudsman's Office in 2024 (31.70% in 2023). Customers who are not satisfied with the response from the Customer Ombudsman can contact the official supervisory bodies (Bank of Spain, CNMV and Directorate General of Insurances and Pensions Funds). 139 complaints were submitted by customers to the supervisory bodies in 2024 (124 in 2023). BBVA continues to make progress in implementing the various recommendations and suggestions made by the Customer Ombudsman regarding the suitability of products to the profile of customers and the need for transparent, clear and responsible information. Throughout 2024, due to the type of complaints received, the Ombudsman's suggestions focused on the need to adopt measures to improve customer service protocols, especially in matters such as pension plans and blocking, and, as in previous years, to reinforce and improve the measures that the Bank is adopting to prevent and raise awareness among customers about cyber fraud. Management Report Statement of Non-financial information 8 The data on claims managed by the Ombudsman's branch by type of claim, at the end of 2024 and 2023, are detailed below: COMPLAINTS HANDLED BY THE CUSTOMER OMBUDSMAN OFFICE BY COMPLAINT TYPE (BBVA, S.A. NUMBER) Type 2024 2023 Insurance and welfare products — — Assets operations 28 72 Investment services 31 24 Liabilities operations 128 73 Other banking products (credit card, ATMs, etc.) 316 482 Collection and payment services 492 362 Other 163 220 Total 1,158 1,233 The categorization of the complaints handled in the above table follows the criteria established by the Complaints Department of the Bank of Spain, in its requests for information. The data on complaints handled by the Customer Ombudsman by outcome, at the close of 2024 and 2023, are as follows: COMPLAINTS HANDLED BY THE CUSTOMER OMBUDSMAN OFFICE ACCORDING TO RESOLUTION (BBVA, S.A. NUMBER) 2024 2023 Formal resolution — — Estimate (in whole or in part) 310 402 Dismissed 800 865 Processing suspended 0 1 Total 1,110 1,268 Management Report Statement of Non-financial information 9 2.3 Information on employees BBVA has one Purpose: “To bring the age of opportunity to everyone”. A Purpose that seeks to help all stakeholders, customers, shareholders and also its employees, to meet their life goals. The aim as an organization is to have the best and most engaged team, which is one of BBVA’s six strategic priorities (see “BBVA Group Strategy”). Therefore, BBVA must be able to attract, motivate, train and retain the best talent, aligned with the Group’s values. BBVA's people management strategy is based on three strategic principles: The comprehensive management of these three principles had a positive impact on the Group's employees engagement in 2024, as shown by the results of the 2024 Gallup survey, where BBVA obtained a score of 4.46 (+0.03 compared to 2023), ranking in the 78th percentile in relation to all companies participating in the survey (+2% compared to 2023), consolidating its position among the top 25% companies. In 2024, BBVA has continued to promote employee initiatives that have enabled progress in different areas of people management, aligned with the three strategic principles. BBVA's values and behaviors guide employees in their day-to-day decision-making and help them achieve this Purpose of “To bring the age of opportunity to everyone.” Values and behaviors are the hallmark of everyone who works in the Group and define BBVA's actions. BBVA's values are integrated into the key models and levers that promote the Group's transformation. They are also embedded in global people management processes, from the selection of new employees to incentives for meeting annual objectives, including processes for assigning roles, evaluation, people development and training. 2 The quantitative data in the "Training" section correspond to BBVA, S.A. employees. in Spain. Management Report Statement of Non-financial information 10 Professional development Talent attraction BBVA seeks to offer a unique value proposition through a common brand as a global and digital entity. The Group has clear policies at a global level that strengthen transparency, trust and flexibility for all stakeholders in the process. Innovation and technology are the fundamental levers of BBVA's transformation. In 2024, BBVA evolved its global model for attracting talent and internal mobility, redefining its organizational, operational and process model to boost proactive candidate searches and expand its presence in strategic niches in technology and investment banking. In addition, the technological transformation carried out enabled selection teams to be equipped with cutting-edge tools, promoting an analytical and personalized approach that places the candidate experience at the center of each process. This progress was complemented by new capabilities in attraction and branding, designed to strengthen BBVA's global positioning as a benchmark employer. These initiatives improve the connection with the most dynamic and competitive markets, as well as reinforcing BBVA's proposition as a place where talent finds the best environment to give its best. In this way, BBVA aims to position itself at the forefront of talent acquisition and in building a more innovative and sustainable future. Development BBVA offers its employees quality employment that materializes in different areas. One of them is professional development, in which the Group has a corporate model of professional development that provides employees with autonomy, information and tools to make the best professional decisions for their growth and development. It is a global model that places the person at the center of their professional development and is based on the criteria of trust, empowerment and transparency, which govern the relationship between BBVA and its employees. In this way, at BBVA employees are responsible for their own professional development and have the role of the manager as their main support to accompany and guide them throughout their journey at BBVA. The fact that BBVA has an advanced development model has a positive impact on the level of employee commitment to the Group, a strategic objective of the Talent & Culture area and, which is measured annually through the Gallup survey. During 2024, BBVA continued to promote the role of the manager as a key figure in BBVA's transformation, defining the characteristics of a good manager and the key competencies they must possess in order to periodically evaluate them and develop and implement personalized growth plans that allow them to continue growing professionally. This leadership approach seeks to empower and demand teams to give their best while fostering inspirational and honest leaders who achieve business objectives, live BBVA's values and develop their teams. Managers play a key role within the organization in driving transformation. This professional development model is implemented at BBVA, SA and there are Talent and Culture teams responsible for its periodic implementation, monitoring and subsequent feedback collection. For more information on professional development and its elements, see the chapter “Own workforce - Quality employment” in the BBVA Group Consolidated Management Report. Training 2 BBVA's training model places employees at the center of their professional development, using data to define a personalized value proposition with the aim of providing them with the necessary resources to be the protagonists of their learning experience and thus be able to make decisions that accelerate their professional growth. In 2024, BBVA has continued to boost the strategic capabilities needed to face the challenges of the future, prioritizing key areas such as cybersecurity, data, design and behavioral economics which are described in the chapter “Own workforce – Quality employment” of the BBVA Group Consolidated Management Report. The basic training data for 2024 and 2023 are shown below: BASIC TRAINING DATA (BBVA, S.A.) 2024 2023 Total investment in training (millions of euros) 25.8 23.0 Investment in training per employee (euros) (1) 1,106 1,011 Employees who received training (%) (2) 99.1 99.0 Satisfaction with the training (rating out of 10) 9.7 9.7 Amounts received from FORCEM for training in Spain (millions of euros) 1.7 1.5 (1) Ratio calculated considering the BBVA´s workforce at the end of each year (23,330 in 2024 and 22,741 in 2023). (2) Ratio calculated by dividing the total training hours for the entire year by the Group's total workforce at closing, with access to the training platform. Management Report Statement of Non-financial information 11 TRAINING DATA BY PROFESSIONAL CATEGORY AND GENDER (1) (BBVA, S.A. 2024) Number of employees with training Training hours (thousands) Total Male Female Total Male Female Management team (2) 2,238 1,501 737 87.72 57.10 30.61 Managers 10,742 5,793 4,949 638.83 324.53 314.30 Rest of employees 10,144 4,171 5,973 589.98 256.25 333.73 Total 23,124 11,465 11,659 1316.53 637.89 678.64 (1) Data including the Bank's total workforce at closing. (2) The management team includes the highest range of the Bank´s management. TRAINING DATA BY PROFESSIONAL CATEGORY AND GENDER (1) (BBVA, S.A. 2023) Number of employees with training Training hours (thousands) Total Male Female Total Male Female Management team (2) 2,056 1,400 656 65 41 24 Managers 10,371 5,585 4,786 590 300 290 Rest of employees 10,099 4,140 5,959 684 294 391 Total 22,526 11,125 11,401 1,339 635 704 (1) Data including the Bank's total workforce at closing (2) The management team includes the highest range of the Bank´s management. Diversity and inclusion BBVA is committed to diversity and inclusion, which is a key part of its mission and values, promoting equal opportunities among all its employees so that its team faithfully represents the society in which it operates. Having diverse teams allows BBVA to understand and respond more effectively to the needs of its customers, recognizing that each person contributes valuable perspectives that enrich both the organization and society as a whole. In terms of equal opportunities, BBVA has worked hard to promote gender equality. In this regard, in recent years it has approved in recent years objectives for achieving a minimum proportion of women at the highest levels of the organization. Thus, after having already achieved the target of 40% women on the Board of Directors in 2023, another milestone was reached in 2024 having 35% of women on the management team by 2024, a target committed to in 2022. Following the achievement of these milestones, BBVA's commitment remains unchanged and further efforts are being made to increase this percentage to values closer to parity. In this regard, a new objective of 36.8% of women in management positions by the end of 2026 was set in February 2024, as announced when communicating the objectives associated with long-term variable remuneration for2023. In 2022, BBVA published its “Diversity Guidelines”, a document that constitutes the general guide of action regarding diversity, inclusion and equity, taking as a fundamental basis the BBVA Purpose: “To bring the age of opportunity to everyone.”. This document, approved by the Global Head of Talent & Culture, embodies at an institutional level BBVA's commitment to diversity, inclusion and equity where respect for differences is part of the strategy. This commitment to equal opportunities involves promoting and living diversity in BBVA's relationship with its different stakeholders (customers, partners, employees, etc.) by promoting a culture that embraces the differences that exist in the BBVA community, where the uniqueness of each person is the driving force that encourages them to develop their full potential. The guidelines explicitly prohibit discrimination based on race, sex, age, or any other circumstance and define the five groups with which BBVA works: – Gender diversity. – LGBTQI+ diversity. – Generational diversity. – People with disabilities. – Cultural and ethnic diversity. BBVA makes these guidelines known to its employees through various communication channels. Further regulations also linked to equal opportunities include the BBVA Code of Conduct, which expressly prohibits any type of discrimination based on sex, race, age or sexual condition, and the Equality Plan, signed in Spain with employee representatives in 2023. Likewise, BBVA has prevention and action protocols in place against sexual harassment in the main geographies in which it is present, which expressly set out its rejection of any behavior of a sexual nature or connotation that has the intention or produces the effect of attacking the dignity of a person. BBVA applies this protocol as a means of preventing, detecting, correcting and sanctioning any such conduct within the company. 3 This is the data from BBVA, S.A. (without the branches of the foreign network or Portugal). Management Report Statement of Non-financial information 12 BBVA counts with the participation of its stakeholders in the so called Employee Resource Groups (ERGs). These ERGs, due to their identity in terms of diversity, inclusion and equity, are two-way spaces for communication, interaction and learning on how to approach diversity at BBVA. They are made up of employees who, voluntarily, unpaid and in their free time, decide to put their knowledge and experience at the service of diversity at BBVA. ERGs have been set up in the five lines of work on diversity (gender, LGBTIQ+, generational, people with disabilities and cultural and ethnic). These groups work in a coordinated manner alongside BBVA's diversity teams, to whom they provide feedback from colleagues, advice and specialized help on their areas of expertise, and they take part in the various events that the Group organizes around diversity. Periodic meetings of the diversity team are organized with representatives of the different ERGs and they are also invited to the biweekly meetings of the Community of Practice. The effectiveness of this collaboration with employees and the results obtained are demonstrated by the high number of initiatives launched and the significant number of employees impacted by the initiatives. Diversity initiatives, including those developed for BBVA, SA, are described in the chapter “Own workforce - Equal opportunities” of the BBVA Group Consolidated Management Report. As of December 31, 2024, BBVA, S.A. had 151 3 people with disabilities on the staff (147 in 2023). BBVA in Spain also favors inclusion and diversity by engaging services through "special employment centers" (CEEs, for its acronym in Spanish). These are sheltered employment companies where the labor integration of people with disabilities is promoted. During the 2024 financial year, the turnover of CEEs to the Bank amounted to approximately 2.4 million euros (2.5 million euros in 2023). Main employee metrics EMPLOYEES BY COUNTRIES AND GENDER (BBVA, S.A. NUMBER) 2024 2023 Nº of employees Male Female Nº of employees Male Female Spain 21,965 10,726 11,239 21,571 10,527 11,044 The United States 348 232 116 288 193 95 France 77 53 24 75 53 22 United Kingdom 234 150 84 154 103 51 Italy 85 51 34 65 35 30 Germany 62 38 24 47 32 15 Belgium 16 9 7 19 11 8 Portugal 344 181 163 350 181 169 Hong Kong 120 68 52 104 60 44 China 34 7 27 27 6 21 Japan 8 6 2 6 5 1 Singapore 16 3 13 16 4 12 United Arab Emirates 1 1 — 1 1 — India 2 1 1 2 1 1 Indonesia 2 1 1 2 1 1 South Korea 2 1 1 2 1 1 Taiwan 14 5 9 12 4 8 Total 23,330 11,533 11,797 22,741 11,218 11,523 EMPLOYEES AVERAGE AGE AND DISTRIBUTION BY AGE STAGES (BBVA, S.A. YEARS AND PERCENTAGE) 2024 2023 Average age <30 30-50 >50 Average age <30 30-50 >50 Total 45.6 7.4 62.0 30.6 45.4 6.5 66.7 26.9 EMPLOYEES DISTRIBUTION BY PROFESSIONAL CATEGORY AND GENDER (BBVA, S.A. PERCENTAGE) 2024 2023 Total Male Female Total Male Female Management team (1) 9.6 67.1 32.9 9.1 68.2 31.8 Managers 46.2 53.9 46.1 45.8 53.8 46.2 Rest of employees 44.2 41.0 59.1 45.1 41.0 59.0 Total 100.0 49.4 50.6 100.0 49.3 50.7 (1) The management team includes the highest range of the Bank´s management. 4 The annual average data are not disclosed by gender, age and professional category since the annual average does not differ significantly from the staff data at the end of the financial year provided. Management Report Statement of Non-financial information 13 EMPLOYEE DISTRIBUTION BY TYPE OF CONTRACT AND GENDER (BBVA, S.A. PERCENTAGE) 2024 2023 Total Male Female Total Male Female Permanent employee full-time 99.9 49.4 50.6 99.9 49.3 50.7 Permanent employee part-time — — 100.0 — — — Temporary employee 0.1 57.9 42.1 0.1 53.9 46.2 Total 100.0 49.4 50.6 100.0 49.3 50.7 EMPLOYEE DISTRIBUTION BY TYPE OF CONTRACT AND AGE STAGES (BBVA, S.A. PERCENTAGE) 2024 2023 Total <30 30-50 >50 Total <30 30-50 >50 Permanent employee full-time 99.9 7.3 62.1 30.6 99.9 6.4 66.7 26.9 Permanent employee part-time — — 75.0 25.0 — — 100.0 — Temporary employee 0.1 89.5 10.5 — 0.1 88.5 11.5 — Total 100.0 7.4 62.0 30.6 100.0 6.5 66.6 26.9 EMPLOYEE DISTRIBUTION BY PROFESSIONAL CATEGORY AND TYPE OF CONTRACT (BBVA, S.A. PERCENTAGE) 2024 2023 Permanent employee full- time Permanent employee part- time Temporary employee Permanent employee full- time Permanent employee part- time Temporary employee Management team (1) 100.0 — — 100.0 — — Managers 100.0 — — 100.0 — — Rest of employees 99.8 — 0.2 99.8 — 0.2 Media BBVA 99.9 — 0.1 99.9 — 0.1 (1) The management team includes the highest range of the Bank´s management. In 2024, the annual average of full-time permanent contract, part-time permanent contract and temporary contract was 99.9%, 0.0% and 0.1%%, respectively (in 2023, 99.9% , 0.0% and 0.1%, respectively) 4. DISCHARGE OF EMPLOYEES BY DISCHARGE TYPE AND GENDER (BBVA S.A. NUMBER) 2024 2023 Total Male Female Total Male Female Retirement and early retirement 205 135 70 179 104 75 Voluntary redundancies 17 13 4 30 18 12 Resignations 322 175 147 331 178 153 Dismissals 54 39 15 62 43 19 Others (1) 409 169 240 348 118 230 Total 1,007 531 476 950 461 489 (1) Others include permanent termination and death. DISCHARGE OF EMPLOYEES BY DISCHARGE TYPE AND AGE (BBVA S.A. NUMBER) 2024 2023 Total <30 30-50 >50 Total <30 30-50 >50 Retirement and early retirement 205 — 2 203 179 — 4 175 Voluntary redundancies 17 — 6 11 30 — 8 22 Resignations 322 129 176 17 331 119 189 23 Dismissals 54 3 32 19 62 2 34 26 Others (1) 409 117 206 86 348 63 224 61 Total 1,007 249 422 336 950 184 459 307 (1) Others include permanent termination and death. Management Report Statement of Non-financial information 14 DISMISSALS BY PROFESSIONAL CATEGORY AND AGE STAGES (BBVA S.A. PERCENTAGE) 2024 2023 Total <30 30-50 >50 Total <30 30-50 >50 Management team (1) 16.7 — 33.3 66.7 22.6 — 21.4 78.6 Managers 37.0 — 80.0 20.0 48.4 3.3 73.3 23.3 Rest of employees 46.3 12.0 52.0 36.0 29.0 5.6 50.0 44.4 Total 100.0 5.6 59.3 35.2 100.0 3.2 54.8 41.9 (1) The management team includes the highest range of the Bank´s management. Working environment BBVA continues to make progress in its transformation process, anticipating and redefining the aspects which are key for motivating and protecting its teams, and making it easier for them to work together. Below are the actions and/or policies that the Group has in place in the area of working conditions and employee rights, work/life balance and occupational health and safety. Work organization In 2024, BBVA maintained the flexible work model in those functions where it is viable, with a general model that consists of working a minimum of 60% of the working day in person and a maximum of 40% remotely, although there are adaptations to this model, depending, among other factors, on the local legislation of each country or by the type of function performed. This voluntary work model, which is generally reversible for both BBVA and the employee, is based on flexibility, responsibility and trust in people. While respecting the flexibility to specify the days of remote work, efforts are made to coordinate the people who make up the work teams so as to help make sure that they work together at the same time, in the belief that closeness between people is key to building solid and cohesive teams. BBVA believes that this benefit also allows for better organization of work, since the employee distributes his work time in a more efficient way, with a positive influence on his satisfaction, commitment and productivity. Digital disconnection The right to digital disconnection is included in the different regulations and internal policies of each country. It is recognized it as a fundamental right for achieving a better organization of working time in order to respect private and family life, to improve the reconciliation of personal, family and work life and to help optimize of workers' occupational health. To promote disconnection, initiatives have been carried out such as not sending emails, not calling meetings after certain hours in the afternoon or during weekends and holidays or not calling meetings one afternoon a week to dedicate that time to task planning and individual work. Workers are reminded of these measures through regular communications. Maternity and paternity leave In Spain (BBVA, S.A.), in order to protect the period of pregnancy and child care, affected workers may shorten their working hours by reducing the time of a midday break or reducing the work day by one hour. The enjoyment of leave for infant care is improved, so that if this is through a reduction in working hours, the time of the reduction is extended from half an hour to one hour, and if it is enjoyed in the form of accumulated leave, the period for taking this leave is extended until the child is twelve months old instead of nine. During maternity or paternity leave, BBVA supplements the economic benefits up to 100% of the usual salary, and upon return, both the mother and the non-gestational parent can convert their split shift day into a continuous one until the child is twelve months old (an option that also extends to cases of adoption of a child up to five years of age. The period to be able to enjoy a reduction in working hours is extended from when the child turns twelve until the end of the school year. And in the event of the birth or adoption of a disabled child, employees may have twenty-two days' leave, reduce their working hours or have additional flexibility to that which generally exists in working hours. Additionally, BBVA offers its employees the possibility of enjoying certain permits to care for family members for health reasons, with varying degrees of coverage depending on the specifics of local legislation and public systems. In this regard, Spain has a range of licenses/leaves that can be taken for this purpose with different levels of remuneration, as well as specific financial aid. Freedom of association and representation 100% of the Group's employees in Spain (with the exception of Senior Management) are subject to the provisions of sector-specific collective agreements, which are sometimes supplemented by company-level collective agreements that develop and improve upon the provisions of said agreements, and which are signed with the employees’ representatives at those companies that have such representation. It is the responsibility of the negotiating parties to establish the duration of the agreements. In Spain, all workers have the right to freely join a union and to engage in union activities. Any rule or decision that entails any type of discrimination based on membership or non-membership of a union, or the exercise of union activities in general, will be null and void. Workers' representatives are elected every four years by personal, free, direct and secret suffrage, and are informed of any relevant changes that may occur in the working organization at the company, in accordance with the terms provided for in current legislation. Management Report Statement of Non-financial information 15 Occupational safety and health BBVA considers the positive contribution to the safety, health and physical integrity of its employees as a basic principle for improving the work environment. Prevention of occupational risks The Group's occupational risk prevention model is regulated by local rules, conventions and agreements in the geographies in which BBVA is present. In all cases, employees have the right to consult and get involved in these matters, which is exercised and articulated through union or stakeholder representation on the various existing committees. BBVA's Occupational Risk Prevention Management System: (1) identifies and assesses risks, establishes the criteria, methods and resources that ensure the effectiveness of the management system; (2) analyzes the results obtained; and (3) implements actions to improve processes and the system. This system complies with the requirements of the OSHAS 18001:2007 standard. As a cornerstone of this system, the Group has an Occupational Risk Prevention Plan, which is integrated into the Group's general management system. It has also an occupational risk prevention policy implemented annually through actions and with specific objectives for action in this area. Among these actions, BBVA includes: occupational risk assessments (including psychosocial risks); specific assessments of particularly sensitive personnel and pregnant workers; training and information for workers; safety inspections, investigation and reporting of accidents; actions to coordinate business activities for works and services; health surveillance through medical examinations; preventive health campaigns as well as satisfaction surveys. There is also an Emergency Action Plan that includes guidelines for dealing with possible emergencies, determines the necessary people who, duly organized and trained, guarantee speed and efficiency in the actions to be undertaken and offer information to the users of the facilities on how they should act in the event of an emergency, while also ensuring coordination with external services. Health and well-being program BBVA's Health and Wellbeing program is made up of two pillars: Work Better and Enjoy life. The tagline “You Move Us” is a set of initiatives that aim to care for the people who are part of BBVA, providing the necessary empowerment for them to be the protagonists of their own health. The “Work Better” axis fosters a culture based on engagement, trust and respect for others’ time to achieve the best productivity and efficiency and optimal use of working time. Digital disconnection, work flexibility, active listening and efficient meetings are promoted. Management Report Statement of Non-financial information 16 The “Enjoy Life” axis focuses on the comprehensive health and well-being of the staff, in line with the United Nations and WHO 2030 Agenda, and has been undertaken through two main pillars: 1. Mind (mental health / stress management). Various initiatives have been carried out: informative conferences, workshops and courses on emotional management and the implementation of a psychological support program for employees and their cohabiting family members, which has proved to be very popular. Workshops have been held on anxiety management, help with digital disconnection, positive psychology, mindfulness, a reading club, knitting, etc. Additionally, adequate sleep hygiene has been promoted among employees through conferences, courses, workshops and sleep studies. 2. Body. Campaigns have been carried out cancer prevention, food and nutrition, and to promote physical exercise, prevent neurodegenerative diseases, address migraines in the workplace, prevent diabetes, and vaccinate against influenza, Covid, dengue, etc., reinforced with courses, workshops and conferences delivered by renowned experts in the field. These events have had greater emphasis when they have coincided with the celebration of the corresponding World Days. In addition, in Spain in 2024, pays special attention to the early detection of different types of cancer. During 2024, the prostate- specific antigen tests for the detection of prostate cancer and the dermatoscopic study for the detection of skin cancer were notable examples. Tonometry and retinographies for the early detection of eye pathologies and nutritional campaigns were also carried out so that each employee can know their body composition and receive specific recommendations on how to improve it. Additionally, a genetic campaign for hereditary diseases has been carried out, permanent preventive campaigns were carried out on the control of modifiable cardiovascular risk factors (smoking cessation, control of hypertension, diabetes, obesity, etc.), stroke prevention, vaccination and blood donation campaigns, alongside with official bodies. Below are the basic data on occupational health and safety of BBVA, S.A.: OCCUPATIONAL HEALTH MAIN DATA (BBVA, S.A. NUMBER) 2024 2023 Employees represented in health and safety committees (%) 100 100 Number of total absences (absences due to common illness plus absences due to work accidents (including in itinere)) 6,414 6,264 Number of calendar days of total absenteeism in the year due to illness or work accident (including in itinere) (1) 253,122 172,455 Absenteeism rate (%) 3.2 3.6 General note: BBVA, S.A. data is included (without the branches of the foreign network or Portugal). (1) Does not include in itinere accidents, working days of absenteeism are considered and the calculation of the absenteeism rate is based on the number of working hours lost. OCCUPATIONAL ACCIDENT INJURIES BY GENDER (BBVA S.A.) 2024 2023 Total Male Female Total Male Female Number of occupational accidents (without in itinere) (1) 45 14 31 266 91 175 Severity rate for occupational accidents (%) 0.04 0.03 0.06 0.12 0.08 0.16 Frequency rate (%) 1.22 0.78 1.63 2.70 1.79 3.57 General note: Data for BBVA, S.A. (excluding branches of the foreign network and Portugal) are included. (1) The number of occupational accidents in 2023 also includes the number of accidents in itinere (with and without leave). In BBVA S.A. there were no cases of occupational diseases among internal personnel, but there was one death considered an occupational accident, due to an acute myocardial infarction. Remuneration The corporate governance system defined by the Board of Directors, which guarantees sound management and supervision of the entity, includes gender-neutral remuneration policies and practices, compatible with prudent and effective risk management, aimed at encouraging responsible conduct and fair treatment of customers, while helping to avoid conflicts of interest and promoting competitive remuneration. BBVA has the following remuneration policies in place, designed within the framework of the specific regulations applicable to credit institutions and taking into account best practices and recommendations on matters of remuneration both locally and internationally (the “Remuneration Policies”): – The General Remuneration Policy of the BBVA Group, which applies, in general, to all Group employees, including BBVA's Senior Management, with the exception of BBVA's executive directors, (the "General Remuneration Policy of the BBVA Group" or the "Policy"). – The BBVA Directors' Remuneration Policy (which applies to both non-executive and executive directors). Both Remuneration Policies are based on the same general principles and are geared towards the recurrent generation of value for the Group, the alignment of the interests of its employees and shareholders, prudent risk management and the development of the defined strategy. 5 For this calculation, the median is used, since this statistical indicator is less affected by the presence of biases in the distribution of extreme values and better represents the real situation of the Bank. Management Report Statement of Non-financial information 17 For more information on the general principles on which the Remuneration Policies are based and the applicable corporate variable remuneration model, see the chapter “Own workforce - Quality employment and competitive remuneration” of the BBVA Group Consolidated Management Report. Average remunerations Below is the table with the average remuneration of BBVA employees: AVERAGE REMUNERATION (1) BY PROFESSIONAL CATEGORY, AGE STAGES AND GENDER (BBVA, S.A. EUROS) 2024 2023 (2) Management team (3) Managers Rest of employees Management team (3) Managers Rest of employees < 30 years Male — 48,301 36,174 — 51,010 33,761 Female — 48,848 34,829 — 44,426 31,980 30-50 years Male 148,787 60,364 43,618 141,037 57,558 42,900 Female 122,346 54,291 42,184 114,404 52,045 41,125 > 50 years Male 177,562 67,216 51,266 179,365 66,129 50,848 Female 144,305 61,060 48,592 142,450 60,348 47,846 (1) Considering fixed remuneration and salary allowances (except mobility, housing and expatriation allowances). (2) Data for 2023 differs from that published in the 2023 Consolidated Statement of Non-Financial Information, as the age brackets have been aligned with ESRS requirements. (3) This Group does not include the BBVA Top Management. The differences observed in the average remuneration of some professional categories derive from the varied composition of the same and from other factors such as seniority in the entity or in the position. The average remuneration of each category is influenced by aspects such as the different distribution of men and women in the highest-paid positions. In the case of executive directors and other members of BBVA Senior Management who held their positions on December 31, 2024, the information on their remuneration is included in Note 50 of the accompanying consolidated financial statements. The remuneration paid to executive directors is individualized and itemized, while for the other members of Senior Management the amounts are presented as an aggregate. The average total compensation of BBVA's senior management (excluding executive directors) in 2024 was 2,442 thousand euros for men (2,437 thousand euros in 2023) and 1,953 thousand euros for women (1,981 thousand euros in 2023). Pay gap Remuneration Policies are gender neutral, reflecting equal remuneration for the same functions or functions of equal value, and do not differentiate or discriminate on the basis of gender. The remuneration model takes into account the level of responsibility, the functions carried out and the professional career of each employee, ensuring internal equity and external competitiveness, as well as equal remuneration for men and women. This model defines a number of positions on which remuneration is based. Each of these positions has a unique theoretical value depending on different factors, such as the level of responsibility, the complexity of the function, the impact on results, and so on. Each position has a unique value linked to the achievement of previously established objectives. The adjusted salary gap compares the total remuneration received by men and women in equal positions in the Group. For each of the positions described above, BBVA calculates the average total remuneration received by all the men and women who occupy these positions. BBVA calculates the job-adjusted salary gap as the percentage resulting from dividing the difference of the average of men's salaries minus the average of women's salaries by the average of men's salaries. BBVA Group's adjusted salary gap is calculated as the weighted average of the gaps obtained in each of the positions. The total remuneration considered includes basic annual remuneration (or base salary), salary supplements (except for mobility, housing and expatriation supplements) and target variable remuneration (or target bonus). BBVA does not include in its calculation elements such as allowances, social benefits, etc., whose amount is very unrepresentative within the total remuneration of employees, and whose award criteria and amounts are clearly defined, not discriminating between men and women. Based on 2024 and 2023 data, the adjusted pay gap 5 is 0.9% and 2.1% respectively. The calculation of the adjusted gap includes 87.4% of BBVA, S.A. employees. The rest of the employees cannot be incorporated into the calculation because they are associated with positions in which there is no representation of both sexes. Management Report Statement of Non-financial information 18 Pensions and other benefits BBVA has social welfare systems that are differentiated according to the geographical areas and coverage offered to different groups of employees, with no differences based on gender or personal differences of any other kind. In general, the social welfare system is a defined contribution system for the retirement contingency. The Group's Employee Benefit/Commitment Policy is compatible with the Entity's business strategy, objectives and long-term interests. Contributions to the social security systems of the Bank's employees are made within the framework of labor regulations and individual or collective agreements applicable to each entity, sector or geographical area. The calculation bases on which the benefits revolve (commitments for retirement, death and disability) reflect fixed annual amounts, with no temporary fluctuations derived from variable components or individual results. As for the rest of the benefits, the Bank has a benefits package for employees within its specific remuneration scheme, without applying differences based on gender or personal differences of any other type. 6 Entity that is not part of the BBVA Group's consolidated scope 7 The total figure is an estimated figure, of which 86% is the actual investment figure as of November 30, 2024 and 14% corresponds to the estimated investment made in the month of December 2024. 8 The number of people reached is an estimate, 93% of the figure is the actual number of people reached as of November 30, 2024 and 7% corresponds to the estimate of people reached in December 2024. 9 The data for 2023 differ from those published in the previous Non-Financial Information Statement because the estimates included at the end of the 2023 financial year have been replaced by the actual data available after the publication of said report. Management Report Statement of Non-financial information 19 2.4 Information on social matters Contribution to the Community When it comes to contributing to the inclusive growth of the societies in which the Group is present, BBVA established the 2025 Community Investment Goal, through which it would allocate 550 million euros to social initiatives to support inclusive growth and reach 100 million people between 2021 and 2025. Both objectives were met, ahead of schedule, on December 31, 2024, with 594 million euros allocated to social programs and almost 106 million people reached. This plan is structured around three major areas of action and seeks to contribute to the fulfillment of certain Sustainable Development Goals (SDG): – Reducing inequalities and promoting entrepreneurship (SDGs 8 and 10): includes initiatives that provide access to basic goods and services necessary to improve people's social well-being; training in financial education and digital skills to empower the population, improve their financial resilience and promote financial inclusion, employability and digital security. It also includes support for vulnerable entrepreneurs through the activities of the BBVA Microfinance Foundation 6 and other programs to support SMEs and entrepreneurs. – Creating opportunities for all through education (SDG 4): includes programs to reduce the digital education gap, scholarships to support access to quality education, programs for the development of values and competencies, programs to support higher education and vocational training. It also includes initiatives for collaboration with public education systems and the creation of free, quality content that is disseminated through various channels of the Group, and – Supporting research and culture (SDG 9 and 11): includes initiatives to support researchers and creators in the fields of science, culture or economy, support for leading cultural institutions and scientific dissemination. Additionally, in 2024 BBVA launched a social response plan following the flash floods that struck the Spanish regions of Valencia, Castilla la Mancha and Andalusia on October 29, in order to help alleviate the effects of the humanitarian emergency. Among the measures adopted, 4 million euros in favor of the Spanish Red Cross (delivered in January 2025), as well as the launch of a donation campaign in favor of said entity, which has channeled donations from employees, customers and non-customers worth about 7.4 million euros through Bizum. In 2024, BBVA S.A. allocated 28.6 million euros 7 to community investment (27.8 million euros in 2023). Through this contribution, 33 million people 8 have been reached (33.2 million in 2023) 9. BBVA also carries out other notable initiatives to contribute to the community, such as community service activities, alliances with environmental organizations, support for non-profit entities, the promotion of corporate responsibility through its involvement in different working groups and in initiatives (SDG 17). Below, the investment and people reached (in percentage) of the Commitment to the Community in 2024 are broken down by focus of action, which have been described at the beginning of this section: CONTRIBUTION TO THE COMMUNITY (INVESTMENT) BY FOCUS. 2024 CONTRIBUTION TO THE COMMUNITY (PEOPLE REACHED) BY FOCUS. 2024 10 The data for 2023 differ from those published in the previous Non-Financial Information Statement because the estimates included at the end of the 2023 financial year have been replaced by the actual data available after the publication of said report. Management Report Statement of Non-financial information 20 Below is a breakdown by type of people reached of the Community Contribution in 2024 and 2023 by focus of action: PEOPLE REACHED BREAKDOWN BY TYPE AND FOCUS AREAS (MILLIONS OF PEOPLE) (1) Direct beneficiaries (2) Indirect beneficiaries (3) Unique users (4) Focus area/Type of people reached 2024 2023 (5) 2024 2023 (5) 2024 2023 (5) Reduce inequalities and promote entrepreneurship 0.07 0.13 0.09 0.10 — 0.04 Create opportunities for all through education 0.13 0.10 — — 32.70 32.84 Support research and culture 0.03 0.03 — — 0.02 0.02 (1) The data of people reached are estimates, 93% of the figure is the actual number of people reached as of November 30, 2024 and 7% corresponds to the estimate of people reached in December 2024. (2) People who participate directly in the programs and initiatives developed or promoted by BBVA and who therefore receive a direct benefit. (3) People who are related to the participant of the initiatives and programs promoted and developed by BBVA and who receive an indirect benefit. (4) People who access free and quality content on various BBVA platforms. (5) The data for 2023 differ from those published in the previous Non-Financial Information Statement because the estimates included at the end of the 2023 financial year have been replaced by the actual data available after the publication of said report. Other contributions to society 10 In relation to contributions to foundations and non-profit organizations, the figure for BBVA S.A in 2024 was 9.6 million euros (11 million euros in 2023). In 2024, BBVA made: – 49 donations to foundations and other non-profit social entities with a social purpose in the amount of 1.5 million euros including both one-off contributions and those contributing to social programs (in 2023, 50 donations in the amount of 3.4 million euros). – 74 contributions (not donations) to foundations and other non-profit social entities in the amount of 1.7 million euros (in 2023, 70 contributions in the amount of 1.5 million euros), including partnership and sponsorship actions. – 305 non-social contributions (dues, institutional contributions and commercial sponsorships) to foundations, business associations, lobbies, think-tanks and other non-profit entities in the amount of 6.4 million euros (in 2023, 294 non-social contributions in the amount of 6.1 million euros). Volunteer work In its General Sustainability Policy, BBVA expresses its desire to promote a corporate culture of social and environmental support by enabling its employees to carry out volunteering activities. This policy applies in all countries where the Group is present. BBVA's corporate community service initiatives encourage employee collaboration to generate a significant social impact, increase sense of pride in belonging, satisfaction and productivity, and position BBVA as a benchmark company when it comes to corporate volunteering, thus increasing its appeal to both existing and potential employees. Volunteering is a key element in developing the approaches and lines of work of the 2025 Community Investment Goal (explained above in the section “Contribution to the community”). In fact, the 2030 Agenda for Sustainable Development has explicitly recognized volunteering as a vehicle for sustainable development and volunteer groups as actors in achieving the seventeen SDGs. Furthermore, volunteering activities are aligned with BBVA's Purpose and values. Overall, 2,118 BBVA S.A. employees participated in volunteering initiatives during 2024 (1,988 in 2023), having dedicated 9,754 hours (68% during working hours and 32% outside working hours). The time dedicated by employees in 2024 is equivalent to a contribution of 326,523 euros (194,443 euros in 2023). 11 % of resolution greater than 100% due to the fact that during 2024 the stock of operations pending resolution since December 2023 has been reduced. Management Report Statement of Non-financial information 21 Compliance The BBVA Group is firmly committed to carrying out all its activities and small businesses in strict compliance with the laws in force at all times and in accordance with strict standards of ethical behavior. BBVA offers a detailed description of the key elements of its compliance system (such as mission and scope of action, organization, internal governance and management model, as well as established policies and procedures, among other things) as well as the procedures, processes and policies applicable to conduct in the securities markets, protection of personal data, other standards of conduct and the criminal prevention model. These elements are described in the chapter “Business Conduct” within the section “Information on Governance” of the BBVA Group Consolidated Management Report and are developed in the Bank through local functions in Spain. Prevention of money laundering and terrorist financing Money laundering and financing of terrorism are global phenomena that represent a significant threat to socio-economic development and the well-being of society. Advances in financial information, technology and communications have facilitated the instantaneous transfer of money flows globally, making their control more complex. BBVA recognizes the fundamental role that financial institutions must play in preventing these illicit activities and is committed to actively contributing to their eradication, complying with the regulations and standards applicable in each jurisdiction in which it operates. In this regard, the prevention of money laundering and terrorist financing is an essential requirement for preserving BBVA's corporate integrity. It is also key to maintaining the trust of the stakeholders with whom the Group interacts (mainly customers, employees, shareholders and suppliers) in the different jurisdictions where it is present, as well as contributing to the socioeconomic well-being of society as a whole. The description of the management model for the prevention of money laundering and the financing of terrorism (PBCyFT), technology and data management, as well as the supervision and review model is included in the section “Prevention of money laundering and the financing of terrorism” in the chapter “Business conduct” within the section “Information on governance” of the BBVA Group Consolidated Management Report. In 2024, BBVA, SA resolved 13,903 investigation files that gave rise to 4,519 communications of suspicious transactions sent to the corresponding authorities in Spain. When it comes to training in the field of AML/FT, each BBVA Group entity has an annual training plan for employees. This plan, defined on the basis of identified needs, sets out training actions such as face-to-face or e-learning courses, videos and brochures both for new recruits and for current employees. Likewise, the content of each training action is adapted to the group to which it is addressed, including general training derived from applicable internal and external AML/FT regulations, as well as specific training relating to the functions performed by the group being trained. In 2024 in Spain, 13,942 attendees participated in AML/FT training activities. Anti-corruption information BBVA, S.A. applies the Group's General Anti-Corruption Policy (whose update was approved by the Board of Directors in 2023), which is the standard on which the Corruption Prevention Program is based and develops the principles and guidelines contained therein. For further information on this Policy, the Program, the specific procedures that establish guidelines for action and precautionary measures in situations in which the risk of corruption could materialize, as well as the training programs in the fight against corruption and bribery, see the chapter “Business Conduct - Corruption and Bribery” in the section “Information on Governance” of the BBVA Group's Consolidated Management Report. In relation to the evaluation of corruption risk in the Bank, different types of operations have been evaluated: (i) 13,903 operations out of a total of 13,903 (138.98%) 11 in relation to AML/CFT risk (for the number of communications made to the corresponding authorities, see the previous section); (ii) with respect to internal fraud risk, a total of 1,630 (100%) operations have been analyzed; and (iii) from the dimension of risk of PBC&FT and Corruption, 1,387 third parties have been evaluated in the provisioning processes (100%). In addition, in recent years, anti-corruption risk assessments have been carried out at the Bank. Based on the overall result of this analysis, it has been concluded that the corruption risk control framework is adequate. In relation to the training program on corruption prevention, BBVA has a corporate online course that is mandatory and recurring for all BBVA members. At the end of the 2024 financial year, this course had been taken by a total of 21,707 (97.7%) employees in Spain. Management Report Statement of Non-financial information 22 Tax contribution The principles that guide BBVA's tax actions are not removed from its responsible and sustainable way of understanding finance and banking. In the tax area, in addition to providing legitimate added value to investors, BBVA's actions must also address other stakeholders and must align with the values and commitments that it has undertaken with society in order to bring the age of opportunities to everyone. As such, the principles that guide its actions are: – Integrity. in the tax sphere, integrity is defined as the observance of the letter and spirit of the law and the maintenance of a cooperative and good faith relationship with the various tax administrations. – Prudence. In the tax context, BBVA assesses the implications of its decisions beforehand, including, among other assessments, the impact that its activity may have in the geographical areas in which we operate. – Transparency. In the tax area, BBVA provides information on its activity and its approach to taxation to customers and other stakeholders in a clear and accurate manner. – Achievement of a profitable and sustainable business in the long term. The tax function will provide proactive support to the Group's business areas, taking into account the explicit commitment to the payment of taxes, respect for human rights, prudence in risk management, and a horizon of generating recurring and sustainable results over time. – Long-term value creation for its stakeholders. The tax function is aware of the impact of its decisions not only for the BBVA Group, but also for society as a whole, and will therefore take into consideration, from a tax perspective, the interests of its different stakeholders. – Compliance with applicable legislation at all times. BBVA is committed to transparency in paying taxes and this is the reason why, for yet another year, the it voluntarily breaks down the total tax contribution in countries in which it has a significant presence. The total tax contribution of BBVA, S.A. (Total Tax Contribution - TTC Report) includes both own and third-party payments made by BBVA, S.A. and its branches abroad for corporate income tax, VAT, local taxes and rates, personal income tax withholdings, social security taxes, as well as payments made during the year for tax litigation relating to the aforementioned taxes. GLOBAL TAX CONTRIBUTION (BBVA SPAIN. MILLIONS OF EUROS) 2024 2023 Own taxes 2,712 2,118 Third-party taxes 1,808 1,378 Total tax contribution 4,520 3,496 Offshore financial centers As a result of the express policy on activities in permanent establishments domiciled in offshore financial centers, the Bank closed in 2018 the branch it had in the Cayman Islands and, therefore, does not have activities in offshore financial centers. Management Report Statement of Non-financial information 23 Other tax information by countries TAX INFORMATION BY COUNTRIES (BBVA, S.A. MILLIONS OF EUROS) 2024 2023 CIT payments cash basis CIT expense consol Profit (loss) before CIT CIT payments cash basis CIT expense consol Profit (loss) before CIT Germany 8 11 39 21 4 25 Argentina 12 — — 4 — — Belgium — 2 6 1 1 5 Chile 1 — — 2 — — China (1) 4 4 27 1 5 31 Colombia 14 — — 4 — — Spain (2) 1,257 1,139 10,789 828 600 4,918 Of which: Tax Group — 6 803 — 6 370 Subsidiaries — 103 5,282 — 78 2,984 Impairment of Garanti — — 2,221 — — 132 The United States 79 84 307 66 53 191 France 24 20 36 27 17 79 Italy 22 52 158 50 32 95 Japan — — (3) — — (3) Netherlands — — — 2 — — Paraguay — — — Peru 5 — — 5 — — Portugal 14 20 64 7 1 66 The United Kingdom 22 16 117 19 23 101 Switzerland — — — 4 — — Singapore 4 6 45 2 4 26 Taiwan 9 1 5 — 13 Turkey 16 — — 18 — — Total 1,491 1,355 11,590 1,076 740 5,547 (1) Includes Hong Kong and Shanghai branches. (2) Including dividends from foreign subsidiaries which are taxed in their home country. See Note 4 of Dividends of the Financial Statements. The amounts of "Corporate income tax cash payments" are highly conditioned and derive fundamentally from the methodology for calculating the installment payments provided for in the regulations governing corporate income tax in the different geographical areas, producing differences between the installment payments made in the current year and the refund of installment payments from previous years that may result once the definitive tax returns have been filed. In this respect, it should also be noted that it is normal for there to be differences between the amounts of "Corporate income tax cash payments" and "Corporate income tax expense", since the tax paid in the year is not necessarily directly related to the pre-tax profit existing in a jurisdiction, but takes into account the tax payments (and refunds) in respect of the profits obtained in previous years, as well as the installment payments made in the current year and the withholding of input taxes. However, the "Corporate income tax expense" for the current year is more directly related to the pre-tax profit for a given year. In 2024, the BBVA Group has not received any significant public aid to the financial sector aimed at promoting the development of banking activity. This statement is made for the purposes of the provisions of Article 89 of Directive 2013/36/EU of the European Parliament and of the Council of 26 June (on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms) and its transposition into Spanish law through Law 10/2014 on the Regulation, Supervision and Solvency of Credit Institutions of 26 June. Management Report Statement of Non-financial information 24 Respect of human rights As described in the chapter “Sustainability governance model - Human Rights due diligence” of the Consolidated Non-Financial Information Statement, the Group, including BBVA, SA, aims to contribute to the respect for Human Rights. This is why it frames this willpower in the Group's General Sustainability Policy and aligns it with its Code of Conduct. In this regard, this policy is aligned with the International Bill of Human Rights, the Guidelines of the Organization for Economic Cooperation and Development (hereinafter, OECD) for Multinational Business, or the fundamental conventions of the International Labor Organization, among others. Specifically, as provided in the General Sustainability Policy, the Group ensures compliance with all applicable laws and respect for internationally recognized human rights in all its relations with employees, customers, shareholders, suppliers and, in general, with the communities in which it conducts its businesses and activities. In 2024, BBVA has continued to take an active role in the field of future EU legislative initiatives in this area, participating in the Working Groups on Sustainable Finance of the European Banking Federation (EBF), the Financial Markets Association of Europe and the European Financial Services Roundtable. BBVA contributes its opinion to the development of sectoral positions on various EU initiatives. In this context, it is worth highlighting the work of dialogue and support with the European regulator in relation to the development of the directive on corporate due diligence in matters of sustainability. BBVA identifies the social and labor risks that arise from its activity in the different areas and countries in which it operates in order to manage the potential impacts generated, through the entity's ordinary risk management processes, or through standards and existing processes that integrate the human rights perspective, such as the Equator Principles. For more information on the Equator Principles, see the section “Management of indirect environmental and social impacts”. Furthermore, the methodology for assessing reputational risk at BBVA covers issues related to Human Rights. For more information, see the “Reputational risk” section of the “Risk management” chapter. Management Report Statement of Non-financial information 25 2.5 Information on suppliers BBVA provides transparent information to its suppliers in the procurement processes, enduring compliance with the current legal framework in all areas, including: tax, labor and environmental matters, human rights, and stimulating the demand for socially responsible products and services. As a part of the procurement process, BBVA adequately manages the impacts generated from carrying out of its activity, both real and potential, through a series of mechanisms and rules: the General Procurement Principles, a supplier evaluation process and the Corporate Rules on the Acquisition of Goods and the Arranging of Services. These impacts may be environmental, caused by labor practices carried out in suppliers' companies; a result of the absence of freedom of association; or related to human rights. The General Procurement Principles and Code of Ethics for Suppliers of the BBVA Group establish the fundamental guidelines that must be followed by all suppliers with which any Group company or entity has dealings. – The General Procurement Principles establish, among other aspects, that it is necessary to ensure compliance with all applicable legal requirements throughout the provisioning process regarding human, labor, association and environmental rights by all parties involved in this process, as well becoming involved in the Group's efforts to prevent corruption. It also ensures that the selection of suppliers remains in compliance with existing internal regulations at all times and, in particular, with the values of the Group's Code of Conduct, based on respect for legality (among other matters, those related to anti- corruption), commitment to integrity, competition, objectivity, transparency, value creation, confidentiality, continuous improvement and segregation of duties. – By implementing the Code of Ethics for Suppliers of the BBVA Group at the purchasing units of all countries in which the Group is present, minimum standards of conduct in terms of ethical, social and environmental matters were established which suppliers are expected to follow when providing products and services. The clauses of the contracts include in general the supplier's obligation to comply with the provisions of the BBVA Group's Code of Conduct and Code of Ethics for Suppliers in force at any given time. BBVA understands the importance of integrating ethical, social and environmental factors into its supply chain. The Purchasing function is based on three cornerstones of the procurement model: – Service, maximizing the quality and experience of the internal customer, who is accompanied throughout the process. – Risk, limiting the Group's operational risk in supplier contracts, thus ensuring compliance with regulations and processes and making specific criteria part of the Group's procurement processes. – Efficiency, contributing to the Group's efficiency through active management of costs and suppliers. BBVA has technological platforms that support all phases of the Group's procurement process, from budgeting to recording and accounting for invoices. Moreover, BBVA has a supplier portal that helps to build the Group's online relationship with its suppliers. BBVA's supplier evaluation process includes a review of various key aspects, including financial, legal, labor, reputational, anti- corruption and money laundering prevention measures, concentration and country risks, sustainability, data protection and customer protection. The analysis of these aspects is aimed at mitigating potential risks when contracting with third parties, as well as verifying that each supplier complies with its legal obligations, while promoting their civic responsibilities and validate that they share the same values as BBVA in terms of social responsibility. The sustainability module covers a broad spectrum of evaluated aspects: (I) compliance with environmental and social regulations, (II) management and measurement of environmental impacts, (III) human rights, (IV) control structures, (V) sustainability reporting, and (VI) ESG assessment of its supply chain. Supplier evaluation is reviewed periodically and is subject to continuous monitoring. As of December 31, 2024, of a total of 1,387 suppliers evaluated during the year, 1,368 were considered suitable and 19 nsuitable, with whom, whenever possible, the working relationship is severed or, failing that, an exit plan is established. As of December 31, 2024, the percentage of contract awards made to evaluated suppliers reached 99.5%. As of December 31, 2024, 97.1% of BBVA's total number of third parties (representing 89.5% of total turnover) corresponded to local third parties, thus enabling the BBVA to contribute to the economic and social development of the countries in which the Bank is present. A local third party, in this context, is defined by the Group as one whose tax number matches the country of the company receiving the goods or services. Lastly, in 2024, the Internal Audit carried out risk-based assessments of the procurement process and relevant suppliers in different areas and geographies. The reviews were carried out following proper procedure and the weaknesses detected will be resolved in due course. Management Report Statement of Non-financial information 26 2.6 Report on climate change and other environmental and social issues For BBVA, “Helping our clients transition towards a sustainable future” is a strategic priority. The environmental dimension of sustainability is of great importance to BBVA, which is why, through its products and services, it plays an important role in its customers’ transition. For this reason, BBVA has designed a Transition Plan in which intermediate emissions reduction targets have been set for 2030, a decarbonization strategy for the loan portfolio has been developed, and the evolution of the decarbonization of said portfolio is being monitored. Likewise, the Group has also incorporated risk management associated with climate change, integrating climate change into risk planning, identifying and assessing climate risks, and identifying and measuring other environmental risks. In addition to the decarbonization plan for its customers, the Group has a plan to reduce its carbon footprint, for which its energy consumption and carbon footprint are being measured and managed. In accordance with the provisions of Law 7/2021, of May 20, on climate change and energy transition (hereinafter, Law 7/2021), BBVA incorporates its Climate Change Report into the Group's Management Report, which accompanies the Consolidated Annual Accounts corresponding to the financial year 2023 and includes, among others, the content provided for in article 32 of Law 7/2021 and its implementing regulations. This Report on climate change and other environmental and social issues of Banco Bilbao Vizcaya Argentaria, S.A., which forms part of its Individual Management Report, includes by reference the sections of the Consolidated Climate Change Report that appears in the Consolidated Management Report of BBVA Group, since these sections contain additional and complementary information to obtain a better understanding of the Bank, the BBVA Group and their respective actions in the matters required by article 32 of Law 7/2021, as shown in the table: Non-financial information statement. Contents of contents of Law 7/2021, of May 20, on climate change and energy transition Topic Reporting criteria Response included in the BBVA Group's Consolidated Management Report Government The governance structure of the organization, including the role of its various bodies, in relation to the identification, assessment and management of risks and opportunities related to climate change. NFIS/General information/Sustainability governance model/Sustainability governance Strategy The strategic approach, both in terms of adaptation and mitigation, of entities to manage financial risks associated with climate change, taking into account the risks already existing at the time of writing the report, and those that may arise in the future, identifying the actions necessary at that time to mitigate such risks. NFIS/General information/Sustainability strategy/Strategy and objectives NFIS/Environmental information/Climate change/Resilience of the strategy to climate change risks Impacts The actual and potential impacts of risks and opportunities associated with climate change on the organization's activities and its strategy, as well as on its financial planning. NFIS/General information/Sustainability strategy/Strategy and objectives NFIS/General information/Double materiality analysis/Results and determination of materiality NFIS/Environmental information/Climate change/Introduction Risk management The processes for identifying, assessing, controlling and managing climate-related risks and how these are integrated into your overall business risk analysis and their integration into the organization's overall risk management. NFIS/Environmental information/Climate change/Management of risks associated with climate change Metrics and objectives The metrics, scenarios and targets used to assess and manage the relevant risks and opportunities related to climate change and, where calculated, the scope 1, 2 and 3 of your carbon footprint and how you are addressing its reduction. NFIS/Environmental information/Climate change/Energy consumption and carbon footprint of BBVA Group The calculation of Scope 1, 2 and 3 of BBVA Spain's carbon footprint and how its reduction is addressed, as well as other aspects related to direct and indirect impacts, are broken down in the section “Management of direct and indirect impacts” below. BBVA, as the parent entity of the BBVA Group, publishes a statement of non-financial information at a consolidated level in which, as required by Article 8 of Regulation 2020/852 (Taxonomy Regulation), information related to activities that are associated with economic activities that are considered environmentally sustainable is included, and therefore the disclosure requirements with respect to such activities as an individual company are considered to be met (point 7 of Article 29a of Directive 2013/34). Information on such activities is included in the “Sustainable financing under Article 8 of the European Taxonomy” section of the BBVA Group's consolidated Non-financial Information Statement. Management Report Statement of Non-financial information 27 Management of direct impacts Energy consumption and carbon footprint BBVA has an internal methodology, applicable in all the Group's geographies, for compiling information on consumption associated with direct environmental impacts. This common standard is used to consolidate the information that is subsequently used to calculate the Group's carbon footprint. Energy consumption ENERGY CONSUMPTION AND MIX (BBVA GROUP) 2023 (1) 2024 (2) Total fossil energy Consumer (MWh) (3) 10,115 10,062 Share of fossil fuels in total energy consumption (%) 6% 6% Consumer of fuel from nuclear sources (MWh) — — Share of nuclear sources in total energy consumption (%) Fuel Consumer from renewable sources, such as biomass (which also includes industrial and municipal waste of biological origin, biogas, renewable hydrogen, etc.) (MWh) — — Consumer of electricity, heat, steam and cooling purchased or acquired from renewable sources (MWh) 150,391 146,508 Consumer of self-generated renewable energy not used as fuel (MWh) — — Total renewable energy Consumer (MWh) 150,391 146,508 Share of renewable sources in total energy consumption (%) 94% 94% Total energy Consumer (MWh) 160,506 156,570 (1) Data for 2023 differ from those published in the previous Non-Financial Information Statement because the estimates included at year-end 2023 have been replaced by actual consumption available after the publication of that report. Likewise, data for the geography of Venezuela, not included in the previous report, are included for 2023. (2) For 2024, estimates are used for data that are not available at the closing date of this report. (3) Includes non-renewable electricity consumption and fossil fuel consumption (natural gas, liquefied petroleum gas -LPG-, diesel and coal), except for fuels consumed in fleets. Carbon footprint BBVA's carbon footprint consists of the following emissions: – Scope 1 emissions, which comprise direct emissions from the combustion facilities of own-use buildings (including data centers), fuel for the vehicle fleet and refrigerant gases. – Scope 2 emissions, which include indirect emissions related to the production of electricity purchased and consumed by buildings (including data centers) and branches. – Scope 3 emissions, which comprise other indirect emissions that occur in the company's value chain as a result of its activity. Scope 3 categories that are considered material and applicable to BBVA's business are published: ◦ 3.1: Purchased goods and services ◦ 3.2: Capital goods ◦ 3.3: Fuel and energy related activities not accounted for in scope 1 or 2 ◦ 3.4: Upstream transportation and distribution ◦ 3.5: Waste from operations ◦ 3.6: Business travel ◦ 3.7: Employee commuting to and from work 3.8: Employee commuting to and from work 3.9: Commuting to and from work ◦ 3.13: Leased assets downstream BBVA will work on estimating the rest of the applicable Scope 3 categories not included in the footprint calculation to date (except for category 3.15, corresponding to financed emissions, see “Calculation of financed emissions”), although it is not considered to have a material impact. Management Report Statement of Non-financial information 28 TOTAL GHG EMISSIONS BROKEN DOWN BY SCOPE 1, 2 AND 3 (BBVA S.A.) (1) Retrospective Milestones and target years Base year 2023 (2) 2024 (3) % 2024 / 2023 2025 2030 Annual % target / base year Scope 1 GHG emissions Gross scope 1 GHG emissions (tCO2eq) 4,359 3,747 3,016 (19.0)% n/d n/d n/d Percentage of Scope 1 GHG emissions from regulated emissions trading schemes (%) n/a n/a n/a n/a n/a n/a n/a Scope 2 GHG emissions Gross Scope 2 GHG emissions based on location (tCO2eq) n/d 25,642 24,981 (3.0)% n/d n/d n/d Gross market-based scope 2 GHG emissions (tCO2eq) 60,894 — — n/d n/d n/d (4) n/d Scope 3 GHG emissions Total gross indirect GHG emissions (scope 3) (tCO2eq) n/d 326,525 323,258 (1.0)% n/d n/d n/d 1. Goods and services purchased n/d 238,535 227,744 (5.0)% n/d n/d n/d Optional subcategory: Cloud computing and data center services n/d n/d n/d 2. Capital goods n/d 27,355 35,788 31.0% n/d n/d n/d 3. Fuel and energy-related activities (not included in scope 1 or 2) n/d 12,684 12,001 (5.0)% n/d n/d n/d 4. Transport and distribution in previous phases (4) n/d n/a 495 n/d n/d n/d n/d 5. Waste generated in operations n/d 76 65 (15.0)% n/d n/d n/d 6. small businesses trips n/d 15,364 15,379 —% n/d n/d n/d 7. Pendulum shift of wage earners n/d 28,883 29,425 2.0% n/d n/d n/d 13. Assets leased in later phases n/d 3,627 2361 (35.0)% n/d n/d n/d 15. Investments For more information, see the “Calculation of financed CO2e emissions” section of the consolidated NFIS of BBVA Group Total GHG emissions Total GHG emissions (location-based) (tCO2eq) n/d 355,913 351,255 (1.0)% n/d n/d n/d Total GHG emissions (market-based) (tCO2eq) n/d 330,272 326,274 (1.0)% n/d n/d n/d n/a: not applicable / available. (1) The BBVA Group does not currently have operational targets for 2030 (except for the one indicated in the table for market-based Scope 2 emissions), as the 2030 Eco- efficiency Plan is under development and will include a new definition of targets. Additionally, the targets that had been defined for 2025 have already been achieved previously. (2) The data for 2023 differ from those published in the previous Non-Financial Information Statement because the estimates included at the end of the 2023 financial year have been replaced by the actual consumption available after the publication of said report and certain values have been modified in accordance with the new data. (3) For the year 2024, estimates are used for those data that are not available at the closing date of this report. (4) In 2023, emissions from category 3.4 Upstream transportation and distribution were included in category 3.1 Purchased goods and services. 12 For the Ecoefficiency Plan 2021-2025, 2019 is used as the baseline, as the consumption values for 2020 were affected by the COVID-19 pandemic. Management Report Statement of Non-financial information 29 Reduction of environmental impact Global Eco-efficiency Plan 2021-2025 BBVA Group has a plan to reduce its direct environmental impact, the Global Eco-efficiency Plan 2021-2025 12, which was last renewed in 2021 and whose objectives were achieved in 2023. During 2024, the Group's goal has been to continue improving all the indicators of the plan. The focus of the Global Eco-efficiency Plan is based on reducing consumption, aiming to reduce the Group's direct environmental impact and a better use of natural resources. The indicators can be found in the following table: EVOLUTION OF THE INDICATORS OF THE GLOBAL ECO-EFFICIENCY PLAN (1) (BBVA SPAIN) Values 2024 Achievement 24 (∆ 24-19) (2) 2024 interannual GEP target Target GEP 2025 Renewable electricity 100% +0 p.p. 100% 100% Electricity consumption per employee (MWh/Employee) (3) 5.26 (24)% (13)% (15.0)% Energy consumption per employee (MWh/Employee) (4) 5.63 (24)% (5)% (6)% Water consumption per employee (m3/Employee) 7.26 (29)% (19)% (21)% Paper consumption per employee (kg/Employee) 40.76 (47)% (4)% (4)% Net waste per employee (t/Employee)(5) 0.01 (59)% (14)% (14)% Scope 1&2 carbon emissions (tCO2e) (6) 3,016 (31)% (6)% (6)% Environmentally certified area (%) (7) 99% +63 p.p. 42% 43% (1) The data for consumption include the companies BBVA SA, BBVA Asset Management SA, SGIIC, BBVA Broker Correduría de Insurances Y Reinsurances SA, BBVA IT Spain, BBVA Mediación Operador de Banca- Insurances Vinculado, SA, BBVA Next Technologies SLU, BBVA Pensions, BBVA RE Inhouse Compañía De Reinsurances, SE, BBVA Insurances SA De Insurances Y Reinsurances, BBVA Servicios, SA, Contents Area, SL, Gestión de Previsión y Pensiones, SA, Gestión y Administración de Receipts SA, GARSA, Gran Jorge Juan, SA and OPPLUS Operaciones y Servicios SA, as well as BBVA Foundation and BBVA Microfinance Foundation. The scope does not include BBVA branches outside of Spain or certain companies of the BBVA Group in Spain that represent 3.3% of the total employees in Spain. For the year 2024, estimates are used for those data that are not available at the closing date of this report. (2) The 2024 Achievement indicators corresponding to Renewable Electricity and Environmentally Certified Area are expressed as a percentage point variation over the 2019 value. (3) Includes the sum of renewable and non-renewable electricity (per employee). (4) Includes consumption of electricity and fossil fuels (natural gas, liquefied petroleum gas (LPG), diesel and coal), except fuels consumed in fleets. (5) Net waste is the total waste generated minus the waste that is recycled. (6) Incluye alcance 1 (combustibles en instalaciones y flota de vehículos y gases refrigerantes), alcance 2 market-based. (7) Includes IS0 14001, ISO 50001, LEED, Edge, WWF Green Office and Zero Waste certifications. The achievement of these indicator targets has been possible thanks to the following four action vectors: Consumption Regarding electricity consumption, BBVA's strategy is focused on the use of renewable energy. To this end, the strategy consists of reaching Power Purchase Agreements (PPAs) such as the one formalized in Spain for the period 2024-2029, as well as acquiring renewable energy certificates (Guarantees of Origin) for the rest of the electricity consumed in BBVA's facilities in Spain. It is also committed to self-generation of renewable energy through the installation of photovoltaic and solar thermal panels and geothermal installations in seven of the Bank's corporate buildings, and will continue to invest in photovoltaic installations in buildings that do not yet have these facilities. In addition, BBVA continues to work on the implementation of Energy Saving Measures (ESM) in the management of the buildings, with the aim of controlling and reducing consumption. For information regarding indicators of water and paper consumption, waste and environmentally certified surface area, see the section “Other environmental objectives”. Carbon footprint Regarding the carbon footprint, for CO2 emissions of scope 1 and 2, the reduction of emissions is driven by energy consumption efficiency strategies, the renewal of fleets with traditional fuels for hybrid and electric fleets, and the use of renewable energy. Water and paper consumption In order to reduce BBVA's environmental footprint, the following lines of action have been promoted: – Initiatives to reduce water consumption, such as gray water recycling systems and reuse of rainwater for irrigation or the installation of dry urinals in some of BBVA's buildings in Spain. – Finally, digitalization and centralization of printing measures to reduce paper consumption, which is also 100% recycled or environmentally certified in Spain. Management Report Statement of Non-financial information 30 CONSUMPTION (BBVA S.A.) (1) 2024 (2) 2023 (3) ∆ 24-23 Total water consumption (cubic meters) 201,952 215,391 (6)% Public water supply (cubic meters) 185,468 198,697 (7)% Recycled water (cubic meters) 16,484 16,694 (1)% Paper (tons) 1,134 743 53% (1) (1) The data for consumption include the companies BBVA SA, BBVA Asset Management SA, SGIIC, BBVA Broker Correduría de Insurances Y Reinsurances SA, BBVA IT Spain, BBVA Mediación Operador de Banca- Insurances Vinculado, SA, BBVA Next Technologies SLU, BBVA Pensions, BBVA RE Inhouse Compañía De Reinsurances, SE, BBVA Insurances SA De Insurances Y Reinsurances, BBVA Servicios, SA, Contents Area, SL, Gestión de Previsión y Pensiones, SA, Gestión y Administración de Receipts SA, GARSA, Gran Jorge Juan, SA and OPPLUS Operaciones y Servicios SA, as well as BBVA Foundation and BBVA Microfinance Foundation. The scope does not include BBVA branches outside of Spain or certain companies of the BBVA Group in Spain that represent 3.3% of the total employees in Spain. For the year 2024, estimates are used for those data that are not available at the closing date of this report. (2) In 2024, there will be a significant increase in paper consumption in Spain due to the increase in marketing campaigns. (3) The data for 2023 differ from those published in the previous Non-Financial Information Statement because the estimates included at the end of the 2023 financial year have been replaced by the actual consumption available after the publication of said report. Likewise, data on the geography of Venezuela, not included in the previous report, are included for 2023. Circular Economy BBVA works to mitigate the impact of waste generation through sustainable construction standards and the implementation of Environmental Management Systems certified with ISO 14001 and additionally with the implementation of Aenor's Zero Waste certification in Ciudad BBVA, BBVA's headquarters in Spain, and the Opplus building in Malaga. The objective is to minimize the amount of waste sent to landfills, which is why the Group's facilities have clearly differentiated and marked areas that allow for the correct segregation and subsequent recycling of waste. WASTE - CIRCULAR ECONOMY (BBVA S.A.) (1) 2024 2023 (2) Hazardous waste (tons) 91 166 Recycled hazardous waste (tons) 63 123 Disposed hazardous waste (tons) 28 43 Non-hazardous waste (tons) (2) 902 742 Non-hazardous waste (%) 768 621 Disposed non-hazardous waste (tons) 135 121 (1) Data for consumption includes the companies BBVA S.A., BBVA Asset Management S.A., SGIIC, BBVA Broker Correduría de Seguros Y Reaseguros S.A., BBVA IT España, BBVA Mediación Operador de Banca-Seguros Vinculado, S.A., BBVA Next Technologies SLU, BBVA Pensiones, BBVA RE Inhouse Compañía De Reaseguros, S.E., BBVA Seguros S.A. De Seguros Y Reaseguros, BBVA Servicios, S.A., Contents Area, S.L., Gestión de Previsión y pensiones, S.A., Gestión Y Administración de recibos S.A., GARSA, Gran Jorge Juan, S.A. and OPPLUS operaciones y servicios S.A., as well as Fundación BBVA and Fundación Microfinanzas BBVA. BBVA branches outside Spain and certain BBVA Group companies in Spain, which represent 3.3% of the total number of employees in Spain, are not included in the perimeter. For the year 2024, estimates are used for those data that are not available at the closing date of this report. (2) Data for 2023 differ from those published in the previous Statement of Non-Financial Information because the estimates included at the close of 2023 have been replaced by the actual consumption available after the publication of that report and certain values have been modified in accordance with the new data. Carbon footprint Regarding the carbon footprint, for Scope 1 and 2 CO2 emissions, the reduction of emissions comes from energy consumption efficiency strategies, the renewal of fleets with traditional fuels with hybrid and electric fleets and the use of renewable energy. Sustainable Construction Another objective is to ensure the implementation of the best environmental and energy standards in BBVA's buildings, with the aim of achieving a high percentage of environmentally certified surface area. In this regard, BBVA's facilities have several construction and management certifications. Within the construction certifications, there are 19 buildings and 11 branches of the Group with the prestigious LEED (Leadership in Energy and Environmental Design) standard for sustainable construction. These buildings include the Group's main headquarters in Spain, Mexico, Turkey and Argentina. In addition, three of them have received the highest category of certification, LEED Platinum. In addition, the Group has seven WWF Green Office in Turkey and 40 Edge in Peru, certifications that promote the reduction of the ecological footprint and carbon emissions. Regarding management certifications, BBVA has implemented an Environmental Management System based on the ISO 14.001:2015 Standard in different buildings, which is certified every year by an independent entity. Through this certification, the environmental performance in the operations of some of its buildings is controlled and evaluated. This system is implemented in 112 buildings and 1,051 branches in the main countries where the Group operates. Finally, BBVA has managed to certify 36 buildings and 1,926 branches with an Energy Management System also certified by an independent third party and that meets the ISO 50.001:2018 standard. Management Report Statement of Non-financial information 31 Management of indirect environmental and social impacts BBVA addresses environmental, natural capital and social risks from the perspective of prevention and mitigation of impacts. To do this, it uses tools such as its Environmental and Social Framework or the Equator Principles, which have an environmental and social focus. Environmental and social framework The Environmental and Social Framework (hereinafter, the “Framework”) aims to establish criteria for the identification, assessment and monitoring of certain activities of the following sectors, selected for their high potential impact on nature and society: mining, agro-industry, energy, infrastructure and defense. In this way, the Framework identifies restrictions, either via prohibited activities or activities requiring special attention in these sectors. BBVA, with the support of an independent advisor, analyses whether wholesale customers covered by its Framework do not engage in prohibited activities in the sectors covered by it. It also analyses whether they engage in an activity requiring special attention, in which case BBVA assesses the environmental and social impacts derived from the activity to be financed and may, where appropriate, initiate a plan for dialogue and support with the customer under the terms provided in the Framework. In December 2024, an update of the Framework was carried out, approved by the Head of the Global Sustainability Area, in order to evaluate its effectiveness and update it based on best practices, the evolution of international standards and the expectations of our stakeholders. Equator Principles Although financing projects in sectors such as energy, transport and social services boosts economic development and creates jobs, it also has potential environmental and social impacts. For this reason, BBVA implements environmental and social risk assessment processes to mitigate and prevent negative impacts, reinforcing the economic, social and environmental value of these financing projects. In 2004, BBVA signed the Equator Principles (EP), which establish standards for environmental and social risk management in project financing. Currently in their fourth version (EP4), these principles are applied globally in all industrial sectors and cover five project- related financial products: 1. Advice on financing 2. Financing 3. Corporate loans 4. Bridge loans 5. Re-financing and acquisition. In accordance with the EP, BBVA subjects each project under the scope of EP4 to an environmental and social due diligence analysis, considering impacts on environmental and human rights. This analysis is integrated into BBVA's internal processes for structuring, admitting and monitoring operations, aligning with its Framework. Each deal is classified according to its risk level (categories A, B or C) and the documentation provided by the customer and independent advisors is reviewed. A specialized team at BBVA supervises and evaluates these projects, contributing to the decisions of the risk committees and approvals. Regarding the human rights assessment and in accordance with the EP, BBVA requires due diligence on projects that may impact indigenous communities. In cases where this circumstance occurs, the free, prior and informed consent of these communities must be obtained, regardless of the geographic location of the project - in line with the recommendations of the EP Association. It also requires, in accordance with the projects, liaison with the communities impacted by the projects. If potential risks are detected, the operation must include effective management of these risks, as well as operational mechanisms for managing claims. Regarding climate impacts, in accordance with the EP, the impacts of the projects are assessed considering scenarios, as well as mitigation and management measures adopted. 13 Law 5/2021 once again modifies article 49 of the Commercial Code on social and personnel issues. Those modifications are included in this content index. Management Report Statement of Non-financial information 32 2.7 Additional information Contents index of the Law 11/2018 13 Non-financial information report. Contents Index to the Law 11/2018 Page / Section Management report BBVA 2024 GRI reporting criteria Page(s) General information Business model Brief description of the group’s business model BBVA in brief GRI 2-6 GRI 2-7 2 Geographical presence and Organization and Structure BBVA in brief GRI 2-1 GRI 2-6 2 Objectives and strategies of the organization NFIS/General information GRI 2-22 3-3 Main factors and trends that may affect your future evolution NFIS/General information GRI 2-16 3-3 General Reporting framework Non-Financial Information Statement GRI 1 3-40 Principle of materiality NFIS/Additional information/Double materiality analysis GRI 3-1 GRI 3-2 40-41 Management approach Description of the applicable policies NFIS/Information on customers NFIS/Information on employees NFIS/Information on social matters NFIS/Information on suppliers NFIS/Report on climate change and other environmental and social issues GRI 3-3 GRI 2-25 4-8 9-18 19-24 26-31 The results of these policies NFIS/Information on customers NFIS/Information on employees NFIS/Information on social matters NFIS/Information on suppliers NFIS/Report on climate change and other environmental and social issues GRI 3-3 GRI 2-25 4-8 9- 18 19 -24 26- 31 The main risks related to these issues involving the activities of the group NFIS/Information on customers NFIS/Information on employees NFIS/Information on social matters NFIS/Information on suppliers NFIS/Report on climate change and other environmental and social issues GRI 2-16 4-8 9- 18 19 -24 26- 31 Environmental questions Management Report Statement of Non-financial information 33 Environmental management Detailed information on the current and foreseeable effects of the company's activities on the environment and, where appropriate, health and safety NFIS/Report on climate change and other environmental and social issues/Management of direct impacts GRI 2-16 27-30 Environmental assessment or certification procedures NFIS/Report on climate change and other environmental and social issues/Management of direct impacts GRI 3-3 GRI 2-25 27-30 Resources dedicated to the prevention of environmental risks NFIS/Report on climate change and other environmental and social issues GRI 3-3 GRI 2-25 26-31 Application of the precautionary principle NFIS/Report on climate change and other environmental and social issues GRI 2-23 GRI 3-3 GRI 2-25 26-31 Amount of provisions and guarantees for environmental risks NFIS/Report on climate change and other environmental and social issues GRI 3-3 GRI 2-25 26-31 Contamination Measures to prevent, reduce or repair emissions that seriously affect the environment; taking into account any form of activity-specific air pollution, including noise and light pollution NFIS/Report on climate change and other environmental and social issues/Management of direct impacts GRI 3-3 GRI 2-25 27-30 Circular economy and waste prevention and management Prevention, recycling, reuse, other forms of recovery and types of waste disposal NFIS/Report on climate change and other environmental and social issues/Management of direct impacts GRI 3-3 GRI 2-25 GRI 306-2 with respect to recycling and reusing 27-30 Actions to combat food waste BBVA Group considers this indicator not to be material GRI 3-3 GRI 2-25 Sustainable use of resources Water consumption and water supply according to local constraints NFIS/Report on climate change and other environmental and social issues/Management of direct impacts GRI 303-5 (2018) with respect total water consumption 27-30 Use of raw materials and measures taken to improve the efficiency of their utilization NFIS/Report on climate change and other environmental and social issues/Management of direct impacts GRI 301-1 with respect to renewable materials used 27-30 Energy use, direct and indirect NFIS/Report on climate change and other environmental and social issues/Management of direct impacts GRI 302-1 GRI 302-3 27-30 Measures taken to improve energy efficiency NFIS/Report on climate change and other environmental and social issues/Management of direct impacts GRI 3-3 GRI 2-25 GRI 302-4 27-30 Use of renewable energies NFIS/Report on climate change and other environmental and social issues/Management of direct impacts GRI 302-1 with respect to renewable energies consumption 27-30 Management Report Statement of Non-financial information 34 Climate change Greenhouse gas emissions generated as a result of the company's activities, including the use of the goods and services it produces NFIS/Report on climate change and other environmental and social issues/Management of direct impacts GRI 305-1 GRI 305-2 GRI 305-3 GRI 305-4 27-30 Measures taken to adapt to the consequences of climate change NFIS/Report on climate change and other environmental and social issues GRI 3-3 GRI 2-25 GRI 201-2 26-31 Reduction goals established voluntarily in the medium and long term to reduce greenhouse gas emissions and measures implemented for that purpose NFIS/Report on climate change and other environmental and social issues GRI 305-5 26-31 Protection of biodiversity Measures taken to protect or restore biodiversity The metric describes the size of the protected or restored areas of habitats and BBVA's financial activity, as well as the activity of its offices, has no impact in this regard. This metric and its various disclosures are currently considered non-material. GRI 304-3 Impacts caused by activities or operations in protected areas The operations centers and / or offices owned, leased or managed by BBVA are located in urban areas, so the impacts of the entity's activities on biodiversity are considered not significant. Although the products and services commercialised can potentially have an impact on it, they are managed according to the regulations and criteria applicable to the nature of the financed activities, and nowadays there are no defined and comparable metrics for their monitoring and reporting in relation with BBVA's value chain. However, the entity undertakes to follow up on regulatory developments regarding biodiversity for future reporting if necessary. GRI 304-1 GRI 304-2 Social and personnel questions Management Report Statement of Non-financial information 35 Employees Total number and distribution of employees according to country, gender, age, country and professional classification NFIS/Information on employees/Professional development/Main employee metrics GRI 2-7 GRI 2-8 GRI 405-1 12-14 Total number and distribution of work contract modalities NFIS/Information on employees/Professional development/Main employee metrics GRI 2-7 GRI 2-8 12-14 Annual average of work contract modalities (permanent, temporary and part-time) by sex, age, and professional classification NFIS/Information on employees/Professional development/Main employee metrics GRI 2-7 GRI 2-8 12-14 Number of dismissals by sex, age, and professional classification NFIS/Information on employees/Professional development/Main employee metrics GRI 3-3 GRI 2-25 GRI 401-1 with respect to staff turn-over by sex, age and country 12-14 The average remunerations and their evolution disaggregated by sex, age, and professional classification or equal value NFIS/Information on employees/Remuneration GRI 3-3 GRI 2-25 GRI 405-2 with respect to women remuneration compared to men's by professional category 16-18 The average remuneration of directors and executives, including variable remuneration, allowances, compensation, payment to long-term forecast savings and any other perception broken down by gender NFIS/Information on employees/Remuneration GRI 3-3 GRI 2-25 GRI 405-2 with respect to women remuneration compared to men's by professional category 16-18 Salary gap NFIS/Information on employees/Remuneration GRI 3-3 GRI 2-25 GRI 405-2 with respect to women remuneration compared to men's by professional category 16-18 Implementation of employment termination policies NFIS/Information on employees/ Work environment /Work organization GRI 3-3 GRI 2-25 14 Employees with disabilities NFIS/Information on employees/Professional development/Diversity and inclusion GRI 405-1 12 Work organization Work schedule organization NFIS/Information on employees/ Work environment /Work organization GRI 3-3 GRI 2-25 14 Number of hours of absenteeism NFIS/Information on employees/ Work environment/Occupational safety and health GRI 403-9 16 Measures designed to facilitate access to mediation resources and encourage the responsible use of these by both parents NFIS/Information on employees/ Work environment /Work organization GRI 3-3 GRI 2-25 14 Management Report Statement of Non-financial information 36 Health and safety Work health and safety conditions NFIS/Information on employees/ Work environment/Occupational safety and health GRI 3-3 GRI 2-25 GRI 403-1 GRI 403-2 GRI 403-3 GRI 403-7 (2018) 15-16 Work accidents, in particular their frequency and severity, disaggregated by gender NFIS/Information on employees/ Work environment/Occupational safety and health GRI 403-9 (2018) with respect to labor accident injuries 16 Occupational diseases, disaggregated by gender NFIS/Information on employees/ Work environment/Occupational safety and health GRI 403-10 (2018)with respect to recordable labor injuries 16 Social relationships Organization of social dialog, including procedures to inform and consult staff and negotiate with them NFIS/Information on employees/ Work environment/Freedom of association and representation GRI 3-3 GRI 2-25 14 Mechanisms and procedures that the company has to promote the involvement of workers in the management of the company, in terms of information, consultation and participation NFIS/Information on employees/ Work environment/Freedom of association and representation GRI 3 -3 GRI 2-25 14 Percentage of employees covered by collective agreement by country NFIS/Information on employees/ Work environment/Freedom of association and representation GRI 2-30 14 The balance of collective agreements, particularly in the field of health and safety at work NFIS/Information on employees/ Work environment/Occupational safety and health GRI 403-4 ( 2018) 15-16 Training Policies implemented for training activities NFIS/Information on employees/ Professional development/Training GRI 3-3 GRI 2-25 GRI 404-2 10-11 The total amount of training hours by professional category NFIS/Information on employees/ Professional development/Training GRI 404-1 10-11 Universal accessibility for people with disabilities Integration and universal accessibility of people with disabilities NFIS/Information on employees/Professional development/Diversity, inclusion and different capacities GRI 3-3 GRI 2-25 11-12 Equality Measures taken to promote equal treatment and opportunities between women and men NFIS/Information on employees/Professional development/Diversity, inclusion and different capacities GRI 3-3 GRI 2-25 11-12 Equality plans (Section III of Organic Law 3/2007, of March 22, for effective equality of women and men) NFIS/Information on employees/Professional development/Diversity, inclusion and different capacities GRI 3-3 GRI 2-25 11-12 Measures adopted to promote employment, protocols against sexual and sex-based harassment. NFIS/Information on employees/Professional development/Diversity, inclusion and different capacities GRI 3-3 GRI 2-25 11-12 Policy against any type of discrimination and, where appropriate, diversity management NFIS/Information on employees/Professional development/Diversity, inclusion and different capacities GRI 3-3 GRI 2-25 11-12 Information about the respect for human rights Management Report Statement of Non-financial information 37 Human rights Application of due diligence procedures in the field of human rights; prevention of the risks of violation of human rights and, where appropriate, measures to mitigate, manage, and repair possible abuses committed NFIS/Information on social matters/Respect of human rights GRI 2-23 GRI 2-26 24 Claims regarding cases of human rights violations NFIS/Information on social matters/Respect of human rights BBVA has a whistleblowing channel that allows any interest group to report confidentially and anonymously if they wish, any behavior that is directly or indirectly linked to human rights. In the complaints received through this channel in 2024 and 2023, there are no human rights violations attributable to Banco Bilbao Vizcaya Argentaria, S.A. GRI 3-3 GRI 2-25 GRI 406-1 24 Promotion and compliance with the provisions contained in the related fundamental Conventions of the International Labor Organization with respect for freedom of association and the right to collective bargaining; the elimination of discrimination in employment and occupation; the elimination of forced or compulsory labor; and the effective abolition of child labor NFIS/Information on employees/ Work environment/Freedom of association and representation NFIS/Information on social matters/Respect of human rights GRI 3-3 GRI 2-25 GRI 407-1 GRI 408-1 GRI 409-1 14 24 Information about anti-bribery and anti-corruption measures Corruption and bribery Measures adopted to prevent corruption and bribery NFIS/Information on social matters/Compliance GRI 3-3 GRI 2-25 GRI 2-23 GRI 2-26 GRI 205-2 GRI 205-3 21 Measures adopted to fight against antimoney laundering NFIS/Information on social matters/Compliance GRI 3-3 GRI 2-25 GRI 2-23 GRI 2-26 GRI 205-3 21 Contributions to foundations and non-profit-making bodies NFIS/Information on social matters/Contribution to the Community GRI 2-28 GRI 201-1 with respect to community investment 20 Information about the society Management Report Statement of Non-financial information 38 Commitment by the company to sustainable development Impact of the company’s activities on employment and local development NFIS/Information on social matters/Contribution to the Community GRI 3-3 GRI 2-25 GRI 203-2 with respect to significant indirect economic impacts GRI 204-1 19-20 The impact of company activity on local populations and on the territory NFIS/Information on social matters/Contribution to the Community GRI 413-1 GRI 413-2 19-20 The relationships maintained with representatives of the local communities and the modalities of dialog with these NFIS/Information on social matters/Contribution to the Community GRI 2-29 GRI 413-1 19-20 Actions of association or sponsorship NFIS/Information on social matters/Contribution to the Community GRI 3-3 GRI 2-25 GRI 201-1 with respect to investments in the community 19-20 Subcontractors and suppliers The inclusion of social, gender equality and environmental issues in the purchasing policy NFIS/Information on suppliers GRI 3-3 GRI 2-25 25 Consideration of social and environmental responsibility in relations with suppliers and subcontractors NFIS/Information on suppliers GRI 2-6 GRI 308-1 GRI 414-1 25 Supervision systems and audits, and their results NFIS/Information on suppliers GRI 2-6 GRI 308-1 GRI 308-2 GRI 414-2 25 Consumers Customer health and safety measures NFIS/Information on customers/Conduct with customers NFIS/Information on customers/Responsible use of data and cybersecurity GRI 3-3 GRI 2-25 GRI 416-1 4 4-5 Claims systems, complaints received and their resolution NFIS/Information on social matters/Customer care GRI 3-3 GRI 2-25 GRI 418-1 5-8 Management Report Statement of Non-financial information 39 Tax information Benefits obtained by country NFIS/Information on social matters/Tax contribution GRI 201-1 GRI 207-4 (2019) with respect to tax on corporate profit payed and tax on corporate profit 22-23 Taxes on paid benefits NFIS/Information on social matters/Tax contribution GRI 201-1 GRI 207-4 (2019) with respect to corporate income tax paid and corporate income tax accrued on profit/loss. 22-23 Public subsidies received NFIS/Information on social matters/Tax contribution GRI 201-4 22-23 Management Report Statement of Non-financial information 40 Double materiality analysis The double materiality analysis has been carried out at the BBVA Group level and is also applicable to the Bank: Sustainability is a strategic pillar for the Group, generating impacts on society and the environment, while safeguarding its competitiveness and financial results. The Group has previously identified its sustainability-related matters based on international reference standards and best practices. In 2024, the double materiality analysis process has been updated to incorporate the principles of the CSRD and ESRS, as well as the implementation guide for the assessment of materiality issued by the European Financial Reporting Advisory Group (EFRAG). The double materiality principle incorporated in the CSRD and ESRS means that a subtopic is classified as material if it has a significant impact on people or the environment (impact materiality), if it significantly affects the financial position of the entity (financial materiality), or for both reasons. This approach takes into account the nature of the Group's operations, key business relationships, geographical distribution, and other relevant factors identified through analysis exercises conducted in previous years. The main new features include the consideration of the impacts, risks and opportunities (hereinafter, IROs) defined for the subtopics identified by the ESRS, including those related to the value chain (see the section “General basis for the preparation of the Non-Financial Information Statement”). Subtopics for which a material impact, risk or opportunity has been identified are disclosed in this report and, in turn, form part of one of the general topics identified in the ESRS. Finally, the double materiality analysis must be understood as a dynamic process, subject to periodic reviews and adjustments as the entity's needs, strategic priorities, market conditions, dialogue with stakeholders, availability of new tools, adoption of emerging technologies and regulatory changes, among other factors, evolve. Integrating the double materiality analysis into the strategy The results of the double materiality analysis are related to the definition of the Group's strategy, as well as being consistent with various internal exercises to assess climate risks, non-financial or reputational risks. They also reflect the growing activity around sustainable business channeling, advances in digitalization and best practices developed in the field of business conduct. The results of the double materiality analysis corresponding to the general topics of the ESRS are summarized below, distinguishing between material topics (exceeding the established threshold), relevant topics (close to the threshold), and non-material topics (below the established threshold). This summary at topical level groups the IROs identified for each of the subtopics established by the standard and which are detailed below. DOUBLE MATERIALITY ANALYSIS - RESULTS (BBVA GROUP. 2024) Impact materiality Financial Materiality Final results Negative Impact Positive Impact Risk Opportunities Total MATERIAL Climate change Own workforce Consumers and end-users Business conduct NOT MATERIAL Pollution Water and marine resources Biodiversity and ecosystems Use of resources and circular economy Workers in the value chain Affected communities Material Relevant Not material For more details on the results and determination of the double materiality analysis as well as the methodology applied, see the chapter “Double materiality analysis” within the “General information” section of the Consolidated Non-Financial Information Statement of BBVA Group. Management Report Financial information 41 3. Financial information 3.1 Balance sheet, business activity and earnings The financial information included in this Management report has been prepared from the individual accounting and management records of Banco Bilbao Vizcaya Argentaria, S.A. and with the criteria established by the Bank of Spain Circular 4/2017, on Public and Confidential Financial Reporting Rules and Formats for Financial Statements, and its subsequent amendments. The key figures in the Bank’s balance sheet and income statement related to its main activity are as follows: On the one hand, as of December 31, 2024, the Bank’s total assets decreased compared to December 2023 to €468,295m from €490,883m, mainly due to a decrease “Financial assets held for trading” (€89,167m as of December 31, 2024 vs. €116,828m as of the same date of the prior year) and “Cash, cash balances at central banks and other demand deposits” which showed a decrease from €49,213m as of December 31, 2023 to €20,755m as of December 31, 2024. The decreases in these headings were partially offset by the higher balance of “Financial assets at amortized cost” (€295,471m at the end of 2024 compared to €261,765m as of the same date of the prior year). On the other hand, as of December 31, 2024, Total Liabilities recorded decreases, especially in the heading "Financial liabilities held for trading" (€70,943 m as of December 31, 2023 against €108,349m as of December 31, 2023). In 2024, the Bank obtained a profit for the year of €10,235m, compared to €4,807m of the previous year and the result of the following factors: – Net interest income rose during the year, from € 5,564m at December 31, 2023 to €6,396m at December 31, 2024, mainly due to the increase in interest income partially offset by interest expense. – Gross margin in 2024 stood at €15,373m, compared to €11,020m obtained in 2023 , thanks mainly to net interest income, dividend income and fee and commission income. – Compared to the previous year, the environment was marked by inflationary pressure, where administrative expenses increased (€-4,540m in fiscal year 2024 against €-4,157m in fiscal year 2023), mainly due to personal expense. – The impairment of financial assets remained in line with the previous year while the heading "Impairment or reversal of impairment of investments in subsidiaries, joint ventures or associates" compares very positively with the year 2023, due to a higher reversal in the impairment of Garanti BBVA. 3.2 Capital and solvency 3.2.1 Capital and treasury stock Information about common stock and transactions with treasury stock is detailed in Notes 23 and 26 of the accompanying Financial Statements. Information about the share buyback program and the shareholder remuneration system is detailed in Note 3 of the accompanying Financial Statements. 3.2.2 Capital ratios BBVA's solvency and capital ratios required by the regulation in force in 2024 are outlined in Note 28 of the accompanying Financial Statements. Management Report Risk Management 42 4. Risk management The Bank's general risk management and control model is integrated into the BBVA Group's general model. 4.1 General risk management and control model The BBVA Group has a general risk management and control model (hereinafter, the “Model”) that is appropriate for its business model, its organization, the countries where it operates and its corporate governance system. This model allows the Group to carry out its activity within the management and risk control strategy and policy defined by the corporate bodies of BBVA where sustainability is specifically considered, and the alignment to a changing economic and regulatory environment, facing this management at a global level and aligned to the circumstances at all times. The Model, for which the Group’s Chief Risk Officer (CRO) is responsible and that must be updated or reviewed at least annually, is fully applied in the Group and it comprises the following basic elements: – Governance and organization – Risk Appetite Framework – Assessment, monitoring and reporting – Infrastructure The Group promotes the development of a risk culture that ensures a consistent application of the Model in the Group, and that guarantees that the risks function is understood and internalized at all levels of the organization. Governance & Organization The risk governance model in the BBVA Group is characterized by a special involvement of its corporate bodies, both in setting the risk strategy and in monitoring and supervising its implementation on an ongoing basis. Thus, and as explained below, the corporate bodies are responsible for approving the risk strategy and the general policies for the different types of risks. Global Risk Management (hereinafter, GRM) and Regulation & Internal Control (including, among other areas, Non-Financial Risks) are the functions responsible for its implementation and development, with the appropriate reporting to corporate bodies. Responsibility for day-to-day management of risks falls on business and corporate areas, the activities of which adhere to the general policies, regulation, infrastructures and controls that, based on the framework set by corporate bodies, are defined by GRM and Regulation & Internal Control in their corresponding areas of responsibility. To carry out this work adequately, the financial risks function in the BBVA Group has been set up as a single, global function and independent from business areas. The head of the financial risks function at an executive level, is the Group's Chief Risk Officer, who is appointed by the Board of Directors as a member of its senior management, and reports directly on the development of the corresponding functions to the corporate bodies. The Chief Risk Officer, for the best fulfilment of the functions, is supported by a structure consisting of cross- cutting risk units in the corporate area and specific risk units in the Group's geographical and/or business areas. In addition, and with regard to non-financial risks and internal control, the Group has a Regulation & Internal Control area independent from the rest of units and whose head (Head of Regulation & Internal Control) is also appointed by the Board of Directors of BBVA and reports directly to corporate bodies on the performance of its functions. This area is responsible for proposing and implementing non- financial risks policies and the Internal Control Model of the Group, and it is composed by, among other, the Non-Financial Risks, Regulatory Compliance, Risk Internal Control and Risk Control Specialists units. The Risk Internal Control unit, within the Regulation & Internal Control area and, therefore, independent from the financial risks function (GRM), acts as a control unit for the activities carried out by GRM. In this regard, and without prejudice to the functions performed in this regard by the Internal Audit area, Risk Internal Control checks that the regulatory framework, the models and processes and established measures are sufficient and appropriate for each type of financial risk. It also monitors its implementation and operation, and confirms that those decisions taken by GRM are taken independently from the business lines and, in particular, that there's an adequate segregation of functions between units. Governance and organizational structure are basic pillars for ensuring an effective risk management and control. This section summarizes the roles and responsibilities of the corporate bodies in the risks area, of the Group's Chief Risk Officer and, in general, of the risks function, its interrelation and the parent-subsidiary relationship model in this area and the group of committees, in addition to the Risk Internal Control unit. Corporate Bodies of BBVA According to the corporate governance system of BBVA, the Board of Directors of the Bank has certain reserved competencies, concerning management, through the implementation of the corresponding most relevant decisions, and concerning supervision and control, through the monitoring and supervision of implemented decisions and management of the Bank. Management Report Risk Management 43 In addition, and to ensure adequate performance of the management and supervisory functions of the Board of Directors, the corporate governance system comprises different committees supporting the Board of Directors with regard to matters falling within their competence, and according to the specific charters of each committees. For this purpose, a coordinated work scheme between these corporate bodies has been established. With regard to risks, the Board of Directors' competencies are those relating to establishing the policy for controlling and managing risk and the oversight and control of its implementation. In addition, and for an adequate performance of its duties, the Board of Directors is assisted by the Risk and Compliance Committee (CRC), on the issues detailed below, and by the Executive Committee (CDP), which is focused on the strategy, finance and business functions of the Group, for the purposes of which it monitors the risks of the Group. Additionally, and in a coordinated manner with the general supervision of financial and non-financial risks carried out by the Risk and Compliance Committee, the Audit Committee and the Technology and Cybersecurity Committee also assist the Board in the management and control of non-financial risks of an accounting, tax and reporting nature, and those of a technological nature, respectively. The involvement of the corporate bodies of BBVA in the control and management of the risks of the Group is detailed below: Board of Directors The Board of Directors is responsible for establishing the risk strategy of the Group and, in this role, it determines the control and risk management policy, through the following documents: – The Risk Appetite Framework of the Group, which includes in the one hand the risk appetite statement of the Group, that is, the general principles governing the risk strategy of the Group and its target profile; and, on the other hand, and based on the above mentioned risk appetite statement, a set of quantitative metrics (core metrics and their corresponding statements, and by type of risk metrics and their corresponding statements), reflecting the risk profile of the Group; – the framework of management policies of the different types of risk to which the Bank is or could be exposed. They contain the basic lines for a consistent management and control of risks throughout the Group, and consistent with the Model and Risk Appetite Framework; – and the General risk management and control model described above. All of the above in coordination with the rest of prospective-strategic decisions of the Bank, which includes the Strategic Plan, the Annual Budget, the Capital Plan and the Liquidity & Funding Plan, in addition to the rest of management objectives, whose approval is a responsibility of the Board of Directors. In addition to defining the risk strategy, the Board of Directors, in the performance of its risks monitoring, management and control tasks, also monitors the evolution of the risks of the Group and of each main geographical and/or business area, ensuring compliance with the Risk Appetite Framework of the Group; and also supervising the internal information and control systems. For the development of all these functions, the Board of Directors is supported by the CRC and the CDP, which are responsible for the functions detailed below. Risk and Compliance Committee The CRC is, according to its own charter, composed of non-executive directors and its main purpose is to assist the Board of Directors on the establishment and monitoring of the risk control and management policy of the Group. For this purpose, it assists the Board of Directors in a variety of risk control and monitoring areas, in addition to its analysis functions, based on the strategic pillars established at all times by both the Board of Directors and the CDP, the proposals on the strategy, control and risk management of the Group, which are particularly specified in the Risk Appetite Framework and in the “Model”. After the analysis, the Risk Appetite Framework and Model proposal is submitted to the Board of Directors for consideration and, where appropriate, approval purposes. In addition, the CRC proposes, in a manner consistent with the Risk Appetite Framework of the Group approved by the Board of Directors, the control and management policies of the different risks of the Group, and supervises the information and internal control systems. With regard to the monitoring of the evolution of the risks of the Group and their degree of compliance with the Risk Appetite Framework and defined general policies, and without prejudice to the monitoring task carried out by the Board of Directors and the CDP, the CRC carries out monitoring and control tasks with greater frequency and receives information with a sufficient granularity to achieve an adequate performance of its duties. The CRC also analyzes all measures planned to mitigate the impact of all identified risks, should they materialize, which must be implemented by the CDP or the Board of Directors, as the case may be. The CRC also monitors the procedures, tools and measurement indicators of those risks established at a Group level in order to have a comprehensive view of the risks of BBVA and its Group, and monitors compliance with the regulation and supervisory requirements in terms of risks. The CRC is also responsible for analyzing those project-related risks that are considered strategic for the Group or corporate transactions that are going to be submitted to the Board of Directors of the CDP, within its scope of competence. Management Report Risk Management 44 In addition, it contributes to the setting of the remuneration policy, checking that it is compatible with an appropriate and effective management of risks and that it does not provide incentives to take risks breaching the level tolerated by the Bank. Lastly, the CRC ensures the promotion of the risk culture in the Group. In 2024, the CRC has held 23 meetings. Executive Committee In order to have a comprehensive and complete vision of the progress of the Group's business and its business units, the CDP monitors the evolution of the risk profile and the core metrics defined by the Board of Directors, being aware of any potential deviation or breach of the metrics of the Risk Appetite Framework and implementing, when applicable, the appropriate measures, as explained in the Model. In addition, the CDP is responsible for proposing the basis for developing the Risk Appetite Framework, which will be established in coordination with the rest of prospective/strategic decisions of the Bank and the rest of management objectives. Lastly, the CDP is the committee supporting the Board of Directors in decisions related to business risk and reputational risk, according to the dispositions set out in its own charter. Three lines of defense control model BBVA has an internal control model that is structured into three differentiated levels (“lines of defense”), which constitute the organizational structure of the Group's internal control model, whose objective is the integral management of the risk life cycle; all this, in accordance with the best practices developed both in the "Enterprise Risk Management - Integrated Framework" of COSO (Committee of Sponsoring Organizations of the Treadway Commission) and in the "Framework for Internal Control Systems in Banking Organizations" prepared by the Bank Basel International Settlements (BIS): – First line of defense, made up of the Business and Support Areas in charge of managing operational risks in their products, activities, processes and systems, including those present in activities that could have been outsourced. The Areas must integrate operational risk management into their day-to-day activities, identifying and evaluating operational risks, carrying out controls, assessing the sufficiency of their control environment and executing mitigation plans for those risks in which control weaknesses are identified. – Second line of defense, made up of: (i) the Non-Financial Risk Units, which are responsible for designing and maintaining the Group's Operational Risk management model, and assessing the degree of application within the different Areas; and (ii) the Specialist Control Units in different risk areas, which define the General Framework of Mitigation, Control and Monitoring in the risks of their respective areas, and carry out an independent comparison on the sufficiency of the control environment implemented by the first defense line. The Non-Financial Risk Units and the Specialist Units are located in the Regulation and Internal Control area in order to ensure coordinated action by the second line of defense and to preserve their independence from the first line of defense. – Third line of defense, performed by the Internal Audit Area, which: (i) carries out an independent review of the control model, verifying compliance and the effectiveness of the established general policies; and (ii) provides independent information on the control environment to the Corporate Assurance Committees. The Board, with the support of its Committees, supervises the effectiveness of the internal control model through periodic reports from those responsible for the different lines of defense. In particular, the heads of the Internal Regulation and Control and Internal Audit areas report at least quarterly to the Board of Directors on the most relevant issues of their control activity; and, in addition, they report monthly to the Risk and Compliance Committee and the Audit Committee, respectively, and with a greater level of detail, on the operation of the internal control model and on the independent reviews carried out of the different Bank processes. All of this is based on the annual plans for each of these functions, which are approved by the respective Board Committees and where the review of processes related to climate change risk and other sustainability issues is expressly incorporated. Parent-subsidiary risk relationship model In accordance with the provisions of the BBVA Group's General Corporate Governance Policy, for integrated management and supervision in the Group, the Group has a common management and control framework, consisting of basic guidelines (including strategic-prospective decisions) and General Policies, established by BBVA's corporate bodies for the Group. For the purpose of transferring the risk strategy and its management and control model to the different subsidiaries of the BBVA Group and their corresponding specific risk units, a parent-subsidiary relationship model has been designed within the scope of risk management and control in the BBVA Group. This relationship model implies a minimum catalog of decisions that must be adopted by the corporate bodies of the subsidiaries in terms of risks in order to provide them with an adequate governance model coordinated with the parent company. It will be the responsibility of the head of the Risk function (GRM) of each subsidiary to formulate the proposals that proceed to the corresponding corporate body for its consideration and, where appropriate, approval, according to the scope of functions that apply. The approval of these decisions by the corporate bodies of the subsidiaries obliges the risk units of the geographical areas to carry out a risk monitoring and control plan before their corporate bodies. Notwithstanding the foregoing, it is considered necessary that certain decisions regarding risks reserved for the consideration of the corresponding corporate bodies of the subsidiary for their approval, are also subject to the approval of the corporate bodies of BBVA, in accordance with what is established regulations at all times. Management Report Risk Management 45 In the specific case of BBVA, S.A., what is described in this document regarding the coordination of the local risk management function with the risk function of the parent company BBVA, S.A. is applicable (as in any subsidiary of the Group). And with regard to the decisions that the corporate bodies of the subsidiaries must adopt, in this case it is the responsibility of the head of the Risk function of BBVA, S.A. (GRM) formulate the proposals that proceed to the corresponding corporate body for its consideration and, where appropriate, approval, according to the scope of functions that apply. Chief Risk Officer of the Group The Group's Chief Risk Officer (CRO) is responsible for the management of all the financial risks of the Group with the necessary independence, authority, rank, experience, knowledge and resources. The CRO is appointed by the Board of Directors of BBVA and has direct access to its corporate bodies (Board of Directors, CDP and CRC), with the corresponding regular reporting on the risk situation in the Group. The GRM area has a responsibility as the unit transversal to all the businesses of the BBVA Group. This responsibility is part of the structure of the BBVA Group, which is formed by subsidiaries based in different jurisdictions, which have autonomy and must comply with their local regulations, but always according to the risk management and control scheme designed by BBVA as the parent company of the BBVA Group. The Chief Risk Officer of the BBVA Group, in coordination with the rest of areas responsible for risks monitoring and control, is responsible for ensuring that the risks of BBVA Group, within the scope of its functions, are managed according to the established model, assuming, among other, the following responsibilities: – Prepare and propose to corporate bodies the risk strategy of the BBVA Group, which includes the Risk Appetite statement of the BBVA Group, core (and their respective statements) and by type of risk metrics (and their respective statements), and the Model. – Ensure the necessary coordination to define and prepare the proposals for the Appetite Framework of the Group companies, and make sure they are applied correctly. – Define and propose to corporate bodies the general policies for each type of risk within its scope of responsibility and, as part these, to establish the required specific regulation. – Prepare and propose for approval, or approving if within its competence, the risk limits for the geographical areas, business areas and/or legal entities, which shall be consistent with the defined Risk Appetite Framework; it is also responsible for the monitoring, supervision and control of risk limits within its scope of responsibility. – Submit to the Risk and Compliance Committee the information required to carry out its supervisory and control functions. – Regular reporting to the corresponding corporate bodies on the situation of those risks of the BBVA Group within its scope of responsibility. – Identify and assess the material risks faced by the BBVA Group within its scope of responsibility, with an effective management of those risks and, where necessary, with the implementation of the required mitigation measures. – Early warning to the relevant corporate bodies and the Chief Executive Officer of any material risk within its scope of responsibility that could compromise the solvency of the BBVA Group. – Ensure, within its scope of responsibility, the integrity of measurement techniques and management information systems and, in general, the provision of models, tools, systems, structures and resources to implement the risk strategy defined by the corporate bodies. – Promote the risk culture of the BBVA Group to ensure the consistency of the Model in the different countries where it operates, strengthening the cross-cutting model of the risks function. For decision-making, the Group’s Chief Risk Officer has a governance structure for the role that culminates in a support forum, the Global Risk Management Committee (GRMC), which is established as the main executive-level committee on the risks within its remit. Its purpose is to develop the strategies, policies, regulations and infrastructures needed to identify, assess, measure and manage the material risks within its remit that the Group faces in its business activity. This committee is composed by the Chief Risk Officer, who chairs the meetings, and the heads of Core Services and Cross Services in the Corporate Area of GRM, of the Front for “South America and Turkey”, and “Risk Internal Control”; and by the heads of GRM in the three most important geographical units, CIB and Digital Banks. The purpose of the GRMC is to propose and challenge, among other issues, the internal regulatory framework of GRM and the infrastructures required to identify, assess, measure and manage the risks faced by the Group in carrying out its businesses and to approve risk limits. The GRMC carries out its functions assisted by various support committees which include: – Global Credit Risk Management Committee: It is responsible for analyzing and decision-making related to wholesale credit risk admission. – Wholesale Credit Risk Management Committee: It is responsible for analyzing and making decisions related to wholesale credit risk admission in specific customer segments of BBVA Group, as well as being informed of the relevant decisions adopted by members of the committee within their scope of decision-making at corporate level. – Work Out Committee: Its purpose is to analyze and make decisions regarding the admission of wholesale credit risks of customers classified in Watch List, doubtful risk or write-offs in accordance with the criteria established in the Group, as well as to be informed of the decisions adopted by the person in charge of the Work Out process in its area of responsibility; it will also include the approval of proposals on entries, exits and modifications in Watch List, entries and exits in doubtful, unlikely to pay and pass to write-offs; as well as the approval of other proposals that must be seen in this Committee according to the established thresholds and criteria. Management Report Risk Management 46 – Wholesale & Sustainability Risk Committee: Its purpose is the analysis, discussion and support for decision-making on all those matters of wholesale credit risk management that impact or potentially impact the corporate practices, processes and metrics established in the Policies, Standards and Frameworks for Action. In addition, it serves as a basis for the development of the risk management model and its monitoring of the BBVA Group's insurance companies. Finally, it is the main area of decision and monitoring of the lines of action for the integration of climate and environmental risk into the Group's risk management framework. – Portfolio Management Committee : The executive authority responsible for managing the limits by asset class for credit risk, equities and real estate, structural risks, market risk and asset management; and by business area and at the group level established in the risk limit planning exercise, seeking the optimization of portfolios under the restrictions imposed by the Risk Appetite Framework, maximizing the risk-adjusted performance of regulatory and economic capital, taking into account the concentration and credit quality objectives of the portfolio, as well as the perspectives and strategic needs of the BBVA Group. He is also responsible for designing and maintaining a comprehensive view of economic capital consumption and risk-adjusted returns by portfolio, business area and asset class. Finally, it is responsible for guaranteeing the suitability of the management and measurement criteria for global risks, global processes and those for calculating economic, regulatory capital and provisions not included in frameworks or subject to the definition of a risk model. – Risk Models Management Committee: It ensures an appropriate decision-making process regarding the planning, development, implementation, use, validation and monitoring of the models required to achieve an appropriate management of the Model Risk in the BBVA Group. – Global Market and Counterparty Risk Committee: its purpose is to formalize, supervise and communicate the trading risk monitoring in all Global Markets business units, as well as coordinating and approving the key decisions of the Market and Counterparty Risk activity. It is also responsible for the analysis and decision making (opinion on the risk profile of the proposal, the mitigants and the risk-return ratio) with respect to the most relevant transactions in the different geographies in which Global Markets is present. – Retail Credit Risk Committee: it ensures for the analysis, discussion and decision support on all issues regarding the retail credit risk management that impact or potentially do in the practices, processes and corporate metrics established in the General Policies, Rules and Operating Frameworks. Also: – GRM Continuity Committee: as established by the Corporate Continuity Committee for the different areas, this Committee is dedicated to analyzing and taking decisions in response to exceptional crisis situations, with a view to managing the continuity and restoration of critical GRM processes, with a view to ensuring its operations have a minimum impact through the Continuity Plan, which addresses crisis management and Recovery Plans. – The Corporate Committee for Admission of Operational Risk and Product Governance aims to ensure the adequate evaluation of initiatives with significant risk (new business, product, outsourcing, process transformation, new systems, etc.) from the perspective of operational risk and reputational as well as the approval of the proposed control frameworks. Risk units of the corporate area and the business/geographical areas The risks function is comprised of risk units from the corporate area, which carry out cross-cutting functions, and of risk units of the geographical/business areas. – The risk units of the corporate area develop and submit to the Group's Chief Risk Officer the different elements required to define the proposal for the Group's Risk Appetite Framework, the general policies, the regulation and global infrastructures within the operating framework approved by corporate bodies; they ensure their application and report directly or through the Group's Chief Risk Officer to the corporate bodies of BBVA. With regard to non-financial risks and reputational risk, which are entrusted to the Regulation & Internal Control and Communications areas respectively, the corporate units of GRM will coordinate, with the corresponding corporate units of those areas, the development of the elements that should be integrated into the Appetite Framework of the Group. – The risk units of the business and/or geographical areas develop and submit to the Chief Risk Officer of the geographical and/or business areas the Risk Appetite Framework proposal applicable in each geographical and/or business area, independently and always according to the Group's Risk Appetite Framework. In addition, they ensure the application of general policies and the rest of the internal regulations, with the necessary adaptations, when applicable, to local requirements, providing the appropriate infrastructures for risk management and control purposes, within the global risk infrastructure framework defined by the corporate areas, and reporting to the corresponding corporate bodies and senior management, as applicable. With regard to Non-financial risks, which are integrated in the Regulation & Internal Control area, the local risk units will coordinate, with the unit responsible for those risks, the development of the elements that should be integrated into the local Risk Appetite Framework. Thus, the local risk units work with the risk units of the corporate area with the aim of adapting themselves to the risk strategy at Group level and pooling all the information required to monitor the evolution of their risks. As previously mentioned, the risks function has a decision-making process supported by a structure of committees, and also a top- level committee, the GRMC, whose composition and functions are described in the section "Chief Risk Officer of the Group." Each geographical and/or business area has its own risk management committee(s), with objectives and contents similar to those of the corporate area. These committees perform their duties consistently and in line with general risk policies and corporate rules, and its decisions are reflected in the corresponding minutes. Management Report Risk Management 47 Under this organizational scheme, the risks function ensures the integration and application throughout the Group of the risk strategy, the regulatory framework, the infrastructures and standardized risk controls. It also benefits from the knowledge and proximity to customers in each geographical and/or business area, and conveys the corporate risk culture to the Group's different levels. Moreover, this organization enables the risks function to conduct and report to the corporate bodies an integrated monitoring and control of the risks of the entire Group. Chief Risk Officers of geographical and/or business areas The risks function is cross-cutting, i.e. it is present in all of the Group's geographical and/or business areas through specific risk units. Each of these units is headed by a Chief Risk Officer for the geographical and/or business area who, within the relevant scope of responsibility, carries out risk management and control functions and is responsible for applying the Model, the general policies and corporate rules approved at Group level in a consistent manner, adapting them if necessary to local requirements and with the subsequent reporting to local corporate bodies. The Chief Risk Officers of the geographical and/or business areas have functional reporting to the Group's Chief Risk Officer and hierarchical reporting to the head of their geographical and/or business area. This dual reporting system aims to ensure the independence of the local risks function from the operational functions and enable its alignment with the Group's general policies and goals related to risks. Risk Internal Control The Group has a specific Risk Internal Control unit, within the Regulation & Internal Control area, that, among other tasks, independently challenges and control the regulation and governance structure in terms of financial risks and its implementation and deployment in GRM, in addition to the challenge of the development and implementation of financial risks control and management processes. It is also responsible for the validation of risk models. For this purpose, it has 3 subunits: RIC-Processes, Risks Technical Secretariat and Risk Internal Validation. – RIC-Processes. It is responsible for challenging an appropriate development of the functions of GRM units, and for reviewing that the functioning of financial risk management and control processes is appropriate and in line with the corresponding regulation, identifying potential opportunities for improvement and contributing to the design of the action plans to be implemented by the responsible units. In addition, it is the Risk Control Specialist (RCS) in the Group's Internal Control Model and, therefore, establishes the general mitigation and control frameworks for its risk area and contrasts them with those actually implemented. – Risks Technical Secretariat. It is responsible for the definition, design and management of the principles, policies, criteria and processes through which the regulatory risk framework is developed, processed, reported and disclosed to the countries; and for the coordination, monitoring and assessment of its consistency and completeness. In addition, it coordinates the definition and structure of the most relevant GRM Committees, and monitors their proper functioning, in order to ensure that all risk decisions are taken through an adequate governance and structure, ensuring their traceability. It also provides to the CRC the technical support required in terms of financial risks for a better performance of its functions. – Risk Internal Validation. It is responsible for validating the risks models. In this regard, it effectively challenges the relevant models used to manage and control the risks faced by the Group, as an independent third party from those developing or using the models in order to ensure its accuracy, robustness and stability. This review process is not restricted to the approval process, or to the introduction of changes in the models; it is a plan to make a regular assessment of those models, with the subsequent issue of recommendations and actions to mitigate identified weaknesses. The Head of Risk Internal Control of the Group is responsible for the function and reports about his activities and work plans to the Head of Regulation & Internal Control and to the CRC, with the corresponding support in the issues required, and, in particular, challenging that GRM's reports submitted to the Committee are aligned with the criteria established at the time. In addition, the risk internal control function is global and transversal, it includes all types of financial risks and has specific units in all geographical and/or business areas, with functional reporting to the Head of Risk Internal Control of the Group. The Risk Internal Control function must ensure compliance with the general risks strategy defined by the Board of Directors, with adequate proportionality and continuity. In order to comply with the control activity within its scope. Risk Internal Control is member of GRM's top-level committees (sometimes even assuming the Secretariat role), independently verifying the decisions that may be taken and, specifically, the decisions related to the definition and application of internal GRM regulation. Furthermore, the control activity is developed within a homogeneous methodological framework at a Group level, covering the entire life cycle of financial risk management and carried out under a critical and analytical approach. The Risk Internal Control team reports the results of its control function to the corresponding heads and teams, promoting the implementation of corrective measures and submitting these assessments and the resolution commitments in a transparent manner to the established levels. Lastly, and notwithstanding the control responsibility that GRM teams have in the first instance, Risk Internal Control teams promote a control culture in GRM, conveying the importance of having robust processes. Management Report Risk Management 48 Risk appetite framework Elements and development The Group's Risk Appetite Framework approved by the corporate bodies determines the risks and the risk level that the Group is willing to assume to achieve its business objectives considering the organic evolution of business. These are expressed in terms of solvency, liquidity and funding, and profitability, as well as recurrence of revenue, which are reviewed not only periodically but also if there are any substantial changes in the business strategy or relevant corporate transactions. The Risk Appetite Framework is expressed through the following elements: – Risk appetite statement: sets out the general principles of the Group's risk strategy and the target risk profile: "The BBVA Group aims to achieve a solid risk-adjusted profitability throughout the cycle by developing a universal banking business model. This model is based on values, centered on the needs and life goals of our clients, and prioritizes sustainability as a lever for growth, operational excellence and the preservation of adequate business security and continuity. BBVA intends to achieve these goals while maintaining a moderate risk profile, understood as achieving profitability that is commensurate with the risks incurred throughout the cycle, and maintaining a robust financial position reflected in sufficient liquidity and capital to withstand stress scenarios. Risk Management at BBVA is based on a holistic and forward-looking approach to all risks, enabling adaptation to the disruption risks inherent to the banking business, while leveraging the capabilities offered by innovation and technological evolution. The key pillars of risk management to promote responsible growth, with recurrent generation of value, are the diversification of portfolios across geographies, the quality and profile of asset classes and client segments, anti-money laundering and financing of terrorism prevention, the incorporation of the impact of climate change, and accompanying our clients in achieving their life goals.” – Statements and core metrics: Statements are established, based on the risk appetite statement, specifying the general principles of risk management in terms of solvency, liquidity and funding, profitability and income recurrence. Moreover, the core metrics reflect, in quantitative terms, the principles and the target risk profile set out in the Risk Appetite statement. Each core metric has three thresholds ranging from usual management of the businesses to higher levels of impairment: ◦ Management benchmark: a benchmark that determines a comfortable management level for the Group. ◦ Maximum appetite: the maximum level of risk that the Group is willing to accept in its ordinary activity. ◦ Maximum capacity: the maximum risk level that the Group could assume, which for some metrics is associated with regulatory requirements. – Statements and by type of risk metrics: based on the core metrics and their thresholds, statements are established that set out the general management principles for each type of risk, and a number of metrics are determined for each type of risk, whose observance enables compliance with the core metrics and the Group's Risk Appetite statement. These metrics have a maximum risk appetite threshold. In addition to this Framework, there is a level of management limits that is defined and managed by the areas responsible for the management of each type of risk in order to ensure that the early management of risks complies with the established Risk Appetite Framework. Each significant geographical area (that is, those representing more than 2% of the diversified economic capital or operating income of the BBVA Group) has its own Risk Appetite framework, consisting of its local Risk Appetite statement, core statements and metrics, and by type of risk statements and metrics, which must be consistent with those set at the Group level, but adapted to their own reality. These are approved by the corresponding corporate bodies of each entity. This Appetite Framework is deployed through a structure of management limits consistent with the above. The corporate risks area works with the various geographical and/or business areas to define their Risk Appetite Framework, so that it is coordinated with, and integrated into, the Group's Risk Appetite Framework, making sure that its profile is in line with the one defined. Moreover, and for the purposes of monitoring at local level, the Chief Risks Officer of the geographical and/or business area regularly reports on the evolution of the metrics of the Local Risk Appetite Framework to the corporate bodies, as well as to the relevant top-level local committees, following a scheme similar to that of the Group, in accordance with its own corporate governance systems. Within the issuing process of the Risk Appetite Framework, Risk Internal Control carries out, within the scope of the GRM area the effective challenge of the Framework proposal prior to its escalation to corporate bodies, which is also documented, and it is extended to the approval of the management limits under which it is developed, also supervising its adequate approval and extension to the different entities of the Group. Likewise, in each significant geographical area, the local Risk Internal Control unit, working in the Risk Management Committee (hereinafter, RMC), carries out an effective challenge of the local Risk Appetite Framework prior to its escalation to local corporate bodies, which is also documented, and extended to the local approval process of the management limits. The report with the main conclusions of this analysis will be sent to the Heads of GRM and Regulation and Internal Control. Monitoring of the Risk Appetite Framework and management of breaches Management Report Risk Management 49 So that corporate bodies can develop the risk functions of the Group, the heads of risks at an executive level will regularly report (more frequently in the case of the CRC, within its scope of responsibility) on the evolution of the metrics of the Risk Appetite Framework of the Group, with the sufficient granularity and detail, in order to check the degree of compliance of the risks strategy set out in the Risk Appetite Framework of the Group approved by the Board of Directors. If, through the monitoring of the metrics and supervision of the Risk Appetite Framework by the executive areas, a relevant deviation or breach of the maximum appetite levels of the metrics is identified, that situation must be reported and, where applicable, the corresponding corrective measures must be submitted to the CRC. After the relevant review by the CRC, the deviation must be reported to the CDP (as part of its role in the monitoring of the evolution of the risk profile of the Group) and to the Board of Directors, which will be responsible, when applicable, for implementing the corresponding executive measures, including the modification of any metric of the Risk Appetite Framework. For this purpose, the CRC will submit to the corresponding corporate bodies all the information received and the proposals prepared by the executive areas, together with its own analysis. Notwithstanding the foregoing, once the information has been analyzed and the proposal of corrective measures has been reviewed by the CRC, the CDP may adopt, on grounds of urgency and under the terms established by law, measures corresponding the Board of Directors, but always reporting those measures to the Board of Directors in the first meeting held after the implementation for ratification purposes. In any case, an appropriate monitoring process will be established (with a greater information frequency and granularity, if required) regarding the evolution of the breached or deviated metric, and the implementation of the corrective measures, until it has been completely redressed, with the corresponding reporting to corporate bodies, in accordance with its risks monitoring, supervision and control functions. Notwithstanding the provisions of this section, more robust monitoring and management models for breaches may be defined in executive-level regulations in cases where a breach of a metric within the Risk Appetite Framework occurs (or is anticipated). These breaches will be reported to the CRC, the CDP, and the Board as outlined in this section, or more frequently if deemed appropriate. Integration of the Risk Appetite Framework into the management The transfer of the Risk Appetite Framework to ordinary management is underpinned by three basic elements: 1. The existence of a standardized set of regulations: the corporate risks area defines and proposes the general policies within its scope of action, and develops the additional internal regulation required for the development of those policies and the operating frameworks on the basis of which risk decisions must be adopted within the Group. The approval of the general policies for all types of risks is a responsibility of the corporate bodies of BBVA, while the rest of regulation is defined at an executive level according to the framework of competences applicable at any given time. The Risks units of the geographical and/or business areas comply with this regulation and performing, where necessary, the relevant adaptation to local requirements, in order to have a decision-making process that is appropriate at local level and aligned with the Group's policies. 2. Risk planning, which ensures the integration into the management of the Risk Appetite Framework through a cascade process established to set limits adjusted to the target risk profile. The Risks units of the corporate area and of the geographical and/or business areas are responsible for ensuring the alignment of this process with the Group's Risk Appetite Framework in terms of solvency, liquidity and funding, profitability, and income recurrence. 3. A comprehensive management of risks during their life cycle, based on differentiated treatment according to their type. Assessment, monitoring and reporting Assessment, monitoring and reporting is a cross-cutting function at Group level. This function ensures that the model has a dynamic and proactive vision to enable compliance with the Risk Appetite Framework approved by the Board of Directors, even in adverse scenarios. This process is integrated in the activity of the Risk units, both of the corporate area and in the geographical and/or business units, together with the units specialized in non-financial risks and reputational risk within the Regulation & Internal Control and Communications areas respectively, in order to generate a comprehensive and single view of the risk profile of the Group. This process is developed through the following phases: 1. Identification of the material risks to which BBVA is exposed (risk assessment), which includes the identification of the main risk events (including emerging risks) as well as the identification of the main vulnerabilities, both in absolute terms and in relative terms in relation to the income generation capacity of the Group and its geographical and/or business areas. 2. Monitoring the Group's risk profile and the identified risk factors, through internal, competitor and market indicators, among others, to anticipate their future development. 3. Assessment of the impact of the materialization of the risk factors on the metrics that define the Risk Appetite Framework based on different scenarios, including stress testing scenarios. 4. Response to unwanted situations and proposals for redressing measures to the corresponding levels, in order to enable a dynamic management of the situation, even before it takes place. Management Report Risk Management 50 5. Reporting: complete and reliable information on the evolution of risks to corporate bodies and senior management, in accordance with the principles of accuracy, exhaustiveness, clarity and utility, frequency, and adequate distribution and confidentiality. The principle of transparency governs all the risk information reporting process. Management Report Risk Management 51 Infrastructure For the implementation of the Model, the Group has the resources required for an effective management and supervision of risks and for achieving its goals. In this regard, the Group's risks function: 1. Has the appropriate human resources in terms of number, ability, knowledge and experience. The profile of resources will evolve over time based on the specific needs of the GRM and Regulation & Internal Control areas, always with a high analytical and quantitative capacity as the main feature in the profile of those resources. Likewise, the corresponding units of the geographical and/or business areas have sufficient means from the resources, structures and tools perspective in order to achieve a risk management process aligned with the corporate model. 2. Develops the appropriate methodologies and models for the measurement and management of the different risk profiles, and the assessment of the capital required to take those risks. 3. Has the technological systems required to: support the Risk Appetite Framework in its broadest definition; calculate and measure the variables and specific data of the risk function; support risk management according to this Model; and provide an environment for storing and using the data required for risk management purposes and reporting to supervisory bodies. 4. Promotes adequate data governance, in accordance with the principles of governance, infrastructure, precision and integrity, completeness, promptness and adaptability, following the quality standards of the internal regulations referring to this matter. Within the risk functions, both the profiles and the infrastructure and data shall have a global and consistent approach. The human resources among the countries must be equivalent, within proportionality, ensuring a consistent operation of the risk function within the Group. However, they will be distinguished from those of the corporate area, as the latter will be more focused on the conceptualization of appetite frameworks, operating frameworks, the definition of the regulatory framework and the development of models, among other tasks. As in the case of the human resources, technological platforms must be global, thus enabling the implementation of the Risk Appetite Framework and the standardized management of the risk life cycle in all countries. The corporate area is responsible for deciding on the platforms and for defining the knowledge and roles of the human resources. It is also responsible for defining risk data governance. The foregoing is reported to the corporate bodies of BBVA so they can ensure that the Group has the appropriate means, systems, structures and resources. 4.2 Risks associated with climate change The management of climate and environmental risk factors is key to implement BBVA's strategy, which is based on managing risks appropriately, supporting the transition to a low-carbon economy, and meeting the ambition of achieving net-zero carbon emissions by 2050. The information on BBVA management of risks associated with climate change and environmental factors is described in the “Management of risks associated with climate change” section of the NFIS included in this Management Report. 4.3 Operational risk BBVA defines operational risk (“OR”) as any risk that could result in losses caused by human error; inadequate or flawed internal processes; undue conduct with respect to customers, markets or the institution; weaknesses in the antimoney laundering and financing of terrorist programs; failures, interruptions or flaws in systems or communications; theft, loss or wrong use of information, as well as deterioration of its quality, internal or external fraud, including in any case those derived from cyberattacks; theft or harm to assets or persons; legal risks; risks derived from staff management and labor health; and defective service provided by suppliers; as well as damages from extreme climate events, pandemics and other natural disasters. This section addresses general aspects of operational risk management as the main component of non-financial risks. However, sections devoted to conduct and compliance risk and to cybersecurity risk management are also included in the non-financial information report. Operational risk management Management Report Risk Management 52 Operational risk management is oriented toward the identification of the root causes to avoid their occurrence and mitigate possible consequences. This is carried out through the establishment of control framework and monitoring and the development of mitigation plans. The objective is to ensure that our activities are conducted with integrity and transparency, and in compliance with applicable regulations; increase the quality, safety and availability of the service provided, as long as minimizing the economic and reputational losses and their impact on the recurrent generation of results. Operational risk management is integrated into the global risk management structure of BBVA. Operational risk management principles BBVA is committed to preferably applying advanced operational risk management models, regardless of the capital calculation regulatory model applicable at the time. Operational risk management at BBVA shall: – Be aligned with the Risk Appetite Framework ratified by the BBVA Board of Directors, aiming to safeguard the solvency of the entity. – Address BBVA's management needs in terms of compliance with legislation, regulations and industry standards, as well as the decisions or positioning of BBVA's corporate bodies. – Anticipate the potential operational risk to which BBVA may be exposed as a result of the creation or modification of products, activities, processes or systems, as well as decisions regarding the outsourcing or hiring of services, and establish mechanisms to assess and mitigate risk to a reasonable extent prior to implementation, as well as review the same on a regular basis. – Regularly assess the significant operational risk to which BBVA is exposed, in order to adopt appropriate mitigation measures in each case, once the identified risk and the cost of mitigation (cost/benefit analysis) have been considered, while safeguarding BBVA solvency at all times. – Promote the implementation of mechanisms that support careful monitoring of all sources of operational risk and the effectiveness of mitigation and control environments, fostering proactive risk management. – Identify the relevant operational events already suffered, looking for their root causes and establishing measures to prevent the same, provided that the cost/benefit analysis so recommends. – Evaluate key public events that have generated operational risk losses at other companies and support, where appropriate, the implementation of measures as required to prevent them from occurring at BBVA. – Stablish mechanisms to measure and monitor economic capital requirements, including stress scenarios to complement operational events already suffered. – Have an effective system of governance in place, where the functions and responsibilities of the corporate areas and bodies involved in operational risk management are clearly defined. – Operational risk management must be performed in coordination with management of other risk, taking into consideration credit or market events that may have an operational origin. Operational risk control and management model The operational risk management cycle at BBVA is similar to the one implemented for the rest of risks. Its elements are: Scheduling OR Admission OR Management Flowchart OR Mitigation OR Monitoring Management Report Risk Management 53 Operational risk management parameters Operational risk forms part of the risk appetite framework of BBVA and includes three types of metrics and limits: – Economic capital calculated with the operational losses database of BBVA, considering the corresponding intra- geographical diversification effects and the additional estimation of potential and emerging risks through stress scenarios. The economic capital is regularly calculated and simulation capabilities are available to anticipate the impact of changes on the risk profile or new potential events. – ORI metrics (Operational Risk Indicator: operational risk losses vs. gross income) broken down by geography. – Indicators on sources of risk: a more granular common scheme of metrics (indicators and limits) covering the main types of operational risk is implemented throughout BBVA. These metrics make it possible to intensify the anticipatory management of risk and objectify the appetite to different sources of risk. The indicators are regularly reviewed and adjusted to capture the main current risks. Operational risk admission The main purposes of the operational risk admission phase are the following: – To anticipate potential operational risk to which BBVA may be exposed due to the release of new, or modification of businesses, products, activities, processes or systems or in relations with third parties (e.g. in the outsourcing of bank processes to third parties). – To ensure that implementation and the roll out of initiatives is only performed once appropriate mitigation measures have been taken in each case, including external assurance of risks where deemed appropriate. The Corporate Non-Financial Risk Management Policy sets out the specific operational risk admission framework through different Operational Risk Admission and Product Governance Committees, both at a corporate and Business Area level, that follow a delegation structure based on the risk level of proposed initiatives. Operational risk monitoring BBVA promotes the continuous monitoring by each Area of the due functioning and effectiveness of its control environment. The purpose of this phase is to check that the operational risk profile of BBVA is within the authorized limits. Operational risk monitoring considers 2 scopes: – Monitoring the operational risk admission process, oriented toward checking that accepted risks levels are within the limits and that defined controls are effective. – Monitoring the operational risk "stock" mainly associated with processes. This is done by carrying out a periodic re- evaluation in order to generate and maintain an updated map of the relevant operational risks in each Area, and evaluate the adequacy of the monitoring and mitigation environment for said risks. When weaknesses are detected, action plans are promoted. Management Report Risk Management 54 This process is supported by a corporate Governance, Risk & Compliance tool that monitors the operational risk at a local level and its aggregation at a corporate level. In addition, and in line with the best practices and recommendations provided by the Bank for International Settlements (hereinafter, BIS), BBVA has procedures to collect the operational losses occurred in other financial groups, with the appropriate level of detail to carry out an effective analysis that provides useful information for management purposes and to contrast the consistency of BBVA operational risks map. To that end, a corporate tool of BBVA is used. As a result of the monitoring activities, a risk assessment is produced, both, at consolidated and local level, allowing to focus management and mitigation efforts. Operational risk mitigation BBVA promotes the proactive mitigation of the non-financial risks to which it is exposed and which are identified in the monitoring activities. In order to rollout monitoring and anticipated mitigation practices, several cross-sectional plans are being promoted related to relevant events, lived by BBVA or by the industry, self-assessments and recommendations from auditors and supervisors in different geographies, thereby analyzing the best practices at the selected topics and fostering comprehensive action plans to strengthen and standardize the control environment. Assurance of Operational Risk Assurance is one of the possible options for managing the operational risk to which BBVA is exposed, and mainly has two potential purposes: – Coverage of extreme situations linked to recurrent events that are difficult to mitigate or can only be partially mitigated by other means. – Coverage of non-recurrent events that could have significant financial impact, if they occurred. BBVA has a general framework that regulates this area, and allows systematizing risk assurance decisions, aligning insurance coverage with the risks to which BBVA is exposed and reinforcing governance in the decision-making process of arranging insurance policies. Operational Risk Governance BBVA’s operational risk governance model is based on two components: – Three-line defense control model, in line with industry best practices, and which guarantees compliance with the most advanced operational risk internal control standards. – Scheme of Corporate Assurance Committees and Internal Control and Operational Risk Committees in the different business and support areas. Corporate Assurance establishes a structure of committees, both at local and corporate level, to provide senior management with a comprehensive and homogeneous vision of the main non-financial risks and significant situations of the control environment. BBVA in Spain, as in other geographical area has a Corporate Assurance Committee chaired by the Country Manager and whose main functions are: Management Report Risk Management 55 – Facilitate agile and anticipatory decision-making for the mitigation or assumption of the main risks. – Monitoring the changes in the non-financial risks and their alignment with the defined strategies and policies and the risk appetite. – Analyzing and assessing controls and measures established to mitigate the impact of the risks identified, should they materialize. – Making decisions about the proposals for risk taking that are conveyed by the working groups or that arise in the Committee itself. – Promoting transparency by promoting the proactive participation of the three lines of defense in discharging their responsibilities and the rest of the organization in this area. At the holding level there is a Global Corporate Assurance Committee, chaired by the Group's Chief Executive Officer. Its main functions are similar to those already described but applicable to the most important issues that are escalated from the geographies and the holding company areas. The business and support areas have an Internal Control and Operational Risk Committee, whose purpose is to ensure the due implementation of the operational risk management model within its scope of action and drive active management of such risk, taking mitigation decisions when control weaknesses are identified and monitoring the same. Additionally, the Non-Financial Risk unit periodically reports the status of the management of non-financial risks to the Board's Risk and Compliance Committee. Management Report Risk Management 56 4.4 Reputational risk BBVA defines reputational risk as the potential loss in results as a consequence of events that may negatively affect the perception that the different stakeholders. Therefore, reputational risk management is aimed at ensuring that BBVA does not engage in activities or practices that could cause permanent or very significant damage to its reputation. Reputational risk assessment of the activity in progress Since 2016, BBVA disposes of a reputational risk assessment methodology. Through this methodology, the Bank defines and reviews regularly a map in which it prioritizes the reputational risks which have to be faced and the set of action plans to mitigate them. The prioritization is done based on two variables: the impact on the perception of the stakeholders and the strength of BBVA facing the risk. This exercise is performed annually in all countries. In addition, indicators that measure the reputational risk of the entity in its main geographical areas are continuously monitored, as well as events that may have a potential impact on BBVA reputation. Reputational risk in new initiatives The Reputation teams collaborate, together with the rest of the members of BBVA’s second defense line, in the different Committees of Admission of the Operational Risk, both at corporate level and the different geographical areas level. Those Committees perform the initial identification of potential reputational risks and mitigation controls are proposed. Reporting of the Reputational risk The results of the annual assessment of the Reputational Risk are reported in each geographical area at the appropriate governance level. At corporate level, these results are reported to the Global Corporate Assurance Committee and, since 2020, to the Board’s Executive Committee. 4.5 Risk factors The BBVA Group has processes in place for identifying risks and analyzing scenarios in order to enable the Group to manage risks in a dynamic and proactive way. The risk identification processes are forward looking to seek the identification of emerging risks and take into account the concerns of both the business areas, which are close to the reality of the different geographical areas, and the corporate areas and senior management. Risks are identified and measured consistently using the methodologies deemed appropriate in each case. Their measurement includes the design and application of scenario analyses and stress testing and considers the controls to which the risks are subjected. As part of this process, a forward projection of the Risk Appetite Framework (hereinafter "RAF") variables in stress scenarios is conducted in order to identify possible deviations from the established thresholds. If any such deviations are detected, measures are taken to seek to keep the variables within the target risk profile. In this context, there are a number of emerging risks that could affect the evolution of the Group’s business, including the below: Macroeconomic and geopolitical risks The Group is sensitive to the deterioration of economic conditions, the alteration of the institutional environment of the countries in which it operates, and the Group is exposed to sovereign debt especially in Spain, Mexico and Turkey. The global economy is currently facing a number of extraordinary challenges. The war between Ukraine and Russia and the armed conflicts in the Middle East have caused significant disruptions, instability and volatility in global markets, particularly in energy markets. Uncertainty about the future development of these conflicts is high. The main risk is that they could generate new supply shocks, pushing growth downward and inflation upward, and paving the way for macroeconomic and financial instability episodes. Geopolitical and economic risks have also increased in recent years as a result of trade tensions between the United States and China, Brexit, and the rise of populism, among other factors. Growing tensions and the rise of populism may lead, among other things, to a deglobalization of the world economy, an increase in protectionism, a general reduction of international trade and a reduction in the integration of financial markets. Management Report Risk Management 57 The policies to be adopted by the new United States government, from January 20, 2025, are an additional source of uncertainty for the global economy. Some of the measures recently advocated by the incoming administration, such as the adoption of higher import tariffs and tighter immigration controls, may increase inflationary pressures and weaken economic growth. Fiscal, regulatory, industrial, foreign and other policies could also generate financial and macroeconomic volatility. In the current context, one of the main risks is that inflation remains high, either due to new supply shocks, related for example to the previously mentioned geopolitical and political risks or climate events, or due to demand factors, caused by an excessively expansionary fiscal policy, the robustness of labor markets, or other factors. Significant inflationary pressures could lead to interest rates remaining higher than currently forecasted, which could negatively affect the macroeconomic environment and financial markets. Another macroeconomic risk is the possibility of a sharp global growth slowdown. In a context marked by uncertainty and still elevated interest rates, labor markets and aggregate demand could weaken more significantly than expected. Moreover, despite increasing economic stimulus measures, growth in China could slow sharply, with a potentially negative impact on many geographical areas, due to tensions in real estate markets and economic sanctions imposed by the United States, among other factors. Furthermore, there is a growing risk of tensions in sovereign debt markets, given the high levels of public debt in many developed and emerging countries, the relatively high interest rates, and expectations of slower economic growth. The Group is exposed, among others, to the following general risks with respect to the economic and institutional environment in the countries in which it operates: a deterioration in economic activity in the countries in which it operates, including recession scenarios; more persistent inflationary pressures, which could trigger a more severe tightening of monetary conditions; stagflation due to more intense or prolonged supply shocks such as, for example, an increase in oil and gas prices to very high levels, which would have a negative impact on disposable income levels in areas that are net energy importers, such as Spain or Turkey, to which the Group is particularly exposed; changes in exchange rates; an unfavorable evolution of the real estate market; changes in the institutional environment of the countries in which the Group operates, which could give rise to sudden and sharp drops in GDP and/or changes in regulatory or government policy, including in terms of exchange controls and restrictions on the distribution of dividends or the imposition of new taxes or charges; growth in the public debt or in the external deficit could lead to a downward revision of the credit ratings of the sovereign debt and even a possible default or restructuring of such debt; the impact of the upcoming policies of the new U.S. administration, about which there is significant uncertainty; and episodes of volatility in the financial markets, which could cause significant losses for the Group. The Group’s results of operations have been particularly affected by the increases in interest rates adopted by central banks in an attempt to tame inflation, contributing to the rise in both interest revenue and interest expenses. The persistence of interest rates at relatively high levels or any increase in interest rates in the future could adversely affect the Group by reducing the demand for credit and leading to an increase in the default rate of its borrowers and other counterparties. Moreover, the Group’s results of operations have been affected by inflation in all countries in which BBVA operates, especially Turkey and Argentina. In particular, in Spain, political, regulatory and economic uncertainty has also increased since the July 2023 general elections; there is a risk that policies could have an adverse impact on the economy or the Group. There is also a risk that the impact on financial conditions of political tensions in other European countries could to some extent affect Spain. In Mexico, there is high uncertainty on the impact of the recently approved constitutional reforms, as well as on the policies that will be adopted by the new local government and by the new U.S. administration (in particular, if protective measures become more aggressive and persist over time, which could adversely impact the Group's expectations regarding the country's economic growth). In Turkey, there are increasing signs of normalization in economic policy in general, and monetary policy in particular, since the general elections held in May 2023, which may lead to a gradual correction of the current distortions. Despite the gradual improvement of macroeconomic conditions, the situation remains relatively unstable, characterized by pressures on the Turkish lira, high inflation, a significant trade deficit, low central bank’s foreign reserves and high external financing costs. There is also uncertainty about the impact of the geopolitical context in the Middle East on Turkey. In particular, recent regime changes in Syria create opportunities, such as a potential increase in exports and lower migratory pressures, but also risks, which could cause greater volatility of Turkish financial assets, among other possible effects. Continuing unfavorable economic conditions in Turkey may result in a potential deterioration in the purchasing power and creditworthiness of the clients of the Group (both individuals and corporations). In addition, official interest rates, the regulatory and macroprudential policies affecting the banking sector and the currency depreciation have affected and may continue to affect the Group’s results. In Argentina, the risk of economic and financial turbulence persists in a context in which the government has substantially modified the economic policy framework and has focused its efforts on implementing strong fiscal and monetary adjustments to reduce inflation. Finally, in Colombia and Peru, climate factors, political tensions and greater social conflict could eventually have a negative impact on the economy. Any of these factors may have a significant adverse impact on the Group’s business, financial condition and results of operations. Management Report Risk Management 58 Regulatory and reputational risks Financial institutions are exposed to a complex and ever-changing regulatory environment defined by governments and regulators. Regulatory activity in recent years has affected multiple areas, including changes in accounting standards; strict regulation of capital, liquidity and remuneration; bank charges (such as the new tax for banks recently implemented in Spain, see Note 38) and taxes on financial transactions; regulations affecting mortgages, banking products and consumers and users; recovery and resolution measures; stress tests; prevention of money laundering and terrorist financing; market abuse; conduct in the financial markets; anti- corruption; and requirements as to the periodic publication of information. Governments, regulatory authorities and other institutions continually make proposals to strengthen the resistance of financial institutions to future crises. Further, there is an increasing focus on the climate-related financial risk management capabilities of banks (see "Environmental, social and governance (“ESG”) risks may adversely impact the Group"). Any change in the Group’s business that is necessary to comply with any particular regulations at any given time, especially in Spain, Mexico or Turkey, could lead to a considerable loss of income, limit the Group’s ability to identify business opportunities, affect the valuation of its assets, force the Group to increase its prices and, therefore, reduce the demand for its products, impose additional costs on the Group or otherwise adversely affect its business, financial condition and results of operations. The financial sector is under ever closer scrutiny by regulators, governments and society itself. In the course of activities, situations which might cause relevant reputational damage to the Group could arise and might affect the regular course of business. New business, operational and legal risks New technologies and forms of customer relationships: Developments in the digital world and in information technologies pose significant challenges for financial institutions, entailing threats (new competitors, disintermediation, etc.) but also opportunities (new framework of relations with customers, greater ability to adapt to their needs, new products and distribution channels, etc.). Digital transformation is a priority for the Group as it aims to lead digital banking of the future as one of its objectives. Technological risks and security breaches: The Group is exposed to new threats such as cyber-attacks, theft of internal and customer databases, fraud in payment systems, etc. that require major investments in security from both the technological and human point of view. The Group gives great importance to the active operational and technological risk management and control. Any attack, failure or deficiency in the Group’s systems could, among other things, lead to the misappropriation of funds of the Group’s clients or the Group itself and the unauthorized disclosure, destruction or use of confidential information, as well as prevent the normal operation of the Group and impair its ability to provide services and carry out its internal management. In addition, any attack, failure or deficiency could result in the loss of customers and business opportunities, damage to computers and systems, violation of regulations regarding data protection and/or other regulations, exposure to litigation, fines, sanctions or interventions, loss of confidence in the Group’ s security measures, damage to its reputation, reimbursements and compensation, and additional regulatory compliance expenses and could have a significant adverse impact on the Group’ s business, financial condition and results of operations. Legal risks: The financial sector faces an environment of increasing regulatory and litigious pressure, and thus, the various Group entities are frequently party to individual or collective judicial proceedings (including class actions) resulting from their activity and operations, as well as arbitration proceedings. The Group is also party to government procedures and investigations, such as those carried out by the antitrust authorities in certain countries which, among other things, have in the past and could in the future result in sanctions, as well as lead to claims by customers and others. In addition, the regulatory framework in the jurisdictions in which the Group operates is evolving towards a supervisory approach more focused on the opening of sanctioning proceedings while some regulators are focusing their attention on consumer protection and behavioral risk. In Spain and in other jurisdictions where the Group operates, legal and regulatory actions and proceedings against financial institutions, prompted in part by certain judgments in favor of consumers handed down by national and supranational courts (with regards to matters such as credit cards and mortgage loans), have increased significantly in recent years and this trend could continue in the future. Legal and regulatory actions and proceedings faced by other financial institutions in relation to these and other matters, especially if such actions or proceedings result in favorable resolutions for the consumer, could also adversely affect the Group. All of the above may result in a significant increase in operating and compliance costs or even a reduction of revenues, and it is possible that an adverse outcome in any proceedings (depending on the amount thereof, the penalties imposed or the procedural or management costs for the Group) could damage the Group's reputation, generate a knock-on effect or otherwise adversely affect the Group. It is difficult to predict the outcome of legal and regulatory actions and proceedings, both those to which the Group is currently exposed and those that may arise in the future, including actions and proceedings relating to former Group subsidiaries or in respect of which the Group may have indemnification obligations. Any of such outcomes could be significantly adverse to the Group. In addition, a decision in any matter, whether against the Group or against another credit entity facing similar claims as those faced by the Group, could give rise to other claims against the Group. In addition, these actions and proceedings attract resources from the Group and may occupy a great deal of attention on part of the Group's management and employees. As of December 31, 2024, the Group had €791 million in provisions for the proceedings it is facing (included in the line "Provisions for taxes and other legal contingencies" in the consolidated balance sheet), of which €610 million correspond to legal contingencies and €181 million to tax related matters. However, the uncertainty arising from these proceedings (including those for which no provisions have been made, either because the probability of an unfavorable outcome for the Group is estimated to be remote, or because it is not possible to estimate them or for other reasons) makes it impossible to guarantee that the possible losses arising from the resolution of these proceedings will not exceed, where applicable, the amounts that the Group currently has provisioned and, therefore, could affect the Group's consolidated results in a given period. Management Report Risk Management 59 As a result of the above, legal and regulatory actions and proceedings currently faced by the Group or to which it may become subject in the future or which may otherwise affect the Group, whether individually or in the aggregate, if resolved in whole or in part adversely to the Group's interests, could have a material adverse effect on the Group’s business, financial condition and results of operations. Spanish judicial authorities are investigating the activities of Centro Exclusivo de Negocios y Transacciones , S.L. (“Cenyt”). Such investigation includes the provision of services by Cenyt to BBVA. On July 29, 2019, BBVA was named as an investigated party ( investigado ) in a criminal judicial investigation (Preliminary Proceeding No. 96/2017 – Piece No. 9, Central Investigating Court No. 6 of the National High Court) for alleged facts which could constitute bribery, revelation of secrets and corruption. Certain current and former officers and employees of the Group, as well as former directors, have also been named as investigated parties in connection with this investigation. Since the beginning of the investigation, BBVA has been proactively collaborating with the Spanish judicial authorities, including sharing with the courts information obtained in the internal investigation hired by the entity in 2019 to contribute to the clarification of the facts. By order of the Criminal Chamber of the National High Court, the pre-trial phase ended on January 29, 2024. On June 20, 2024, the Judge issued an order authorizing the continuation of abbreviated criminal proceedings against the Bank and certain current and former officers and employees of the Bank, as well as against some former directors, for alleged facts which could constitute bribery and revelation of secrets. It is not possible at this time to predict the possible outcomes or implications for the Group of this matter, including any fines, damages or harm to the Group’s reputation caused thereby. Environmental, social and governance (ESG) risks may adversely impact the Group ESG factors present risks associated with (i) climate change, including physical risks and transition risks (linked, among others, to changes in regulations, technologies, and market preferences associated with the transition to a less carbon-dependent economy); (ii) other environmental factors, such as biodiversity loss, water stress and other nature-related factors; (iii) social factors, such as human rights, inclusion, diversity and workplace safety; and (iv) corporate governance matters, such as the governance of environmental and social risks. ESG risks include short, medium and long-term risks that may adversely affect the Group and its customers or counterparties. Such risks are expected to increase and/or evolve over time. Among others, they include the following: – Physical risks. The activities of the Group or those of its customers or counterparties could be adversely affected by the physical risks (including acute and chronic) arising from climate change or other environmental challenges. For example, extreme weather events may damage or destroy properties and other assets of the Group or those of its customers or counterparties, make the insurance against certain risks more expensive or unfeasible, result in increased costs, or otherwise disrupt their respective operations (for example, if supply chains are disrupted as a result), diminishing –in the case of the Group’s customers or counterparties - their repayment capacity and, if applicable, the value of assets granted as collateral to the Group. The Group is also exposed to potential long-term physical risks arising from climate change and other environmental challenges, such as any ensuing deterioration in economic conditions that results in credit-related costs, or potential impacts on the Group’s assets and operations. The Group could also be required to change its business models in response to the foregoing. – Legal and regulatory risks. Legal and regulatory changes related to how banks are required to manage climate and other ESG risks or otherwise affecting banking practices or disclosure of information may result in higher compliance, operational and credit risks and costs. The Group’s customers and counterparties may be exposed to similar risks. Further, legal and regulatory changes may result in legal uncertainty and the existence of overlapping or conflicting regulatory or other requirements. They may also give rise to regulatory asymmetries whereby some persons, including the Group and its customers and counterparties, are more heavily regulated than others, placing such persons at a disadvantage. The Group or its customers or counterparties may be unable to meet any new requirements on a timely basis or at all, including new product and service specifications, governance frameworks and practices and disclosure requirements and standards. In addition, in the case of banks, new regulation could include requirements related to lending, investing, capital and liquidity adequacy and operational resilience. The incorporation of ESG risks in the existing prudential framework is still developing and may result in increased risk weighting of certain assets. Moreover, there are significant risks and uncertainties inherent in the development of adequate risk assessment and modelling capabilities with respect to ESG- related matters and the collection of customer, third party and other data, which may result in the Group’s systems or frameworks (or those of its customers and counterparties, where applicable) being inadequate, inaccurate or susceptible to incorrect customer, third party or other data, any of which could adversely affect the Group’s disclosure and financial reporting. Further, increased regulation arising from climate change and other ESG-related challenges could result in increased litigation by different stakeholders (including non-governmental organizations (NGOs)) and regulatory investigations and actions. – Technological risks. Certain of the Group’s customers and counterparties may be adversely affected by the progressive transition to a low-carbon economy and/or risks and costs associated with new low-carbon technologies. If the Group’s customers and counterparties fail to adapt to the transition to a low-carbon economy, or if the costs of doing so adversely affect their creditworthiness, this could adversely affect the Group’s relevant loan portfolios. Management Report Risk Management 60 – Market risks. The Group and certain of the Group’s customers and counterparties may be adversely affected by changes in market preferences due to, among others, increased ESG awareness. Further, the funding costs of businesses that are perceived to be more exposed to climate change or to other ESG-related risks could increase. Any of this could result in the reduced creditworthiness of such customers and counterparties, adversely affecting the Group’s relevant loan portfolios. The Group and its customers and counterparties could also be adversely affected by changes in prices resulting from shifts in demand or supply brought by climate change or other ESG-related factors, including prices of energy and raw materials, or by their inability to foresee or hedge any such changes. – Reputational risks. The perception of climate change and other ESG-related challenges as a risk by society, shareholders, customers, governments and other stakeholders (including NGOs) continues to increase, including in relation to the financial sector’s activities. This may result in increased scrutiny of the Group’s activities, as well as its ESG-related policies, goals, disclosures or communications. The Group’s reputation and ability to attract or retain customers may be harmed if its efforts to reduce ESG-related risks are deemed to be insufficient or if a perception is generated among the different stakeholders that the Group’s statements, actions or disclosure do not fairly reflect the underlying sustainability profile of the Group, its products, services, goals and/or policies. At the same time, the Group may refrain from undertaking lending or investing activities or other services that would otherwise have been profitable in order to fulfill its obligations or avoid reputational harm. Further, divergent views on ESG policies may also have a negative impact on the Group’s reputation. Increased scrutiny of the Group’s activities, as well as its ESG-related policies, goals and disclosure may result in litigation and investigations and supervisory actions (including potential greenwashing claims). The Group has disclosed certain aspirational ESG-related goals and such goals, which are being pursued over the long-term, may prove to be considerably more costly or difficult than currently expected, or even impossible, to achieve, including as a result of changes in regulation and policy, the pace of technological change and innovation and the actions of governments and the Group’s customers and competitors. Potential greenwashing claims arising from ESG-related statements, disclosure and/or actions of the Group may also give rise to reputational risks. Any of these factors may have a material adverse effect on the Group’s business, financial condition and results of operations. Management Report Subsequent events 61 Subsequent events On January 14, 2025, BBVA carried out an issuance of perpetual contingent convertible securities with exclusion of shareholders' pre- emptive subscription rights, for a total nominal amount of USD 1 billion. This issuance is listed on the New York Stock Exchange and was targeted only at qualified investors, not being offered or sold to any retail clients. Likewise, on January 28, 2025, the Bank announced its irrevocable decision to redeem in whole on March 5, 2025, the issuance of contingently convertible preferred securities (which qualified as additional tier 1 instruments) carried out by the Bank on September 5, 2019, for an amount of USD 1 billion on the First Reset Date and once the prior consent from the Regulator was obtained. On January 30, 2025, it was announced that a cash distribution in the amount of €0.41 gross per share to be paid presumably in April 2025 as the final dividend for the year 2024, and the execution of a share buyback program of BBVA for an amount of €993 million were planned to be proposed to the corresponding corporate bodies for consideration as ordinary remuneration to shareholders for 2024, subject to obtaining the corresponding regulatory authorizations and approval by the Board of Directors of the specific terms and conditions of the program, which will be communicated to the market prior to the start of its execution From January 1, 2025 to the date of preparation of these financial statements, no other subsequent events not mentioned above in these financial statements have taken place that could significantly affect the Bank’s earnings or its equity position. Management Report BBVA Annual Corporate Governance Report 62 BBVA Annual Corporate Governance Report In accordance with the provisions established by Article 540 of the Spanish Corporate Act, the Board of Directors of BBVA, on the occasion of the preparation of the financial statements for 2024, approved the BBVA Annual Corporate Governance Report for that year (which is an integral part of the Management Report) in accordance with the contents set down in Order ECC/461/2013, dated March 20, and in Circular 5/2013, dated June 12, of Comisión Nacional del Mercado de Valores (CNMV), in the wording provided by Circular 3/2021, dated September 28, of CNMV. The Annual Corporate Governance Report is incorporated by reference in the Management Report and is published in CNMV´s website (www.cnmv.es) and in the Company´s corporate website (www.bbva.com). Management Report Annual Report on Remuneration of BBVA DIrectors 63 Annual Report on the Remuneration of BBVA Directors In accordance with the provisions established by Article 541 of the Spanish Corporate Act, the Board of Directors of BBVA, on the proposal of the Remuneration Committee, and on the occasion of the preparation of the financial statements for 2024, approved the Annual Report on the Remuneration of BBVA Directors for that year (which is an integral part of the Management Report) in accordance with the contents set down in Order ECC/461/2013, dated March 20, and in Circular 4/2013, dated June 12, of Comisión Nacional del Mercado de Valores (CNMV), in the wording provided by Circular 3/2021, dated September 28, of CNMV. The Annual Report on the Remuneration of BBVA Directors is incorporated by reference in the Management Report and is published in CNMV´s website (www.cnmv.com ) and in the Company's corporate website (www.bbva.com). Management Report Disclaimer 64 Legal disclaimer This document is provided for informative purposes only and is not intended to provide financial advice and, therefore, does not constitute, nor should it be interpreted as, an offer to sell, exchange or acquire, or an invitation for offers to acquire securities issued by any of the aforementioned companies, or to contract any financial product. Any decision to purchase or invest in securities or contract any financial product must be made solely and exclusively on the basis of the information made available to such effects by the relevant company in relation to each such specific matter. The information contained in this document is subject to and should be read in conjunction with all other publicly available information of the issuer. This document contains forward-looking statements that constitute or may constitute “forward-looking statements” (within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995) with respect to intentions, objectives, expectations or estimates as of the date hereof, including those relating to future targets of both a financial and non-financial nature (such as environmental, social or governance (“ESG”) performance targets). Forward-looking statements may be identified by the fact that they do not refer to historical or current facts and include words such as “believe”, “expect”, “estimate”, “project”, “anticipate”, “duty”, “intend”, “likelihood”, “risk”, “VaR”, “purpose”, “commitment”, “goal”, “target” and similar expressions or variations of those expressions. They include, for example, statements regarding future growth rates or the achievement of future targets, including those relating to ESG performance. The information contained in this document reflects our current expectations, estimates and targets, which are based on various assumptions, judgments and projections, including non-financial considerations such as those related to sustainability, which may differ from and not be comparable to those used by other companies. Forward-looking statements are not guarantees of future results, and actual results may differ materially from those anticipated in the forward-looking statements as a result of certain risks, uncertainties and other factors. These factors include, but are not limited to, (1) market conditions, macroeconomic factors, domestic and international stock market conditions, exchange rates, inflation and interest rates; (2) regulatory, oversight, political, governmental, social and demographic factors; (3) changes in the financial condition, creditworthiness or solvency of our clients, debtors or counterparties, such as changes in default rates, as well as changes in consumer spending, savings and investment behavior, and changes in our credit ratings; (4) competitive pressures and actions we take in response thereto; (5) performance of our IT, operations and control systems and our ability to adapt to technological changes; (6) climate change and the occurrence of natural or man-made disasters, such as an outbreak or escalation of hostilities; (7) our ability to appropriately address any ESG expectations or obligations (related to our business, management, corporate governance, disclosure or otherwise), and the cost thereof; and (8) our ability to successfully complete and integrate acquisitions. In the particular case of certain targets related to our ESG performance, such as, decarbonization targets or alignment of our portfolios, the achievement and progress towards such targets will depend to a large extent on the actions of third parties, such as clients, governments and other stakeholders, and may therefore be materially affected by such actions, or lack thereof, as well as by other exogenous factors that do not depend on BBVA (including, but not limited to, new technological developments, regulatory developments, military conflicts, the evolution of climate and energy crises, etc.). Therefore, these targets may be subject to future revisions. The factors mentioned in the preceding paragraphs could cause actual future results to differ substantially from those set forth in the forecasts, intentions, objectives, targets or other forward-looking statements included in this document or in other past or future documents. Accordingly, results, including those related to ESG performance targets, among others, may differ materially from the statements contained in the forward-looking statements. Recipients of this document are cautioned not to place undue reliance on such forward-looking statements. Past performance or growth rates are not indicative of future performance, results or share price (including earnings per share). Nothing in this document should be construed as a forecast of results or future earnings. This document contains, in addition to financial information, non-financial information ("NFI") in order to comply with the current legislation. The INF has been verified with a limited scope by a third party. In its preparation, a number of estimates and assumptions have been made in various areas and have used measurement, data collection and verification practices and methodologies, both external and internal, which are substantially different from those applied to financial reporting and which, in many cases, are under development. BBVA does not intend, and undertakes no obligation, to update or revise the contents of this or any other document if there are any changes in the information contained therein, or including the forward-looking statements contained in any such document, as a result of events or circumstances after the date of such document or otherwise except as required by applicable law.
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