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Contents
I. AUDIT REPORT
II. CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Financial Statements |
Notes to the Consolidated Financial Statements |
Appendices |
Glossary |
Legal disclaimer |

III. MANAGEMENT REPORT

BBVA in brief |
Consolidated Non-financial Information Statement |
Financial information |
Risk management |
Alternative Performance Measures (APMs) |
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 (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.1

Index

CONSOLIDATED FINANCIAL STATEMENTS | 4

Consolidated balance sheets | 4
Consolidated income statements | 7
Consolidated statements of recognized income and expense | 9
Consolidated statements of changes in equity | 10
Consolidated statements of cash flows | 13

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | 14

1. Introduction, basis for the presentation of the Consolidated Financial Statements, Internal Control over Financial Reporting and other information | 14
2. P rinciples of consolidation, accounting policies and measurement bases applied and recent IFRS pronouncements | 18
3. BBVA Group | 55
4. Shareholder remuneration system | 56
5. Earnings per share | 61
6. Operating segment reporting | 61
7. Risk management | 63
8. Fair value of financial instruments | 125
9. Cash, cash balances at central banks and other demand deposits | 143
10. Financial assets and liabilities held for trading | 144
11. Non-trading financial assets mandatorily at fair value through profit or loss | 146
12. Financial assets and liabilities designated at fair value through profit or loss | 146
13. Financial assets at fair value through other comprehensive income | 147
14. Financial assets at amortized cost | 150
15. Derivatives - Hedge accounting and fair value changes of the hedged items in portfolio hedges of interest rate risk | 153
16. Investments in joint ventures and associates | 157
17. Tangible assets | 159
18. Intangible assets | 163
19. Tax assets and liabilities | 165
20. Other assets and liabilities | 172
21. Non-current assets and disposal groups classified as held for sale and liabilities included in disposal groups classified as held for sale | 173
22. Financial liabilities at amortized cost | 175
23. Assets and liabilities under insurance and reinsurance contracts | 181
24. Provisions | 185
25. Post-employment and other employee benefit commitments | 186
26. Common stock | 196
27. Share premium | 199
28. Retained earnings and other reserves | 199
29. Treasury shares | 201
30. Accumulated other comprehensive income (loss) | 202

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.2

31. Minority interests (non-controlling interests) | 203
32. Capital base and capital management | 203
33. Commitments and guarantees given | 209
34. Other contingent assets and liabilities | 209
35. Purchase and sale commitments and future payment obligations | 210
36. Transactions on behalf of third parties | 210
37. Net interest income | 210
38. Dividend income | 211
39. Share of profit or loss of entities accounted for using the equity method | 211
40. Fee and commission income and expense | 212
41. G ains (losses) on financial assets and liabilities, hedge accounting and exchange differences, net | 213
42. Other operating income and expense | 214
43. Income and expense from insurance and reinsurance contracts | 215
44. Administration costs | 215
45. Depreciation and amortization | 219
46. Provisions or reversal of provisions | 219
47. Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification | 220
48. Impairment or reversal of impairment of investments in joint ventures and associates | 220
49. Impairment or reversal of impairment on non-financial assets | 220
50. Gains (losses) from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations | 221
51. Consolidated statements of cash flows | 221
52. Accountant fees and services | 222
53. Related-party transactions | 222
54. Remuneration and other benefits for the Board of Directors and members of the Bank's Senior Management | 225
55. Other information | 236
56. Subsequent events | 239
57. Explanation added for translation into English | 239

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.3

APPENDICES | 240

APPENDIX I. Additional information on subsidiaries and structured entities composing the BBVA Group as of December 31, 2025 | 241
APPENDIX II. Additional information on investments in joint ventures and associates in the BBVA Group as of December 31, 2025 | 246
APPENDIX III. Changes and notifications of participations in the BBVA Group in 2025 | 247
APPENDIX IV. Fully consolidated subsidiaries with more than 10% owned by non-Group shareholders as of December 31, 2025 | 249
APPENDIX V. BBVA Group’s securitization funds. Structured entities in 2025 | 250
APPENDIX VI. Details of the outstanding subordinated debt and preferred securities issued by the Bank or entities in the Group consolidated as of December 31, 2025, 2024 and 2023 | 251
APPENDIX VII Consolidated balance sheets held in foreign currency as of December 31, 2025, 2024 and 2023 | 253
APPENDIX VIII. Consolidated income statements for the first and second half of 2025 and 2024 | 254
APPENDIX IX. Financial Statements of Banco Bilbao Vizcaya Argentaria, S.A. | 256
APPENDIX X. Qu a ntitative information on refinancing and restructuring operations and other requirements under Bank of Spain Circular 6/2012 | 264
APPENDIX XI. Additional information on risk concentration | 271
APPENDIX XII Information in accordance with article 89 of Directive 2013/36/EU of the European Parliament and its application to Spanish Law through Law 10/2014 | 279

GLOSSARY | 281

LEGAL DISCLAIMER | 290

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.4

|  | Consolidated Financial Statements | > Consolidated Financial Statements

Consolidated balance sheets as of December 31, 2025, 2024 and 2023

ASSETS (MILLIONS OF EUROS) |  |  |  |
| Notes | 2025 | 2024 ⁽¹⁾ | 2023 ⁽¹⁾
CASH, CASH BALANCES AT CENTRAL BANKS AND OTHER DEMAND DEPOSITS | 9 | 58,837 | 51,145 | 75,416
FINANCIAL ASSETS HELD FOR TRADING | 10 | 123,185 | 108,948 | 141,042
Derivatives |  | 32,551 | 36,003 | 34,293
Equity instruments |  | 9,901 | 6,760 | 4,589
Debt securities |  | 30,846 | 27,955 | 28,569
Loans and advances to central banks |  | 620 | 556 | 2,809
Loans and advances to credit institutions |  | 17,985 | 20,938 | 56,599
Loans and advances to customers |  | 31,282 | 16,736 | 14,182
NON-TRADING FINANCIAL ASSETS MANDATORILY AT FAIR VALUE THROUGH PROFIT OR LOSS | 11 | 11,272 | 10,546 | 8,737
Equity instruments |  | 10,539 | 9,782 | 7,963
Debt securities |  | 192 | 407 | 484
Loans and advances |  | 541 | 358 | 290
FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | 12 | 1,006 | 836 | 955
Debt securities |  | 1,006 | 836 | 955
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME | 13 | 58,809 | 59,002 | 62,205
Equity instruments |  | 1,360 | 1,451 | 1,217
Debt securities |  | 57,001 | 57,526 | 60,963
Loans and advances |  | 448 | 25 | 26
FINANCIAL ASSETS AT AMORTIZED COST | 14 | 568,893 | 502,400 | 451,732
Debt securities |  | 73,379 | 59,014 | 49,462
Loans and advances to central banks |  | 10,869 | 8,255 | 7,151
Loans and advances to credit institutions |  | 24,244 | 22,655 | 17,477
Loans and advances to customers |  | 460,401 | 412,477 | 377,643
DERIVATIVES - HEDGE ACCOUNTING | 15 | 570 | 1,158 | 1,482
FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | 15 | (87) | (65) | (97)
JOINT VENTURES AND ASSOCIATES | 16 | 994 | 989 | 976
Joint ventures |  | 111 | 94 | 93
Associates |  | 883 | 895 | 883
INSURANCE AND REINSURANCE ASSETS | 23 | 198 | 191 | 211
TANGIBLE ASSETS | 17 | 9,482 | 9,759 | 9,253
Properties, plant and equipment |  | 9,247 | 9,506 | 9,046
For own use |  | 8,367 | 8,501 | 8,295
Other assets leased out under an operating lease |  | 879 | 1,004 | 751
Investment properties |  | 235 | 253 | 207
INTANGIBLE ASSETS | 18 | 2,856 | 2,490 | 2,363
Goodwill |  | 715 | 700 | 795
Other intangible assets |  | 2,140 | 1,790 | 1,568
TAX ASSETS | 19 | 17,867 | 18,650 | 17,501
Current tax assets |  | 3,998 | 4,295 | 2,860
Deferred tax assets |  | 13,869 | 14,354 | 14,641
OTHER ASSETS | 20 | 4,985 | 5,525 | 2,859
Insurance contracts linked to pensions |  | — | — | —
Inventories |  | 1,307 | 1,299 | 276
Other |  | 3,678 | 4,226 | 2,583
NON-CURRENT ASSETS AND DISPOSAL GROUPS CLASSIFIED AS HELD FOR SALE | 21 | 709 | 828 | 923
TOTAL ASSETS |  | 859,576 | 772,402 | 775,558

(1) Presented for comparison purposes only (see Note 1.3).
The Notes and Appendices are an integral part of the consolidated balance sheet as of December 31, 2025.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.5

|  | Consolidated Financial Statements | > Consolidated Financial Statements

Consolidated balance sheets as of December 31, 2025, 2024 and 2023
(continued)

LIABILITIES AND EQUITY (MILLIONS OF EUROS) |  |  |  |
| Notes | 2025 | 2024 ⁽¹⁾ | 2023 ⁽¹⁾
FINANCIAL LIABILITIES HELD FOR TRADING | 10 | 91,917 | 86,591 | 121,715
Derivatives |  | 30,345 | 33,059 | 33,045
Short positions |  | 13,100 | 13,878 | 15,735
Deposits from central banks |  | 3,653 | 3,360 | 6,397
Deposits from credit institutions |  | 18,138 | 16,285 | 43,337
Customer deposits |  | 26,681 | 20,010 | 23,201
FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | 12 | 18,417 | 14,952 | 13,299
Deposits from central banks |  | — | — | —
Deposits from credit institutions |  | — | — | —
Customer deposits |  | 897 | 934 | 717
Debt certificates issued |  | 5,997 | 4,597 | 3,977
Other financial liabilities |  | 11,524 | 9,420 | 8,605
Memorandum item: Subordinated liabilities |  | — | — | —
FINANCIAL LIABILITIES AT AMORTIZED COST | 22 | 658,599 | 584,339 | 557,589
Deposits from central banks |  | 17,226 | 14,668 | 20,309
Deposits from credit institutions |  | 36,771 | 34,406 | 40,039
Customer deposits |  | 502,501 | 447,646 | 413,487
Debt certificates issued |  | 81,842 | 69,867 | 68,707
Other financial liabilities |  | 20,258 | 17,753 | 15,046
Memorandum item: Subordinated liabilities |  | 21,053 | 19,612 | 15,867
DERIVATIVES - HEDGE ACCOUNTING | 15 | 1,933 | 2,503 | 2,625
FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | 15 | — | — | —
LIABILITIES UNDER INSURANCE AND REINSURANCE CONTRACTS | 23 | 12,760 | 10,981 | 12,110
PROVISIONS | 24 | 4,422 | 4,619 | 4,924
Pensions and other post-employment defined benefit obligations |  | 2,267 | 2,348 | 2,571
Other long-term employee benefits |  | 332 | 384 | 435
Provisions for taxes and other legal contingencies |  | 805 | 791 | 696
Commitments and guarantees given |  | 725 | 667 | 770
Other provisions |  | 293 | 429 | 452
TAX LIABILITIES | 19 | 4,020 | 3,033 | 2,554
Current tax liabilities |  | 1,480 | 575 | 878
Deferred tax liabilities |  | 2,540 | 2,458 | 1,677
OTHER LIABILITIES | 20 | 5,709 | 5,370 | 5,477
LIABILITIES INCLUDED IN DISPOSAL GROUPS CLASSIFIED AS HELD FOR SALE | 21 | — | — | —
TOTAL LIABILITIES |  | 797,778 | 712,388 | 720,293

(1) Presented for comparison purposes only (see Note 1.3).
The Notes and Appendices are an integral part of the consolidated balance sheet as of December 31, 2025.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.6

|  | Consolidated Financial Statements | > Consolidated Financial Statements

Consolidated balance sheets as of December 31, 2025, 2024 and 2023
(continued)

LIABILITIES AND EQUITY (CONTINUED) (MILLIONS OF EUROS)
| Notes | 2025 | 2024 ⁽¹⁾ | 2023 ⁽¹⁾
SHAREHOLDERS’ FUNDS |  | 76,228 | 72,875 | 67,955
Capital | 26 | 2,797 | 2,824 | 2,861
Paid up capital |  | 2,797 | 2,824 | 2,861
Unpaid capital which has been called up |  | — | — | —
Share premium | 27 | 18,469 | 19,184 | 19,769
Equity instruments issued other than capital |  | — | — | —
Other equity |  | 40 | 40 | 40
Retained earnings | 28 | 46,346 | 40,693 | 36,237
Revaluation reserves |  | — | — | —
Other reserves | 28 | 203 | 1,814 | 2,015
Reserves or accumulated losses of investments in joint ventures and associates |  | (228) | (227) | (237)
Other |  | 431 | 2,041 | 2,252
Less: treasury shares | 29 | (299) | (66) | (34)
Profit or loss attributable to owners of the parent |  | 10,511 | 10,054 | 8,019
Less: Interim dividends | 4 | (1,840) | (1,668) | (951)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 30 | (18,871) | (17,220) | (16,254)
Items that will not be reclassified to profit or loss |  | (2,505) | (1,988) | (2,105)
Actuarial gains (losses) on defined benefit pension plans |  | (1,396) | (1,067) | (1,049)
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 |  | (983) | (905) | (1,112)
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 |  | (127) | (17) | 55
Items that may be reclassified to profit or loss |  | (16,366) | (15,232) | (14,148)
Hedge of net investments in foreign operations (effective portion) |  | (3,117) | (2,329) | (2,498)
Foreign currency translation |  | (13,340) | (12,702) | (11,419)
Hedging derivatives. Cash flow hedges (effective portion) |  | 311 | 370 | 133
Fair value changes of debt instruments measured at fair value through other comprehensive income |  | (209) | (576) | (357)
Hedging instruments (non-designated items) |  | (4) | — | —
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 |  | (7) | 5 | (8)
MINORITY INTERESTS (NON-CONTROLLING INTERESTS) | 31 | 4,441 | 4,359 | 3,564
Accumulated other comprehensive income (loss) |  | (3,059) | (2,730) | (3,321)
Other items |  | 7,500 | 7,089 | 6,885
TOTAL EQUITY |  | 61,798 | 60,014 | 55,265
TOTAL EQUITY AND TOTAL LIABILITIES |  | 859,576 | 772,402 | 775,558
MEMORANDUM ITEM (OFF-BALANCE SHEET EXPOSURES) (MILLIONS OF EUROS)
| Notes | 2025 | 2024 ⁽¹⁾ | 2023 ⁽¹⁾
Loan commitments given | 33 | 227,554 | 188,515 | 152,868
Financial guarantees given | 33 | 24,865 | 22,503 | 18,839
Other commitments given | 33 | 60,159 | 51,215 | 42,577

(1) Presented for comparison purposes only (see Note 1.3).
The Notes and Appendices are an integral part of the consolidated balance sheet as of December 31, 2025.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.7

|  | Consolidated Financial Statements | > Consolidated Financial Statements

Consolidated income statements for the years ended December 31, 2025, 2024
and 2023

CONSOLIDATED INCOME STATEMENTS (MILLIONS OF EUROS)
| Notes | 2025 | 2024 ⁽¹⁾ | 2023 ⁽¹⁾
Interest and other income | 37.1 | 58,345 | 61,659 | 47,850
Interest income using effective interest rate method |  | 52,816 | 55,224 | 42,141
Other interest income |  | 5,530 | 6,435 | 5,709
Interest expense | 37.2 | (32,065) | (36,392) | (24,761)
NET INTEREST INCOME |  | 26,280 | 25,267 | 23,089
Dividend income | 38 | 123 | 120 | 118
Share of profit or loss of entities accounted for using the equity method | 39 | 62 | 40 | 26
Fee and commission income | 40 | 13,743 | 13,036 | 9,899
Fee and commission expense | 40 | (5,528) | (5,048) | (3,611)
Gains (losses) on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net | 41 | 423 | 327 | 76
Financial assets at amortized cost |  | 24 | 20 | 41
Other financial assets and liabilities |  | 398 | 307 | 35
Gains (losses) on financial assets and liabilities held for trading, net | 41 | 2,255 | 2,458 | 1,352
Reclassification of financial assets from fair value through other comprehensive income |  | — | — | —
Reclassification of financial assets from amortized cost |  | — | — | —
Other gains (losses) |  | 2,255 | 2,458 | 1,352
Gains (losses) on non-trading financial assets mandatorily at fair value through profit or loss, net | 41 | 236 | 179 | 337
Reclassification of financial assets from fair value through other comprehensive income |  | — | — | —
Reclassification of financial assets from amortized cost |  | — | — | —
Other gains (losses) |  | 236 | 179 | 337
Gains (losses) on financial assets and liabilities designated at fair value through profit or loss, net | 41 | 28 | 249 | 96
Gains (losses) from hedge accounting, net | 41 | (1) | 5 | (17)
Exchange differences, net | 41 | (285) | 695 | 339
Other operating income | 42 | 688 | 623 | 619
Other operating expense | 42 | (2,614) | (3,951) | (4,042)
Income from insurance and reinsurance contracts | 43 | 3,890 | 3,720 | 3,081
Expense from insurance and reinsurance contracts | 43 | (2,370) | (2,238) | (1,821)
GROSS INCOME |  | 36,931 | 35,481 | 29,542
Administration costs |  | (12,811) | (12,660) | (10,905)
Personnel expense | 44.1 | (7,773) | (7,659) | (6,530)
Other administrative expense | 44.2 | (5,038) | (5,001) | (4,375)
Depreciation and amortization | 45 | (1,521) | (1,533) | (1,403)
Provisions or reversal of provisions | 46 | (373) | (198) | (373)
Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification | 47 | (6,073) | (5,745) | (4,428)
Financial assets measured at amortized cost |  | (6,101) | (5,687) | (4,386)
Financial assets at fair value through other comprehensive income |  | 28 | (58) | (42)
NET OPERATING INCOME |  | 16,153 | 15,345 | 12,432
Impairment or reversal of impairment of investments in joint ventures and associates | 48 | 32 | 63 | (9)
Impairment or reversal of impairment on non-financial assets | 49 | (13) | 1 | (54)
Tangible assets |  | 5 | 29 | (16)
Intangible assets |  | (14) | (15) | (26)
Other assets |  | (3) | (13) | (12)
Gains (losses) on derecognition of non-financial assets and subsidiaries, net |  | 36 | 14 | 28
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 | 50 | 18 | (17) | 22
PROFIT (LOSS) BEFORE TAX FROM CONTINUING OPERATIONS |  | 16,227 | 15,405 | 12,419
Tax expense or income related to profit or loss from continuing operations | 19 | (5,100) | (4,830) | (4,003)
PROFIT (LOSS) AFTER TAX FROM CONTINUING OPERATIONS |  | 11,126 | 10,575 | 8,416
Profit (loss) after tax from discontinued operations | 21 | — | — | —
PROFIT (LOSS) |  | 11,126 | 10,575 | 8,416
ATTRIBUTABLE TO MINORITY INTERESTS (NON-CONTROLLING INTERESTS) | 31 | 615 | 521 | 397
ATTRIBUTABLE TO OWNERS OF THE PARENT |  | 10,511 | 10,054 | 8,019

(1) Presented for comparison purposes only (see Note 1.3).
The Notes and Appendices are an integral part of the consolidated income statement for the year ended December 31, 2025.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.8

|  | Consolidated Financial Statements | > Consolidated Financial Statements

Consolidated income statements for the years ended December 31, 2025, 2024
and 2023 (continued)

EARNINGS (LOSSES) PER SHARE (EUROS)
| Notes | 2025 | 2024 ⁽¹⁾ | 2023 ⁽¹⁾
EARNINGS (LOSSES) PER SHARE (EUROS) | 5 | 1.76 | 1.68 | 1.29
Basic earnings (losses) per share from continuing operations |  | 1.76 | 1.68 | 1.29
Diluted earnings (losses) per share from continuing operations |  | 1.76 | 1.68 | 1.29
Basic earnings (losses) per share from discontinued operations |  | — | — | —
Diluted earnings (losses) per share from discontinued operations |  | — | — | —

(1) Presented for comparison purposes only (see Note 1.3).
The Notes and Appendices are an integral part of the consolidated income statement for the year ended December 31, 2025.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.9

|  | Consolidated Financial Statements | > Consolidated Financial Statements

Consolidated statements of recognized income and expense for the years
ended December 31, 2025 , 2024 and 2023

CONSOLIDATED STATEMENTS OF RECOGNIZED INCOME AND EXPENSE (MILLIONS OF EUROS)
| 2025 | 2024 ⁽¹⁾ | 2023 ⁽¹⁾
PROFIT (LOSS) RECOGNIZED IN INCOME STATEMENT | 11,126 | 10,575 | 8,416
OTHER RECOGNIZED INCOME (EXPENSE) | (1,981) | (414) | 1,175
ITEMS NOT SUBJECT TO RECLASSIFICATION TO INCOME STATEMENT | (514) | 79 | (223)
Actuarial gains (losses) from defined benefit pension plans | (379) | (78) | (358)
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 | (70) | 236 | 100
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 | (157) | (102) | (24)
Income tax related to items not subject to reclassification to income statement | 92 | 23 | 59
ITEMS SUBJECT TO RECLASSIFICATION TO INCOME STATEMENT | (1,466) | (493) | 1,398
Hedge of net investments in foreign operations (effective portion) | (779) | 169 | (1,095)
Valuation gains (losses) taken to equity | (779) | 169 | (1,095)
Transferred to profit or loss | — | — | —
Other reclassifications | — | — | —
Foreign currency translation | (966) | (646) | 1,379
Translation gains (losses) taken to equity | (966) | (646) | 1,378
Transferred to profit or loss | — | — | 1
Other reclassifications | — | — | —
Cash flow hedges (effective portion) | (82) | 331 | 832
Valuation gains (losses) taken to equity | (82) | 331 | 832
Transferred to profit or loss | — | — | —
Transferred to initial carrying amount of hedged items | — | — | —
Other reclassifications | — | — | —
Hedging instruments (non-designated elements) | (6) | — | —
Valuation gains or losses taken to equity | (6) | — | —
Transferred to profit or loss | — | — | —
Other reclassifications | — | — | —
Debt securities at fair value through other comprehensive income | 535 | (398) | 752
Valuation gains (losses) taken to equity | 925 | (217) | 757
Transferred to profit or loss | (390) | (181) | (5)
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 | (14) | 16 | 12
Income tax relating to items subject to reclassification to income statements | (155) | 36 | (482)
TOTAL RECOGNIZED INCOME (EXPENSE) | 9,146 | 10,161 | 9,591
Attributable to minority interests (non-controlling interests) | 285 | 1,108 | 184
Attributable to the parent company | 8,860 | 9,053 | 9,407

(1) Presented for comparison purposes only (see Note 1.3).
The Notes and Appendices are an integral part of the consolidated statement of recognized income and expense for the year
ended December 31, 2025.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.10

|  | Consolidated Financial Statements | > Consolidated Financial Statements

Consolidated statements of changes in equity for the years ended December 31, 2025, 2024 and 2023

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (MILLIONS OF EUROS)
| Capital (Note 26) | Share premium (Note 27) | Equity instruments issued other than capital | Other Equity | Retained earnings (Note 28) | Revaluation reserves | Other reserves (Note 28) | (-) Treasury shares (Note 29) | Profit or loss attributable to owners of the parent | (-) Interim dividends (Note 4) | Accumulated other comprehensive income (loss) (Note 30) | Minority interests | Total
2025 | Accumulated other comprehensive income (loss) (Note 31) | Other (Note 31)
Balances as of January 1, 2025 ⁽¹⁾ | 2,824 | 19,184 | — | 40 | 40,693 | — | 1,814 | (66) | 10,054 | (1,668) | (17,220) | (2,730) | 7,089 | 60,014
Total income/expense recognized | — | — | — | — | — | — | — | — | 10,511 | — | (1,651) | (330) | 615 | 9,146
Other changes in equity | (27) | (715) | — | 1 | 5,653 | — | (1,611) | (234) | (10,054) | (171) | (1) | 1 | (204) | (7,362)
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 | (27) | (715) | — | — | 21 | — | (273) | 993 | — | — | — | — | — | —
Dividend distribution | — | — | — | — | (2,357) | — | — | — | — | (1,840) | — | — | (254) | (4,450)
Purchase of treasury shares | — | — | — | — | — | — | — | (1,995) | — | — | — | — | — | (1,995)
Sale or cancellation of treasury shares | — | — | — | — | — | — | 26 | 768 | — | — | — | — | — | 794
Reclassification of other equity instruments to financial liabilities | — | — | — | — | — | — | — | — | — | — | — | — | — | —
Reclassification of financial liabilities to other equity instruments | — | — | — | — | — | — | — | — | — | — | — | — | — | —
Transfers among components of equity | — | — | — | 9 | 8,386 | — | (9) | — | (10,054) | 1,668 | (1) | 1 | (1) | —
Increase/Reduction of equity due to business combinations | — | — | — | — | — | — | — | — | — | — | — | — | — | —
Share based payments | — | — | — | (26) | — | — | — | — | — | — | — | — | — | (26)
Other increases or (-) decreases in equity | — | — | — | 18 | (398) | — | (1,355) | — | — | — | — | — | 51 | (1,685)
Balance as of December 31, 2025 | 2,797 | 18,469 | — | 40 | 46,346 | — | 203 | (299) | 10,511 | (1,840) | (18,871) | (3,059) | 7,500 | 61,798

(1) Balances as of December 31, 2024 as originally reported in the Consolidated Financial Statements for the year 2024.
The Notes and Appendices are an integral part of the consolidated statement of changes in equity for the year ended December 31, 2025.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.11

|  | Consolidated Financial Statements | > Consolidated Financial Statements

Consolidated statements of changes in equity for the years ended December 31, 2025, 2024 and 2023 (continued)

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (MILLIONS OF EUROS)
2024 ⁽¹⁾ | Capital (Note 26) | Share premium (Note 27) | Equity instruments issued other than capital | Other Equity | Retained earnings (Note 28) | Revaluation reserves | Other reserves (Note 28) | (-) Treasury shares (Note 29) | Profit or loss attributable to owners of the parent | (-) Interim dividends (Note 4) | Accumulated other comprehensive income (loss) (Note 30) | Minority interests | Total
Accumulated other comprehensive income (loss) (Note 31) | Other (Note 31)
Balances as of January 1, 2024 ⁽²⁾ | 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) Presented for comparison purposes only (see Note 1.3).
(2) Balances as of December 31, 2023 as originally reported in the Consolidated Financial Statements for the year 2023.
The Notes and Appendices are an integral part of the consolidated statement of changes in equity for the year ended December 31, 2025.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.12

|  | Consolidated Financial Statements | > Consolidated Financial Statements

Consolidated statements of changes in equity for the years ended December 31, 2025, 2024 and 2023 (continued)

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (MILLIONS OF EUROS)
| Capital (Note 26) | Share premium (Note 27) | Equity instruments issued other than capital | Other Equity | Retained earnings (Note 28) | Revaluation reserves | Other reserves (Note 28) | (-) Treasury shares (Note 29) | Profit or loss attributable to owners of the parent | (-) Interim dividends (Note 4) | Accumulated other comprehensive income (loss) (Note 30) | Minority interests | Total
2023 ⁽¹⁾ | Accumulated other comprehensive income (loss) (Note 31) | Other (Note 31)
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 (see Note 1.3).
(2) Balances as of December 31, 2022 as originally reported in the Consolidated Financial Statements for the year 2022.
(3) Effects of the application of IFRS 17 (see Note 2.2.8).
The Notes and Appendices are an integral part of the consolidated statement of changes in equity for the year ended December 31, 2025.

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|  | Consolidated Financial Statements | > Consolidated Financial Statements

Consolidated statements of cash flows for the years ended December 31, 2025,
2024 and 2023

CONSOLIDATED STATEMENTS OF CASH FLOWS (MILLIONS OF EUROS)
|  | 2025 | 2024 ⁽¹⁾ | 2023 ⁽¹⁾
A) CASH FLOWS FROM OPERATING ACTIVITIES |  | 14,968 | (18,190) | (721)
Of which hyperinflation effect from operating activities (see Note 2.2.18) |  | 1,540 | 2,593 | 1,884
Profit for the year |  | 11,126 | 10,575 | 8,416
Adjustments to obtain the cash flow from operating activities |  | 14,376 | 14,817 | 12,150
Depreciation and amortization |  | 1,521 | 1,533 | 1,403
Other adjustments |  | 12,855 | 13,283 | 10,747
Net increase/decrease in operating assets |  | (102,491) | (54,265) | (77,408)
Financial assets held for trading |  | (13,956) | 28,452 | (27,884)
Non-trading financial assets mandatorily at fair value through profit or loss |  | (628) | (2,813) | (1,288)
Other financial assets designated at fair value through profit or loss |  | (187) | 119 | (42)
Financial assets at fair value through other comprehensive income |  | 680 | (1,124) | 2,512
Financial assets at amortized cost |  | (89,072) | (76,759) | (51,182)
Other operating assets |  | 672 | (2,140) | 476
Net increase/decrease in operating liabilities |  | 95,286 | 16,314 | 61,473
Financial liabilities held for trading |  | 5,099 | (32,695) | 24,435
Other financial liabilities designated at fair value through profit or loss |  | 3,271 | 2,647 | 2,003
Financial liabilities at amortized cost |  | 88,266 | 45,970 | 36,127
Other operating liabilities |  | (1,350) | 392 | (1,092)
Collection/payments for income tax |  | (3,328) | (5,631) | (5,353)
B) CASH FLOWS FROM INVESTING ACTIVITIES |  | (1,403) | (1,423) | (1,419)
Of which hyperinflation effect from investing activities (see Note 2.2.18) |  | 346 | 753 | 772
Investment |  | (1,807) | (2,039) | (1,912)
Tangible assets |  | (827) | (1,195) | (1,129)
Intangible assets |  | (979) | (816) | (690)
Investments in joint ventures and associates |  | (1) | (1) | (93)
Subsidiaries and other business units |  | — | (28) | —
Non-current assets classified as held for sale and associated liabilities |  | — | — | —
Other settlements related to investing activities |  | — | — | —
Divestments |  | 404 | 617 | 492
Tangible assets |  | 83 | 104 | 92
Intangible assets |  | — | — | —
Investments in joint ventures and associates |  | 83 | 32 | 58
Subsidiaries and other business units |  | 50 | 73 | 21
Non-current assets classified as held for sale and associated liabilities |  | 188 | 408 | 321
Other collections related to investing activities |  | — | — | —
C) CASH FLOWS FROM FINANCING ACTIVITIES |  | (3,673) | (2,567) | (1,842)
Of which hyperinflation effect from financing activities (see Note 2.2.18) |  | — | — | —
Payments |  | (9,417) | (8,773) | (7,224)
Dividend distribution (shareholders remuneration) |  | (4,196) | (3,913) | (2,808)
Subordinated liabilities |  | (2,647) | (2,599) | (1,629)
Treasury shares amortization |  | (27) | (37) | (94)
Treasury shares acquisition |  | (1,968) | (1,492) | (2,072)
Other items relating to financing activities |  | (580) | (732) | (622)
Collections |  | 5,744 | 6,205 | 5,383
Subordinated liabilities |  | 4,987 | 5,514 | 4,672
Treasury shares increase |  | — | — | —
Treasury shares disposal |  | 757 | 691 | 711
Other items relating to financing activities |  | — | — | —
D) EFFECT OF EXCHANGE RATE CHANGES |  | (2,201) | (2,091) | (357)
E) NET INCREASE/DECREASE IN CASH AND CASH EQUIVALENTS (A+B+C+D) |  | 7,692 | (24,271) | (4,339)
F) CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR |  | 51,145 | 75,416 | 79,756
G) CASH AND CASH EQUIVALENTS AT END OF THE YEAR (E+F) |  | 58,837 | 51,145 | 75,416
COMPONENTS OF CASH AND CASH EQUIVALENTS AT END OF THE YEAR (MILLIONS OF EUROS)
| Notes | 2025 | 2024 ⁽¹⁾ | 2023 ⁽¹⁾
Cash | 9 | 8,050 | 8,636 | 7,751
Balance of cash equivalent in central banks | 9 | 42,856 | 35,306 | 60,750
Other financial assets | 9 | 7,931 | 7,202 | 6,916
Less: Bank overdraft refundable on demand |  | — | — | —
TOTAL CASH AND CASH EQUIVALENTS AT END OF THE YEAR |  | 58,837 | 51,145 | 75,416

(1) Presented for comparison purposes only (see Note 1.3).
The Notes and Appendices are an integral part of the consolidated statement of cash flows for the year ended December 31, 2025.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements
1. Introduction, basis for the presentation of the Consolidated
Financial Statements, Internal Control over Financial Reporting and
other information
1.1 Introduction
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). 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.
I n 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.
As of December 31, 2025, in addition to the Bank, the BBVA Group had 171 consolidated entities and 38 entities accounted for
using the equity method (see Notes 3 and 16 and Appendices I to IV).
The Consolidated Financial Statements of the BBVA Group for the year ended December 31, 2024 were approved by the
shareholders at the Annual General Shareholders' Meeting (“AGM”) held on March 21, 2025.
BBVA Group’s Consolidated Financial Statements and the Financial Statements for the Bank and the majority of the other entities
within the Group have been prepared for the year ended December 31, 2025, and are pending approval by their respective AGMs.
However, the Board of Directors of the Bank believes that said financial statements will be approved without significant changes.
1.2 Basis for the presentation of the Consolidated Financial Statements
The BBVA Group’s Consolidated Financial Statements are presented in compliance with IFRS-IASB (International Financial
Reporting Standards as issued by the International Accounting Standards Board (hereinafter “IASB”)), as well as in accordance
with the International Financial Reporting Standards endorsed by the European Union (hereinafter “EU-IFRS”) applicable as of
December 31, 2025, considering the Bank of Spain Circular 4/2017, as well as its successive amendments, and any other
legislation governing financial reporting which was, as of the date of preparation of such consolidated financial statements,
applicable, and with the format and mark-up requirements established in the EU Delegated Regulation 2019/815 of the European
Commission.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

The BBVA Group’s Consolidated Financial Statements for the year ended December 31, 2025 were prepared by the Group’s
Directors (through the Board of Directors meeting held on February 9, 2026) by applying the principles of consolidation,
accounting policies and valuation criteria described in Note 2, so that they present fairly the Group’s total consolidated equity and
financial position as of December 31, 2025, together with the consolidated results of its operations and consolidated cash flows
generated during the year ended December 31, 2025.
These Consolidated Financial Statements were prepared on the basis of the accounting records kept by the Bank and each of the
other entities in the Group. Moreover, they include the adjustments and reclassifications required to harmonize the accounting
policies and valuation criteria used by the Group (see Note 2.2).
All effective accounting standards and valuation criteria with a significant effect on the C onsolidated Financial Statements were
applied in their preparation.
The amounts reflected in the Consolidated 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 Consolidated 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.
1.3 Comparative information
The information included in the consolidated financial statements for the years ended December 31, 2024 and 2023, is presented
in accordance with the applicable regulation, for the purpose of comparison with the information for the year ended December 31,
2025.
1.4 Seasonal nature of income and expense
The nature of the most significant activities carried out by the BBVA Group’s entities is mainly related to typical activities carried
out by financial institutions, and are not significantly affected by seasonal factors within the same year.
1.5 Responsibility for the information and for the estimates made
The information contained in the BBVA Group’s Consolidated Financial Statements is the responsibility of the Group’s Directors.
Estimates were required to be made at times when preparing these Consolidated 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 7, 13, 14 and 16).
– The assumptions used in the valuation of insurance and reinsurance contracts (see Note 23) to quantify certain
provisions (see Note 24) and the actuarial calculation of post-employment benefit liabilities and commitments (see Note
25).
– The useful life and impairment losses of tangible and intangible assets and impairment losses on non-current assets held
for sale (see Notes 17, 18, and 21).

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

– The valuation of goodwill and price allocation of business combinations (see Note 18).
– The fair value of certain unlisted financial assets and liabilities (see Notes 7, 8, 10, 11, 12, 13 and 15).
– The recoverability of deferred tax assets and the estimate of the corporate income tax (see Note 19).
As a general matter, the BBVA Group is working to consider and incorporate into the models used for calculating relevant
estimates how climate risk and other climate-related matters may affect the financial statements, cash flows, and the financial
performance of the Group. These estimates and judgments are being considered when preparing the financial statements of the
BBVA Group and, where relevant, they are mentioned in the corresponding Notes to the Consolidated Financial Statements.
The prevailing geopolitical and economic uncertainties (see Note 7.1) 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, 2025. 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 2025 there were no significant changes in the estimates made as of December 31, 2024 and 2023, other than those
indicated in these Consolidated Financial Statements.
1.6 BBVA Group’s Internal Control over Financial Reporting
BBVA Group’s consolidated financial statements are prepared under an Internal Control over Financial Reporting (hereinafter
"ICFR") model. It provides reasonable assurance with respect to the reliability and the integrity of the consolidated financial
statements. It is also aimed to ensure that the transactions are processed in accordance with the applicable laws and regulations.
The ICFR model is compliant with the control framework established in 2013 by the Committee of Sponsoring Organizations of the
Treadway Commission (hereinafter "COSO"). The COSO 2013 framework sets out five components that constitute the basis of the
effectiveness and efficiency of the internal control systems:
– The establishment of an appropriate control framework.
– The assessment of the risks that could arise during the preparation of the financial information.
– The design of the necessary controls to mitigate the identified risks.
– The establishment of an appropriate system of information to detect and report system weaknesses.
– The monitoring over the controls to ensure they perform correctly and are effective over time.
The ICFR model is a dynamic model that continuously evolves over time to reflect the reality of the BBVA Group’s businesses and
processes, as well as the risks that may arise and the controls that mitigate them. This control system is subject to a continuous
evaluation coordinated by the internal financial control units located in the different entities of BBVA Group.
In order to ensure the necessary independence of the aforementioned internal financial control units, they are integrated within
the Regulation & Internal Control area. This area, whose head reports to the Board of Directors through its Committees, defines
and coordinates the entire internal control model of the Group, which is structured around three lines of defense with distinct and
independent functions and is described in the “General Model for Risk Management and Control”:

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

Lines of Defense | Responsible Areas | Functions
First Line of Defense | Executive areas, depending on the type of risk | Executive areas, depending on the type of risk Manage and control the risks (financial and/or non-financial, as applicable) to which the Bank and any companies in its Group are exposed in the performance of their functions, including identification, measurement, monitoring, and reporting. This management and control will be carried out in accordance with the guidelines defined in external regulations and internal rules, and taking into account the challenge carried out by the areas that perform second and third line of defense functions, in their respective areas of responsibility.
Second Line of Defense | Global Risk Management (GRM) Regulation & Internal Control (R&IC) | Independently of the first line of defense, it must identify, measure, and monitor and report the Group's risks. Establish (or propose to the corporate bodies for approval) the management and control frameworks for financial and/or non-financial risks by all executive areas of the Bank within their respective areas of competence. Challenge the way executive areas manage and/or control the risks assigned to them throughout their life cycle. Carry out reviews of the management and control of risks within the Group.
Third Line of Defense | Internal Audit | Carry out independent reviews on how the other executive areas perform their functions of the first and second lines of defense for the management and/or control of risks in the Group.

Specifically, with regard to the process of preparing the Group’s financial statements, the Internal Financial Control (RCS Finance)
area coordinates the various control units — first and second lines of defense — under a common and standardized methodology
established at the corporate level, in accordance with the following framework:
The ICFR model includes both the controls related to the financial information generation processes, as well as those of a broader
scope, designed to improve the Group's general control environment (ELC or Entity Level Control). Both types of controls are
assessed on a regular basis by the Control areas and by the Group's Internal Audit unit. The result of their evaluation is reported to
the Audit Committee of the Bank’s Board of Directors.
The BBVA Group also complies with the requirements of the Sarbanes-Oxley Act ("SOX") for the preparation of the consolidated
financial statements, as a company with securities registered with the U.S. Securities and Exchange Commission ("SEC").
The description of the ICFR model is included in the Corporate Governance Annual Report within the Management Report
accompanying the Consolidated Financial Statements for the year ended December 31, 2025.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

2. Principles of consolidation, accounting policies and
measurement bases applied and recent IFRS pronouncements
The Glossary includes the definition of some of the financial and economic terms used in Note 2 and subsequent Notes of the
Consolidated Financial Statements.
2.1 Principles of consolidation
In terms of its consolidation, the Financial Statements of the BBVA Group are comprised of four types of entities: subsidiaries, joint
ventures, associates and structured entities, defined as follows:
– Subsidiaries
Subsidiaries are entities controlled by the Group (for definition of control, see Glossary).
Generally, there is a presumption that a majority of voting rights gives rise to control. When the Group holds less than the
majority of the voting rights or similar rights in an entity, the Group considers all relevant facts and circumstances in
assessing whether it has control over the entity, including:
– Contractual arrangements with other holders of voting rights.
– The rights arising from other contractual arrangements.
– The Group's voting rights and potential voting rights.
There are certain entities that, although the Group holds less than 50% of the voting rights in them, are considered to be
subsidiaries because the Group has the ability to exercise control over them (see Appendix I).
The financial statements of the subsidiaries are fully consolidated with those of the Bank through the full consolidation
method, which consists of the aggregation of assets, liabilities and equity, income and expenses, of a similar nature,
shown in their individual financial statements. Intragroup assets and liabilities, equity, income and expenses and cash
flows related to intragroup transactions are eliminated in consolidation.
The share of non-controlling interests from subsidiaries in the Group’s consolidated total equity is presented under the
heading “Minority interests (Non-controlling interests)” in the consolidated balance sheet. Their share in the profit or loss
for the period or year is presented under the heading “Attributable to minority interests (non-controlling interests)” in the
consolidated income statement (see Note 31).
Note 3 includes information related to the main subsidiaries in the Group as of December 31, 2025. Appendix I includes
other significant information on such entities.
– Joint ventures
Joint ventures are those entities for which there is a joint control arrangement with third parties other than the Group (for
definitions of joint arrangement, joint control and joint venture, refer to Glossary).
The investments in joint ventures are accounted for using the equity method (see Note 16). Appendix II shows the main
figures for the main joint ventures accounted for using the equity method as of December 31, 2025.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

– Associates
Associates are entities in which the Group is able to exercise significant influence (for definition, see Glossary), but not
control or joint control. Significant influence is deemed to exist when the Group owns 20% or more of the voting rights of
an investee directly or indirectly, unless it can be clearly demonstrated that this is not the case.
The Group evaluates the existence of significant influence, not only based on the voting rights but also qualitative factors
such as presence on the board of directors, participation in decision-making processes, exchange of management
personnel, as well as access to technical information. Regarding joint agreements, in addition to evaluating the rights and
obligations of the parties thereto, other facts and circumstances are considered to determine whether an agreement is a
joint venture or a joint operation. When the sale or contribution of a controlled business to an associate or joint venture
occurs, the Group recognizes any retained interest at fair value. The difference between the book value of the business
contributed and the fair value of the retained investment plus the corresponding disposal is fully recognized in the income
statement.
Certain entities in which the Group owns 20% or more of the voting rights are not included as Group associates, since the
Group does not have the ability to exercise significant influence over these entities. Investments in these entities are
classified as “Non-trading financial assets mandatorily at fair value through profit or loss” (see Note 11) or "Financial
assets at fair value through other comprehensive income" (see Note 13).
In contrast, some investments in entities in which the Group holds less than 20% of the voting rights are accounted for as
Group associates, as the Group is considered to have the ability to exercise significant influence over these entities. As of
December 31, 2025, these entities are not significant to the Group.
Associates are valued for by the equity method. These entities are initially recognized at cost and subsequently adjusted
according to the changes in the Group's share of the net assets of such entities after their acquisition (see Note 16). The
Group's income statement reflects the proportion of the results generated by associates in the line "Results of entities
accounted for using the equity method". The main figures of the most significant entities are shown in Appendix II.
– Structured entities
A structured entity (see Glossary) 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 the voting rights relate to administrative matters only and the
relevant activities are directed by means of contractual arrangements.
In those cases where the Group sets up entities or has a holding in such entities, in order to allow its customers access to
certain investments, to transfer risks or for other purposes, in accordance with internal criteria and procedures and with
applicable regulations, the Group determines whether control over the entity in question actually exists and therefore
whether it should be subject to consolidation.
Such methods and procedures determine whether there is control by the Group, considering how the decisions are made
about the relevant activities, assessing whether the Group has control over the relevant elements, exposure to variable
returns from involvement with the investee and the ability to use control over the investee to affect the amount of the
investor’s returns.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

– Structured entities subject to consolidation
To determine if a structured entity is controlled by the Group, and therefore should be consolidated into the Group, the
existing contractual rights (different from the voting rights) are analyzed. For this reason, an analysis of the structure and
purpose of each investee is performed and, among others, the following factors will be considered:
a. Evidence of the current ability to manage the relevant activities of the investee according to the specific
business needs (including any decisions that may arise only in particular circumstances).
b. Potential existence of a special relationship with the investee.
c. Implicit or explicit Group commitments to support the investee.
d. The ability to use the Group´s power over the investee to affect the amount of the Group’s returns.
These types of entities include cases where the Group has a high exposure to variable returns and retains decision-
making power over the investee, either directly or through an agent.
The main structured entities of the Group are the asset securitization funds, to which the BBVA Group transfers loans and
advances, and other vehicles, which allow the Group’s customers to gain access to certain investments or to allow for the
transfer of risks or for other purposes (see Appendices I and V).
The BBVA Group maintains the decision-making power over the relevant activities of these structured entities subject to
consolidation and provides financial support through contracts, as is standard in the securitization market.
The most common ones are investment positions in equity tranches of notes; funding through subordinated debt; credit
enhancements through derivative instruments or liquidity lines; management rights of defaulted securitized assets;
“clean-up” call derivatives; and asset repurchase clauses by the grantor.
For these reasons, the loans and receivable portfolios related to the majority of the securitizations carried out by the Bank
or Group subsidiaries are not derecognized in the books of said entity and the issuances of the related debt securities are
recorded as liabilities within the Group’s consolidated balance sheet.
For additional information on the accounting treatment for the transfer and derecognition of financial instruments, see
Note 2.2.2. “Transfers and derecognition of financial assets and liabilities”.
– Non-consolidated structured entities
The Group owns other vehicles also for the purpose of allowing customers access to certain investments, to transfer
risks, and for other purposes, but without the Group having control of the vehicles, which are not consolidated in
accordance with IFRS 10 – “Consolidated Financial Statements”. The balance of assets and liabilities of these vehicles is
not material in relation to the Group’s Consolidated Financial Statements.
As of December 31, 2025, 2024 and 2023 there was no material financial support from the Bank or its subsidiaries to non-
consolidated structured entities.
The Group does not consolidate any of the mutual funds it manages since the necessary control conditions are not met.
Particularly, the BBVA Group does not act as arranger but as agent since it operates the mutual funds on behalf and for
the benefit of investors or parties (arranger or arrangers) and, for this reason it does not control the mutual funds when
exercising its authority for decision making.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

The mutual funds managed by the Group are not considered structured entities (generally, retail funds without corporate
identity over which investors have participations which gives them ownership of said managed equity). These funds are
not dependent on a capital structure that could prevent them from carrying out activities without additional financial
support, being in any case insufficient as far as the activities themselves are concerned. Additionally, the risk of the
investment is absorbed by the fund participants, and the Group is only exposed when it becomes a participant, and as
such, there is no other risk for the Group.
In all cases, the operating results of equity method investees acquired by the BBVA Group in a particular period only include the
period from the date of acquisition to the financial statements date. Similarly, the results of entities disposed of during any year
only include the period from the start of the year to the date of disposal.
The consolidated financial statements of subsidiaries, associates and joint ventures used in the preparation of the Consolidated
Financial Statements of the Group have the same presentation date as the Consolidated Financial Statements. If financial
statements at those same dates are not available, the most recent will be used, as long as these are not older than three months,
and will be adjusted to take into account the most significant transactions. As of December 31, 2025, financial statements as of
December 31 of all Group entities were utilized except in the case of the consolidated financial statements of nine non-significant
entities for which financial statements as of November 30, 2025 were used.
Business combinations
A business combination is a transaction, or any other deal, by which the Group obtains control over one or more businesses,
accounting for by applying the “acquisition method”.
According to this method, the acquirer has to recognize the assets acquired and the liabilities and contingent liabilities assumed,
including those that the acquired entity had not accounted for. The method involves the measurement of the consideration
received for the business combination and its allocation to the assets, liabilities and contingent liabilities measured according to
their fair value, at the purchase date, as well as the recognition of any non-controlling participation (minority interests) that may
arise from the transaction.
The acquirer shall recognize an asset in the consolidated balance sheet under the heading “Intangible assets - Goodwill” (see Note
2.2.7) if on the acquisition date there is a positive difference between:
– the sum of the consideration paid, the amount of all the minority interests and the fair value of the stock previously held in
the acquired business; and
– the fair value of the assets acquired and liabilities assumed.
If this difference is negative, it shall be recognized directly in the income statement under the heading “Negative goodwill
recognized in profit or loss”.
Minority interests in the acquired entity may be measured in two ways: either at their fair value; or at the proportional percentage
of net assets identified in the acquired entity. The method of valuing minority interests may be elected in each business
combination. BBVA Group has always elected the second method.
Separate financial statements
The separate financial statements of the parent company of the Group are prepared under Spanish regulations (Circular 4/2017 of
the Bank of Spain, and following other regulatory requirements of financial information applicable to the Bank). The Bank uses the
cost method to account in its separate financial statements for its investments in subsidiaries, associates and joint venture
entities, which are consistent with the requirements of the Bank of Spain´s Circular 4/2017.
Appendix IX shows BBVA’s separate financial statements as of and for the years ended December 31, 2025 and 2024.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

2.2 Accounting principles and policies and applied valuation methods
The accounting principles and policies and the valuation methods applied in the preparation of the consolidated financial
statements may differ from those used, at the individual level, by some of the entities that are part of the BBVA Group; This is why,
in the consolidation process, the necessary adjustments and reclassifications are made to standardize such principles and criteria
among themselves and bring them into line with the EU-IFRS.
In preparing the Consolidated Financial Statements, the following accounting principles and policies and assessment criteria have
been applied:
2.2.1 Financial instruments
On January 1, 2018, IFRS 9, which replaced IAS 39 with respect to the classification and measurement of financial assets and
liabilities, credit impairment, and hedge accounting, came into force. At that time, the Group chose to continue applying IAS 39 for
hedge accounting, as permitted by IFRS 9. However, the Group then decided to apply the requirements of IFRS 9 to micro hedge
accounting from January 1, 2025.
Given the lack of a specific regulatory framework for macro hedges in IFRS 9, the Group continues to apply the framework
established under IAS 39 for macro hedge accounting. Thus, from January 1, 2025, the Group will apply simultaneously two
standards with common characteristics for hedge accounting (IAS 39 for macro hedges and IFRS 9 for micro hedges) until the
International Accounting Standards Board (IASB) concludes the project to develop a specific framework for macro hedge
accounting, known as the IFRS 9. Risk Mitigation Accounting (RMA) Project.
The adoption of the accounting policy for accounting for micro hedges in accordance with the requirements set out in IFRS 9 has
not had any significant impact on the Group´s Consolidated Financial Statements as of the date of its implementation.
Classification and measurement of financial assets
Classification of financial assets
IFRS 9 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 Group manages groups of financial assets and does not depend
on the intention for an individual instrument. Thus, for each entity within the BBVA Group there are different business models for
managing assets.
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.

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In this sense, the Group has established policies and has developed procedures in each geographical area 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 to satisfy liquidity needs, are compatible with the amortized cost model.
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 Group 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 (e.g., 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.

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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.
– 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 (e.g., securitizations)
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 Group where the financial remuneration is linked to the compliance with certain
environmental, social and governance (hereinafter "ESG") conditions and criteria, the Group 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 within 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.

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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 the Group 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 Group 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
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 and
other income" or "Interest expense", of the consolidated income statement of the year in which the accrual occurred (see Note
37), 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 assets.
“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 consolidated 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 consolidated income statement (see Note 41).
"Financial assets at fair value through other comprehensive income”
– Debt instruments
Assets recognized under this heading in the consolidated 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 consolidated balance sheets (see Note 30).

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

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 Group's consolidated equity until the corresponding asset is derecognized from the consolidated 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 consolidated income statements (see Note 41).
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 or net gains
by modification - Financial assets at fair value through other comprehensive income” (see Note 47) in the consolidated income
statement for the year. Interest income on these instruments is recorded in the consolidated income statement (see Note 37).
Changes in foreign exchange rates are recognized under the heading “Exchange differences, net" in the consolidated income
statements (see Note 41).
– Equity instruments
At the time of initial recognition of specific investments in equity instruments, the BBVA Group may make the irrevocable decision
to present subsequent changes in fair value in other comprehensive income. Subsequent changes in this valuation will be
recognized in "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 30). Dividends received
from these investments are recorded in the heading "Dividend income" in the consolidated income statement (see Note 38). These
instruments are not subject to the impairment model of IFRS 9.
“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, the periodic updates of cash flows to reflect
the movement of interest rates and inflation impact the effective interest rate prospectively.
Net loss allowances of assets recorded under these headings arising in each year, calculated using the IFRS 9 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 consolidated income statement for such
year (see Note 47).
Classification 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 Group’s objective is to generate gains by buying and selling these financial instruments or generate
short-term results; and
– Financial liabilities that are designated at fair value through profit or loss on initial recognition under the Fair Value Option.
The Group 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.

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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 consolidated income statement for the year in which the accrual occurred (see Note
37), 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 consolidated
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
consolidated income statements (see Note 41). 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”, 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, the Group 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.
“Derivatives – Hedge Accounting” and “Fair Value Changes of the Hedged Items in Portfolio Hedges
of Interest Rate Risk”
With the aim of improving the alignment between risk management and its presentation in the financial statements, the Grou p has
decided to apply IFRS 9 for micro hedge accounting, instead of IAS 39, from January 1, 2025. Prior to the transition date, the
Group was applying IAS 39 for micro hedge accounting.
The Group uses hedging derivatives as a tool for managing financial risks, mainly interest rate risk and exchange rate risk(see Note
7).
To cover these risks, the Group uses, among others, the following hedging instruments:
– Interest rate derivatives to convert interest rate exposures into fixed or variable rates.
– Foreign exchange derivatives to convert foreign currency exposures to the entity's currency and net investment
exposures to the local currency.

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In some hedging relationships, the Group additionally designates inflation risk as a contractually specified component of a debt
instrument (e.g., inflation-linked bonds).
For these economic hedges to be recognized as hedge accounting, they must meet certain requirements established under both
IAS 39 and IFRS 9. These requirements include clear identification of the hedged items and hedging instruments, an assessment
of the hedge's effectiveness over time, and adequate documentation supporting the Group's intention to manage its risk through
these instruments. Only when these criteria are met can financial derivatives be accounted for as hedge accounting, allowing for
an accounting treatment that more accurately reflects the Group's risk management strategy (see Note 15).
Hedge accounting maintains a similar accounting scheme under both IAS 39 and IFRS 9. Hedge ineffectiveness, defined as the
difference between the change in value of the hedging instrument and the hedged item attributable to the hedged risk in each
period is recorded in the consolidated income statement (or other comprehensive income, if the hedging instrument hedges an
equity instrument for which an entity has elected to present changes in fair value in other comprehensive income) (see Notes 15
and 41).
The Group discontinues hedge accounting when the hedging instrument expires or is sold, or when the hedging relationship no
longer meets the qualifying criteria. However, if a hedge no longer meets the qualifying criteria but the risk management objective
remains unchanged, IFRS 9 allows the Group to assess whether to adjust the hedge ratio in order to re-establish compliance with
the effectiveness requirements.
Under IAS 39, hedge effectiveness is assessed both retrospectively and prospectively, ensuring that it remains within a range of
80% to 125%. However, IFRS 9 eliminates the strict 80%-125% effectiveness range requirement, allowing qualitative prospective
assessments if there is an economic relationship between the hedged item and the hedging instrument, and credit risk does not
exert a dominant effect on changes in the value of either the hedged item or the hedging instrument. The BBVA Group has chosen
to continue applying the 80%-125% range as a measure for assessing hedge effectiveness, and may rebalance the hedge without
discontinuing hedges if this range is not maintained, as described below.
The variations that occur, after the designation of the hedge, in the valuation of the financial instruments designated as hedged
items and the financial instruments designated as accounting hedging instruments are recorded as follows:
– In fair value hedges, the differences arising in the fair value of the derivative and the hedged instrument attributable to the
hedged risk are recognized directly under the line item ‘Gains (losses) from hedge accounting, net’ in the consolidated
income statement. In the specific case of interest rate hedges, interest cash flows are included under the line item
‘Interest and other income’ or under ‘Interest expense’ in the consolidated income statement), or in ’Other
comprehensive income (loss)’ if it is a hedge of equity instruments measured at fair value through ’Other comprehensive
income (loss)’; with the corresponding entry being recorded in the consolidated balance sheet line items in which the
hedging instrument (‘Derivatives – hedge accounting’) or the hedged item is recognized, as applicable (see Note 37).
– In fair value hedges of interest rate risk on a portfolio of financial instruments (“macro hedges”), gains or losses arising
from the measurement of the hedging instrument are recognized directly in the consolidated income statement with an
offsetting entry made under the heading “Derivatives – Hedge accounting” and gains or losses arising from the change in
the fair value of the hedged item (attributable to the hedged risk) are also recorded in the consolidated income statement
(in both cases, under the heading “Gains (losses) from hedge accounting, net”), with an offsetting entry made in the
heading “Fair value changes of the hedged items in portfolio hedges of interest rate risk” of the asset or liability in the
consolidated balance sheet, depending on the nature of the hedged item.

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– In cash flow hedges, the valuation differences arising in the effective hedge portion of the hedging items are temporarily
recorded 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 consolidated balance sheet, with an offsetting
entry made in the "Derivatives - Hedge accounting" headings of the asset or liability sections in the consolidated balance
sheet, as applicable. These differences are recognized in the consolidated income statement when the gain or loss on the
hedged item is recorded in profit or loss, when the forecast transactions are executed, or on the maturity date of the
hedged item. Almost all of the Group's cash flow hedges are interest rate and inflation hedges for financial instruments, so
the amount recorded in other accumulated comprehensive income will be reclassified in results under the headings
"Interest and other income" or "Interest expense" in the consolidated income statement (see Note 37).
– The differences in the value of the hedging instrument corresponding to the ineffective portion of cash flow hedging
transactions are recorded directly under the heading “Gains (losses) from hedge accounting, net” in the consolidated
income statement (see Note 41).
– In the hedge of net investments in foreign operations, valuation differences arising in the effective portion of the hedging
items are temporarily recorded under the heading "Accumulated other comprehensive income (loss) - Items that may be
reclassified to profit or loss - Hedge of net investments in foreign operations (effective portion)" in the consolidated
balance sheet, with an offsetting entry made under "Derivatives - Hedge accounting" in the asset or liability sections of the
consolidated balance sheet, as applicable. These valuation differences are recognized in the consolidated income
statement when the foreign investment is disposed of or removed from the consolidated balance sheet (see Note 41).
The other relevant new features introduced by IFRS 9 and applicable from January 1, 2025, are as follows:
– It provides flexibility in the items that can be hedged (for example, it enables the hedging of net positions, aggregate
positions, and specific risk components in non-financial items).
– It introduces the accounting treatment of "cost of hedging", allowing components of hedging instruments such as forward
elements, the time value of options, or the base spread to be excluded from the hedge. These values can be recognized in
other comprehensive income, thereby reducing volatility in the consolidated income statement. (Update applied by the
Group).
– It allows for the rebalancing of hedges without the need for discontinuations in hedge accounting, provided that the
relationship between the hedging instrument and the hedged item is adjusted, and that the risk management objective is
maintained.
– For fair value hedges on equity instruments recorded at fair value through other comprehensive income, the differences
in the fair value of the derivative are recorded in “Accumulated other comprehensive income (loss)”, thereby minimizing
the impact on profit or loss for the perio d. (Update applied by the Group).
Loss 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.

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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.
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 BBVA Group 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 IFRS 9 is currently aligned with that of default used by the Group 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:
a. Impaired assets for objective reasons or delinquency: when there are unpaid amounts of principal or interest for more
than 90 days.
According to IFRS 9, 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, 2025, the Group has not used terms exceeding 90 days past due.
b. 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.

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– 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%.
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 exposures 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 a 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 Group 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 transactions involving entities related to a client enter stage 3, including entities of the same group and entities holding a
relationship of economic or financial dependence, the transactions of the client will also be classified as stage 3, if reasonable
doubts as to the full payment of their loans is determined to exist following the relevant analysis.

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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 Note 7.2.7 for more details).
These criteria are aligned in all the geographical areas of the Group, maintaining only minor differences to facilitate the integration
of management at the local level.
– 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 Group 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 7.2.1):
– Quantitative criterion: the Group 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 Group's systems through
rating and scoring systems or macroeconomic scenarios, so the quantitative analysis covers the majority of
circumstances. The Group 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. According to IFRS 9, 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, 2025, the Group 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 still exist.
Although the standard introduces a series of operational simplifications, also known as practical solutions, for analyzing the
increase in significant risk, the Group 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.

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Method for calculating Expected Credit Loss (ECL)
Method for calculating expected loss
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
– 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 7.2.1).
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 7.2.1):
– 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.
– 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.
– EAD: estimate of the exposure in case of default in each future period, taking into account the changes in exposure after
the closing date of the financial statements.

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– 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 the BBVA Group, the calculated expected credit losses are based on internal models developed for all portfolios within the IFRS
9 scope, 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
IFRS 9 requires incorporation of present, past and future information to detect any significant increase in risk and measure
expected loss, 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, the Group 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.
The approach taken by the Group 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 Group'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 for each
of the geographical areas in which the Group operates are the Gross Domestic Product (hereinafter "GDP"), the real estate price
index, interest rates and the unemployment rate. The main goal of the Group's approach is seeking the greatest predictive
capacity with respect to the first two variables (see Note 7.2.1).
Derecognition of the balance due to impairment of 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 client involved in the operation.
Based on their procedures and particularities, the Group entities recognize financial assets 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 debt 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 a financial asset 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 7.2.5).

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2.2.2 Transfers 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 consolidated balance
sheet when the cash flows that they generate are extinguished, when their implicit risks and benefits have been substantially
transferred to third parties or 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 consolidated 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 consolidated balance sheet only if their obligations are extinguished or
acquired (with a view to subsequent cancellation or renewed placement).
The Group 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.
Treatment of securitizations
The securitizations funds to which the Group entities transfer their credit portfolios are consolidated entities of the Group. For
more information, refer to Note 2.1 “Principles of consolidation”.
The Group considers that the risks and benefits of the securitizations are substantially retained if the subordinated bonds are held
and/ or if subordination funding has been granted to those securitization funds, which means that the credit loss risk of the
securitized assets will be assumed. Consequently, the Group is not derecognizing those transferred loan portfolios.
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 Group. The Group has established the synthetic
securitizations through received financial guarantees. As for the commissions paid, they are accrued during the term of the
financial guarantee.
2.2.3 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 consolidated 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
Group simultaneously recognizes a corresponding asset in the consolidated 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 2.2.1).
The provisions recognized for financial guarantees are recognized under the heading “Provisions - Provisions for contingent risks
and commitments” on the liability side in the consolidated balance sheets (see Note 24). These provisions are recognized and
reversed with a charge or credit, respectively to “Provisions or reversal of provision” in the consolidated income statements (see
Note 46).

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Income from financial guarantees is recorded under the heading “Fee and commission income” in the consolidated income
statement and is calculated by applying the rate established in the related contract to the nominal amount of the guarantee (see
Note 40).
Synthetic securitizations made by the Group to date meet the requirements of the accounting regulations for accounting as
guarantees (see Note 2.2.2).
2.2.4 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 Group and that it expects to hold for more than one year. It also includes tangible assets received by the Group 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 17).
The Group 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 45) and is the
result of using 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

At each reporting date, the Group 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
Group 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 with the offsetting entry recorded to the heading “Impairment or reversal of impairment of non-financial assets -
Intangible assets” of the consolidated income statement (see Note 49).
In the BBVA Group, most of the buildings held for own use are assigned to the different Cash Generating Units (hereinafter
"CGUs") to which they belong. The corresponding impairment analyses are performed for these CGUs to determine whether
sufficient cash flows are generated to support the value of the assets comprised within such CGUs.

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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 44.2).
Additionally, for those geographical areas with subsidiaries where the Group applies IAS 29 "Financial Reporting in
Hyperinflationary Economies", this type of asset is adjusted, at each balance sheet date, to show variations in the purchasing
power of the currency due to inflation from the date of acquisition or inclusion in the consolidated balance sheet (see Note 2.2.18).
2.2.5 Leases
In general, the Group 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 17), and a lease
liability (its obligation to make lease payments) under ''Financial liabilities at amortized cost - Other financial liabilities'' (see Note
22.5). The BBVA Group 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 expense" (see Note 42) 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 is subsequently reduced by accumulated amortization and accumulated
impairment. The Group 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 45).
The interest expense on the lease liability is recorded under the heading “Interest expense” (see Note 37.2). Variable payments not
included in the initial measurement of the lease liability are recorded under the heading “Administration costs – Other
administrative expense” (see Note 44.2).
Operating lease and sublease incomes are recognized in the consolidated income statements under the headings “Other operating
income” (see Note 42).
On the other hand, when the Group 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 14).
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 17). 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
expense", respectively (see Note 42).
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 consolidated income statement at the time of sale (only for the effectively transmitted part).
The assets leased out under operating lease contracts to other entities in the Group are treated in the consolidated financial
statements as for own use, and thus rental expense and income is eliminated in consolidation and the corresponding depreciation
is recognized.
Additionally, for those geographical areas with subsidiaries where the Group applies IAS 29 "Financial Reporting in
Hyperinflationary Economies", this type of asset is being adjusted to show changes in the purchasing power of the currency due to
inflation from the date of acquisition or inclusion in the consolidated balance sheet (see Note 2.2.18).

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2.2.6 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 geographical 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 Group's control, and there is sufficient evidence that the Group remains
committed to its plan for sale (see Note 21), in particular, 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.
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 50). Other income and expenses are classified in the income statement items according to their nature.
T he 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).
Additionally, for those geographical areas with subsidiaries where the Group applies IAS 29 "Financial Reporting in
Hyperinflationary Economies", this type of assets is being adjusted to show changes in the purchasing power of the currency due
to inflation from the date of acquisition or inclusion in the consolidated balance sheet (see Note 2.2.18).
2.2.7 Intangible assets
Goodwill
Goodwill represents the advance payment made by the entity for future economic benefits, from assets that have not been
individually identified nor separately recognized in a business combination.
Goodwill is allocated to one or more CGUs that are expected to be the beneficiaries of the synergies derived from the business
combinations. CGUs represent the smallest identifiable groups of assets that generate cash flows for the Group. Goodwill is not
amortized and is periodically tested for impairment (see Note 18), comparing the carrying amount of the relevant CGU - adjusted
by the amount of goodwill attributable to minority interests, in the event that the Group has not chosen to measure minority
interests at fair value, with its recoverable amount.

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The recoverable amount of a CGU is equal to the fair value less sale costs or its value in use, whichever is greater. Value in use is
calculated as the discounted value of the cash flow projections that the unit’s management estimates and is based on the latest
budgets approved for the coming years. The main assumptions used in its calculation are: a growth rate to extrapolate the cash
flows indefinitely, and the discount rate used to discount the cash flows, which is equal to the cost of the capital assigned to each
CGU, and equivalent to the sum of the risk-free rate plus a risk premium inherent to the CGU being evaluated for impairment. If the
carrying amount of the CGU exceeds the related recoverable amount, the Group recognizes an impairment loss.
Impairment losses on goodwill are recorded under "Impairment or reversal of impairment of non-financial assets - Intangible
assets" (see Note 49).
Other intangible assets
These assets may have an indefinite useful life if it is concluded that there is no foreseeable limit to the period over which the asset
is expected to generate net cash flows for the consolidated entities. In all other cases they have a finite useful life (see Note 18.2).
Intangible assets with indefinite useful lives are not amortized but are tested for impairment at least annually.
Intangible assets with a finite useful life are amortized according to the duration of this useful life, using methods similar to those
used to depreciate tangible assets. Finite useful life intangible assets consist mainly of IT applications acquisition costs which have
a useful life, in general, of 5 years. 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 45).
Any impairment losses on the carrying amount of these assets will be recognized under the heading “Impairment or reversal of
impairment on non-financial assets- Intangible assets” in the consolidated income statements (see Note 49). The criteria used to
recognize the impairment losses on these assets and, where applicable, the recovery of impairment losses recognized in prior
years, are similar to those used for tangible assets.
Additionally, for those geographical areas with subsidiaries where the Group applies IAS 29 "Financial Reporting in
Hyperinflationary Economies", this type of asset is being adjusted to show changes in the purchasing power of the currency due to
inflation from the date of acquisition or inclusion in the consolidated balance sheet (see Note 2.2.18).
2.2.8 Insurance and reinsurance contracts
The Group has applied IFRS 17 to insurance contracts as from January 1, 2023. IFRS 17 superseded IFRS 4 as the accounting
standard applicable to the recognition, measurement and presentation of contracts that transfer significant insurance risk.
The assets and liabilities of the BBVA Group’s insurance subsidiaries are recognized according to their nature under the
corresponding headings of the consolidated balance sheet.
The heading “Insurance and reinsurance assets” in the consolidated balance sheets includes the amounts that the consolidated
insurance subsidiaries are entitled to receive under the reinsurance contracts entered into by them with third parties and, more
specifically, the value of reinsurance covers in respect of the insurance liabilities recognized by the consolidated subsidiaries.
The heading “Liabilities under insurance and reinsurance contracts” in the consolidated balance sheets includes the liabilities
recognized due to insurance contracts recorded by the consolidated subsidiaries in accordance with IFRS 17 (see Note 23).
The income or expense reported by the BBVA Group’s consolidated insurance subsidiaries on their insurance activities is
recognized, in accordance with their nature, in the corresponding items of the consolidated income statements.
1 There is the possibility of defining three or more onerous groups.
2 Article 2 of Regulation (EU) 2021/2036 of the Commission of November 19, 2021.

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Definition, grouping and classification
The Group evaluates whether a significant insurance risk from a third party is being accepted in its contracts, when agreeing to
compensate the policyholder if a specified uncertain future event adversely affects the policyholder. Thus, it identifies those
insurance contracts that fall within IFRS 17. This evaluation was already carried out by the Group under IFRS 4 for the classification
of its contracts between insurance contracts and financial liabilities.
The BBVA Group groups insurance contracts considering the following aspects:
– Whether they are subject to similar risks and are managed jointly, separating as well direct insurance and reinsurance
contracts.
– Their profitability or onerousness (in general, the Group classifies contracts by their profitability into two groups: onerous
contracts, and non-onerous contracts or contracts without a significant possibility of becoming onerous 1).
– Their year of issuance or cohort, grouping by this last criterion the contracts issued in the calendar year, i.e., between
January 1 and December 31 of each year.
Since the Group chose the fair value transition approach, for long-term contracts (mainly life-risk and life-saving insurance) issued
prior to the transition date of January 1, 2022, it has not been necessary to aggregate the contracts by previous cohorts. For
contracts issued after the transition date, the Group classifies them by year of issuance, and therefore, the Group has not
accepted the exception provided for in the adoption of the standard by the European Union on annual cohorts in products with
matched cash flows 2.
The Group has applied the analysis on the separation of non-insurance components only to insurance contracts falling under the
scope of IFRS 17, with the entities identifying within their portfolios the existence of non-insurance components, and concluding
based on expert judgment whether or not they need to separate them. In the case of non-separable investment components, they
are included in the asset or liability, as appropriate, but are excluded from insurance income or expenses in the income statement.
The initial recognition date has been established as the earliest of: the beginning of the coverage period of the group of contracts,
the date when the first payment from an insurance policyholder in the group became due, or in the case of a group of onerous
contracts, when the group becomes onerous. From that date, the insurance and reinsurance contracts have been reflected in the
consolidated financial statements and valued in accordance with the provisions of IFRS 17.
The Group derecognizes insurance contracts when the contract expires, that is, upon expiration of the contract or upon settlement
of all the benefits of the contract or upon its cancellation; or when a modification is made to the terms of the contract that gives
rise to derecognition.
Valuation methods
The Group carries out an analysis of the limits of insurance and reinsurance contracts under IFRS 17, separately, applying the
General Model (Building Block Approach) by default to all contracts, except those eligible to be valued by the Simplified Model
(Premium Allocation Approach), or the Variable Fee Approach .
The General Model requires that insurance contracts be initially valued for the total of:
– fulfillment cash flows, which comprise the estimation of future cash flows discounted to reflect the time value of money,
the financial risk associated, and a risk adjustment for non-financial risk that would represent the compensation required
for the uncertainty associated with the amount and timing of the expected cash flows;

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– and the contractual service margin (CSM), which represents the expected unearned profit from insurance contracts,
which will be recognized in the entity’s income statement as the service is provided in the future, instead of being
recognized at the time of the estimation.
Subsequently, the amount recognized in the consolidated balance sheet for each group of insurance contracts measured under
this model comprises the liability for remaining coverage, which includes the aforementioned fulfillment cash flows and the
contractual service margin, and the liability for incurred claims, which includes the cash flows from related to claims that have
occurred, but have not been paid, discounted to reflect the time value of money, the financial risk associated with future cash
flows, and a risk adjustment for non-financial risk that would represent the compensation required by the uncertainty associated
with the amount and timing of the expected cash flows. The Group uses the General Model for the valuation of liabilities under
insurance and reinsurance contracts that correspond to long-term commitments, a portfolio that represents the majority of what
is recorded in the balance sheet.
The Group used the Simplified Model in the valuation of the liability for remaining coverage of contracts with a coverage period of
one year or less, or in those contracts with a duration of more than one year but which are not expected to have a valuation
significantly different from that of the General Model. Under this Simplified Model, the liability for remaining coverage is made up
of the premiums received (collected), less the cash flows for the acquisition of the insurance paid, plus or minus the premiums or
expected acquisition cash flows recorded in the income statement, respectively. The income statement recording is carried out on
a linear basis throughout the coverage period of the contract, in the event that the accrual of income is also accrued. By default,
the Group has chosen to defer acquisition expenses, although there is an option to recognize such expenses when they are
incurred. In turn, the groups of contracts valued under this model have a liability for incurred claims calculated in a manner similar
to that of the General Model. The Group has valued direct insurance contracts whose coverage period is less than one year, using
the Simplified Model, the same method used for the valuation of assets for the reinsurance ceded. This model has also been used
by the Group when the valuation under this Simplified Model does not differ significantly from that which would be produced by
applying the General Model.
The amount of the contracts valued following the Variable Fee Approach is residual in the Group.
The BBVA Group has defined and identified for each group of contracts the hedging units to be used for the release to profit or loss
of the contractual service margin, in accordance with IFRS 17, and subsequent interpretations issued by the Transition Resource
Group for IFRS 17 and the related IFRIC (as defined herein).
Furthermore, the Group has chosen the accounting policy option of not changing the treatment of accounting estimates made in
previous interim closings.
Discount rate
The methodology used to obtain the discount rate differs according to the entity and portfolio to which it is applied, highlighting
mainly the cases of the companies in Spain and Mexico, where the Group has greater presence (see Note 23). In the first case, the
top-down approach has been mainly applied and it has been verified that the Internal Rate of Return (hereinafter “IRR”) of the
entity’s asset portfolio converges with the IRR of a reference portfolio from which the European Insurance and Occupational
Pensions Authority (hereinafter “EIOPA”) fundamental spread is discounted for. In the second case, the top-down approach has
been used for immunized portfolios (see Glossary), eliminating the spread for credit risk through the EIOPA fundamental spread.
However, in non-immunized portfolios, the bottom-up approach has been used, using the swap curve as the risk-free rate.
Risk adjustment for non-financial risk
The risk adjustment for non-financial risk represents the compensation required for bearing uncertainty about the amount and
timing of the associated cash flows. To estimate the non-financial risk adjustment, the Group has used its own methodologies
based on calculations of the Value at Risk (VaR) of the commitments associated with the Life and Non-Life businesses, using in the
case of Spain a confidence level of 80% and in the case of Mexico 70%.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

Onerosity
An insurance contract is onerous at the date of initial recognition if the fulfilment cash flows allocated to the contract, any
previously recognized insurance acquisition cash flows and any cash flows arising from the contract at the date of initial
recognition in total are a net outflow.
The Group has classified the contracts valued under the General Model into onerous groups, considering the fulfillment cash flows,
acquisition expenses and any other attributable cash flow. The evaluation is carried out, in general terms, contract by contract,
except in those cases where it is possible to group into sets of homogeneous contracts.
Contracts valued under the Simplified Model, by default, are assumed to be non-onerous at their initial recognition, unless there
are facts and circumstances that indicate otherwise, where the Group relies on information from existing internal reports (ratios
and indicators) for monitoring business performance, adjusted to the criteria of IFRS 17, as well as market evolution expectations
based on expert judgment. The granularity to carry out this evaluation may be the same as that used to monitor the business
through the abovementioned internal reports.
In the same way as the contractual service margin represents the estimated future benefit of the insurance contract, the loss
component is the estimated loss of the onerous contract. The accounting record of these two concepts has a different temporality:
while the margin is deferred throughout the duration of the contract according to the contractual limits, the loss component is
recognized in the income statement as soon as it is known, which will result in the carrying amount of the group's liability being
equal to the fulfilment cash flows and the group's contractual service margin being equal to zero.
Throughout the life of a contract, the assumptions used to project future cash flows may change and, consequently, the expected
return on a contract may increase or decrease. This means that a group of contracts initially classified as onerous may become
more onerous, or on the contrary, in the subsequent measurement the assumptions used to estimate the cash flows may change
so much that the previously recognized loss could be reversed.
Reinsurance
In general, the Group values reinsurance covers under the Simplified Model, valuing the asset for remaining coverage of contracts
with a coverage period of one year or less, or in those contracts with a duration of more than one year, but which are not expected
to produce a valuation significantly different from that of the General Model. This method also includes the asset for incurred
claims.
Effect on results
In general, for the presentation of the financial income or expenses from insurance contracts that arise as a result of the change in
the discount rate, both due to the effect of the time value of money as well as the effect of financial risk, the Group has chosen the
accounting policy option of disaggregating these financial income or expenses from insurance contracts between recording them
in the "Net interest income" and in "Accumulated other comprehensive income (loss)", in order to minimize accounting
asymmetries in the valuation and recognition of financial investments under IFRS 9 and insurance contracts under IFRS 17.
The Group has chosen to disaggregate the changes in the risk adjustment between financial and non-financial, so that the change
in the value of the risk adjustment derived from the effect of the time value of money, and changes in it, is recorded as a financial
income or expense from insurance contracts. Insurance revenue is recognized over the period the entity provides insurance
coverage, excluding any investment component.
The loss component, in the case of onerous contracts, corresponds to the losses attributable to each group of contracts, both at
initial recognition and at a later time.

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2.2.9 Tax assets and liabilities
Expenses on corporate income tax applicable to the BBVA Group’s Spanish entities and on similar income taxes applicable to
consolidated foreign entities are recognized as an expense for the period in the consolidated 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 consolidated 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 19).
The "Tax Assets" line item in the consolidated 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 consolidated 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 Group 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
consolidated entities 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.
The deferred tax assets and liabilities recognized are reassessed by the consolidated entities at each balance sheet date in order
to ascertain whether they still qualify as deferred tax assets and liabilities, and if it is necessary to make adjustments on the basis
of the findings of the analyses performed. 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 consolidated equity that do not increase or decrease taxable income are accounted
for as temporary differences.
2.2.10 Provisions, contingent assets and contingent liabilities
The heading “Provisions” in the consolidated balance sheets includes amounts recognized to cover the BBVA Group’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 24). The provisions are recognized in the consolidated 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 Consolidated 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.

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– The amount of the obligation can be reasonably estimated.
Among other items, these provisions include the commitments made to employees by some of the Group entities mentioned in
Note 2.2.13, 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 Group. Contingent assets are not recognized in the
consolidated balance sheet or in the consolidated income statement; however, they will be disclosed, should they exist, in the
Notes to the Consolidated Financial Statements, provided that it is probable they will give rise to an increase in resources
embodying economic benefits (see Note 34).
Contingent liabilities are possible obligations of the Group 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 Group. They also include the existing
obligations of the Group 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 consolidated balance sheet or the income statement (excluding contingent liabilities
from business combinations) but are disclosed in the Notes to the Consolidated Financial Statements, unless the possibility of an
outflow of resources embodying economic benefits is remote (see Note 34).
2.2.11 Treasury shares
The value of common stock issued by the BBVA Group’s entities and held by them - basically, shares and derivatives on the Bank’s
shares held by some consolidated entities that comply with the requirements to be recognized as equity instruments - are
recognized as a decrease to net equity, under the heading "Shareholders’ funds - Treasury shares" in the consolidated balance
sheets (see Note 29).
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 - Other reserves” in the consolidated balance sheets (see Note 28).
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 22.5 and 28).
2.2.12 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” in the consolidated 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 consolidated 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 consolidated income statement with the corresponding increase in total
consolidated equity.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

2.2.13 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 BBVA Group entities (see Note 25).
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 consolidated income statement (see Note 44.1).
Post-employment benefits – Defined-contribution plans
The Group 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 BBVA Group entities are charged and recognized under the heading
“Administration costs – Personnel expense– Defined-contribution plan expense” of the consolidated income statement (see Note
44.1).
Post-employment benefits – Defined-benefit plans
Some Group entities maintain 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, some of the Spanish Group entities 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, certain Group entities provide 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” in the consolidated balance sheet 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 consolidated financial statements
(see Note 25).
Current service cost is charged and recognized under the heading “Administration costs – Personnel expense – Defined-benefit
plan expense” of the consolidated income statement (see Note 44.1).
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 consolidated income statement (see Note 37).
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 consolidated income statement (see Note 46).

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

Other long-term employee benefits
In addition to the above commitments, certain Group entities provide 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. This
heading also includes the commitments related to the termination of employment contracts according to the collective layoff
procedure carried out in BBVA, S.A. in 2021.
These commitments are quantified based on actuarial valuations and the amounts recorded under the heading “Provisions –
Other long-term employee benefits” of the consolidated balance sheet (see Note 24).
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.
The BBVA Group 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 consolidated income statement for the period in which they
arise (see Note 46). 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 consolidated balance sheet (see Note 30).
2.2.14 Termination benefits
Termination benefits are recognized in the financial statements when the BBVA Group 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.
2.2.15 Recognition of income and expense
The most significant policies used by the BBVA Group 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 consolidated income statement according to the following criteria, independently
from the financial instruments’ portfolio which generates the income or expense:

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a. The interest income past due before the initial recognition and pending to be received will be added to the gross
carrying amount of the debt instrument.
b. The interest income accrued after the initial recognition will be added to 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.
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 Group 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.

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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 consolidated 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.
2.2.16 Sales of assets and income from the provision of non-financial services
The heading “Other operating income” in the consolidated income statements includes the proceeds of the sales of assets and
income from the services provided by the Group entities that are not financial institutions. In the case of the Group, these entities
are mainly real estate and service entities (see Note 42).
2.2.17 Foreign-currency transactions and exchange differences
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”.
Conversion to euros of the balances held in foreign currency is performed in two consecutive stages:
– conversion of the foreign currency to the entity’s functional currency (currency of the main economic environment in
which the entity operates); and
– conversion to euros of the balances held in the functional currencies of the entities whose functional currency is not the
euro.

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Conversion of the foreign currency to the entity’s functional currency
Transactions denominated in foreign currencies carried out by the consolidated entities (or entities accounted for using the equity
method) are initially accounted for in their respective currencies. Subsequently, the monetary balances in foreign currencies are
converted to their respective functional currencies using the exchange rate at the close of the financial year. In addition,
– Non-monetary items valued at their historical cost are converted to the functional currency at the exchange rate
applicable on the purchase date.
– Non-monetary items valued at their fair value are converted at the exchange rate in force on the date on which such fair
value was determined.
– Monetary items are converted to the functional currency at the closing exchange rate.
– Income and expense are converted at the period’s average exchange rates for all the operations carried out during the
year, except in those geographical areas where IAS 29 “Financial Reporting in Hyperinflationary Economies” applies (see
Note 2.2.18). When applying this criterion the BBVA Group considers whether significant variations have taken place in
exchange rates during the year which, owing to their impact on the statements as a whole, may require the application of
exchange rates as of the date of the transaction instead of such average exchange rates.
The exchange differences produced when converting the balances in foreign currency to the functional currency of the
consolidated entities are generally recognized under the heading "Exchange differences, net" in the consolidated income
statements (see Note 41). 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” in the consolidated balance
sheets (see Note 30).
Conversion of functional currencies to euros
The balances in the financial statements of consolidated entities whose functional currency is not the euro are converted to euros
as follows:
– Assets and liabilities: at the closing spot exchange rates as of the date of each of the consolidated balance sheets.
– Income and expense and cash flows are converted by applying the exchange rate applicable on the date of the
transaction, and the average exchange rate for the financial year may be used, unless it has undergone significant
variations during the year.
– Equity items: at the historical exchange rates.
The exchange differences arising from the conversion to euros of balances in the functional currencies of the consolidated entities
whose functional currency is not the euro are recognized under the heading “Accumulated other comprehensive income (loss) –
Items that may be reclassified to profit or loss - Foreign currency translation” in the consolidated balance sheets (see Notes 30
and 31 respectively). Meanwhile, the differences arising from the conversion to euros of the financial statements of entities
accounted for by the equity method are recognized under the heading “Accumulated other comprehensive income (loss) - Items
that may be reclassified to profit or loss - Share of other recognized income and expense of investments in joint ventures and
associates" (see Note 30), until the item to which they relate is derecognized, at which time they are recognized in the income
statement.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

The financial statements of companies of hyperinflationary economies are restated for the effects of changes in prices before their
conversion to euros following the provisions of IAS 29 "Financial Reporting in Hyperinflationary Economies" (see Note 2.2.18).
Both these adjustments for inflation and the exchange differences that arise when converting the financial statements of
companies into hyperinflationary economies are accounted for in “Accumulated other comprehensive income (loss) – Items that
may be reclassified to profit or loss - Foreign currency translation”.
The breakdown of the main consolidated balances in foreign currencies, with reference to the most significant foreign currencies,
is set forth in Appendix VII.
Venezuela
Local financial statements of the Group subsidiaries in Venezuela are expressed in Venezuelan bolivar and converted into euros for
the consolidated financial statements. Venezuela is a country with strong exchange restrictions that has different rates officially
published, and, since December 31, 2015, the Board of Directors considers that the use of official exchanges rates for converting
bolivars into euros in preparing the Consolidated Financial Statements does not reflect the true picture of the financial statements
of the Group and the financial position of the Group subsidiaries in this country. Therefore, since the year ended December 31,
2015, the exchange rate for converting bolivars into euros is an estimation whose calculation incorporates available market
references, in order to obtain a more representative approximation of the prevailing financial conditions (see Note 2.2.18).
2.2.18 Entities and branches located in countries with hyperinflationary economies
In accordance with the criteria established in IAS 29 "Financial Reporting in Hyperinflationary Economies”, to determine whether
an economy has a high inflation rate the country's economic situation is examined, analyzing whether certain circumstances are
fulfilled, such as whether the population prefers to keep its wealth or savings in non-monetary assets or in a relatively stable
foreign currency, whether prices can be set in that currency, whether interest rates, wages and prices are pegged to a price index
or whether the accumulated inflation rate over three years approaches or exceeds 100%. The fact that any of these circumstances
is fulfilled will not be a decisive factor in considering an economy hyperinflationary, but it does provide some reasons to consider it
as such.
Since 2022, 2018 and 2009, the economies of Turkey, Argentina and Venezuela, respectively, have been considered
hyperinflationary under the above criteria. As a result, the financial statements of the BBVA Group’s entities located in such
geographical areas have been adjusted to correct for the effects of inflation.
As a consequence of the application of IAS 29 "Financial Reporting in Hyperinflationary Economies", the Group applies the
following criteria in the financial statements of the Group companies that operate in these three geographical areas:
– The historical cost of non-monetary assets and liabilities (see Notes 17, 18 and 21), assets contractually linked to changes
in prices and various headings in equity are adjusted to reflect changes in the purchasing power of the currency due to
inflation from their date of acquisition or inclusion in the consolidated balance sheet, or if this is later, with the limit of its
recoverable value. The restatement has been made using the Consumer Price Index with "Accumulated other
comprehensive income (loss)" as counterparty.
– Consequently, the different lines of the income statement, within equity, are adjusted by the inflation index since their
inception, with a corresponding entry under the heading "Accumulated other comprehensive income (loss)".
– The loss of the net monetary position, which represents the loss of purchasing power of the entity due to maintaining an
excess of monetary assets not linked to inflation (mainly loans, credits and bonds) over monetary liabilities, is recorded in
the line "Other operating expense" in the income statement and with a credit to "Accumulated other comprehensive
income (loss)".

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– All the components of the financial statements of the subsidiaries are converted at the closing exchange rate, recording
the conversion differences to the euro within "Accumulated other comprehensive income (loss)" as stated in IAS 21
"Effects of Changes in Foreign Exchange Rates".
Turkey
The combined result derived from the application of the above criteria amounted to a loss of €1,305 million in 2025, of which
€1,120 million is attributable to owners of the parent (€1,498 million and €2,242 million loss attributable to owners of the parent in
2024 and 2023, respectively). This impact includes mainly the loss of the net monetary position, which amounts to a gross amount
of €878 million and is recorded in the line “Other operating expense” in the consolidated income statement (€1,512 million and
€2,118 million in 2024 and 2023, respectively), and it was partially offset by the positive impact of the revaluation of certain bonds
linked to inflation, for a gross amount of €674 million (€1,164 million and €1,202 million in 2024 and 2023, respectively), given
that, under IAS 29 "Financial Reporting in Hyperinflationary Economies", these types of bonds are considered protective assets
(see Note 42).
In addition, during 2025 the impact on equity of Group entities located in Turkey derived from the application of IAS 29 and the
conversion to the euro (IAS 21) amounted to €-898 millio n (€1,253 million in 2024), of which €-781 million (€1,072 mill ion in 2024)
have been recorded within “Equity – Accumulated other comprehensive income (loss)”, and €-117 million (€181 million in 2024)
have been recorded within “Minority interests – Accumulated other comprehensive income (loss)”, respectively (see Notes 30 and
31).
According to the Turkish Statistical Institute (Turkstat), accumulated inflation in 2025 stood at 30.9% (44.4% and 64.8% in 2024
and 2023, respectively) and the exchange rate used as of December 31, 2025 was 50.48 Turkish lira per euro (36.74 and 32.65 in
2024 and 2023, respectively).
Argentina
The combined result derived from the application of the above criteria amounted to a loss of €494 million, of which €331 million is
attributable to owners of the parent in 2025 (€810 million and €1,574 million loss attributable to owners of the parent in 2024 and
2023, respectively). This impact includes mainly the loss of the net monetary position, which amounts to a gross amount of €356
million and is recorded in the line “Other operating expense” in the consolidated income statement in 2025 (€1,419 million and
€1,062 million in 2024 and 2023, respectively).
Furthermore, during 2025, the impact on equity of Group entities located in Argentina derived from the application of IAS 29 and
the conversion to the euro (IAS 21) amounted to €-417 million (€1,115 million and €-634 million in 2024 and 2023, respectively) of
which €-278 million (€745 million and €-428 million in 2024 and 2023, respectively) have been recorded within “Equity –
Accumulated other comprehensive income (loss)”, and €-140 million (€370 million and €-206 million in 2024 and 2023,
respectively) have been recorded within “Minority interests – Accumulated other comprehensive income (loss)” (see Notes 30
and 31).
Accumulated inflation estimated by the National Census Institute of Argentina (INDEC) and BBVA Research for the year 2025 was
30.5% (118% and 215% in 2024 and 2023, respectively) and the exchange rate used as of December 31, 2025 was 1,714.81
Argentine pesos per euro (1,072.66 and 892.81 in 2024 and 2023, respectively).
Venezuela
The combined result derived from the application of the above criteria amounted to a loss of €75 million, of which €41 million is
attributable to owners of the parent in 2025 (€20 million and €10 million attributable to owners of the parent in 2024 and 2023,
respectively). This impact includes mainly a loss of the net monetary position partially offset by protective assets, which amounts
to a gross amount of €183 million, recorded in the line “Other operating expense” in the consolidated income statement in 2025
(€9 million and €28 million in 2024 and 2023, respectively).

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During 2025, 2024 and 2023 the impact on equity of Group entities located in Venezuela derived from the application of IAS 29
and the conversion to the euro (IAS 21) amounted to €-81 million, €-1 million and €-22 million respectively, of which €-44 million,
€-1 million and €-12 million have been recorded within "Equity – Accumulated other comprehensive income (loss)" and €-37
million, €0 million and €-10 million have been recorded within “Minority interests – Accumulated other comprehensive income
(loss)" (see Notes 30 and 31).
Accumulated inflation for the year 2025, as estimated by BBVA Research, was 754% (69% and 111% in 2024 and 2023,
respectively) and the exchange rate used as of December 31, 2025 was 665.04 Venezuelan bolivars per euro (68.83 and 43.23 in
2024 and 2023, respectively). In this regard, and given the lack of official inflation data from the central bank of Venezuela, the
Group estimates inflation by applying an internal methodology based on the variation of the estimated exchange rate.
2.3 Recent IFRS pronouncements
Standards and interpretations that became effective in 2025
In 2025, various amendments to the IFRS standards or their interpretations or modifications (amendments) (hereinafter “IFRIC”
or "interpretation") became effective, among which the following should be highlighted:
Amendment to IAS 21: "The Effects of Changes in Foreign Exchange Rates"
On August 15, 2023, the IASB issued a series of amendments to IAS 21 - The Effects of Changes in Foreign Exchange Rates. The
standard has a dual objective: first, to provide guidance on when one currency is convertible into another and, second, how to
determine the exchange rate to use in accounting when it is concluded that such convertibility does not exist.
Regarding the first objective, a currency is convertible into another when an entity can obtain the other currency within a
timeframe that allows for a normal administrative delay; and through markets or exchange mechanisms in which an exchange
transaction creates enforceable rights and obligations. If the entity determines that convertibility between the currencies does not
exist, it must estimate an exchange rate. The standard does not establish a specific estimation technique for these rates, but
rather establishes guidelines for determining them, allowing for the use of an unadjusted observable rate or an estimation
technique.
The amendment to the standard came into effect on January 1, 2025, and had no impact on the BBVA Group's consolidated
financial statements.
Standards and interpretations issued but not yet effective as of December 31, 2025
The following new IFRS standards and interpretations or amendments had been published at the date of preparation of the
Consolidated Financial Statements, but were not mandatory as of December 31, 2025. The Group is currently evaluating the
potential effects of each of these new standards or amendments. Although in some cases the IASB allows early adoption of new
standards, interpretations and amendments before their effective date, the BBVA Group has not proceeded with this option for
any such changes.

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IFRS 18 "Presentation and Disclosures in Financial Statements"
On April 9, 2024, the IASB issued IFRS 18 "Presentation and Disclosures in Financial Statements" which introduces new
requirements to improve the quality of information presented in financial statements and to promote analysis, transparency and
comparability of companies' performance.
Specifically, IFRS 18 introduces three predefined expense categories (operating, investing and financing) and two subtotals
("operating profit" and "profit before financing and income taxes") to provide a consistent structure in the income statement and
facilitate the analysis of the income statement. Additionally, it introduces disclosure requirements for management-defined
performance measures (MPMs). Finally, it establishes requirements and provides guidance on aggregation/disaggregation of the
information to be provided in the primary financial statements.
This new standard will come into force on January 1, 2027, with early application permitted once it is adopted by the European
Union.
Amendments to IFRS 9 and IFRS 7: Amendments to the classification and measurement of financial
instruments
On May 30, 2024 the IASB issued amendments to IFRS 9 and IFRS 7 to clarify, among others, how to assess the contractual cash
flow characteristics of financial assets that include contingent features such as the achievement of Environmental, Social and
Governance targets. Additionally, they clarify that a financial liability should be derecognized on the 'settlement date' and
introduce an accounting policy option to derecognize before that date financial liabilities that are settled using an electronic
payment system. Finally, additional disclosures are required by IFRS 7 for financial instruments with contingent characteristics
and equity instruments classified at fair value through other comprehensive income.
The amendments came into force on January 1, 2026. No significant impacts on the BBVA Group's consolidated financial
statements are expected from the entry into force of the amendments.
Annual improvements applied to International Financial Reporting Standards (IFRS)
The IASB issued in July 2024 a number of minor amendments and improvements to various IFRSs to clarify their wording or
correct minor effects, oversights or conflicts between the requirements of the Standards. The Standards affected are: IFRS 1
"First-time adoption of International Financial Reporting Standards", IFRS 7 "Financial instruments, disclosures", IFRS 9 "Financial
instruments", IFRS 10 "Consolidated financial statements" and IAS 7 "Statement of cash flows".
These modifications came into force on January 1, 2026, and a significant impact on the BBVA Group's financial statements is not
expected.
IFRS 19 "Subsidiaries without Public Accountability: Disclosures"
On May 9, 2024, the IASB issued IFRS 19 "Subsidiaries without Public Accountability: Disclosures" which allows certain eligible
entities to elect to apply the reduced disclosure requirements of IFRS 19 while continuing to apply the requirements of recognition,
valuation and presentation of other IFRS accounting standards.
This new standard will enter into force on January 1, 2027, allowing early application once it is adopted by the European Union. The
Group has no entities that fall within the scope of this standard, so no significant impact on the BBVA Group´s financial statements
is expected.

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Amendments to IFRS 19: "Subsidiaries without Public Accountability: Disclosures"
As stated above, IFRS 19, issued in May 2024, allows certain eligible entities to elect to apply the reduced disclosure requirements
of IFRS 19 while continuing to apply the requirements of recognition, valuation and presentation of other IFRS accounting
standards (including IFRS 18). With these amendments, IFRS 19 reflects the changes in IFRS that will come into effect by January
1, 2027, the date on which IFRS 19 will become applicable. In the future, IFRS 19 will be amended simultaneously with the
publication or revision by the IASB of other accounting standards.
This amendment is pending approval by the European Union. No significant impact on the BBVA Group´s financial statements is
expected.
Amendments to IFRS 9 and IFRS 7: Contracts that refer to nature-dependent electricity
On December 18, 2024, the IASB issued amendments to IFRS 9 and IFRS 7 to address the accounting for renewable electricity
purchase agreements. The amendments include guidance on the "own use" exemption for electricity purchasers and
requirements for applying hedge accounting to these agreements.
The amendments came into force on January 1, 2026. No significant impacts on the BBVA Group´s financial statements are
expected from the entry into force of the amendments.
Amendments to IAS 21 "The Effects of Changes in Fore ign Exchang es Rates"
On November 13, 2025, the IASB issued a set of amendments to IAS 21 – The Effects of Changes in Foreign Exchange Rates.
These amendments address how companies should translate financial information from a non-hyperinflationary functional
currency to a hyperinflationary presentation currency.
Specifically, it states that a company with a non-hyperinflationary functional currency but with a hyperinflationary presentation
currency must translate all amounts in the financial statements (including comparatives) using the closing exchange rate at the
end of the reporting period.
The amendments also require entities to disclose and provide details of the financial information related to their foreign operations
affected by the proposed translation method.
The amendments will become effective on January 1, 2027, once adopted by the European Union, and will be applied
retrospectively. The implementation of the amendments is not expected to have any impact on the BBVA Group’s financial
statements.

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3. BBVA Group
The BBVA Group is an international diversified financial group with a significant presence in retail banking, wholesale banking and
asset management. The Group also operates in the insurance sector.
The following information is detailed in the appendices of these consolidated financial statements of the Group for the year ended
December 31, 2025:
– Appendix I shows relevant information related to the consolidated subsidiaries and structured entities.
– Appendix II shows relevant information related to investments in joint ventures and associates accounted for using the
equity method.
– Appendix III shows the main changes and notification of investments and divestments in the BBVA Group.
– Appendix IV shows fully consolidated subsidiaries with more than 10% of their capital owned by non-Group shareholders.
The following table sets forth information related to the Group’s total assets as of December 31, 2025, 2024 and 2023, broken
down by the Group’s entities according to their activity:

CONTRIBUTION TO CONSOLIDATED GROUP TOTAL ASSETS. ENTITIES BY MAIN ACTIVITIES (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Banking and other financial services | 818,287 | 733,860 | 737,971
Insurance and pension fund managing companies | 37,521 | 34,439 | 34,520
Other non-financial services | 3,768 | 4,103 | 3,068
Total | 859,576 | 772,402 | 775,558

The total assets and results of operations broken down by operating segments are included in Note 6.
The BBVA Group’s activities are mainly located in Spain, Mexico, Turkey and South America, with active presence in other areas of
Europe, the United States and Asia:
– Spain. The Group’s activity in Spain is mainly carried out through Banco Bilbao Vizcaya Argentaria, S.A. The Group also
has other entities that mainly operate in Spain’s financial sector, insurance sector and asset management sector.
– Mexico. The BBVA Group operates in Mexico, not only in the banking sector, but also in the insurance sector and the asset
management sector, through BBVA Mexico.
– Turkey. The Group’s activity in Turkey is mainly carried out through the Garanti BBVA Group in the financial, insurance
and asset management sectors.
– South America. The BBVA Group’s activities in South America are mainly focused on the banking, financial and insurance
sectors, in the following countries: Argentina, Colombia, Peru, Uruguay, Chile, Venezuela and Brazil, the latter focused on
the CIB (Corporate & Investment Banking). The Group owns more than 50% of most of the Group entities based in these
countries. Appendix I shows entities in respect of which the BBVA Group owns less than 50% as of December 31, 2025
(see Note 2.1). The Group also has representative offices in Sao Paulo (Brazil) and in Santiago (Chile).
– Rest of Europe. Group's activity in Europe (excluding Spain) is carried out by banking and financial institutions, mainly in
Switzerland, the Netherlands and Romania, and through branches, mainly the BBVA Bank's branches in Germany,
Belgium, France, Italy, Portugal, the United Kingdom, and the Garanti BBVA Bank's branch in Malta, as well as the Group's
digital banks in Italy and Germany.

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– The United States. The Group's activity in the United States is mainly carried out by the branch of Banco Bilbao Vizcaya
Argentaria, S.A. in New York, the agency of BBVA Mexico in Houston, participations in technology companies through
funds and investment vehicles and the broker-dealer business BBVA Securities Inc. Additionally, in 2024, a representative
office of Banco Bilbao Vizcaya Argentaria, S.A. was opened in Houston.
– Asia. The Group's activity in Asia is conducted through the Bank's branches (Taipei, Tokyo, Hong Kong, Singapore and
Shanghai) and representative offices (Beijing, Seoul, Mumbai, Abu Dhabi and Jakarta).
Significant transactions in the Group in 2025 , 2024 and 2023
During the years 2025, 2024 and 2023 no significant or relevant corporate operations have been completed. The voluntary public
tender offer for the entire share capital of Banco de Sabadell, S.A. announced by BBVA on May 9, 2024, was no longer in effect on
October 16, 2025, following the publication of its outcome by the CNMV, as the minimum acceptance condition established by
BBVA was not met.
4. Shareholder remuneration system
Shareholder Remuneration Policy
BBVA announced in November 2021 by means of Relevant Information the amendment of the Group's shareholder remuneration
policy, which establishe s 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).
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 2022 financial 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, excluding dividends paid in respect of treasury shares held by the Group's
companies other than BBVA, S.A., amounted to €1,857 million.
– The Board of Directors, at its meeting held on September 27, 2023, resolved the payment of a cash interim dividend, for
the 2023 financial year, of €0.16 gross (€0.1296 net of withholding tax) per outstanding BBVA share entitled to
participate in this distribution, which was paid on October 11, 2023. The total amount paid, excluding dividends paid in
respect of treasury shares held by the Group's companies other than BBVA, S.A., amounted to €951 million.

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Shareholder remuneration during financial year 2024
Cash distributions
During the 2024 financial year, BBVA's General Shareholders' Meeting and Board of Directors approved the following cash
payments:
– The Annual General Shareholders' Meeting held on March 15, 2024 approved, in item 1.3 of its Agenda, a cash distribution
charged to the results of the 2023 financial year as a final dividend for the 2023 financial year, in the amount of €0.39
gross (€0.3159 net of withholding tax) per each 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 other than BBVA, S.A., amounted to €2,245 million.
– By means of an inside information notice (información privilegiada) dated September 26, 2024, that the Board of
Directors of BBVA had agreed to pay an amount on account of the dividend for the 2024 financial year, in the amount of
€0.29 gross (€0.2349 net of withholding tax) per each outstanding BBVA share entitled to participate in this distribution,
which was paid on October 10, 2024. The total amount paid, excluding dividends paid in respect of treasury shares held
by the Group's companies other than BBVA, S.A., amounted to €1,668 million.
Shareholder remuneration during financial year 2025
Cash distributions
During the 2025 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 21, 2025, approved, under item 1.3 of the Agenda,
such cash distribution against the 2024 results as a final dividend for the 2024 financial year, for an amount equal to
€0.41 gross (€0.3321 net of withholding tax) per outstanding BBVA share entitled to participate in this distribution, which
was paid on April 10, 2025. The total amount paid, excluding dividends paid in respect of treasury shares held by the
Group's companies other than BBVA, S.A., amounted to €2,357 million.
– By means of an inside information notice (información privilegiada) dated September 29, 2025, BBVA announced that the
Board of Directors had approved the payment of a cash interim dividend of €0.32 gross (€0.2592 net of withholding tax)
per each outstanding BBVA share entitled to participate in this distribution, which was paid on November 7, 2025. The
total amount paid, excluding dividends paid in respect of treasury shares held by the Group's companies other than
BBVA, S.A., amounted to €1,840 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:

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

AVAILABLE AMOUNT FOR INTERIM DIVIDEND PAYMENTS (MILLIONS OF EUROS)
| August 31, 2025
Profit of BBVA, S.A., after the provision for income tax | 5,518
Constitution of legal reserve ⁽¹⁾ | (110)
Maximum amount distributable | 5,408
Amount of proposed interim dividend ⁽¹⁾ | 2,205
BBVA cash balance available to the date | 27,334

(1) Taking into consideration the maximum number of new shares authorized for issuance by the Board for the purpose of satisfying the consideration in kind of
the voluntary tender offer for up to 100% of the shares of Banco de Sabadell, S.A. Such tender offer was subsequently left without effect on October 16, 2025.
Other shareholder remuneration
On February 5, 2026, BBVA announced by means of an inside information notice filing with the CNMV a cash distribution in the
amount of €0.60 gross, for each of the outstanding shares entitled to receive said distribution, to be paid tentatively in April 2026
as the final dividend for the year 2025, was planned to be proposed to the corresponding governing bodies for consideration as
ordinary remuneration to shareholders for 2025.
Share buyback programs
Share buyback program 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 buyback program before its execution.
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 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 ("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
aforementioned share buyback program and which were held in treasury shares (see Notes 26, 27, 28 and 29).
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 buyback 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.

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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 €62,490,986.25 and the consequent
redemption, charged to unrestricted reserves, of the 127,532,625 own shares of €0.49 par value each acquired derivatively by
BBVA in execution of the aforementioned extraordinary share buyback program and which were held in treasury shares (see
Notes 26, 27, 28 and 29).
Share buyback program in 2024
On January 30, 2024, BBVA announced, among other matters, that it planned to submit for the consideration of the
corresponding BBVA governing bodies the execution of a €781 million share buyback program, subject to obtaining the
corresponding regulatory authorizations and to the communication of the specific terms and conditions of the share buyback
program before its execution. On March 1, 2024, after receiving the required authorization from the ECB, 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 Regulations, 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 the 74,654,915 own shares of €0.49 par value each acquired derivatively by BBVA in execution of the
share buyback program and which were held as treasury shares (see Notes 26, 27, 28 and 29).
Share buyback programs in 2025
On January 30, 2025, BBVA announced, among other matters, the execution of a share buyback program of BBVA shares, with
the purpose of reducing BBVA’s share capital, for a monetary amount of €993 million, subject to obtaining the corresponding
regulatory authorizations and to the communication of the specific terms and conditions of the share buyback program before its
execution.
On October 30, 2025, after receiving the required authorization from the ECB, BBVA announced by means of an Inside Information
notice the execution of a time-scheduled buyback program for the repurchase of own shares, with the purpose of reducing BBVA's
share capital, all in accordance with the Regulations, for a maximum monetary amount of €993 million. The execution was carried
out externally by Citigroup Global Markets Europe AG. By means of an Other Relevant Information notice dated December 10,
2025, BBVA announced the completion of the share buyback program upon reaching the maximum monetary amount, having
acquired a total of 54,316,765 BBVA shares, between October 31 and December 10, 2025, representing, approximately, 0.93% of
BBVA's share capital as of such date. On December 23, 2025, 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 21, 2025, under item 3 of the Agenda, through the reduction of BBVA’s share capital in a nominal amount of €26,615,214.85
and the consequent redemption, charged to unrestricted reserves, of the 54,316,765 BBVA shares of €0.49 par value each
acquired derivatively by BBVA in execution of the aforementioned BBVA share buyback program and which were held as treasury
shares (see Notes 26, 27, 28 and 29).

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On December 19, 2025, and after receiving the required authorization from the ECB, BBVA announced, by means of an Inside
Information notice, that the Board of Directors of BBVA, at its meeting on December 18, 2025, had agreed to carry out the
execution of a framework share buyback program for the repurchase of BBVA shares, all in accordance with the Regulations. This
program will be executed in several tranches for a maximum monetary amount of €3,960 million, with the purpose of reducing
BBVA's share capital (the "Framework Program"), without prejudice to the possibility of suspending or terminating the Framework
Program early if circumstances warrant. It also announced that the Board of Directors agreed to execute a first tranche of the
Framework Program in compliance with the Regulations, for the purpose of reducing BBVA's share capital for a maximum
monetary amount of €1,500 million. The execution of this tranche started on December 22, 2025, and is carried out externally by
J.P. Morgan S E. Between December 22, 2025 and January 30, 2026, J.P. Morgan SE has acquired 31,242,848 BBVA shares within
this program.
Proposal on allocation of earnings for 2025
In accordance with current mercantile regulations, the earnings subject to distribution correspond to the individual result of Banco
Bilbao Vizcaya Argentaria, SA, the parent company of the BBVA Group
Below is the distribution of the earnings of Banco Bilbao Vizcaya Argentaria, S.A. for the 2025 financial year, which the Board of
Directors will submit for approval to the Annual General Shareholders’ Meeting.

ALLOCATION OF EARNINGS (MILLIONS OF EUROS)
| 2025
Profit (loss) for the year | 7,157
Distribution |
Interim dividends | 1,842
Final dividend | 3,425
Reserves / Accumulated gains | 1,889

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5. Earnings per share
Basic and diluted earnings per share are calculated in accordance with the criteria established by IAS 33 "Earnings per share". For
more information see Glossary.
The calculation of earnings per share is as follows:

BASIC AND DILUTED EARNINGS PER SHARE
| 2025 | 2024 | 2023
Numerator for basic and diluted earnings per share (millions of euros) |  |  |
Profit attributable to parent company | 10,511 | 10,054 | 8,019
Adjustment: Additional Tier 1 securities ⁽¹⁾ | (397) | (388) | (345)
Profit adjusted (millions of euros) (A) | 10,114 | 9,666 | 7,675
Profit (loss) from continued operations (net of remuneration of Additional Tier 1 capital instruments) | 10,114 | 9,666 | 7,675
Profit (loss) from discontinued operations (net of non-controlling interests) (B) | — | — | —
Denominator for basic earnings per share (number of shares outstanding) ⁽²⁾ |  |  |
Weighted average number of shares outstanding | 5,762 | 5,793 | 5,988
Average treasury shares | (9) | (10) | (5)
Share buyback program (average) | (5) | (13) | (28)
Adjusted number of shares - Basic earnings per share (C) | 5,748 | 5,769 | 5,954
Adjusted number of shares - diluted earnings per share (D) | 5,748 | 5,769 | 5,954
Earnings (losses) per share | 1.76 | 1.68 | 1.29
Basic earnings (losses) per share from continuing operations (Euros per share) A-B/C | 1.76 | 1.68 | 1.29
Diluted earnings (losses) per share from continuing operations (Euros per share) A-B/D | 1.76 | 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 22.4).
(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 (see Note 4).
As of December 31, 2025, 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.
6. Operating segment reporting
Operating segment reporting represents a basic tool in the oversight and management of the BBVA Group’s various activities. The
BBVA Group compiles reporting information on disaggregated business activities. These business activities are then aggregated in
accordance with the organizational structure determined by the BBVA Group's Management and, ultimately, into the reportable
operating segments themselves.
As of December 31, 2025, the structure of the information by operating segments and the Corporate Center reported by the BBVA
Group remains the same as that as of the closing of the 2024 financial year.
The BBVA Group's areas or operating segments are summarized below:

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– Spain includes mainly the banking, insurance and asset management businesses that the Group carries out in Spain.
– Mexico includes the banking, insurance and asset management businesses in this country as well as the activity that
BBVA Mexico carries out through its agency in Houston.
– Turkey reports the activity of the Garanti BBVA group that is mainly carried out in this country and, to a lesser extent, in
Romania and the Netherlands.
– South America includes the banking, finance, insurance and asset management businesses carried out mainly in
Argentina, Chile, Colombia, Peru, Uruguay and Venezuela.
– Rest of Business mainly includes the wholesale activity carried out in Europe (excluding Spain), the United States and
(through BBVA branches located therein) Asia, as well as the Group's digital banks in Italy and Germany.
The Corporate Center performs centralized Group functions, including: the costs of the head offices with a corporate function for
the consolidated BBVA Group, management of structural exchange rate positions; certain portfolios, such as financial and
industrial holdings; stakes in Funds & Investment Vehicles in tech companies; certain tax assets and liabilities; funds for employee
commitments; goodwill and other intangible assets, as well as the financing of such portfolios and assets.
The breakdown of the BBVA Group’s total assets by operating segment and the Corporate Center as of December 31, 2025, 2024
and 2023 is as follows:

TOTAL GROUP ASSETS BY OPERATING SEGMENT (MILLIONS OF EUROS)
| 2025 | 2024 ⁽¹⁾ | 2023 ⁽¹⁾
Spain | 456,419 | 411,620 | 452,423
Mexico | 182,525 | 168,470 | 173,489
Turkey | 90,702 | 82,782 | 68,329
South America | 76,648 | 73,997 | 64,779
Rest of Business | 88,638 | 66,534 | 64,274
Subtotal assets by operating segments | 894,931 | 803,404 | 823,294
Corporate Center and adjustments | (35,355) | (31,002) | (47,736)
Total assets BBVA Group | 859,576 | 772,402 | 775,558

(1) In the first quarter of 2025 certain immaterial balance sheet amounts related to specific activities undertaken by the business units were reallocated between
the operating segments and the Corporate Center. As a result, certain expenses were reallocated, in particular, between Spain, Rest of Business and the Corporate
Center. In order to make the period-on-period comparison homogeneous, the figures for the years 2024 and 2023 have been revised, which has not affected the
consolidated financial information of the Group.

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The following table sets forth certain summarized information relating to the results of each operating segment and the Corporate
Center for the years ended December 31, 2025, 2024 and 2023:

MAIN MARGINS AND PROFIT BY OPERATING SEGMENT (MILLIONS OF EUROS)
| Operating Segments | Corporate Center and adjustments
| BBVA Group | Spain | Mexico | Turkey | South America | Rest of Business
2025 |  |  |  |  |  |  |
Net interest income | 26,280 | 6,588 | 11,424 | 3,079 | 4,830 | 828 | (469)
Gross income | 36,931 | 10,027 | 15,198 | 5,213 | 5,363 | 1,807 | (678)
Operating profit (loss) before tax | 16,227 | 5,933 | 7,341 | 1,863 | 1,758 | 772 | (1,440)
Attributable profit (loss) (1) | 10,511 | 4,175 | 5,264 | 805 | 726 | 627 | (1,086)
2024 ⁽²⁾ |  |  |  |  |  |  |
Net interest income | 25,267 | 6,384 | 11,556 | 1,492 | 5,589 | 742 | (495)
Gross income | 35,481 | 9,443 | 15,337 | 4,212 | 5,405 | 1,472 | (388)
Operating profit (loss) before tax | 15,405 | 5,263 | 7,522 | 1,741 | 1,342 | 648 | (1,110)
Attributable profit (loss) (1) | 10,054 | 3,752 | 5,447 | 611 | 635 | 511 | (901)
2023 ⁽²⁾ |  |  |  |  |  |  |
Net interest income | 23,089 | 5,570 | 11,054 | 1,869 | 4,394 | 539 | (336)
Gross income | 29,542 | 7,848 | 14,267 | 2,981 | 4,331 | 1,113 | (999)
Operating profit (loss) before tax | 12,419 | 3,855 | 7,329 | 1,324 | 1,189 | 499 | (1,777)
Attributable profit (loss) (1) | 8,019 | 2,690 | 5,319 | 527 | 601 | 403 | (1,522)

(1) See Note 55.2.
(2) In the first quarter of 2025 certain immaterial balance sheet amounts related to specific activities undertaken by the business units were reallocated between
the operating segments and the Corporate Center. As a result, certain expenses were reallocated, in particular, between Spain, Rest of Business and the Corporate
Center. In order to make the period-on-period comparison homogeneous, the figures for the years 2024 and 2023 have been revised, which has not affected the
consolidated financial information of the Group.
The accompanying Consolidated Management Report presents the consolidated income statements and the consolidated balance
sheets by operating segments.
7. Risk management
7.1 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.
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.

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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 and the alteration of the institutional environment of the
countries in which it operates, and is exposed to sovereign debt, particularly in Spain, Mexico and Turkey.
The global economy is undergoing significant changes, due in part to the policies of the U.S. administration. Uncertainty
surrounding their consequences is exceptionally high, substantially increasing geopolitical, economic, and financial risks.
The increase in U.S. tariffs on imports from its trading partners has triggered financial market volatility, reinforcing global-wide
risks. High uncertainty regarding the final level and duration of these tariffs could negatively impact the global economy, worsening
the macroeconomic environment. As a result of adopted or announced tariffs, global growth could decelerate significantly.
While fiscal and monetary policies could partially offset the effects of global protectionism, notably in the Eurozone, where
significant public spending increases have been announced, the impact of higher U.S. tariffs could be amplified by the adoption of
retaliatory measures by other countries, sustained uncertainty, weakened confidence, and financial volatility, among other factors.
Rising tariffs also increase the risk of inflation in the United States and the Eurozone, which could further slow private demand and,
at the same time, constrain the Federal Reserve’s and the ECB’s ability to lower rates if warranted by activity.
Beyond import tariffs, tighter controls on migration flows could also affect the labor market in the United States, add to inflationary
pressures, and weigh on economic growth. The U.S. administration’s fiscal, monetary, regulatory, industrial, and foreign policies
could likewise contribute to financial and macroeconomic volatility. This is compounded by concerns that the Federal Reserve’s
independence in decision-making may be weakened by political considerations.
Amid growing uncertainty surrounding U.S. policies and the widening fiscal deficit, the U.S. risk premium could continue to rise,
pushing up long-term sovereign yields and further weakening the U.S. dollar. These developments could trigger episodes of
volatility, especially given the high public debt levels in both developed and emerging economies. Additionally, the relatively high
valuations of AI-related assets constitute an additional source of uncertainty, with potential implications in the financial markets.
The rise of trade protectionism and the growing rivalry between the United States and China could further intensify geopolitical
tensions, especially against the backdrop of ongoing conflicts in Ukraine and the Middle East, recent tensions in Latin America and
Iran, and the Greenland crisis. In response to these risks and to changes in U.S. foreign policy, the European Union has taken steps
to increase military spending, which could support growth but also add upward pressure on inflation and interest rates in the
region.
Overall, rising global geopolitical tensions are increasing uncertainty about the global economy and the likelihood of economic and
financial disruptions, including a recession.
The Group is exposed to, among others, the following general risks related to the economic and institutional environment in the
countries where it operates: a deterioration in economic activity, including potential recession scenarios; inflationary pressures
that could lead to a tightening of monetary conditions; stagflation triggered by intense or prolonged supply shocks, including as a
result of a protectionist escalation or an increase in oil and gas prices; exchange rate volatility; adverse developments in real estate
markets; changes in the institutional environment of the countries where the Group operates, which could lead to sudden and
pronounced GDP contractions and/or shifts in regulatory or government policy, including capital controls, dividend restrictions, or
the imposition of new taxes or levies; high levels of public debt or external deficits, which could lead to sovereign credit rating
downgrades or even defaults or debt restructurings; the impact of the policies adopted by the current U.S. administration, about
which significant uncertainty remains; and episodes of financial market volatility, such as those observed recently, that could
result in significant losses for the Group.

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In Spain, political, regulatory, and economic uncertainty could negatively impact activity. In Mexico, considerable uncertainty
persists regarding the impact of the recently approved constitutional reforms, as well as the policies of the U.S. administration and
the outcome of the review of the United States-Mexico-Canada free trade agreement (USMCA). In Turkey, despite the gradual
improvement in macroeconomic conditions, the situation remains relatively unstable, marked by pressure on the Turkish lira, high
inflation, a significant trade deficit, relatively low central bank foreign exchange reserves, and high external financing costs. Recent
political and social tensions could also generate renewed bouts of financial volatility and macroeconomic risks. Moreover,
uncertainty remains over the impact on Turkey of the geopolitical situation in the Middle East. In South America, ongoing and
potential interventionist actions by the United States in some of its countries constitute a significant source of risk. In Argentina,
despite the improvement in prospects following significant fiscal, monetary and exchange rate adjustments, the risk of economic
and financial turmoil persists. Lastly, in Colombia and Peru, meteorological events, political tensions, and a deterioration of public
finances could weigh on economic performance.
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 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 section "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. In this sense,
digital transformation is a priority for the Group, which includes among its commitments the development of advanced Next Gen
technological capabilities, artificial intelligence, and continuous improvement of the customer experience.
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,

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and additional regulatory compliance expenses and could have a significant adverse impact on the Group’ s business, financial
condition and results of operations.
Model risk: it is possible that a model used in critical processes presents deficiencies in its design, implementation, use, or
interpretation, generating incorrect estimations that affect risk granting, solvency, the financial statements, regulatory
compliance, or the Group’s reputation. This risk arises mainly from the use of inadequate assumptions, limitations in data quality
or errors in model coding, and is especially relevant in an environment of growing complexity and dependence on models. BBVA is
exposed to this risk due to the intensive use of models in essential areas such as credit risk measurement, the calculation of
provisions for contingencies, and the valuation of other financial instruments, and the magnitude of this exposure is increased by
the volume and diversity of the portfolios, data heterogeneity, and the incorporation of macroeconomic scenarios in certain
metrics.
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.
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.

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A s of December 31, 2025 and December 31, 2024, the Group had €805 million and €791 million, respectively, in provisions for the
proceedings it is facing (included in the line "Provisions for taxes and other legal contingencies" in the consolidated balance sheet)
(see Note 24), of which €583 million and €610 million, respectively, correspond to legal contingencies and €222 million and 181
million, respectively, to tax related matters (see Note 19). 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 employees of the Group, as well as former directors and officers, 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 employees of the Bank, as well as against some former directors and officers, 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.
ESG is an area of significant public debate and focus for governments and regulators, investors, the Group’s customers and
counterparties, and other stakeholders, and, as a result, ESG risks are expected to continue to evolve, and may increase, over
time.
Among others, ESG risks 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 and chronic shifts in the climate 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,

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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. The ESG legal and regulatory landscape is increasingly fragmented. While legislatures and regulatory
authorities in many jurisdictions continue to impose extensive requirements for financial institutions to integrate ESG
considerations into their risk management and reporting frameworks, others are taking a different approach, with regulatory
developments moving in the opposite direction, and a reduced emphasis on climate-related risk supervision, adding further
complexity and uncertainty to the compliance environment. Legal and regulatory changes related to how banks consider and
manage climate and other ESG risks or otherwise affecting banking practices or disclosure of information have resulted, and may
continue to result, in higher compliance, operational and credit risks and costs. The Group’s customers and counterparties may be
exposed to similar legal and regulatory changes, increasing their own compliance and operational risks and costs. Further, legal
and regulatory changes have resulted, and may continue to 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. We
expect ESG-related legal and regulatory requirements to continue to evolve in the coming years. In the case of banks in particular,
such evolving laws and regulations could include further requirements or restrictions 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 modeling capabilities with respect to ESG-related matters and the collection and
use 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 based on incorrect or insufficient customer, third-party or
other data, any of which could adversely affect the Group’s disclosure and financial reporting. Further, increased and/or divergent
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 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 other things, increased ESG concern, on the one hand, or an opposing sentiment, on the other.
These changes could impact the demand for our products and services, as well as for those of our customers and counterparties,
and investor interest in our securities. 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 matters as a risk and an appropriate consideration in
business and investment decisions, by society, shareholders, customers, governments and other stakeholders (including NGOs),
continues to evolve, 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, decisions, disclosures or communications. The Group’s reputation and ability to
attract or retain customers may be harmed if its response to concerns regarding ESG-related matters is deemed to be insufficient
or inappropriate 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 ESG obligations or goals or to avoid reputational harm. Divergent views on ESG policies may

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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, decisions, disclosures and communications, may result in litigation and investigations and supervisory actions
(including potential greenwashing or greenhushing 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.
7.2 Credit risk
Credit risk is the potential loss assumed by the Group as a result of the failure by the Group´s counterparties to meet their
contractual obligations.
The general principles governing credit risk management in the BBVA Group 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 Group prioritizing
risk diversification and avoiding relevant concentrations.
– 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 the Group has an integrated structure for all its functions, allowing decisions to be taken objectively and
independently throughout the life cycle of the risk.
– At Group level: frameworks for action and standard rules of conduct are defined for handling risk, specifically, the
channels, procedures, structure and supervision.
– At the business area level: they are responsible for adapting the Group's criteria to the local realities of each geographical
area and for direct management of risk according to the decision-making channel:
a. Retail risks: in general, the decisions are formalized according to the scoring tools, within the general framework
for action of each business area, with regard to risks. The changes in weighting and variables of these tools must
be validated by the Global Risk Management (hereinafter "GRM") area.

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b. Wholesale risks: in general, the decisions are formalized by each business area within its general framework for
action with regard to risks, which incorporates the delegation rule and the Group's corporate policies.
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 climate change risk, 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").
Since 2024, the Group 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 risks in the Group's main geographies. 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, 2025 and 2024, the impact recorded for these risks was not significant. The Group will
continue working to incorporate in these models the information available from time to time.
7.2.1 Measurement of Expected Credit Loss
IFRS 9 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.
The modeling of the ECL calculation is subject to a governance system that is common to the entire Group. Within this common
framework, each geographical area makes the necessary adaptations to capture its particularities. The methodology, assumptions
and observations used by each geographical area 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 IFRS 9, each geographical area performs 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.

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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 the BBVA Group, the expected losses calculated are based on the internal models developed for all the Group's 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 Group 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 Group consists of continuously monitoring the risks to which it is exposed, which
guarantees their proper classification in the different categories of IFRS 9. 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.
Within this credit risk management framework, the Group 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 Group 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 (e.g., 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 so warrant.

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Additionally, the Group 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 Group has Workout Committees, both local and corporate, 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 Group 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 geographical area 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.

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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).
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 2.2, the criteria for identifying the significant increase in risk are applied consistently throughout the Group,
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 Group 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 Group 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 7.2.4 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.

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Based on this common methodology, and in accordance with the provisions of IFRS 9 and the EBA guidelines on credit risk
management practices, each geographical area 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: IFRS 9 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.
– 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) - 1*100 >Relative Threshold (%) and
Current PD – Origination PD > Absolute threshold (bps)
These absolute and relative variation thresholds are consistently established for each geographical area and for each portfolio,
taking into account their particularities and based on the principles described. The thresholds set by each geographical area are
included within the annual review process and, generally speaking, are in the range of 130% to 250% 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. For BBVA Mexico, the relative threshold for the
wholesale portfolio is between 180% and 200% and the absolute threshold is between 30 basis points and 80 basis points. For the
majority of the retail portfolio, the relative threshold is in the range of 170% and 250% and the absolute threshold between 10 and
100 basis points.
The establishment of absolute and relative thresholds, as well as their different levels, comply with the provisions of IFRS 9 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.

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For existing contracts before the implementation of IFRS 9, 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 IFRS 9, 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 methodol ogical 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 BBVA Group estimates these parameters using a proxy indicator derived from the set of variables included in the
macroeconomic scenarios provided by BBVA Research.
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.
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.

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Multiple scenario approach
IFRS 9 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, recovery plan, etc.
Additionally, BBVA Research produces alternative scenarios to the baseline scenario so as to meet the requirements under the
IFRS 9 standard.
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 judgement.
– 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. These areas are not symmetric with respect to the baseline scenario, as
the methodology used to generate alternative scenarios explicitly incorporates the asymmetry of macroeconomic risks.
In this regard, BBVA selects those quartiles of the distribution that allow for the capture of events that are sufficiently
differentiated from the central scenario, while remaining plausible and consistent with the forward-looking forecasting
framework, thereby excluding extreme scenarios typically associated with stress-testing exercises.
– 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. This non-linearity overlay ratio is calculated on a differentiated basis by accounting stage and risk segment, with the
objective of appropriately reflecting the varying sensitivity of expected credit losses to macroeconomic conditions across
portfolios. In addition, floors are applied to this ratio in order to prevent the consideration of negative values, thereby
ensuring that the use of multiple scenarios does not artificially reduce expected credit losses relative to those estimated
under the baseline scenario.
– BBVA Group 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 Group is based on the use of the most likely scenario, which is the baseline scenario, consistent with
other internal processes (ICAAP, budgeting, etc.). The impact of the use of multiple scenarios is subsequently incorporated,
calculated on the basis of the probability-weighted expected loss determined for each scenario.
On the other hand, the BBVA Group 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.

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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 (positive base and
negative scenarios) of the GDP growth, unemployment rate and House Price Index (HPI), for the most relevant countries where
they represent a significant factor, provided by BBVA Research, were used for the calculation of the ECL as of December 31, 2025:

POSITIVE SCENARIO OF GDP, UNEMPLOYMENT RATE AND HPI FOR THE MAIN GEOGRAPHICAL AREAS
| Spain |  | Mexico |  | Turkey
Date | GDP | Unemployment | HPI |  | GDP | Unemployment | HPI |  | GDP | Unemployment
2025 | 2.94 % | 9.89 % | 8.26 % |  | 0.69 % | 2.75 % | 4.81 % |  | 3.82 % | 8.52 %
2026 | 3.58 % | 7.08 % | 7.91 % |  | 2.74 % | 2.99 % | 4.37 % |  | 7.47 % | 8.65 %
2027 | 5.36 % | 6.52 % | 7.34 % |  | 3.94 % | 2.90 % | 4.17 % |  | 9.29 % | 7.89 %
2028 | 6.75 % | 6.09 % | 7.34 % |  | 3.65 % | 2.78 % | 4.47 % |  | 5.77 % | 7.98 %
2029 | 7.21 % | 5.81 % | 7.28 % |  | 3.58 % | 2.70 % | 4.65 % |  | 5.84 % | 8.29 %
2030 | 6.90 % | 5.61 % | 6.44 % |  | 3.55 % | 2.80 % | 4.63 % |  | 5.53 % | 8.45 %

| Peru |  | Argentina |  | Colombia
Date | GDP | Unemployment |  | GDP | Unemployment |  | GDP | Unemployment
2025 | 3.35 % | 5.98 % |  | 4.58 % | 8.17 % |  | 2.89 % | 8.64 %
2026 | 3.87 % | 6.06 % |  | 4.92 % | 7.97 % |  | 4.41 % | 8.43 %
2027 | 4.03 % | 5.94 % |  | 7.41 % | 6.91 % |  | 4.24 % | 8.24 %
2028 | 4.15 % | 5.79 % |  | 8.04 % | 5.77 % |  | 4.29 % | 8.06 %
2029 | 3.91 % | 5.69 % |  | 8.10 % | 4.80 % |  | 4.38 % | 8.15 %
2030 | 3.79 % | 5.59 % |  | 7.94 % | 3.97 % |  | 4.45 % | 8.16 %

BASE SCENARIO OF GDP, UNEMPLOYMENT RATE AND HPI FOR THE MAIN GEOGRAPHICAL AREAS
| Spain |  | Mexico |  | Turkey
Date | GDP | Unemployment | HPI |  | GDP | Unemployment | HPI |  | GDP | Unemployment
2025 | 2.90 % | 10.58 % | 8.24 % |  | 0.67 % | 2.75 % | 4.81 % |  | 3.75 % | 8.53 %
2026 | 2.39 % | 9.95 % | 6.67 % |  | 1.25 % | 3.08 % | 4.38 % |  | 3.97 % | 9.23 %
2027 | 2.03 % | 9.60 % | 3.35 % |  | 1.71 % | 3.13 % | 4.00 % |  | 5.46 % | 9.35 %
2028 | 1.96 % | 9.30 % | 1.61 % |  | 1.80 % | 3.06 % | 3.89 % |  | 3.20 % | 9.75 %
2029 | 1.96 % | 9.05 % | 1.20 % |  | 1.86 % | 3.01 % | 3.88 % |  | 4.06 % | 10.00 %
2030 | 1.99 % | 8.80 % | 1.04 % |  | 1.90 % | 3.12 % | 3.72 % |  | 4.03 % | 10.00 %

| Peru |  | Argentina |  | Colombia
Date | GDP | Unemployment |  | GDP | Unemployment |  | GDP | Unemployment
2025 | 3.34 % | 5.98 % |  | 4.47 % | 8.18 % |  | 2.68 % | 8.64 %
2026 | 3.09 % | 6.10 % |  | 3.02 % | 8.10 % |  | 2.81 % | 8.70 %
2027 | 2.58 % | 6.07 % |  | 3.04 % | 7.33 % |  | 2.76 % | 8.78 %
2028 | 2.78 % | 6.00 % |  | 2.99 % | 6.43 % |  | 2.98 % | 8.76 %
2029 | 2.67 % | 5.95 % |  | 3.04 % | 5.60 % |  | 3.13 % | 8.96 %
2030 | 2.63 % | 5.90 % |  | 2.99 % | 4.83 % |  | 3.22 % | 9.06 %

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.78

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

NEGATIVE SCENARIO OF GDP, UNEMPLOYMENT RATE AND HPI FOR THE MAIN GEOGRAPHICAL AREAS
| Spain |  | Mexico |  | Turkey
Date | GDP | Unemployment | HPI |  | GDP | Unemployment | HPI |  | GDP | Unemployment
2025 | 2.86 % | 11.26 % | 8.21 % |  | 0.63 % | 2.75 % | 4.80 % |  | 3.69 % | 8.53 %
2026 | 1.27 % | 12.81 % | 5.49 % |  | 0.11 % | 3.15 % | 4.38 % |  | 1.90 % | 9.55 %
2027 | (0.95) % | 12.65 % | (0.17) % |  | (0.13) % | 3.31 % | 3.86 % |  | 2.53 % | 10.33 %
2028 | (2.39) % | 12.49 % | (3.44) % |  | 0.24 % | 3.30 % | 3.41 % |  | 1.38 % | 11.01 %
2029 | (2.95) % | 12.28 % | (4.28) % |  | 0.40 % | 3.28 % | 3.25 % |  | 3.16 % | 11.14 %
2030 | (2.66) % | 11.98 % | (3.91) % |  | 0.45 % | 3.39 % | 2.96 % |  | 3.20 % | 10.97 %

| Peru |  | Argentina |  | Colombia
Date | GDP | Unemployment |  | GDP | Unemployment |  | GDP | Unemployment
2025 | 3.16 % | 5.99 % |  | 4.29 % | 8.18 % |  | 2.49 % | 8.65 %
2026 | 0.98 % | 6.24 % |  | 0.00 % | 8.32 % |  | 0.61 % | 9.04 %
2027 | 0.31 % | 6.35 % |  | (2.05) % | 7.88 % |  | 0.50 % | 9.56 %
2028 | 0.66 % | 6.38 % |  | (2.27) % | 7.20 % |  | 1.22 % | 9.76 %
2029 | 0.67 % | 6.41 % |  | (2.03) % | 6.48 % |  | 1.53 % | 10.09 %
2030 | 0.73 % | 6.42 % |  | (1.91) % | 5.72 % |  | 1.67 % | 10.29 %

The estimate for the then-following five years of the following rates, used in the measurement of the expected loss as of December
31, 2024, consistent with the latest estimates made public at that date, was:

POSITIVE SCENARIO OF GDP, UNEMPLOYMENT RATE AND HPI FOR THE MAIN GEOGRAPHICAL AREAS
| Spain |  | Mexico |  | Turkey
Date | GDP | Unemployment | HPI |  | GDP | Unemployment | HPI |  | GDP | Unemployment
2024 | 3.13 % | 10.97 % | 3.01 % |  | 1.25 % | 2.75 % | 4.57 % |  | 3.25 % | 8.79 %
2025 | 3.48 % | 8.78 % | 5.55 % |  | 2.48 % | 3.04 % | 4.85 % |  | 5.97 % | 9.89 %
2026 | 5.02 % | 8.17 % | 6.98 % |  | 3.87 % | 3.03 % | 4.38 % |  | 8.35 % | 9.27 %
2027 | 6.65 % | 7.64 % | 7.96 % |  | 3.54 % | 2.89 % | 4.82 % |  | 6.76 % | 8.80 %
2028 | 7.05 % | 7.21 % | 7.69 % |  | 3.58 % | 2.77 % | 5.12 % |  | 5.88 % | 8.81 %
2029 | 6.70 % | 6.96 % | 6.81 % |  | 3.52 % | 2.73 % | 5.46 % |  | 5.51 % | 8.96 %

| Peru |  | Argentina |  | Colombia
Date | GDP | Unemployment |  | GDP | Unemployment |  | GDP | Unemployment
2024 | 3.12 % | 6.59 % |  | (3.66) % | 10.37 % |  | 2.16 % | 10.20 %
2025 | 3.45 % | 6.55 % |  | 7.37 % | 8.67 % |  | 4.09 % | 10.07 %
2026 | 4.15 % | 6.44 % |  | 8.83 % | 7.13 % |  | 4.68 % | 9.72 %
2027 | 4.12 % | 6.31 % |  | 8.54 % | 5.92 % |  | 4.23 % | 9.11 %
2028 | 3.70 % | 6.20 % |  | 8.60 % | 5.05 % |  | 4.21 % | 8.55 %
2029 | 3.57 % | 6.12 % |  | 8.44 % | 4.50 % |  | 4.22 % | 7.95 %

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.79

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

BASE SCENARIO OF GDP, UNEMPLOYMENT RATE AND HPI FOR THE MAIN GEOGRAPHICAL AREAS
| Spain |  | Mexico |  | Turkey
Date | GDP | Unemployment | HPI |  | GDP | Unemployment | HPI |  | GDP | Unemployment
2024 | 3.09 % | 11.43 % | 2.99 % |  | 1.24 % | 2.75 % | 4.57 % |  | 3.18 % | 8.80 %
2025 | 2.29 % | 10.75 % | 4.32 % |  | 0.99 % | 3.13 % | 4.85 % |  | 2.48 % | 10.46 %
2026 | 1.69 % | 10.35 % | 2.99 % |  | 1.64 % | 3.25 % | 4.21 % |  | 4.52 % | 10.73 %
2027 | 1.86 % | 9.95 % | 2.24 % |  | 1.70 % | 3.17 % | 4.23 % |  | 4.18 % | 10.58 %
2028 | 1.80 % | 9.55 % | 1.61 % |  | 1.87 % | 3.08 % | 4.36 % |  | 4.11 % | 10.52 %
2029 | 1.80 % | 9.25 % | 1.41 % |  | 1.87 % | 3.04 % | 4.55 % |  | 4.01 % | 10.51 %

| Peru |  | Argentina |  | Colombia
Date | GDP | Unemployment |  | GDP | Unemployment |  | GDP | Unemployment
2024 | 3.10 % | 6.59 % |  | (3.76) % | 10.38 % |  | 1.96 % | 10.20 %
2025 | 2.67 % | 6.59 % |  | 5.48 % | 8.80 % |  | 2.49 % | 10.34 %
2026 | 2.70 % | 6.57 % |  | 4.47 % | 7.55 % |  | 3.19 % | 10.26 %
2027 | 2.75 % | 6.52 % |  | 3.48 % | 6.58 % |  | 2.92 % | 9.81 %
2028 | 2.45 % | 6.47 % |  | 3.54 % | 5.85 % |  | 2.96 % | 9.36 %
2029 | 2.41 % | 6.42 % |  | 3.48 % | 5.35 % |  | 2.99 % | 8.86 %

NEGATIVE SCENARIO OF GDP, UNEMPLOYMENT RATE AND HPI FOR THE MAIN GEOGRAPHICAL AREAS
| Spain |  | Mexico |  | Turkey
Date | GDP | Unemployment | HPI |  | GDP | Unemployment | HPI |  | GDP | Unemployment
2024 | 3.05 % | 11.88 % | 2.97 % |  | 1.20 % | 2.75 % | 4.56 % |  | 3.13 % | 8.80 %
2025 | 1.18 % | 12.71 % | 3.15 % |  | (0.16) % | 3.20 % | 4.86 % |  | 0.41 % | 10.79 %
2026 | (1.30) % | 12.50 % | (0.53) % |  | (0.20) % | 3.43 % | 4.07 % |  | 1.59 % | 11.71 %
2027 | (2.50) % | 12.24 % | (2.81) % |  | 0.14 % | 3.41 % | 3.76 % |  | 2.37 % | 11.83 %
2028 | (3.11) % | 11.88 % | (3.87) % |  | 0.40 % | 3.34 % | 3.72 % |  | 3.21 % | 11.67 %
2029 | (2.86) % | 11.53 % | (3.55) % |  | 0.42 % | 3.32 % | 3.79 % |  | 3.18 % | 11.47 %

| Peru |  | Argentina |  | Colombia
Date | GDP | Unemployment |  | GDP | Unemployment |  | GDP | Unemployment
2024 | 2.92 % | 6.60 % |  | (3.93) % | 10.38 % |  | 1.77 % | 10.21 %
2025 | 0.56 % | 6.73 % |  | 2.46 % | 9.02 % |  | 0.30 % | 10.68 %
2026 | 0.43 % | 6.85 % |  | (0.60) % | 8.10 % |  | 0.93 % | 11.04 %
2027 | 0.63 % | 6.90 % |  | (1.79) % | 7.35 % |  | 1.16 % | 10.81 %
2028 | 0.46 % | 6.93 % |  | (1.53) % | 6.73 % |  | 1.36 % | 10.49 %
2029 | 0.51 % | 6.95 % |  | (1.41) % | 6.25 % |  | 1.44 % | 10.09 %

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 for the Group and the main
portfolios and geographical areas is shown below:

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.80

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

EXPECTED LOSS VARIATION AS OF DECEMBER 31, 2025
| BBVA Group |  | Spain |  | Mexico |  |  | Turkey |
GDP | Total Portfolio | Retail | Companies | Debt securities |  | Total Portfolio | Companies | Retail |  | Total Portfolio | Companies | Retail |  | Total Portfolio | Companies | Retail
- 100 bps | 161 | 136 | 24 | 1 |  | 32 | 12 | 20 |  | 76 | 6 | 70 |  | 34 | 5 | 28
+100 bps | (168) | (144) | (23) | (1) |  | (31) | (12) | (19) |  | (86) | (5) | (81) |  | (33) | (5) | (27)
Housing price |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
- 100 bps |  |  |  |  |  |  |  | 29 |  |  |  |  |  |  |  |
+100 bps |  |  |  |  |  |  |  | (28) |  |  |  |  |  |  |  |

EXPECTED LOSS VARIATION AS OF DECEMBER 31, 2024
| BBVA Group |  | Spain |  | Mexico |  | Turkey
GDP | Total Portfolio | Retail | Companies | Debt securities |  | Total Portfolio | Companies | Retail |  | Total Portfolio | Companies | Retail |  | Total Portfolio | Companies | Retail
- 100 bps | 153 | 135 | 17 | 1 |  | 28 | 8 | 20 |  | 74 | 2 | 72 |  | 32 | 5 | 27
+100 bps | (170) | (145) | (20) | (1) |  | (26) | (8) | (18) |  | (92) | (3) | (89) |  | (33) | (9) | (21)
Housing price |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
- 100 bps |  |  |  |  |  |  |  | 28 |  |  |  |  |  |  |  |
+100 bps |  |  |  |  |  |  |  | (27) |  |  |  |  |  |  |  |

Estimation models and additional adjustments to expected loss measurement
The Group periodically reviews its individual estimates and its models for collective estimates of expected losses, as well as the
impact of macroeconomic scenarios considered for such purposes. It should be noted that, although these updates incorporate
the best information available at any given time, they may not fully reflect the most recent developments in the economic
environment, especially in contexts of high uncertainty and volatility or with respect to very recent events still underway.
Furthermore, the Group may supplement such expected losses to incorporate effects that may not be included therein, either
because it considers that there are additional risk factors, or because of the need to reflect sectoral particularities or those that
may affect a set of operations or borrowers. Those adjustments are made according to a formal internal approval process
established for this purpose, including, among others, the relevant committees of the Global Risk Management Committee
(hereinafter, "GRMC") as described in the General Risk Management and Control Model chapter of the Consolidated Management
Report.
As of December 31, 2025, the Group has not recorded any material adjustment to the models used in the estimation of expected
credit losses following the reversal and, to a lesser extent, the use of the €33 million recorded as of December 31, 2024 related to
the damage caused by Isolated Depression at High Levels (DANA) - in different Spanish municipalities between October 28 and
November 4, 2024. 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 transactions considered unlikely to pay mainly related to the mortgage portfolio, and €25
million in adjustments were recorded at a contract level in Turke y.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.81

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

7.2.2 Credit risk exposure
BBVA Group’s credit risk exposure by headings in the consolidated balance sheets as of December 31, 2025, 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 2025 | Stage 1 | Stage 2 | Stage 3
Financial assets held for trading |  | 90,634 |  |  |
Equity instruments | 10 | 9,901 |  |  |
Debt securities | 10 | 30,846 |  |  |
Loans and advances | 10 | 49,887 |  |  |
Non-trading financial assets mandatorily at fair value through profit or loss |  | 11,272 |  |  |
Equity instruments | 11 | 10,539 |  |  |
Debt securities | 11 | 192 |  |  |
Loans and advances | 11 | 541 |  |  |
Financial assets designated at fair value through profit or loss | 12 | 1,006 |  |  |
Derivatives (trading and hedging) |  | 49,141 |  |  |
Financial assets at fair value through other comprehensive income |  | 58,919 |  |  |
Equity instruments | 13 | 1,360 |  |  |
Debt securities |  | 57,046 | 57,020 | — | 25
Loans and advances |  | 513 | 24 | 488 | —
Financial assets at amortized cost |  | 581,271 | 536,123 | 30,765 | 14,383
Debt securities |  | 73,429 | 73,387 | 5 | 37
Loans and advances to central banks |  | 10,881 | 10,881 | — | —
Loans and advances to credit institutions |  | 24,263 | 24,230 | 34 | —
Loans and advances to customers |  | 472,697 | 427,625 | 30,727 | 14,346
Total financial assets risk |  | 792,242 |  |  |
Total loan commitments and financial guarantees |  | 312,578 | 303,063 | 8,839 | 676
Loan commitments given | 33 | 227,554 | 220,990 | 6,385 | 179
Financial guarantees given | 33 | 24,865 | 23,988 | 739 | 138
Other commitments given | 33 | 60,159 | 58,084 | 1,715 | 359
Total maximum credit exposure |  | 1,104,820 |  |  |

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.82

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

MAXIMUM CREDIT RISK EXPOSURE (MILLIONS OF EUROS)
| Notes | December 2024 | Stage 1 | Stage 2 | Stage 3
Financial assets held for trading |  | 72,945 |  |  |
Equity instruments | 10 | 6,760 |  |  |
Debt securities | 10 | 27,955 |  |  |
Loans and advances | 10 | 38,230 |  |  |
Non-trading financial assets mandatorily at fair value through profit or loss |  | 10,546 |  |  |
Equity instruments | 11 | 9,782 |  |  |
Debt securities | 11 | 407 |  |  |
Loans and advances | 11 | 358 |  |  |
Financial assets designated at fair value through profit or loss | 12 | 836 |  |  |
Derivatives (trading and hedging) |  | 53,229 |  |  |
Financial assets at fair value through other comprehensive income |  | 59,115 |  |  |
Equity instruments | 13 | 1,451 |  |  |
Debt securities |  | 57,639 | 55,315 | 2,309 | 16
Loans and advances | 13 | 25 | 25 | — | —
Financial assets at amortized cost |  | 514,086 | 467,910 | 31,930 | 14,246
Debt securities |  | 59,070 | 58,887 | 149 | 34
Loans and advances to central banks |  | 8,261 | 8,261 | — | —
Loans and advances to credit institutions |  | 22,668 | 22,658 | 8 | 2
Loans and advances to customers |  | 424,087 | 378,104 | 31,772 | 14,211
Total financial assets risk |  | 710,757 |  |  |
Total loan commitments and financial guarantees |  | 262,233 | 253,291 | 8,150 | 791
Loan commitments given | 33 | 188,515 | 182,830 | 5,524 | 160
Financial guarantees given | 33 | 22,503 | 21,513 | 798 | 192
Other commitments given | 33 | 51,215 | 48,948 | 1,828 | 439
Total maximum credit exposure |  | 972,990 |  |  |

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.83

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

MAXIMUM CREDIT RISK EXPOSURE (MILLIONS OF EUROS)
| Notes | December 2023 | Stage 1 | Stage 2 | Stage 3
Financial assets held for trading |  | 106,749 |  |  |
Equity instruments | 10 | 4,589 |  |  |
Debt securities | 10 | 28,569 |  |  |
Loans and advances | 10 | 73,590 |  |  |
Non-trading financial assets mandatorily at fair value through profit or loss |  | 8,737 |  |  |
Equity instruments | 11 | 7,963 |  |  |
Debt securities | 11 | 484 |  |  |
Loans and advances | 11 | 290 |  |  |
Financial assets designated at fair value through profit or loss | 12 | 955 |  |  |
Derivatives (trading and hedging) |  | 48,747 |  |  |
Financial assets at fair value through other comprehensive income |  | 62,289 |  |  |
Equity instruments | 13 | 1,217 |  |  |
Debt securities |  | 61,047 | 60,255 | 771 | 21
Loans and advances | 13 | 26 | 26 | — | —
Financial assets at amortized cost |  | 463,130 | 410,590 | 38,061 | 14,478
Debt securities |  | 49,544 | 49,403 | 108 | 32
Loans and advances to central banks |  | 7,176 | 7,176 | — | —
Loans and advances to credit institutions |  | 17,498 | 17,478 | 18 | 2
Loans and advances to customers |  | 388,912 | 336,533 | 37,935 | 14,444
Total financial assets risk |  | 690,606 |  |  |
Total loan commitments and financial guarantees |  | 214,283 | 204,842 | 8,411 | 1,030
Loan commitments given | 33 | 152,868 | 147,376 | 5,326 | 165
Financial guarantees given | 33 | 18,839 | 17,612 | 998 | 229
Other commitments given | 33 | 42,577 | 39,854 | 2,087 | 636
Total maximum credit exposure |  | 904,889 |  |  |

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 consolidated 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 in
which the criterion described below applies.
– The maximum credit risk exposure on financial commitments and guarantees granted is the maximum that the Group
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, 2025, there are no financial assets classified as purchased or originated credit-impaired in the consolidated
balance sheets of the BBVA Group.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.84

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

The breakdown by geographical area and stage of the maximum credit risk exposure, the accumulated allowances recorded and
the carrying amount of the loans and advances to customers recorded at amortized cost as of December 31, 2025, 2024 and 2023
is shown below:

DECEMBER 2025 (MILLIONS OF EUROS)
| Gross exposure | Accumulated allowances | Carrying amount
| Total | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3
Spain (1) | 261,536 | 239,762 | 15,141 | 6,633 | (4,699) | (528) | (602) | (3,569) | 256,838 | 239,235 | 14,539 | 3,064
Mexico | 100,699 | 91,333 | 6,549 | 2,817 | (3,482) | (1,346) | (629) | (1,507) | 97,217 | 89,987 | 5,919 | 1,310
Turkey (2) | 55,756 | 48,214 | 4,866 | 2,676 | (2,011) | (176) | (356) | (1,478) | 53,745 | 48,038 | 4,510 | 1,198
South America (3) | 53,331 | 46,988 | 4,140 | 2,203 | (2,095) | (373) | (299) | (1,423) | 51,235 | 46,614 | 3,841 | 780
Others | 1,375 | 1,327 | 31 | 16 | (9) | (1) | (1) | (7) | 1,366 | 1,326 | 30 | 9
Total (4) | 472,697 | 427,625 | 30,727 | 14,346 | (12,297) | (2,424) | (1,887) | (7,985) | 460,401 | 425,200 | 28,840 | 6,361
Of which: individual |  |  |  |  | (1,304) | (15) | (266) | (1,023) |  |  |  |
Of which: collective |  |  |  |  | (10,992) | (2,409) | (1,622) | (6,962) |  |  |  |

(1) Spain includes all countries where BBVA, S.A. operates.
(2) Turkey includes all countries in which Garanti BBVA operates.
(3) In South America, BBVA Group operates mainly in Argentina, Colombia, Peru and Uruguay.
(4) The amount of the accumulated allowances 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, 2025 , the remaining balance was €76 million). These valuation adjustments are recognized in the consolidated income statement during
the residual life of the relevant instruments or value corrections are made when the losses materialize.

DECEMBER 2024 (MILLIONS OF EUROS)
| Gross exposure | Accumulated allowances | Carrying amount
| Total | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3
Spain (1) | 232,185 | 208,969 | 15,637 | 7,579 | (4,684) | (543) | (631) | (3,510) | 227,501 | 208,426 | 15,006 | 4,069
Mexico | 91,717 | 83,053 | 6,147 | 2,517 | (3,055) | (1,210) | (542) | (1,303) | 88,662 | 81,843 | 5,605 | 1,214
Turkey (2) | 50,083 | 42,708 | 5,534 | 1,841 | (1,784) | (243) | (390) | (1,151) | 48,299 | 42,465 | 5,144 | 690
South America (3) | 48,897 | 42,204 | 4,431 | 2,262 | (2,079) | (393) | (283) | (1,403) | 46,818 | 41,811 | 4,148 | 860
Others | 1,205 | 1,170 | 23 | 12 | (9) | — | (1) | (7) | 1,197 | 1,170 | 22 | 4
Total (4) | 424,087 | 378,104 | 31,772 | 14,211 | (11,611) | (2,389) | (1,847) | (7,374) | 412,477 | 375,715 | 29,925 | 6,837
Of which: individual |  |  |  |  | (1,532) | (13) | (321) | (1,197) |  |  |  |
Of which: collective |  |  |  |  | (10,079) | (2,376) | (1,526) | (6,177) |  |  |  |

(1) Spain includes all countries where BBVA, S.A. operates.
(2) Turkey includes all countries in which Garanti BBVA operates.
(3) In South America, BBVA Group operates mainly in Argentina, Colombia, Peru and Uruguay.
(4) The amount of the accumulated allowances 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 remaining balance was €107 million). These valuation adjustments are recognized in the consolidated income statement during
the residual life of the relevant instruments or value corrections are made when the losses materialize.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.85

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

DECEMBER 2023 (MILLIONS OF EUROS)
| Gross exposure | Accumulated allowances | Carrying amount
| Total | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3
Spain (1) | 214,522 | 183,503 | 22,953 | 8,066 | (4,593) | (503) | (714) | (3,375) | 209,929 | 183,000 | 22,239 | 4,690
Mexico | 91,086 | 81,619 | 6,995 | 2,472 | (3,049) | (1,097) | (620) | (1,332) | 88,037 | 80,522 | 6,375 | 1,140
Turkey (2) | 39,058 | 34,105 | 3,234 | 1,719 | (1,641) | (167) | (314) | (1,160) | 37,416 | 33,938 | 2,920 | 559
South America (3) | 43,151 | 36,237 | 4,738 | 2,176 | (1,976) | (319) | (377) | (1,280) | 41,175 | 35,918 | 4,362 | 896
Others | 1,094 | 1,069 | 15 | 11 | (10) | — | (1) | (8) | 1,085 | 1,068 | 14 | 2
Total ⁽⁴⁾ | 388,912 | 336,533 | 37,935 | 14,444 | (11,269) | (2,087) | (2,026) | (7,156) | 377,643 | 334,446 | 35,909 | 7,287
Of which: individual |  |  |  |  | (1,665) | (15) | (471) | (1,179) |  |  |  |
Of which: collective |  |  |  |  | (9,604) | (2,072) | (1,555) | (5,977) |  |  |  |

(1) Spain includes all countries where BBVA, S.A. operates.
(2) Turkey includes all countries in which Garanti BBVA operates.
(3) In South America, BBVA Group operates mainly in Argentina, Colombia, Peru and Uruguay.
(4) The amount of the accumulated allowances 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 remaining balance was €142 million). These valuation adjustments are recognized in the consolidated income statement during the
residual life of the operations or are applied to the value corrections when the losses materialize.
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, 2025, 2024 and 2023 is shown below:

DECEMBER 2025 (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
General governments | 25,924 | 25,829 | 77 | 18 | (18) | (9) | (2) | (8) | 25,905 | 25,820 | 75 | 10
Other financial corporations | 23,547 | 23,435 | 101 | 11 | (25) | (16) | (1) | (7) | 23,522 | 23,419 | 100 | 3
Non-financial corporations | 221,504 | 204,454 | 11,932 | 5,118 | (4,113) | (591) | (561) | (2,961) | 217,390 | 203,862 | 11,371 | 2,157
Households | 201,723 | 173,907 | 18,617 | 9,199 | (8,140) | (1,808) | (1,324) | (5,008) | 193,583 | 172,100 | 17,293 | 4,190
Loans and advances to customers | 472,697 | 427,625 | 30,727 | 14,346 | (12,297) | (2,424) | (1,887) | (7,985) | 460,401 | 425,200 | 28,840 | 6,361

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
General governments | 22,133 | 21,982 | 125 | 26 | (23) | (8) | (7) | (8) | 22,111 | 21,974 | 118 | 18
Other financial corporations | 17,524 | 17,040 | 471 | 12 | (26) | (13) | (5) | (9) | 17,497 | 17,027 | 467 | 4
Non-financial corporations | 197,521 | 179,727 | 12,780 | 5,014 | (4,134) | (639) | (636) | (2,859) | 193,386 | 179,087 | 12,143 | 2,156
Households | 186,910 | 159,355 | 18,396 | 9,158 | (7,427) | (1,729) | (1,199) | (4,499) | 179,483 | 157,627 | 17,197 | 4,659
Loans and advances to customers | 424,087 | 378,104 | 31,772 | 14,211 | (11,611) | (2,389) | (1,847) | (7,374) | 412,477 | 375,715 | 29,925 | 6,837

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.86

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

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
General governments | 23,294 | 23,105 | 164 | 25 | (29) | (9) | (12) | (7) | 23,265 | 23,096 | 152 | 18
Other financial corporations | 13,271 | 13,072 | 187 | 12 | (20) | (9) | (4) | (7) | 13,251 | 13,062 | 183 | 6
Non-financial corporations | 175,337 | 154,519 | 15,299 | 5,520 | (4,274) | (517) | (795) | (2,962) | 171,063 | 154,002 | 14,503 | 2,558
Households | 177,009 | 145,837 | 22,286 | 8,886 | (6,946) | (1,552) | (1,214) | (4,180) | 170,063 | 144,285 | 21,071 | 4,706
Loans and advances to customers | 388,912 | 336,533 | 37,935 | 14,444 | (11,269) | (2,087) | (2,026) | (7,156) | 377,643 | 334,446 | 35,909 | 7,287

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, 2025, 2024 and 2023 is shown below:

DECEMBER 2025 (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 | — | 9 | — | 24 | 3,424 | 2,735 | 6,192 | 6,479
Credit card debt | — | 1 | — | 4 | 2,585 | 28,061 | 30,651 | 33,113
Commercial debtors |  | 1,019 | 135 | 1,600 | 31,541 | 131 | 34,426 | 34,723
Finance leases | — | 162 | — | 18 | 10,166 | 263 | 10,610 | 10,862
Reverse repurchase loans | — | 181 | 8,120 | 563 | — | — | 8,864 | 8,865
Other term loans | 10,141 | 23,871 | 10,418 | 17,027 | 168,758 | 162,253 | 392,469 | 401,489
Advances that are not loans | 727 | 665 | 5,704 | 4,286 | 1,530 | 380 | 13,292 | 13,342
LOANS AND ADVANCES | 10,869 | 25,907 | 24,377 | 23,522 | 218,004 | 193,824 | 496,503 | 508,872
By secured loans |  |  |  |  |  |  |  |
Of which: mortgage loans collateralized by immovable property |  | 213 | — | 889 | 31,091 | 102,431 | 134,624 | 137,107
Of which: other collateralized loans | — | 6,530 | 8,628 | 624 | 11,963 | 2,970 | 30,715 | 30,955
By purpose of the loan |  |  |  |  |  |  |  |
Of which: credit for consumption |  |  |  |  |  | 74,965 | 74,965 | 80,560
Of which: lending for house purchase |  |  |  |  |  | 103,397 | 103,397 | 104,890
By subordination |  |  |  |  |  |  |  |
Of which: project finance loans |  |  |  |  | 5,579 |  | 5,579 | 5,663

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.87

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

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 | — | 8 | — | 59 | 3,140 | 2,099 | 5,307 | 5,521
Credit card debt | — | 1 | — | 3 | 2,268 | 25,449 | 27,721 | 29,669
Commercial debtors |  | 1,077 | 71 | 1,244 | 29,247 | 125 | 31,764 | 32,023
Finance leases | — | 171 | — | 11 | 9,672 | 270 | 10,125 | 10,364
Reverse repurchase loans | — | 219 | 9,157 | 44 | — | — | 9,420 | 9,422
Other term loans | 7,803 | 20,519 | 7,529 | 11,771 | 148,167 | 151,313 | 347,102 | 356,002
Advances that are not loans | 452 | 117 | 5,960 | 4,365 | 1,084 | 353 | 12,330 | 12,397
LOANS AND ADVANCES | 8,255 | 22,111 | 22,719 | 17,497 | 193,579 | 179,610 | 443,769 | 455,399
By secured loans |  |  |  |  |  |  |  |
Of which: mortgage loans collateralized by immovable property |  | 245 | — | 680 | 29,307 | 97,627 | 127,860 | 130,633
Of which: other collateralized loans | — | 6,059 | 9,628 | 530 | 10,996 | 2,648 | 29,861 | 30,129
By purpose of the loan |  |  |  |  |  |  |  |
Of which: credit for consumption |  |  |  |  |  | 67,446 | 67,446 | 72,447
Of which: lending for house purchase |  |  |  |  |  | 98,570 | 98,570 | 100,218
By subordination |  |  |  |  |  |  |  |
Of which: project finance loans |  |  |  |  | 6,669 |  | 6,669 | 6,901

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 | — | 6 | — | 73 | 1,933 | 1,028 | 3,040 | 3,175
Credit card debt | — | 1 | — | 2 | 1,927 | 20,959 | 22,890 | 24,454
Commercial debtors |  | 960 | 76 | 586 | 23,462 | 88 | 25,171 | 25,346
Finance leases | — | 225 | — | 12 | 8,940 | 285 | 9,463 | 9,714
Reverse repurchase loans | 1,345 | — | 5,786 | 92 | — | — | 7,223 | 7,234
Other term loans | 4,878 | 21,662 | 5,329 | 9,300 | 134,024 | 147,491 | 322,683 | 331,813
Advances that are not loans | 927 | 412 | 6,312 | 3,186 | 956 | 324 | 12,116 | 12,164
LOANS AND ADVANCES | 7,151 | 23,265 | 17,502 | 13,251 | 171,241 | 170,175 | 402,586 | 413,901
By secured loans |  |  |  |  |  |  |  |
Of which: mortgage loans collateralized by immovable property |  | 271 | — | 526 | 24,829 | 96,772 | 122,397 | 125,328
Of which: other collateralized loans | 1,347 | 6,933 | 4,558 | 465 | 10,938 | 2,430 | 26,671 | 26,963
By purpose of the loan |  |  |  |  |  |  |  |
Of which: credit for consumption |  |  |  |  |  | 59,892 | 59,892 | 64,303
Of which: lending for house purchase |  |  |  |  |  | 97,555 | 97,555 | 99,224
By subordination |  |  |  |  |  |  |  |
Of which: project finance loans |  |  |  |  | 7,181 |  | 7,181 | 7,743

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.88

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

7.2.3 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
Group’s exposure. The BBVA Group 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 Group 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 the BBVA Group:
– 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 Group’s 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 Group’s legal units.
The valuation of the collateral is taken into account in the calculation of the expected losses. The Group 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).
– 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, 2025 is presented in Note 7.4.2.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.89

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

– 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, 2025, 2024 and 2023, the BBVA Group had no significant credit risk exposure of impaired financial
assets at fair value through other comprehensive income (see Note 7.2.2).
– 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 reverse repurchase agreements (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 7.2.5), shown by type of
collateral, as of December 31, 2025, 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 2025 | 14,346 | 2,496 | 495 | 7 | 83 | 907
December 2024 | 14,213 | 2,889 | 573 | 8 | 91 | 1,153
December 2023 | 14,446 | 3,167 | 771 | 5 | 91 | 1,226

The value of guarantees received as of December 31, 2025, 2024 and 2023, is the following:

GUARANTEES RECEIVED (MILLIONS OF EUROS) |  |  |
| 2025 | 2024 | 2023
Value of collateral | 151,746 | 144,844 | 136,141
Of which: guarantees normal risks under special monitoring | 11,626 | 11,318 | 14,274
Of which: guarantees non-performing risks | 3,081 | 3,562 | 4,035
Value of other guarantees | 65,944 | 56,589 | 53,462
Of which: guarantees normal risks under special monitoring | 3,999 | 4,273 | 4,864
Of which: guarantees non-performing risks | 907 | 1,153 | 1,226
Total value of guarantees received | 217,690 | 201,433 | 189,602

The maximum credit risk exposure of impaired financial guarantees and other commitments as of December 31, 2025, 2024 and
2023 amounts to €676 million, €791 million and €1,030 million, respectively (see Note 7.2.2).

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.90

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

7.2.4 Credit quality of financial assets that are neither past due nor impaired
The BBVA Group 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 Group 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.
– 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 BBVA Group in order to facilitate a homogeneous classification of its different risk portfolios.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.91

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

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 the gross carrying amount of loans and advances, contingent risk and commitments, in
percentage terms, of the BBVA Group, based on their probability of default within 12 months and internal rating used in the
calculation of the expected loss under IFRS 9, and their stages, as of December 31, 2025, 2024 and 2023:

PROBABILITY OF DEFAULT (BASIS POINTS) AND INTERNAL RATING
|  | 2025 |  | 2024 |  | 2023
|  | Subject to 12 month ECL (stage 1) | Subject to lifetime ECL (stage 2) |  | Subject to 12 month ECL (stage 1) | Subject to lifetime ECL (stage 2) |  | Subject to 12 month ECL (stage 1) | Subject to lifetime ECL (stage 2)
Internal rating | PDs | % | % |  | % | % |  | % | %
AAA | 0 to 2 | 5.2 | — |  | 3.2 | — |  | 3.8 | —
AA+ to AA- | 2 to 5 | 13.8 | — |  | 9.0 | — |  | 10.7 | 0.2
A+ to A- | 5 to 11 | 19.1 | 0.1 |  | 17.1 | — |  | 25.4 | 0.5
BBB+ to BBB- | 11 to 39 | 24.6 | 0.5 |  | 29.7 | 0.6 |  | 21.7 | 1.3
BB+ to BB- | 39 to 194 | 21.2 | 1.4 |  | 23.5 | 1.7 |  | 20.6 | 2.1
B+ to B- | 194 to 1,061 | 9.5 | 1.7 |  | 10.2 | 1.6 |  | 8.7 | 2.2
CCC+ to CCC- | 1,061 to 2,121 | 1.1 | 0.7 |  | 1.2 | 0.5 |  | 1.0 | 0.6
CC+ to C | > 2,121 | 0.5 | 0.6 |  | 0.7 | 0.9 |  | 0.5 | 0.8
| Total | 95.1 | 4.9 |  | 94.5 | 5.5 |  | 92.4 | 7.6

7.2.5 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, 2025 , 2024 and 2023 is as follows:

DECEMBER 2025 (MILLIONS OF EUROS) |  |  |
| Gross carrying amount | Impaired loans and advances | Accumulated impairment
Central banks | 10,881 | — | (12)
General governments | 25,924 | 18 | (18)
Credit institutions | 24,263 | — | (20)
Other financial corporations | 23,547 | 11 | (25)
Non-financial corporations | 221,504 | 5,118 | (4,113)
Households | 201,723 | 9,199 | (8,140)
LOANS AND ADVANCES | 507,842 | 14,346 | (12,329)

DECEMBER 2024 (MILLIONS OF EUROS) |  |  |
| Gross carrying amount | Impaired loans and advances | Accumulated impairment
Central banks | 8,261 | — | (6)
General governments | 22,133 | 26 | (23)
Credit institutions | 22,668 | 2 | (13)
Other financial corporations | 17,524 | 12 | (26)
Non-financial corporations | 197,521 | 5,014 | (4,134)
Households | 186,910 | 9,158 | (7,427)
LOANS AND ADVANCES | 455,016 | 14,213 | (11,630)

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.92

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

DECEMBER 2023 (MILLIONS OF EUROS) |  |  |
| Gross carrying amount | Impaired loans and advances | Accumulated impairment
Central banks | 7,176 | — | (25)
General governments | 23,294 | 25 | (29)
Credit institutions | 17,498 | 2 | (21)
Other financial corporations | 13,271 | 12 | (20)
Non-financial corporations | 175,337 | 5,520 | (4,274)
Households | 177,009 | 8,886 | (6,946)
LOANS AND ADVANCES | 413,585 | 14,446 | (11,316)

The changes during the years 2025, 2024 and 2023 of impaired financial assets and guarantees given are as follows:

CHANGES IN IMPAIRED FINANCIAL ASSETS AND GUARANTEES GIVEN (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Balance at the beginning | 14,891 | 15,362 | 14,521
Additions | 13,143 | 12,255 | 11,066
Decreases (1) | (6,893) | (7,346) | (5,795)
Net additions | 6,250 | 4,909 | 5,272
Amounts written-off | (4,534) | (4,559) | (3,770)
Exchange differences and other | (1,708) | (820) | (660)
Balance at the end | 14,900 | 14,891 | 15,362

(1) It reflects the total amount of impaired loans and advances derecognized from the consolidated balance sheet throughout the period as a result of monetary
recoveries as well as mortgage foreclosures and real estate assets received in lieu of payment.
The changes during the years 2025, 2024 and 2023 in financial assets derecognized from the consolidated 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 | 2025 | 2024 | 2023
Balance at the beginning |  | 25,343 | 24,787 | 22,595
Companies held for sale |  | — | — | —
Increase |  | 3,973 | 3,547 | 3,841
Decrease: |  | (4,199) | (2,801) | (2,035)
Re-financing or restructuring |  | (1) | (1) | (1)
Cash recovery | 47 | (396) | (403) | (369)
Foreclosed assets |  | (2) | (1) | (3)
Sales (1) |  | (2,831) | (1,719) | (1,201)
Debt forgiveness |  | (717) | (669) | (410)
Time-barred debt and other causes |  | (251) | (8) | (51)
Net exchange differences |  | (138) | (189) | 385
Balance at the end |  | 24,978 | 25,343 | 24,787

(1) Includes principal and interest.
As indicated in Note 2.2.1, although they have been derecognized from the consolidated balance sheet, the BBVA Group 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.

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7.2.6 Gross carrying amount and l oss allowances
Movements, measured over a 12-month period, in gross accounting balances and accumulated loss allowances during 2025, 2024
and 2023 are recorded on the consolidated balance sheet as of December 31, 2025, 2024 and 2023 in order to cover the
estimated impairment or reversal of impairment on loans and advances at fair value with changes through other comprehensive
income and in loans and advances at amortized cost:

CHANGES IN GROSS CARRYING AMOUNT OF LOANS AND ADVANCES AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME AND AT AMORTIZED COST. YEAR 2025 (MILLIONS OF EUROS)
| Stage 1 | Stage 2 | Stage 3 | Total
Balance at the beginning | 409,023 | 31,780 | 14,213 | 455,016
Transfers of financial assets: | (6,114) | 4,337 | 1,777 | —
from stage 1 to stage 2 | (11,473) | 11,473 | — | —
from stage 2 to stage 1 | 6,746 | (6,746) | — | —
to stage 3 | (2,784) | (1,704) | 4,488 | —
from stage 3 | 1,397 | 1,314 | (2,711) | —
Net annual origination of financial assets | 71,144 | (2,835) | 2,025 | 70,335
Becoming write-offs | (428) | (104) | (3,634) | (4,165)
Changes in model / methodology | — | — | — | —
Foreign exchange | (11,291) | (1,310) | (394) | (12,996)
Modifications that do not result in derecognition | (23) | 133 | 180 | 290
Other | 450 | (754) | 180 | (124)
Balance at the end | 462,761 | 31,248 | 14,346 | 508,355

CHANGES IN ALLOWANCES OF LOANS AND ADVANCES AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME AND AT AMORTIZED COST. YEAR 2025 (MILLIONS OF EUROS)
| Stage 1 | Stage 2 | Stage 3 | Total
Balance at the beginning | (2,406) | (1,848) | (7,375) | (11,630)
Transfers of financial assets: | 157 | (349) | (3,498) | (3,690)
from stage 1 to stage 2 | 117 | (870) | — | (753)
from stage 2 to stage 1 | (60) | 320 | — | 260
to stage 3 | 109 | 282 | (4,030) | (3,639)
from stage 3 | (9) | (81) | 532 | 442
Net annual origination of allowances | (864) | (254) | (455) | (1,573)
Becoming write-offs | 413 | 100 | 3,283 | 3,796
Changes in model / methodology | — | — | — | —
Foreign exchange | 86 | 204 | 446 | 737
Modifications that do not result in derecognition | 2 | (13) | (515) | (525)
Other | 158 | 207 | 128 | 493
Balance at the end | (2,455) | (1,953) | (7,985) | (12,394)

For the year ended December 31, 2025, 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 €6,073
million (€5,745 million and €4,428 million for the years ended December 31, 2024 and 2023, respectively) (see Note 47).

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CHANGES IN GROSS CARRYING AMOUNT OF LOANS AND ADVANCES AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME AND AT AMORTIZED COST. YEAR 2024 (MILLIONS OF EUROS)
| Stage 1 | Stage 2 | Stage 3 | Total
Balance at the beginning | 361,186 | 37,953 | 14,446 | 413,585
Transfers of financial assets: | (4,032) | 1,625 | 2,407 | —
from stage 1 to stage 2 | (11,840) | 11,840 | — | —
from stage 2 to stage 1 | 9,830 | (9,830) | — | —
to stage 3 | (3,260) | (1,949) | 5,208 | —
from stage 3 | 1,238 | 1,564 | (2,801) | —
Net annual origination of financial assets | 64,222 | (6,378) | 1,108 | 58,952
Becoming write-offs | (333) | (112) | (3,149) | (3,594)
Foreign exchange | (13,508) | (1,137) | (557) | (15,203)
Modifications that do not result in derecognition | 29 | 78 | 36 | 144
Other | 1,460 | (250) | (78) | 1,131
Balance at the end | 409,023 | 31,780 | 14,213 | 455,016

During 2024, the criteria for identifying significant increases in credit risk were reviewed and updated. As part of this update,
certain very short-term portfolio transactions, as well as those meeting the expanded definition of the low credit risk exception
(see Note 2.2.1), were exempted from the transfer based on quantitative criteria. These modifications resulted in a significant
reduction in the Stage 2 balance at the Group level during the last quarter of 2024, with the impact of these measures primarily
concentrated in BBVA, S.A.

CHANGES IN ALLOWANCES OF LOANS AND ADVANCES AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME AND AT AMORTIZED COST. YEAR 2024 (MILLIONS OF EUROS)
| Stage 1 | Stage 2 | Stage 3 | Total
Balance at the beginning | (2,131) | (2,026) | (7,158) | (11,316)
Transfers of financial assets: | 105 | (370) | (2,766) | (3,031)
from stage 1 to stage 2 | 103 | (697) | — | (594)
from stage 2 to stage 1 | (53) | 327 | — | 275
to stage 3 | 93 | 146 | (3,498) | (3,259)
from stage 3 | (38) | (146) | 732 | 548
Net annual origination of allowances | (1,059) | 10 | (1,125) | (2,174)
Becoming write-offs | 321 | 107 | 2,909 | 3,337
Foreign exchange | 325 | 213 | 1,075 | 1,613
Modifications that do not result in derecognition | 3 | 35 | (342) | (304)
Other | 30 | 183 | 33 | 246
Balance at the end | (2,406) | (1,848) | (7,375) | (11,630)

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CHANGES IN GROSS CARRYING AMOUNT OF LOANS AND ADVANCES AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME AND AT AMORTIZED COST. YEAR 2023 (MILLIONS OF EUROS)
| Stage 1 | Stage 2 | Stage 3 | Total
Balance at the beginning | 341,944 | 33,636 | 13,493 | 389,073
Transfers of financial assets: | (11,647) | 10,463 | 1,184 | —
from stage 1 to stage 2 | (18,172) | 18,172 | — | —
from stage 2 to stage 1 | 7,639 | (7,639) | — | —
to stage 3 | (3,203) | (2,297) | 5,500 | —
from stage 3 | 2,089 | 2,226 | (4,316) | —
Net annual origination of financial assets | 34,334 | (5,233) | 2,663 | 31,764
Becoming write-offs | (186) | (76) | (2,889) | (3,150)
Foreign exchange | (2,833) | (635) | (369) | (3,838)
Modifications that do not result in derecognition | (60) | (16) | 476 | 401
Other | (365) | (187) | (112) | (665)
Balance at the end | 361,186 | 37,953 | 14,446 | 413,585

CHANGES IN ALLOWANCES OF LOANS AND ADVANCES AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME AND AT AMORTIZED COST. YEAR 2023 (MILLIONS OF EUROS)
| Stage 1 | Stage 2 | Stage 3 | Total
Balance at the beginning | (2,065) | (1,942) | (7,284) | (11,291)
Transfers of financial assets: | 73 | (336) | (2,527) | (2,790)
from stage 1 to stage 2 | 118 | (681) | — | (563)
from stage 2 to stage 1 | (113) | 323 | — | 210
to stage 3 | 81 | 120 | (2,935) | (2,734)
from stage 3 | (13) | (97) | 408 | 297
Net annual origination of allowances | (466) | (148) | (232) | (846)
Becoming write-offs | 147 | 71 | 2,853 | 3,071
Foreign exchange | (52) | 44 | 169 | 160
Modifications that do not result in derecognition | 3 | 49 | (304) | (252)
Other | 229 | 235 | 167 | 631
Balance at the end | (2,131) | (2,026) | (7,158) | (11,316)

The loss allowances recorded in the balance sheet to cover the impairment estimated in the debt securities amounted to €94
million, €169 million and €166 million as of December 31, 2025, 2024 and 2023, respectively. The variation is mainly due to
changes in credit risk variations, mainly in Garanti BBVA, BBVA, S.A. and BBVA Argentina.
Additionally, the loss allowances recorded in the balance sheet to cover the impairment estimated in the commitments and
guarantees given amounted to €725 million, €670 million and €770 million as of December 31, 2025, 2024 and 2023, respectively
(see Note 24). The variation is mainly driven by changes due to origination and acquisition in Garanti BBVA.

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7.2.7 Refinancing and restructuring transactions
Group policies and principles with respect to refinancing and restructuring transactions
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.

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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.
The Group generally 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, ii)
the time when the exposure was classified as deteriorated, iii) the end of any grace period included in restructuring
agreements.
– 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.

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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%.
For quantitative information on refinancing and restructuring transactions see Appendix X.
7.2.8 Risk concentration
Policies for preventing excessive risk concentration
In order to prevent the build-up of excessive risk concentrations at the individual, sector, portfolio and geography levels, BBVA
Group maintains updated maximum permitted risk concentration indices which are tied to the various observable variables related
to concentration risk.
Together with the limits for individual concentration, the Group uses the Herfindahl index to measure the concentration of the
Group's portfolio and the banking group's subsidiaries. At the BBVA Group level, the index reached implies a "very low" degree of
concentration.
The limit on the Group’s exposure or financial commitment to a specific customer therefore depends on the customer’s credit
rating, the nature of the risks involved, and the Group’s presence in a given market, based on the following guidelines:
– The aim is, as much as possible, to reconcile the customer's credit needs (commercial/financial, short-term/long-term,
etc.) with the interests of the Group.
– Any legal limits that may exist concerning risk concentration are taken into account (relationship between risks with a
customer and the capital of the shareholder´s entity that assumes them), the markets, the macroeconomic situation, etc.
– The aim is to seek inter and intra-sector diversification in coherence with the metrics defined in the RAF for the Group and
for the banking group's subsidiaries.
Risk concentrations by geographical area
The breakdown of the main figures in the most significant foreign currencies in the consolidated balance sheets is set forth in
Appendix XI.

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Sovereign risk concentration
Sovereign risk management
The identification, measurement, control and monitoring of risk associated with sovereign risk transactions is carried out by a
centralized unit within the BBVA Group's Risk Area. Its basic functions are preparing reports (called financial programs) on the
countries with which it maintains cross-border risks (i.e. risks taken in a foreign currency from outside the country with borrowers
in the country, whether public or private) and sovereign risks (i.e. risks with the local Sovereign of the country where the risk-taking
unit is located), monitoring those risks, establishing risk limits, assigning ratings to the countries analyzed and, in general,
supporting the Group in any information request regarding this type of transaction. The risk policies established in the financial
programs are approved by the relevant risk committees.
The country risk unit tracks the evolution of the risks associated with the various countries to which the Group are exposed
(including sovereign risk) on an ongoing basis in order to adapt its risk and mitigation policies to any macroeconomic and political
changes that may occur. Moreover, it regularly updates its internal ratings and forecasts for these countries. The methodology is
based on the assessment of quantitative and qualitative parameters which are in line with those used by certain multilateral
organizations (the International Monetary Fund (IMF), the World Bank, etc.) rating agencies and export credit organizations.
For additional information on sovereign risk see Appendix XI.
Policies for Risk related to the developer and Real Estate sector in Spain
Policies and strategies established by the Group to deal with risks related to the developer and real estate
sector
BBVA Group 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 risk teams, but throughout the handling, commercial, problem risks and
legal, etc. It also includes the research department of the BBVA Group (BBVA Research), which helps determine the medium/
long-term vision needed to manage this portfolio. The 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 within a sector is
highly cyclical.
Specific policies for analysis and granting of new developer risk transactions
In the analysis of new transactions, the assessment of the commercial operation in terms of the economic and financial viability of
the project has been one of the constant. The monitoring of the work, sales prospects and the legal situation of the project are
essential aspects for the admission and follow-up of new real estate transactions. With regard the participation of the Risk
Acceptance teams, they have a direct link and participate in the committees of areas such as Valuation, Legal, BBVA Research and
Recoveries. This guarantees coordination and exchange of information in all the processes.
In this context, and within the current Real Estate cycle, the strategy with clients 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.
Risk monitoring policies
The base information for analyzing the real estate portfolios is updated monthly. There is a systematic monitoring of
developments under close monitoring with the evolution of works and sales.
Policies applied in the management of real estate assets in Spain
The internal Rules on Real Estate Financing, which establish recommendations for financing a new housing development business,
are reviewed and updated annually.

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The recommendations represent guidelines about how to manage the credit admission activity of BBVA Group entities based on
best practices of markets in which this activity is performed. It is expected that a high percentage of the current transactions will
be in compliance with the latter.
Risk concentration related to the developer and Real Estate sector in Spain
As of December 31, 2025, there is no risk concentration in the developer and real estate sector, taking into account that its weight
in total wholesale risks in Spain was approxi mately 10%, while compared with the total risks in the portfolio (wholesale and retail),
the Real Estate risk assumed was around 4%.
For quantitative information about the risk related to the developer and Real Estate sector in Spain see Appendix XI.
7.3 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 Group, the following types of structural risks are defined, according to their nature: interest rate risk, credit spread risk,
exchange rate risk, equity risk, and actuarial risk.
The scope of structural risks in the Group excludes market risks in the trading book that are clearly delimited and separated and
are part of the Market Risks category.
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.

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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.
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.
7.3.1 I nterest 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, these risks 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 the banking book is aimed at limiting the equity impact of market credit spread
movements on the valuation of the structural balance sheet, mainly associated with fixed income instruments which are used in
balance sheet risk management. The objective is to keep this risk at levels consistent with the equity of the Group, while controlling
the effect on earnings through net interest income and the mark-to-market of instruments accounted for at fair value.
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 BBVA Group.
IRRBB management is decentralized, and is carried out in each entity included in the structural balance sheet (banking book) of
the BBVA Group 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 Group, and in compliance with the
regulatory requirements of the EBA guidelines.

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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 IRRBB and CSRBB in the banking book 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 Group, 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 Group 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.
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.
In view of the heterogeneity of the financial markets, customers and products in the multiple jurisdictions, each one of the entities
of the Group is responsible for determining the local behavior assumptions to be applied to the balance sheet items, always under
the guidelines and the applicability of the corporate models existing in the Group.
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 (see Glossary).

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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.
The tables below shows the profile of average structural interest rate risk and credit spread risk of the fixed income portfolio in the
banking book classified as "Financial assets at fair value through other comprehensive income" in terms of sensitivities of the main
currencies for the BBVA Group in 2025 and 2024:

SENSITIVITY TO INTEREST RATE AND CREDIT SPREAD ANALYSIS. YEAR 2025 |  |
| Interest rate risk |  | Credit spread
| Impact on net interest income (1) |  | Impact on economic value (2) |  | Impact on economic value (2)
| 100 basis point increase | 100 basis point decrease |  | 100 basis point increase | 100 basis point decrease |  | 100 basis point increase
Euro | [0.5% , 1.5%] | [-1.5% , -0.5%] |  | [-2.5% , -1.5%] | [1.5% , 2.5%] |  | [-1.5% , -0.5%]
Mexican peso | [0.5% , 1.5%] | [-1.5% , -0.5%] |  | [-1.5% , -0.5%] | [0.5% , 1.5%] |  | [-0.5% , 0.5%]
U.S. dollar | [0.5% , 1.5%] | [-1.5% , -0.5%] |  | [0.5% , 1.5%] | [-1.5% , -0.5%] |  | [-0.5% , 0.5%]
Turkish lira | [-0.5% , 0.5%] | [-0.5% , 0.5%] |  | [-0.5% , 0.5%] | [-0.5% , 0.5%] |  | [-0.5% , 0.5%]
Other | [-0.5% , 0.5%] | [-0.5% , 0.5%] |  | [-0.5% , 0.5%] | [-0.5% , 0.5%] |  | [-0.5% , 0.5%]
BBVA Group | [1.5% , 2.5%] | [-2.5% , -1.5%] |  | [-4.5% , -3.5%] | [2.5% , 3.5%] |  | [-1.5% , -0.5%]

(1) Percentage of "12 months" net interest income for the BBVA Group.
(2) Percentage of CET1 December 2025 (Fully Loaded) for BBVA Group.

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SENSITIVITY TO INTEREST RATE AND CREDIT SPREAD ANALYSIS. YEAR 2024 |  |
| Interest rate risk |  | Credit spread
| Impact on net interest income (1) |  | Impact on economic value (2) |  | Impact on economic value (2)
| 100 basis point increase | 100 basis point decrease |  | 100 basis point increase | 100 basis point decrease |  | 100 basis point increase
Euro | [0.5% , 1.5%] | [-1.5% , -0.5%] |  | [-2.5% , -1.5%] | [0.5% , 1.5%] |  | [-1.5% , -0.5%]
Mexican peso | [0.5% , 1.5%] | [-1.5% , -0.5%] |  | [-1.5% , -0.5%] | [0.5% , 1.5%] |  | [-0.5% , 0.5%]
U.S. dollar | [0.5% , 1.5%] | [-1.5% , -0.5%] |  | [0.5% , 1.5%] | [-1.5% , -0.5%] |  | [-0.5% , 0.5%]
Turkish lira | [-0.5% , 0.5%] | [-0.5% , 0.5%] |  | [-0.5% , 0.5%] | [-0.5% , 0.5%] |  | [-0.5% , 0.5%]
Other | [-0.5% , 0.5%] | [-0.5% , 0.5%] |  | [-0.5% , 0.5%] | [-0.5% , 0.5%] |  | [-0.5% , 0.5%]
BBVA Group | [1.5% , 2.5%] | [-3.5% , -2.5%] |  | [-3.5% , -2.5%] | [2.5% , 3.5%] |  | [-1.5% , -0.5%]

(1) Percentage of "12 months" net interest income for the BBVA Group.
(2) Percentage of CET1 December 2024 (Fully Loaded) for BBVA Group.
At an aggregate level, BBVA continues to maintain a moderate 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.
The y ear 2025 was influenced by the geopolitical context, notably the increase in U.S. tariffs, as well as developments and
expectations regarding inflation and central bank actions. In the United States, there were declines across the entire interest rate
curve due to the deceleration signs and greater prospects for interest rate cuts by the Federal Reserve. In contrast, Europe saw a
rebound in yields, particularly at the long end of the curve, mainly due to the change of course in Germany's fiscal policy. The
peripheral curves are still supported, with spreads against German bonds narrowing over the year. In Mexico, the sovereign curve
fell in line with U.S. rates. In Turkey, yield curves were more volatile as a result of both the political situation and inflation trends
and expectations. However, it is worth noting the favorable performance of Credit Default Swaps ("CDS") and sovereign bonds
denominated in hard currency since March 2025. Lastly, in South America, the curves showed mixed performance, with upturns in
some regions, such as Colombia, and downturns in others, such as Peru. Overall, ALCO portfolios performed positively in 2025.
With respect to 2025, the most relevant aspects of the main geographic areas where the Group operates were the following:
– Spain had 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 acted as a
management lever and hedge for the balance sheet, mitigating its sensitivity to interest rate fluctuations. The exposure of
net interest income to movements in interest rates remained limited. The ECB cut interest rates by a total of 100 basis
points throughout the year until its meeting in July 2025, due to the convergence of inflation towards the target, and kept
them unchanged in its last meeting in December 2025. Thus, the benchmark interest rate in the euro area stood at 2.15%
at the end of December 2025, the rate on the deposit facility at 2.00% and the rate on the marginal lending facility at
2.40%.
– Mexico continued to show a balance between fixed and variable interest rates balances, which resulted in a limited
sensitivity to interest rates fluctuations. Among the assets that were most sensitive to interest rate changes, the
commercial portfolio stood out, while consumer and mortgage portfolios were mostly at a fixed rate. With regard to
customer deposits, the high proportion of non-interest bearing deposits, which are insensitive to interest rate
movements, should be highlighted. The ALCO portfolio was invested primarily in fixed-rate sovereign bonds with limited
durations. The monetary policy rate stood at 7.0% at the end of December 31, 2025, 300 basis points below the end of
2024.
– In Turkey, the sensitivity of net interest income to rates remained limited in both local and foreign currencies thanks to the
bank's management, with a low repricing gap between loans and deposits. The Central Bank of the Republic of Turkey
("CBRT") has continued its monetary easing process supported by improved inflation, setting the monetary policy rate at

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38.0% at the end of December 2025, which represents a decrease of 950 basis points since the end of December of the
previous year.
– In South America, the sensitivity of net interest income continued to be limited, since most of the countries in the area
had a fixed/variable balance composition between assets and liabilities. In addition, in balance sheets with several
currencies, the interest rate risk is managed for each of the currencies, showing a very low level of exposure. Regarding
benchmark interest rates, in Argentina, the central bank abandoned the official interest rate as a monetary anchor and
began to regulate the monetary base using other tools such as setting reserve requirements or intervening in the foreign
exchange market for its management. In Colombia, the reference rate stood at 9.25%, 25 basis points below the end of
2024. In Peru, the official monetary policy rate closed at 4.25%, 75 basis points below the previous year's closing level.
7.3.2 Structural exchange rate risk
Structural exchange rate risk is defined as the possibility of impacts on solvency, equity value and results driven by fluctuations in
the exchange rates due to exposures in foreign currencies.
Structural exchange rate risk is inherent to the business of international banking groups, such as BBVA, that develop their
activities in different geographical areas and currencies. At a consolidated level, structural exchange rate risk arises from the
consolidation of holdings in subsidiaries with functional currencies other than the euro. Its management is centralized in order to
optimize the joint management of permanent foreign currency exposures, taking diversification into account.
The purpose of structural exchange rate risk management is protecting solvency by limiting volatility of the consolidated CET1
ratio and income to consolidate denominated in a currency other the euro in the Group, as well as to limit the capital requirements
under exchange rate fluctuations to which the Group is exposed due to its international diversification. The ALM Global corporate
unit, through the ALCO, is responsible for the management of this risk all through an active hedging policy, deliberately taken for
each objective, and fully aligned with the management strategy.
At the corporate level, the risk monitoring metrics included in the limits framework are aligned with the Risk Appetite Framework,
and are targeted to control the effects on the solvency through the economic capital metric and the fluctuations in the Common
Equity Tier I fully loaded (CET1 fully loaded) consolidated ratio, as well as the maximum deviation in the Group's attributable profit.
The probabilistic metrics make it possible to estimate the joint impact of exposure to different currencies taking into account the
different variability in exchange rates and their correlations. These metrics are supplemented with additional assessment
indicators.
The suitability of these risk assessment metrics is reviewed on a regular basis through backtesting exercises. The final element of
structural exchange rate risk control is the stress and scenario analysis aimed to assess the vulnerabilities of foreign currency
structural exposure not contemplated by the risk metrics and to serve as an additional tool when making management decisions.
The scenarios are based both on historical situations simulated by the risk model and on the risk scenarios provided by BBVA
Research.
The purpose of the exchange rate risk management of BBVA's long-term investments, which arises mainly from its foreign
subsidiari es, is to preserve the capital ratios of the Group and to maintain the stability of the profits. During 2025, the U.S. dollar
depreciated significantly against the euro (-11.6%). This depreciation was concentrated in the first half of the year, when the
aggressiveness of the U.S. tariff policy generated a climate of distrust towards the dollar. Among emerging market currencies, the
Mexican peso stood out with an appreciation (+2.0% against the euro), supported by the perception of Mexico as a relative winner
of the trade war. The Turkish lira was heavily penalized in 2025 (-27.2%), reflecting high inflation, which is nevertheless gradually
declining. Regarding the performance of South American currencies, the Peruvian sol weakened against the euro (-1.2%), the
Colombian peso appreciated (+3.8%), while the Chilean peso depreciated by -2.9%. Finally, the Argentine peso experienced a very
significant depreciation (-37.4%), in an environment still marked by macroeconomic adjustments and high financial volatility,
despite progress in the economic stabilization process.

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BBVA maintains active management policies for its main investments in emerging countries with the objective of achieving, on
average, a hedging level of between 40% and 50% of the aggregate attributable profit in non-euro currencies that the Group
expects to generate over the next twelve months; and between 50% and 70% of the aggregate excess capital in non-euro
currencies within CET1. With respect to this solvency ratio, the sensitivities estimated as of December 31, 2025 to 10% currency
depreciations are as follows: Mexican peso (-14 basis points), Turkish lira (-3 basis points) and U.S. dollar (+12 basis points).
For the years 2025, 2024 and 2023, the estimated sensitivities (in absolute terms) of the result attributable to the parent company
are shown below, taking into account the coverage, against depreciations and appreciations of 1% of the average rate in the main
currencies. To the extent that hedging positions are periodically modulated, the sensitivity estimate attempts to reflect an average
(or effective) sensitivity in the year:

SENSITIVITY TO 1% CHANGE (MILLIONS OF EUROS)
Currency | 2025 | 2024 | 2023
Mexican peso | 11.4 | 27.8 | 25.8
Turkish lira | 4.3 | 3.3 | 4.4
Peruvian sol | 1.7 | 1.4 | 0.9
Chilean peso | 0.4 | 0.2 | 0.2
Colombian peso | 0.7 | 0.4 | 1.0
Argentine peso | 1.3 | 1.8 | 1.3
U.S. dollar | 3.3 | 0.3 | 0.2

7.3.3 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.

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For the third consecutive year, global equity markets posted significant gains in 2025, with double-digit increases in both Europe
and the United States. Following an optimistic start to the year, supported by a presumed pro-market orientation of the U.S.
administration, equity markets experienced a sharp setback in April after the United States announced substantial import tariffs
during the so-called “Liberation Day.” Nevertheless, the potential import tariff escalation subsequently subsided, paving the way
for a strong equity rally that continued uninterrupted through year-end. In the United States, the communications and technology
sectors led the advances, while in Europe the banking sector delivered a strong performance, topping European markets for the
second year in a row. From a geographical perspective, the Spanish stock market was among the strongest performers in Europe,
also driven by the financial sector, enabling it to surpass its historical peak for the first time since 2007.
Structural equity risk, measured in terms of economic capital, has not experienced any material changes over the past year. 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, 2025, the same as at December 31, 2024. 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.
7.3.4 Actuarial risk
Actuarial risk comprises the deviations that may arise between the assumptions used to measure the commitments arising from
insurance or social security products and the actual experience observed. This risk encompasses underwriting risk, given that
insurance liabilities have a probabilistic nature insofar as they depend on the behavior of insured events. Thus, the risk emerges
when there are deviations in the estimation of claims, whether in terms of the number or amount of such claims or the timing of
their occurrence.
The Group carries out appropriate risk identification, measurement and monitoring, and develops risk policies, including the
definition and application of capital-measurement models. Within underwriting risk, biometric risk is also probabilistic, as it
depends on deviations from the expected behavior of policyholders’ survival. In order to mitigate biometric risk, the Group
monitors the evolution of mortality rates across its main insured portfolios and performs back-testing of economic assumptions
used to estimate liability cash flows.
BBVA Group manages actuarial risk through a policy aligned with the applicable regulatory framework, which includes, among
others, tasks aimed at assessing assumptions and estimates and verifying the adequacy of technical provisions. Likewise, the
assessment of the technical information used to calculate the Minimum Capital Requirement (MCR), the Own Risk and Solvency
Assessment (ORSA), the underwriting policy and reinsurance agreements forms part of its responsibilities. The insurance activity
is fully integrated into the BBVA Group's risk management framework. From the definition of the risk appetite to the management
limits, the governance model, the admission process, the organizational scheme and the development of computer systems/
models, everything is designed with a global approach and under consistent and homogeneous criteria, aligned with other financial
business of the BBVA Group (see Note 23).
Additionally, for employee pension commitments, actuarial risk is managed through external funds and insurance contracts whose
investments are subject to diversified asset and insurance investment policies. These are aligned with the maturities of the
commitments and allow, together with the contributions made, the payment of benefits when due and the mitigation of existing
risks in the plans (see Note 25).

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7.4 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 Group'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 and credit spread, exchange rate and equity (see Note 7.3).
Additionally, market risk may be affected by ESG factors due to the effect they may have on the Group, clients and counterparties
(see Note 7.1).
7.4.1 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.
– Other less relevant risks for the Group include inflation risk, correlation risk and market liquidity risk (see Glossary).
The metrics developed to control and monitor market risk in the BBVA Group 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 Group's Global Markets units, both under ordinary circumstances and in situations of heightened risk factors.

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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 (see Glossary).
With respect to the risk measurement models used by the BBVA Group, 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. and BBVA Mexico trading
book, which jointly accounted for around 73%, 66% and 76% of the Group’s trading-book market risk as of December 31, 2025,
2024 and 2023. For the rest of the geographical areas where the Group operates (applicable mainly to the Group´s South America
subsidiaries and Garanti BBVA), bank capital for the risk positions in the trading book is calculated using the Standardized
Approach defined by the Basel Committee on Banking Supervision (which is referred to herein as the "standard model”).
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
Group’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.
– 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.

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– 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 CDO s (Collateralized
Debt Obligations) 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 Group. 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).
Backtesting is performed at the trading floor level as an additional control measure in order to carry out a more specific monitoring
of the validity of the measurement models.
Market risk in 2025
The Group’s market risk related to its trading portfolio remained in 2025 at low levels compared to other risks managed by BBVA,
particularly credit risk. This is due to the nature of the business. In 2025, the average VaR was €33 million, below the figure of
2024, with a maximum level in the year reached on April 28, 2025 of €44 million. The evolution in the BBVA Group’s market risk
during 2025, measured as VaR with a 99% confidence level and a 1-day horizon (shown in Millions of Euros) is as follows:

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By type of market risk assumed by the Group's trading portfolio, the main risk factor for the Group continued to be that linked to
interest rates, with a weight of 69% of the total as of December 31, 2025 (this figure includes the spread risk). The relative weight
of this risk decreased by 8 percentage points compared with the close of 2024. Exchange rate risk accounted for 17% of the total
risk, which implies an increase of 6 percentage points compared with the close of 2024, while equity risk accounted for 3%,
maintaining its weight compared with the close of 2024. The volatility and correlation risk accounted for 11%, which implies an
increase of 3 percentage points compared with the close of 2024.
As of December 31, 2025, 2024 and 2023 the VaR was €29 million, €34 million and €36 million, respectively, with the following
breakdown:

VaR BY RISK FACTOR (MILLIONS OF EUROS) ⁽¹⁾
| Interest/Spread risk | Currency risk | Stock-market risk | Vega/Correlation risk | Diversification effect ⁽²⁾ | Total
2025 |  |  |  |  |  |
VaR average in the year | 39 | 8 | 1 | 5 | (20) | 33
VaR max in the year | 45 | 12 | 1 | 4 | (19) | 44
VaR min in the year | 33 | 6 | 1 | 5 | (21) | 24
End of period VaR | 34 | 9 | 1 | 5 | (20) | 29
2024 |  |  |  |  |  |
VaR average in the year | 41 | 7 | 2 | 6 | (20) | 37
VaR max in the year | 55 | 10 | 2 | 7 | (23) | 50
VaR min in the year | 33 | 7 | 2 | 6 | (19) | 28
End of period VaR | 37 | 5 | 2 | 4 | (14) | 34
2023 |  |  |  |  |  |
VaR average in the year | 36 | 8 | 2 | 7 | (22) | 31
VaR max in the year | 43 | 6 | 17 | 8 | (33) | 42
VaR min in the year | 23 | 9 | — | 9 | (23) | 19
End of period VaR | 41 | 6 | 4 | 8 | (23) | 36

(1) The maximum and minimum VaR figures show the VaR figures for the day on which said maximum and minimum VaRs occurred in the relevant year, by type of
risk.
(2) 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 both, BBVA, S.A. and Global Markets Mexico (in
BBVA Mexico). 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 results of those entities and the risk measurements generated by the internal market risk model. These tests showed that the
internal market risk model of both, BBVA, S.A. and Global Markets Mexico is adequate and precise.
Two types of backtesting have been carried out in 2025, 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.

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For the years ended December 31, 2025, 2024 and 2023, 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 was no
negative exception neither in BBVA, S.A nor in BBVA Mexico.
At the end of these years 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 Group.
Stress testing analysis
A number of stress tests are carried out on the BBVA Group's trading portfolios. First, global and local historical scenarios are used
that replicate the behavior of an extreme past event, such as 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 the BBVA Group 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.
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).
The impact of the stress test under multivariable simulation of the risk factors of the portfolio based on the expected shortfall
(expected shortfall calculated at a 97.5% confidence level, 20 days) as of December 31, 2025 is as follows:

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IMPACT OF THE STRESS TEST (MILLIONS OF EUROS)
| Europe | Mexico | Peru | Venezuela | Argentina | Colombia | Turkey
Expected shortfall | (129) | (66) | (17) | — | (39) | (4) | (17)

7.4.2 Financial instruments offset
Financial assets and liabilities may be netted in certain cases. In particular, they are presented for a net amount on the
consolidated balance sheet only when the Group's entities satisfy the provisions of 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 Group has presented as gross amounts assets and liabilities on the consolidated 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 of 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.

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A summary of the effect of offsetting (via netting and collateral) for derivatives and securities operations is presented below as of
December 31, 2025 , 2024 and 2023:

EFFECT OF OFFSETTING FOR DERIVATIVES AND SECURITIES OPERATION (MILLIONS OF EUROS)
|  |  |  |  | Gross amounts not offset in the consolidated balance sheets |
| Notes | Gross amounts recognized (A) | Gross amounts offset in the consolidated balance sheets (B) | Net amount presented in the consolidated balance sheets (C=A-B) | Financial instruments | Cash collateral received/ pledged | Net amount ⁽¹⁾
December 2025 |  |  |  |  |  |  |
Trading and hedging derivatives | 10 / 15 | 40,930 | 7,809 | 33,122 | 21,478 | 11,075 | 569
Reverse repurchase, securities borrowing and similar agreements |  | 80,537 | 24,459 | 56,078 | 55,949 | — | 129
Total assets |  | 121,468 | 32,268 | 89,199 | 77,427 | 11,075 | 698
Trading and hedging derivatives | 10 / 15 | 40,087 | 7,809 | 32,278 | 21,478 | 8,739 | 2,061
Repurchase, securities lending and similar agreements |  | 103,538 | 24,459 | 79,079 | 78,887 | 192 | —
Total liabilities |  | 143,626 | 32,268 | 111,357 | 100,365 | 8,931 | 2,061
December 2024 |  |  |  |  |  |  |
Trading and hedging derivatives | 10 / 15 | 45,523 | 8,362 | 37,161 | 27,446 | 9,566 | 148
Reverse repurchase, securities borrowing and similar agreements |  | 65,401 | 19,397 | 46,005 | 45,959 | — | 46
Total assets |  | 110,924 | 27,759 | 83,165 | 73,405 | 9,566 | 194
Trading and hedging derivatives | 10 / 15 | 43,924 | 8,362 | 35,562 | 27,446 | 7,658 | 458
Repurchase, securities lending and similar agreements |  | 87,893 | 19,397 | 68,497 | 68,497 | — | —
Total liabilities |  | 131,818 | 27,759 | 104,059 | 95,943 | 7,658 | 458
December 2023 |  |  |  |  |  |  |
Trading and hedging derivatives | 10 / 15 | 44,641 | 8,866 | 35,775 | 25,171 | 9,532 | 1,072
Reverse repurchase, securities borrowing and similar agreements |  | 80,227 | — | 80,227 | 79,980 | — | 248
Total assets |  | 124,869 | 8,866 | 116,003 | 105,151 | 9,532 | 1,320
Trading and hedging derivatives | 10 / 15 | 44,536 | 8,866 | 35,670 | 27,354 | 7,013 | 1,303
Repurchase, securities lending and similar agreements |  | 104,920 | — | 104,920 | 104,920 | — | —
Total liabilities |  | 149,456 | 8,866 | 140,590 | 132,274 | 7,013 | 1,303

(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,
corresponding to each Group entity that records a deficit in this regard.
Financial assets and liabilities are offset, and consequently are presented in the consolidated balance sheet at their net value under
the relevant captions (i.e., derivatives, repurchase agreements and reverse repurchase agreements), where the Group maintains
netting agreements and there is an intention to settle their net amount. Regarding certain repurchase agreements and reverse
repurchase agreements, since 2024, the Group fulfils both conditions. Where netting agreements do not exist, the market value of
the relevant products is recorded in the balance of the repurchase agreements and reverse repurchase agreements captions.

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7.5 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.
7.5.1 Liquidity and Funding Strategy and Planning
The BBVA Group 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 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.
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.

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7.5.2 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 with the responsible areas in each LMU
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 Group 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 Group has been
configured as a single, global function, independent of the management areas.
Additionally, the Group 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 Group’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 for the entire Group and for each individual LMU. The internal levels required are aimed at efficiently meeting the
regulatory requirement, at a 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 for each of the LMU which make up the BBVA Group, 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 from the LMU 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 in each LMU and provide an optimal funding structure reference in
terms of risk appetite, the corporate Structural Risks unit of GRM identifies and assesses the economic and financial variables that
condition the funding structures in the different geographical areas.

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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 at LMU level, 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 the BBVA Group.
According to the principle of auto-sufficiency of the Group's subsidiaries, each LMU is responsible for maintaining a buffer of liquid
assets which complies with the regulatory requirements applicable under each jurisdiction. In addition, the liquidity buffer of each
LMU 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,
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.

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– 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, the BBVA Group plans the target wholesale funding structure according to the tolerance set in
each LMU target.
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 the Group’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 in the BBVA Group, 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.
7.5.3 Liquidity and funding performance
The BBVA Group maintains a dynamic funding structure with a predominantly retail nature, where customer resources represent
the main source of funding.
During 2025 liquidity conditions have remained sound in all countries where the Group operates.

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The performance of the indicators show that the funding structure remained steady during 2025, 2024 and 2023, in the sense that
all LMU held self-funding levels with stable customer resources above the requirements.

LtSCD BY LMU
| 2025 | 2024 | 2023
Group (average) | 105 % | 102 % | 99 %
BBVA, S.A. | 105 % | 101 % | 100 %
BBVA Mexico | 115 % | 115 % | 102 %
Garanti BBVA | 92 % | 90 % | 78 %
Other LMU | 103 % | 99 % | 104 %

With respect to LCR, the Group has maintained a liquidity buffer at both a consolidated and individual level in 2025. As a result, the
ratio has remained comfortably above 100%, with the consolidated ratio as of December 31, 2025 standing at 143%.
Although this requirement is only established at a Group level, for banks in the Eurozone, the minimum level required comfortably
exceeded in all subsidiaries.
It should be noted that the calculation of the Consolidated LCR does not allow the transfer of liquidity between, or with,
subsidiaries located outside the Eurozone, so no excess liquidity may be transferred from these entities for the purpose of
calculating the consolidated ratio.
If the impact of these highly liquid assets was considered, the LCR would be 169%, or 26 basis points above the required level.

LCR MAIN LMU
| 2025 | 2024 | 2023
Group | 143 % | 134 % | 149 %
BBVA, S.A. | 162 % | 156 % | 178 %
BBVA Mexico | 161 % | 146 % | 192 %
Garanti BBVA | 159 % | 141 % | 212 %

One of the key elements in BBVA's Group liquidity and funding management is the targeted maintenance of large high quality
liquidity buffers in all business areas where the group operates.
Each entity maintains a liquidity buffer at the individual level for BBVA, S.A. and for each of its subsidiaries, such as BBVA Mexico,
Garanti BBVA and the Latin American subsidiaries.
In this respect, the Group has maintained for the last 12 months an average volume of high quality liquid assets (HQLA) amounting
to €134,046 million, of which 98% correspond to maximum quality assets (LCR level 1).

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.120

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

The table below shows the liquidity available by instrument as of December 31, 2025, 2024 and 2023 for the most significant
entities based on prudential supervisor’s information (Commission Implementing Regulations (EU) 2021/451 of December 17,
2020):

LIQUIDITY AVAILABLE BY INSTRUMENT (MILLIONS OF EUROS)
| BBVA, S.A. | BBVA Mexico | Garanti BBVA | Other
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023
Cash and withdrawable central bank reserves | 25,248 | 16,004 | 43,931 | 9,821 | 12,001 | 9,712 | 12,960 | 10,344 | 9,899 | 6,988 | 8,101 | 5,921
Level 1 tradable assets | 57,595 | 50,199 | 31,606 | 18,785 | 8,783 | 20,345 | 5,553 | 6,402 | 6,117 | 11,343 | 8,749 | 8,429
Level 2A tradable assets | 623 | 194 | 919 | 182 | 327 | 246 | — | — | — | 32 | — | —
Level 2B tradable assets | 4,424 | 3,762 | 2,916 | 171 | 159 | 132 | — | — | — | 13 | 31 | —
Other tradable assets | 42,405 | 46,537 | 44,324 | 748 | 598 | 469 | 943 | 816 | 398 | 586 | 926 | 753
Non-tradable assets eligible for central banks | 651 | 11 | — | — | — | — | — | — | — | — | — | —
Cumulated counterbalancing capacity | 130,946 | 116,706 | 123,696 | 29,707 | 21,869 | 30,903 | 19,456 | 17,562 | 16,414 | 18,962 | 17,806 | 15,102

The Net Stable Funding Ratio (NSFR), defined as the result between the amount of stable funding available and the amount of
stable funding required, requiring banks to maintain a stable financing 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 NSFR ratio of the BBVA Group, stood at 126% as of
December 31, 2025.
The NSFR of BBVA Group and its main LMU as of December 31, 2025, 2024 and 2023 , was the following:

NSFR MAIN LMU
| 2025 | 2024 | 2023
Group | 126 % | 127 % | 131 %
BBVA, S.A. | 117 % | 119 % | 120 %
BBVA Mexico | 132 % | 131 % | 140 %
Garanti BBVA | 144 % | 149 % | 178 %

Below is a matrix of residual maturities by contractual periods based on supervisory prudential reporting as of December 31, 2025,
2024 and 2023:

DECEMBER 2025. 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 | 14,413 | 43,789 | — | — | — | — | — | — | — | — | 58,202
Deposits in credit entities | — | 5,953 | 868 | 1,056 | 962 | 1,430 | 670 | 1,186 | 112 | 66 | 12,303
Deposits in other financial institutions | — | 4,505 | 1,626 | 1,315 | 846 | 726 | 2,941 | 2,654 | 2,059 | 2,060 | 18,732
Reverse repo, securities borrowing and margin lending | 2,061 | 51,418 | 9,957 | 4,566 | 1,707 | 2,320 | 7,223 | 1,933 | 669 | 113 | 81,967
Loans and advances | — | 40,574 | 40,625 | 30,638 | 19,096 | 22,144 | 49,496 | 41,730 | 58,930 | 114,633 | 417,866
Securities' portfolio settlement | — | 4,598 | 3,947 | 9,016 | 4,451 | 8,405 | 18,718 | 8,361 | 29,414 | 47,407 | 134,317

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.121

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

DECEMBER 2025. 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 | — | 5,139 | 4,481 | 7,210 | 4,872 | 7,653 | 13,261 | 4,252 | 9,584 | 32,528 | 88,980
Deposits from financial institutions | 3,151 | 4,504 | 1,394 | 775 | 622 | 765 | 936 | 321 | 601 | 550 | 13,619
Deposits from other financial institutions and international agencies | 8,003 | 12,649 | 4,606 | 1,684 | 823 | 1,065 | 1,798 | 302 | 361 | 550 | 31,841
Customer deposits | 345,742 | 67,090 | 25,358 | 13,345 | 5,668 | 6,638 | 2,056 | 1,176 | 1,062 | 465 | 468,600
Security pledge funding | 1,299 | 89,726 | 14,794 | 5,108 | 1,407 | 2,047 | 3,656 | 507 | 288 | 564 | 119,396
Derivatives, net | — | 58 | 103 | 167 | 465 | (87) | 145 | 104 | (79) | (807) | 69

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 | 11,125 | 38,087 | — | — | — | — | — | — | — | — | 49,212
Deposits in credit entities | — | 5,246 | 541 | 1,165 | 647 | 918 | 861 | 351 | 33 | 41 | 9,805
Deposits in other financial institutions | — | 2,677 | 1,642 | 970 | 929 | 1,130 | 1,577 | 1,526 | 1,369 | 681 | 12,502
Reverse repo, securities borrowing and margin lending | — | 34,310 | 10,594 | 5,025 | 1,911 | 3,138 | 5,782 | 3,675 | 3,008 | 122 | 67,565
Loans and advances | — | 34,605 | 38,547 | 29,770 | 16,928 | 19,715 | 44,537 | 34,618 | 51,469 | 105,649 | 375,837
Securities' portfolio settlement | — | 2,861 | 2,741 | 6,084 | 2,531 | 5,922 | 20,625 | 20,053 | 21,972 | 44,850 | 127,640

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 | — | 2,484 | 4,816 | 5,536 | 3,347 | 3,685 | 8,517 | 11,386 | 7,530 | 28,306 | 75,608
Deposits from financial institutions | 2,600 | 6,070 | 476 | 644 | 130 | 732 | 558 | 242 | 570 | 743 | 12,765
Deposits from other financial institutions and international agencies | 6,950 | 9,247 | 2,466 | 1,584 | 922 | 503 | 1,256 | 477 | 433 | 742 | 24,581
Customer deposits | 318,252 | 50,789 | 23,758 | 11,580 | 3,888 | 4,329 | 2,055 | 569 | 834 | 787 | 416,841
Security pledge funding | — | 74,614 | 14,093 | 5,452 | 2,355 | 4,157 | 2,223 | 366 | 1,454 | 445 | 105,159
Derivatives, net | — | (388) | (73) | (142) | 70 | 142 | 549 | (122) | 5 | (87) | (46)

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.122

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

DECEMBER 2023. CONTRACTUAL MATURITIES (MILLIONS OF EUROS)
| Demand | Up to 1 month | 1 to 3 months | 3 to 6 month s | 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 | 10,353 | 61,678 | — | — | — | — | — | — | — | — | 72,031
Deposits in credit entities | — | 4,676 | 393 | 543 | 594 | 602 | 602 | 136 | 24 | 102 | 7,672
Deposits in other financial institutions | — | 1,288 | 1,261 | 1,049 | 385 | 649 | 2,019 | 965 | 974 | 1,291 | 9,882
Reverse repo, securities borrowing and margin lending | — | 42,407 | 21,683 | 6,890 | 3,398 | 2,596 | 3,319 | 3,817 | 2,133 | 139 | 86,382
Loans and advances | — | 28,644 | 30,850 | 28,239 | 16,434 | 19,029 | 41,267 | 32,769 | 45,116 | 104,086 | 346,433
Securities' portfolio settlement | — | 2,167 | 6,011 | 2,633 | 2,578 | 11,950 | 15,266 | 14,016 | 29,245 | 34,558 | 118,424

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 | — | 1,187 | 3,889 | 8,518 | 4,935 | 4,225 | 10,296 | 7,990 | 11,175 | 22,424 | 74,639
Deposits from financial institutions | 2,092 | 3,669 | 1,076 | 715 | 119 | 605 | 795 | 46 | 198 | 695 | 10,011
Deposits from other financial institutions and international agencies | 8,507 | 5,526 | 2,806 | 1,036 | 834 | 841 | 1,033 | 618 | 695 | 638 | 22,535
Customer deposits | 304,096 | 44,745 | 16,225 | 11,855 | 3,905 | 5,500 | 1,753 | 1,029 | 758 | 1,092 | 390,959
Security pledge funding | — | 86,908 | 30,028 | 6,107 | 2,274 | 1,821 | 2,630 | 1,111 | 2,060 | 677 | 133,615
Derivatives, net | — | (21) | (30) | 6 | (62) | (267) | 69 | 45 | (135) | (2,616) | (3,009)

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.
The most relevant aspects related to the main geographical areas are the following:
– BBVA, S.A. maintained a strong position with a large high-quality liquidity buffer, maintaining at all times the regulatory
liquidity metrics well above the set minimums. During 2025, commercial activity showed dynamism in attracting
customer deposits, mainly from wholesale clients, supported equally by retail clients and the new digital bank in Germany.
Regarding lending activity, there was a significant boost from wholesale business units. Growth in both areas has resulted
in a narrowing of the credit gap.
– BBVA Mexico showed a solid liquidity situation, with a credit gap that improved over the year, mainly due to strong
deposit growth in local currency. In addition, the liquidity situation was reinforced by wholesale debt issuances carried out
in both Mexican pesos and U.S. dollars.
– In Turkey, Garanti BBVA maintained an adequate liquidity situation in 2025. The lending gap decreased significantly in
foreign currencies due to a strong rise in deposits. On the other hand, there was an increase in the credit gap in Turkish
lira due to the strong growth in lending, which exceeded that of deposits. Wholesale issuances in foreign currency
supported liquidity.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

– In South America, the liquidity situation has also remained adequate throughout the region in 2025. In BBVA Argentina, at
a constant exchange rate, the credit gap improved in Argentine pesos due to the impulse in time deposits despite strong
loan growth. In the U.S. dollar balance sheet, at a constant exchange rate, the growth of loans exceeded fund gathering,
thus widening the credit gap in this currency. In BBVA Colombia, the liquidity situation was comfortable, even though the
credit gap widened in 2025, with a sustained growth of loans that slightly exceeded the volume of fund gathering. At
BBVA Peru, the liquidity situation remained solid, with a credit gap that widened during the year due to the dynamism of
lending activity, especially in U.S. dollars.
The main wholesale financing transactions carried out by the BBVA Group during 2025 are listed below:

Issuer | Type of issue | Date of issue | Nominal (millions) | Currency | Coupon | Early redemption | Maturity date
BBVA, S.A. | AT1 | Jan-25 | 1,000 | USD | 7.750% | Jan-32 | Perpetual
Tier 2 | Feb-25 | 1,000 | EUR | 4.000% | Feb-32 | Feb-37
Senior non- preferred | Jul-25 | 1,000 | EUR | 3.125% | _ | Jul-30
Senior non- preferred | Aug-25 | 1,000 | EUR | 3.750% | _ | Aug-35
AT1 | Nov-25 | 1,000 | EUR | 5.625% | Nov-32 | Perpetual

In relation to liability management, on May 10, 2025, BBVA, S.A. redeemed early and in full an issue of senior preferred bonds
made in May 2023 for €1 billion; in January 2025, it redeemed early and in full a €1 billion Tier 2 issue made in January 2020 and
maturing in 2030; and in March 2025, it redeemed in full a Contingent Convertible Preferred Securities (AT1) issue for USD 1000
billion issued in 2019. On September 14, 2025, BBVA, S.A. redeemed early and in full an issue of simple non-preferred bonds made
in September 2022 for USD 1 billion (see Note 22.4).
After the closing date of the 2025 financial year, on January 7, 2026, BBVA, S.A. issued €2 billion in senior non-preferred debt,
structured in two tranches: the first, for €750 million, with a coupon fixed set at three-month Euribor plus 55 basis points, and the
second, for €1.25 billion, with a fixed coupon of 3.75%. On January 15, 2026, BBVA, S.A. carried out the early redemption of a
green AT1 issue made on July 15, 2020, for a combined nominal amount of €1 billion, a decision that was communicated to the
market on December 17, 2025 (see Note 22.4).
BBVA Mexico issued in February 2025 USD 1 billion of Tier 2 subordinated debt with a coupon of 7.625%. In addition, a senior debt
issue was carried out in March 2025 for 15 billion Mexican pesos (approximately €692 million), and another in September 2025 in
two tranches: the first for 14,434 million Mexican pesos (approximately €666 million) and the second for USD 158 million.
Throughout 2025, Garanti BBVA issued a total of USD 3,847 million of short-term senior MTN in order to roll over maturities and
generate liquidity. In June 2025, it renewed 100% of a sustainable syndicated loan in two tranches for a total amount of USD 440
million. In July 2025, Garanti BBVA completed the issuance of subordinated bonds for a total amount of USD 500 million. In
October 2025, another subordinated bond issue was made for USD 700 million. In November 2025, Garanti BBVA issued Turkey's
first biodiversity bond, worth USD 20.22 million. Finally, in December 2025, Garanti BBVA formalized a sustainability focused
syndicated loan for a total amount of USD 428 million.
In 2025, through successive placements of debt securities, BBVA Argentina issued a total of 244 billion Argentine pesos and USD
192 million. The euro equivalent of these issues was €306 million.
In April 2025, BBVA Colombia issued a subordinated biodiversity bond, subscribed by the International Finance Corporation (IFC),
for an amount of USD 45 million.
In Peru, BBVA issued USD 200 million in the form of a gender social bond aimed at women entrepreneurs, executed in two
tranches during the first and the third quarters of 2025, in partnership with IDB Invest, FMO (Dutch Entrepreneurial Development
Bank) and COFIDE (Corporación Financiera de Desarrollo, S.A.).

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.124

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

7.5.4 Asset encumbrance
As of December 31, 2025, 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
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023
Assets | 69,272 | 68,268 | 78,586 |  |  |  | 790,304 | 704,134 | 696,972 |  |  |
Equity instruments | 1,964 | 834 | 592 | 1,968 | 834 | 592 | 19,836 | 17,159 | 13,176 | 19,836 | 17,159 | 13,176
Debt securities | 42,016 | 43,404 | 51,458 | 43,910 | 45,639 | 50,818 | 120,408 | 102,333 | 88,976 | 120,408 | 102,333 | 88,976
Loans and advances and other assets | 25,291 | 24,030 | 26,535 |  |  |  | 650,060 | 584,641 | 594,821 |  |  |

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 22.4) 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.
As of December 31, 2025, 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 certificates issued | Fair value of collateral received or own debt certificates issued available for encumbrance | Fair value of collateral received or own debt certificates issued not available for encumbrance
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023
Collateral received | 49,726 | 40,877 | 73,836 | 17,783 | 14,917 | 14,825 | 1,634 | 1,151 | 996
Equity instruments | 190 | 215 | 1,019 | 675 | 162 | 51 | — | — | —
Debt securities | 49,536 | 40,663 | 72,817 | 17,107 | 14,754 | 14,774 | 1,634 | 1,151 | 996
Loans and advances and other assets | — | — | — | — | — | — | — | — | —
Own debt certificates issued other than own covered bonds or ABSs | — | — | — | 63 | 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, 2025, 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 certificates issued other than covered bonds and ABSs encumbered
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023
Book value of financial liabilities | 116,511 | 109,833 | 151,766 | 117,052 | 107,067 | 149,853
Derivatives | 17,092 | 17,047 | 15,895 | 15,377 | 14,698 | 13,756
Deposits | 92,586 | 84,604 | 126,777 | 94,577 | 81,938 | 126,543
Outstanding subordinated debt | 6,833 | 8,182 | 9,094 | 7,097 | 10,431 | 9,554
Other sources | 820 | 1,141 | 1,066 | 1,946 | 2,079 | 2,568

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.125

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

8. Fair value of financial instruments
Framework and processes control
The process for determining the fair value established in the Group seeks to ensure that financial assets and liabilities are properly
recorded following the IFRS 13 principles, 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
complying with the governance of BBVA Group's official models.
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 consolidated 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 Group, 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.
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.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

– Level 3: valuation of financial instruments with valuation techniques that use significant unobservable inputs in the
market. As of December 31, 2025, the affected instruments at fair value accounted for approximately 0.70% of financial
assets and 0.47% of the Group’s financial liabilities. Model selection and validation is undertaken by control areas outside
the business areas.
8.1 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.
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, 2025, 2024 and 2023:

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

FAIR VALUE OF FINANCIAL INSTRUMENTS RECOGNIZED AT FAIR VALUE BY LEVELS. DECEMBER 2025 (MILLIONS OF EUROS)
| Notes | Book value Fair value |
| Level 1 | Level 2 | Level 3
ASSETS |  |  |  |  |
Financial assets held for trading | 10 | 123,185 | 30,045 | 90,885 | 2,254
Derivatives |  | 32,551 | 955 | 30,829 | 768
Equity instruments |  | 9,901 | 9,536 | 158 | 208
Debt securities |  | 30,846 | 19,555 | 10,686 | 605
Loans and advances |  | 49,887 | — | 49,213 | 673
Non-trading financial assets mandatorily at fair value through profit or loss | 11 | 11,272 | 3,946 | 5,732 | 1,594
Equity instruments |  | 10,539 | 3,817 | 5,341 | 1,380
Debt securities |  | 192 | 128 | 63 | —
Loans and advances |  | 541 | — | 328 | 213
Financial assets designated at fair value through profit or loss | 12 | 1,006 | 1,004 | 2 | —
Debt securities |  | 1,006 | 1,004 | 2 | —
Financial assets at fair value through other comprehensive income | 13 | 58,809 | 52,134 | 4,760 | 1,915
Equity instruments |  | 1,360 | 1,015 | 107 | 237
Debt securities |  | 57,001 | 51,095 | 4,652 | 1,255
Loans and advances |  | 448 | 24 | 1 | 423
Derivatives – Hedge accounting | 15 | 570 | — | 570 | —
LIABILITIES |  |  |  |  |
Financial liabilities held for trading | 10 | 91,917 | 14,129 | 76,334 | 1,454
Trading derivatives |  | 30,345 | 1,131 | 28,021 | 1,193
Short positions |  | 13,100 | 12,999 | 102 | —
Deposits |  | 48,472 | — | 48,211 | 261
Financial liabilities designated at fair value through profit or loss | 12 | 18,417 | — | 16,284 | 2,133
Deposits from credit institutions |  | — | — | — | —
Customer deposits |  | 897 | — | 897 | —
Debt certificates issued |  | 5,997 | — | 3,864 | 2,133
Other financial liabilities |  | 11,524 | — | 11,524 | —
Derivatives – Hedge accounting | 15 | 1,933 | — | 1,926 | 7

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.128

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

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 | 10 | 108,948 | 26,332 | 80,323 | 2,292
Derivatives |  | 36,003 | 969 | 34,591 | 443
Equity instruments |  | 6,760 | 6,602 | 76 | 83
Debt securities |  | 27,955 | 18,762 | 8,438 | 756
Loans and advances |  | 38,230 | — | 37,218 | 1,011
Non-trading financial assets mandatorily at fair value through profit or loss | 11 | 10,546 | 8,511 | 617 | 1,418
Equity instruments |  | 9,782 | 8,309 | 107 | 1,365
Debt securities |  | 407 | 202 | 173 | 31
Loans and advances |  | 358 | — | 336 | 21
Financial assets designated at fair value through profit or loss | 12 | 836 | 774 | 62 | —
Debt securities |  | 836 | 774 | 62 | —
Financial assets at fair value through other comprehensive income | 13 | 59,002 | 50,354 | 7,515 | 1,133
Equity instruments |  | 1,451 | 1,157 | 79 | 216
Debt securities |  | 57,526 | 49,173 | 7,436 | 917
Loans and advances |  | 25 | 25 | — | —
Derivatives – Hedge accounting | 15 | 1,158 | — | 1,158 | —
LIABILITIES |  |  |  |  |
Financial liabilities held for trading | 10 | 86,591 | 14,308 | 71,072 | 1,211
Trading derivatives |  | 33,059 | 1,118 | 31,400 | 541
Short positions |  | 13,878 | 13,189 | 673 | 15
Deposits |  | 39,654 | — | 38,999 | 656
Financial liabilities designated at fair value through profit or loss | 12 | 14,952 | — | 12,865 | 2,087
Deposits from credit institutions |  | — | — | — | —
Customer deposits |  | 934 | — | 934 | —
Debt certificates issued |  | 4,597 | — | 2,511 | 2,087
Other financial liabilities |  | 9,420 | — | 9,420 | —
Derivatives – Hedge accounting | 15 | 2,503 | — | 2,480 | 23

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.129

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

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 | 10 | 141,042 | 21,972 | 116,905 | 2,165
Derivatives |  | 34,293 | 144 | 33,880 | 269
Equity instruments |  | 4,589 | 4,494 | 24 | 71
Debt securities |  | 28,569 | 17,333 | 11,081 | 155
Loans and advances |  | 73,590 | — | 71,921 | 1,669
Non-trading financial assets mandatorily at fair value through profit or loss | 11 | 8,737 | 7,028 | 493 | 1,216
Equity instruments |  | 7,963 | 6,742 | 72 | 1,148
Debt securities |  | 484 | 286 | 132 | 66
Loans and advances |  | 290 | — | 288 | 2
Financial assets designated at fair value through profit or loss | 12 | 955 | 908 | 47 | —
Debt securities |  | 955 | 908 | 47 | —
Financial assets at fair value through other comprehensive income | 13 | 62,205 | 52,987 | 8,335 | 883
Equity instruments |  | 1,217 | 1,026 | 52 | 139
Debt securities |  | 60,963 | 51,961 | 8,258 | 745
Loans and advances |  | 26 | — | 26 | —
Derivatives – Hedge accounting | 15 | 1,482 | — | 1,482 | —
LIABILITIES |  |  |  |  |
Financial liabilities held for trading | 10 | 121,715 | 14,133 | 106,382 | 1,201
Trading derivatives |  | 33,045 | 191 | 32,111 | 743
Short positions |  | 15,735 | 13,942 | 1,750 | 44
Deposits |  | 72,935 | — | 72,520 | 415
Financial liabilities designated at fair value through profit or loss | 12 | 13,299 | — | 11,073 | 2,227
Deposits from credit institutions |  | — | — | — | —
Customer deposits |  | 717 | — | 717 | —
Debt certificates issued |  | 3,977 | — | 1,751 | 2,227
Other financial liabilities |  | 8,605 | — | 8,605 | —
Derivatives – Hedge accounting | 15 | 2,625 | — | 2,586 | 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, 2025, 2024 and 2023.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.130

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

FAIR VALUE OF FINANCIAL INSTRUMENTS BY LEVELS (MILLIONS OF EUROS)
ASSETS | Valuation techniques in Levels 2 and 3 | Observable inputs in Levels 2 and 3 | Unobservable inputs in Levels 2 and 3
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 - Funding interest rates observed in the market or in consensus services - Exchange rates | - Prepayment rates - Issuer´s credit risk - Recovery rates - Funding interest rates not observed in the market or in consensus services
Derivatives |  |  |
Interest rate | Interest rate products (Interest rate Swaps, Call money Swaps and FRA): Discounted cash flows Caps/Floors: Black 76 and SABR Bond options: Black 76 Swaptions: Black, SABR and LGM Other Interest rate Options: Black, SABR, Libor Market Model and QGM. 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, 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: Local volatility, momentum 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 | Discounted future cash flows |  | - Prepayment rates - Interest rates
Financial assets designated at fair value through profit or loss |  |  |
Debt securities | Present-value method (Discounted future cash flows) | - Issuer credit risk - Current market interest rates |
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 and FRA): Discounted cash flows Caps/Floors: Black 76 and SABR Bond options: Black 76 Swaptions: Black, SABR and LGM Other Interest rate Options: Black, SABR and 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: Local volatility, momentum 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 (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.131

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

FAIR VALUE OF FINANCIAL INSTRUMENTS BY LEVELS
LIABILITIES | Valuation techniques in Levels 2 and 3 | Observable inputs in Levels 2 and 3 | Unobservable inputs in Levels 2 and 3
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 not observed in the market or in consensus services
Derivatives |  |  |
Interest rate | Interest rate products (Interest rate Swaps, call money Swaps and FRA): Discounted cash flows Caps/Floors: Black 76 and SABR Bond options: Black 76 Swaptions: Black 76, SABR and LGM Other Interest rate Options: Black, SABR, Libor Market Model and QGM. 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, momentum 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) |  | - Prepayment rates - Issuer´s credit risk - Current market interest rates
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´s credit risk - Current market interest rates
Derivatives – Hedge accounting |  |  |
Interest rate | Interest rate products (Interest rate Swaps, call money Swaps and FRA): Discounted cash flows Caps/Floors: Black 76 and SABR Bond options: Black 76 Swaptions: Black 76, SABR and LGM Other Interest rate Options: Black, SABR and 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, 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, momentum 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 (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.132

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

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.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.133

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

– LGM (Linear Gaussian Model): the model, commonly used for the valuation of interest rate instruments, assumes that the
evolution of the yield curve is driven by a single stochastic factor following a linear Gaussian process. Under this
framework, instantaneous rates evolve continuously with a volatility proportional to the level of rates, allowing for a
parsimonious and stable description of the dynamics of bond prices and interest rate swap derivatives. Unlike more
complex or multifactor models, the LGM retains a simple analytical structure that facilitates calibration to market-implied
swaption volatilities.
– QGM (Quasi Gaussian Model): an advanced pricing model for the valuation of callable products. It is a valuation
framework based on Monte Carlo simulations that employs a local volatility parameterization to model interest rates,
designed to price exotic derivatives with cancellable features. The model uses a quasi-Gaussian approach to represent
the dynamics of interest rates, leveraging a combination of variables and an auxiliary matrix to capture the evolution of
forward rates.
– 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.
Unobservable inputs
Quantitative information of unobservable inputs used to calculate level 3 valuations is presented below as of December 31, 2025,
2024 and 2023.

UNOBSERVABLE INPUTS. DECEMBER 2025
Financial instrument | Valuation technique(s) | Significant unobservable inputs | Min | Average | Max | Units
Debt Securities | Present value method | Credit spread | — | 74 | 814 | bp
Recovery rate | — % | 38 % | 40 % | %
Comparable Pricing |  | — % | 97 % | 234 % | %
Equity/Fund instruments (1) | Net Asset Value |  |
Comparable Pricing |
Loans and advances | Present value method | Repo funding curve | 3.94 % | 2 % | 11.67 % | %
Credit Derivatives | Gaussian Copula | Correlation default | 19 % | 64 % | 92 % | %
Black 76 | Price volatility | — | — | — | Vegas
Equity Derivatives | Option models on equities, baskets of equity, funds | Dividends (2) |
Correlations | (69 %) | 43 % | 99 % | %
Volatility | 8.05 | 32.17 | 450.54 | Vegas
FX Derivatives | Option models on FX underlyings | Volatility | 3.19 | 7.98 | 15.06 | Vegas
IR Derivatives | Option models on IR underlyings | Beta | 3 % | 5 % | 11 % | %
Correlation rate/credit | (100 %) |  | 100% | %
Correlation rate/inflation | 42 % | 76 % | 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.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.134

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

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 | — % | 39 % | 40 % | %
Comparable Pricing |  | — % | 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 % | 5 % | 11 % | %
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 | — % | 39 % | 40 % | %
Comparable pricing |  | — % | 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 % | 5 % | 11 % | %
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 (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.135

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

Adjustments to the valuation
Under IFRS 13, 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. The above is aligned with the regulatory requirements (EBA CRR 105.10) 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 Group 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 Group 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 IFRS 9. The related amounts recognized in the consolidated balance sheet as of December 31,
2025 and 2024, related to OCA were €459 million and €393 million, respectively.
The amounts recognized in the consolidated balance sheets as of December 31, 2025, 2024 and 2023 related to the valuation
adjustments incorporated to the credit assessment derivative assets amounted to €-140 million, €-205 million and €-133 million,
respectively as Credit Valuation Adjustments (CVA), and amounted to €87 million, €116 million and €91 million, respectively as
Debit Valuation Adjustment (DVA). The impact recorded under “Gains (losses) on financial assets and liabilities held for trading,
net” in the consolidated income statement was €62 million for the year ended December 31, 2025 and €17 million and €26 million
in 2024 and 2023, respectively.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.136

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

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
Group makes adjustments for financing risk valuation (Funding Valuation Adjustment, hereinafter "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.
Additionally, as of December 31, 2025, 2024 and 2023, €-10 million, €-19 million and €-16 million related to the FVA were
recognized in the consolidated balance sheet, being the impact on results not significant.
Collateral Valuation Adjustments on Bond-Collateralized Agreements
Non-standard collateral valuation adjustments (hereinafter, “ColVA”) are incorporated into the valuation of both asset and liability
derivatives to reflect, in their fair value, the impact of uncertainty in the discount curve associated with collateralized positions in
bonds. A standard collateral agreement for a derivative is understood to be one that requires daily posting of collateral reflecting
changes in the derivative’s market value, in the same currency as the derivative, and remunerated at the standard collateral rate.
When the collateral agreement permits the delivery of bonds as collateral, an adjustment is required to capture the specific
characteristics of the eligible collateral that cause the valuation of the transaction to differ from that under a standard cash
collateralization in the deal’s currency of denomination. These adjustments account for the cost (or benefit) of funding the bond
collateral that covers the Expected Positive Exposure (EPE) or Expected Negative Exposure (ENE) of a derivatives portfolio over
time, using the market rehypothecation curve of the posted collateral.
ColVA adjustments are typically considered a component of FVA.
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 of EBA CRR 105.10 for this
purpose.
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, 2025 corresponding to the mentioned adjustments was a net impact of €-59 million,
(€-53 million in 2024). An adjustment was also made as of December 31, 2025 on financial assets at fair value through other
comprehensive income for a total of €-10 million (€-17 million and €-15 million in 2024 and 2023, respectively).

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.137

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

Financial assets and liabilities classified as level 3
The changes in the balance of level 3 financial assets and liabilities included in the consolidated balance sheets are as follows:

FINANCIAL ASSETS LEVEL 3: CHANGES IN THE YEAR (MILLIONS OF EUROS)
| 2025 |  | 2024 |  | 2023
| Assets | Liabilities |  | Assets | Liabilities |  | Assets | Liabilities
Balance at the beginning | 4,843 | 3,321 |  | 4,264 | 3,467 |  | 3,931 | 2,743
Changes in fair value recognized in profit and loss ⁽¹⁾ | 395 | 368 |  | 490 | 144 |  | (7) | 113
Changes in fair value not recognized in profit and loss | 50 | — |  | 29 | — |  | 21 | (1)
Acquisitions, disposals and liquidations | 469 | 884 |  | 397 | (59) |  | 27 | 374
Net transfers to level 3 | 13 | (985) |  | (330) | (165) |  | 289 | 204
Exchange differences and others | (7) | 6 |  | (6) | (67) |  | 3 | 34
Balance at the end | 5,763 | 3,594 |  | 4,843 | 3,321 |  | 4,264 | 3,467

(1) Profit or loss that is attributable to gains or losses relating to those financial assets and liabilities held as of December 31, 2025, 2024 and 2023. Valuation
adjustments are recorded under the heading “Gains (losses) on financial assets and liabilities (net)”.
During 2025, there was an increase in level 3 asset positions (+19%), resulting in equal parts from market price evolution and
decreased observability. This increase is primarily distributed between the derivatives portfolio and equity cash trading.
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 fair 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, 2025, 2024 and 2023, the profit/loss on sales of financial instruments classified as level 3
recognized in the consolidated income statement was not material.
Transfers among levels
The Global Valuation area, in collaboration with the Group, has established the rules for an appropriate financial instruments held
for trading classification according to the fair value hierarchy defined by IFRS.
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 (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.138

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

The financial instruments transferred among the different levels of measurement for the years ended December 31, 2025, 2024
and 2023 are at the following amounts in the consolidated balance sheets as of December 31, 2025, 2024 and 2023:

TRANSFERS AMONG LEVELS. DECEMBER 2025 (MILLIONS OF EUROS)
| From: | Level 1 | Level 2 | Level 3
| To: | Level 2 | Level 3 | Level 1 | Level 3 | Level 1 | Level 2
ASSETS |  |  |  |  |  |  |
Financial assets held for trading |  | 181 | — | 344 | 272 | 30 | 200
Non-trading financial assets mandatorily at fair value through profit or loss |  | 5,150 | 30 | 9 | — | — | 33
Financial assets designated at fair value through profit or loss |  | — | — | 7 | — | — | —
Financial assets at fair value through other comprehensive income |  | 251 | 36 | 762 | 43 | — | 105
Derivatives – Hedge accounting |  | — | — | — | — | — | —
Total |  | 5,582 | 66 | 1,122 | 315 | 30 | 338
LIABILITIES |  |  |  |  |  |  |
Financial liabilities held for trading |  | 19 | — | 269 | 144 | 3 | 259
Financial liabilities designated at fair value through profit or loss |  | — | — | — | (1,021) | (256) | 103
Derivatives – Hedge accounting |  | — | — | — | — | — | —
Total |  | 19 | — | 269 | (877) | (254) | 362

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 |  | 115 | — | 1,238 | 78 | 16 | 199 | 887 | 34 | 89 | 666 | — | 497
Non-trading financial assets mandatorily at fair value through profit or loss |  | 68 | 14 | 1 | — | 35 | 18 | 1 | 135 | — | 70 | — | —
Financial assets designated at fair value through profit or loss |  | — | — | 1 | — | — | — | — | — | — | — | — | —
Financial assets at fair value through other comprehensive income |  | 1,425 | 17 | 1,348 | 12 | 13 | 170 | 1,191 | 21 | 1,296 | 205 | 103 | 243
Derivatives – Hedge accounting |  | — | — | — | — | — | — | — | — | — | — | — | —
Total |  | 1,608 | 31 | 2,586 | 90 | 64 | 387 | 2,079 | 190 | 1,385 | 941 | 103 | 740
LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |
Financial liabilities held for trading |  | 107 | — | 461 | 45 | 11 | 380 | 596 | 3 | 36 | 177 | 1 | 372
Financial liabilities designated at fair value through profit or loss |  | — | — | — | 301 | — | 121 | — | — | — | 660 | — | 262
Derivatives – Hedge accounting |  | — | — | — | — | — | — | — | — | — | — | — | —
Total |  | 107 | — | 461 | 346 | 11 | 501 | 596 | 3 | 36 | 837 | 1 | 635

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.139

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

In 2025, transfers between the different levels of the fair value hierarchy at a Group level were very limited and did not represent a
significant change in any of the categories. However, in the banking book, there were significant transfers from level 1 to level 2 in
the portfolio of ‘Financial assets designated at fair value through profit or loss‘ due to decreased observability, which were only
partially offset by transfers from level 2 to level 1 in the portfolio of ‘Financial assets at fair value through other comprehensive
income‘.
The amount of the financial instruments at fair value that were transferred among the different valuation levels during 2024
showed a stable performance in relation to the evolution of market observability in the inputs applied in their valuation. No
significant level transfers were made from level 1 to level 3, with the most significant volumes of transfers concentrated between
level 1 and level 2, and level 2 and level 3. In both cases, the changes were solely due to the observability conditions of market
inputs.
The amount of the financial instruments at fair value portfolio that were transferred among the different valuation levels during
2023 correspond mainly, with respect to level 1 to level 2, to the review of the classification among levels due to the
implementation of the short-term maturities model valuation of the listed options 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 the transfer of certain positions from level 3 to level 2, mainly in cash positions in debt securities, equities and loans and
advances.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.140

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

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, 2025, 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:

FINANCIAL INSTRUMENTS LEVEL 3: SENSITIVITY ANALYSIS (MILLIONS OF EUROS)
| Potential impact on consolidated income statement | Potential impact on other comprehensive income
| Most favorable hypothesis | Least favorable hypothesis | Most favorable hypothesis | Least favorable hypothesis
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024
ASSETS |  |  |  |  |  |  |  |
Financial assets held for trading | 102 | 48 | (155) | (89) | — | — | — | —
Loans and advances | 6 | 4 | (6) | (4) | — | — | — | —
Debt securities | 38 | 37 | (69) | (61) | — | — | — | —
Equity instruments | 42 | — | (65) | (17) | — | — | — | —
Derivatives | 15 | 6 | (15) | (6) | — | — | — | —
Non-trading financial assets mandatorily at fair value through profit or loss | 103 | 9 | (104) | (85) | — | — | — | —
Loans and advances | 1 | — | (1) | — | — | — | — | —
Debt securities | — | 3 | — | (7) | — | — | — | —
Equity instruments | 102 | 6 | (102) | (78) | — | — | — | —
Financial assets designated at fair value through profit or loss | — | — | — | — | — | — | — | —
Financial assets at fair value through other comprehensive income | — | — | — | — | 117 | 48 | (190) | (90)
Total | 205 | 57 | (259) | (173) | 117 | 48 | (190) | (90)
LIABILITIES |  |  |  |  |  |  |  |
Financial liabilities held for trading | 18 | 12 | (18) | (13) | — | — | — | —
Total | 18 | 12 | (18) | (13) | — | — | — | —

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.141

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

8.2 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: generally, fair value is 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 (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.142

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

The table b elow shows the fair value of the Group's financial instruments recognized at amortized cost in the consolidated balance
sheets, broken down according to the valuation method used to determine their fair value, and their respective book value, as well
as the main valuation techniques and inputs used for financial instruments classified in level 2 and level 3 as of December 31, 2025,
2024 and 2023:

FAIR VALUE OF FINANCIAL INSTRUMENTS RECOGNIZED AT AMORTIZED COST BY LEVELS. DECEMBER 2025 (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 | 9 | 58,837 | 58,837 | — | — | — | 58,837
Financial assets at amortized cost | 14 | 568,893 | 40,224 | 65,255 | 25,873 | 437,577 | 568,929
Debt securities |  | 73,379 | — | 65,255 | 6,526 | 1,322 | 73,103
Loans and advances |  | 495,513 | 40,224 | — | 19,347 | 436,255 | 495,826
LIABILITIES |  |  |  |  |  |  |
Financial liabilities at amortized cost | 22 | 658,599 | 416,378 | 42,578 | 86,123 | 115,369 | 660,447
Deposits |  | 556,498 | 396,119 | — | 49,084 | 112,053 | 557,256
Debt certificates issued |  | 81,842 | — | 42,578 | 37,039 | 3,316 | 82,932
Other financial liabilities |  | 20,258 | 20,258 | — | — | — | 20,258

(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 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 | 9 | 51,145 | 51,145 | — | — | — | 51,145
Financial assets at amortized cost | 14 | 502,400 | 32,615 | 50,771 | 24,157 | 394,496 | 502,039
Debt securities |  | 59,014 | — | 50,771 | 6,589 | 921 | 58,281
Loans and advances |  | 443,386 | 32,615 | — | 17,568 | 393,575 | 443,759
LIABILITIES |  |  |  |  |  |  |
Financial liabilities at amortized cost | 22 | 584,339 | 378,530 | 47,323 | 58,016 | 101,025 | 584,894
Deposits |  | 496,720 | 360,777 | — | 37,647 | 98,038 | 496,461
Debt certificates issued |  | 69,867 | — | 47,323 | 20,369 | 2,986 | 70,679
Other financial liabilities |  | 17,753 | 17,753 | — | — | — | 17,753

(1) Financial instruments whose book value is presented as an approximation to their fair value, mainly short-term financial instruments.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.143

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

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 | 9 | 75,416 | 75,416 | — | — | — | 75,416
Financial assets at amortized cost | 14 | 451,732 | 34,826 | 41,950 | 10,533 | 359,062 | 446,371
Debt securities |  | 49,462 | — | 41,950 | 6,244 | 759 | 48,952
Loans and advances |  | 402,270 | 34,826 | — | 4,290 | 358,303 | 397,418
LIABILITIES |  |  |  |  |  |  |
Financial liabilities at amortized cost | 22 | 557,589 | 358,657 | 42,742 | 86,390 | 68,127 | 555,915
Deposits |  | 473,835 | 343,611 | 1,269 | 62,049 | 64,601 | 471,530
Debt certificates issued |  | 68,707 | — | 41,472 | 24,341 | 3,526 | 69,339
Other financial liabilities |  | 15,046 | 15,046 | — | — | — | 15,046

(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.
9. 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
consolidated balance sheets is as follows:

CASH, CASH BALANCES AT CENTRAL BANKS AND OTHER DEMAND DEPOSITS (MILLIONS OF EUROS)
| Notes | 2025 | 2024 | 2023
Cash on hand |  | 8,050 | 8,636 | 7,751
Cash balances at central banks ⁽¹⁾ |  | 42,856 | 35,306 | 60,750
Other demand deposits |  | 7,931 | 7,202 | 6,916
Total | 8.2 | 58,837 | 51,145 | 75,416

(1) The variation is mainly due to the evolution of the balances held in the Bank of Spain.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.144

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

10. Financial assets and liabilities held for trading
10.1 Breakdown of the balance
The breakdown of the balance under these headings in the consolidated balance sheets is as follows:

FINANCIAL ASSETS AND LIABILITIES HELD FOR TRADING (MILLIONS OF EUROS)
| Notes | 2025 | 2024 | 2023
ASSETS |  |  |  |
Derivatives |  | 32,551 | 36,003 | 34,293
Equity instruments | 7.2.2 | 9,901 | 6,760 | 4,589
Credit institutions |  | 472 | 393 | 277
Other sectors |  | 9,429 | 6,367 | 4,312
Debt securities | 7.2.2 | 30,846 | 27,955 | 28,569
Issued by central banks |  | 584 | 768 | 740
Issued by public administrations |  | 27,222 | 23,671 | 24,766
Issued by financial institutions |  | 1,411 | 1,665 | 1,824
Other debt securities |  | 1,628 | 1,852 | 1,239
Loans and advances | 7.2.2 | 49,887 | 38,230 | 73,590
Loans and advances to central banks |  | 620 | 556 | 2,809
Reverse repurchase agreements |  | 620 | 556 | 2,809
Loans and advances to credit institutions |  | 17,985 | 20,938 | 56,599
Reverse repurchase agreements ⁽¹⁾ |  | 17,954 | 20,918 | 56,569
Loans and advances to customers |  | 31,282 | 16,736 | 14,182
Reverse repurchase agreements |  | 28,639 | 15,108 | 13,615
Total assets | 8.1 | 123,185 | 108,948 | 141,042
LIABILITIES |  |  |  |
Derivatives |  | 30,345 | 33,059 | 33,045
Short positions |  | 13,100 | 13,878 | 15,735
Deposits |  | 48,472 | 39,654 | 72,935
Deposits from central banks |  | 3,653 | 3,360 | 6,397
Repurchase agreements |  | 3,653 | 3,360 | 6,397
Deposits from credit institutions |  | 18,138 | 16,285 | 43,337
Repurchase agreements ⁽¹⁾ |  | 17,652 | 15,994 | 42,676
Customer deposits |  | 26,681 | 20,010 | 23,201
Repurchase agreements |  | 26,600 | 19,913 | 23,157
Total liabilities | 8.1 | 91,917 | 86,591 | 121,715

(1) The variation is mainly due to the evolution of "Reverse repurchase agreements" of BBVA, S.A. partially offset by the evolution of "Repurchase agreements"
principally of BBVA, S.A.
As of December 31, 2025, 2024 and 2023 “Short positions” include €12,531 million, €13,010 million and € 14,914 million,
respectively, held with general governments.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.145

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

10.2 Derivatives
The derivatives portfolio arises from the Group’s need to manage the risks it is exposed to in the normal course of business and
also to market products amongst the Group’s customers. As of December 31, 2025, 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
instruments.
Below is a breakdown by type of risk and market, of the fair value and notional amounts of financial derivatives recognized in the
consolidated balance sheets, divided into organized and OTC markets:

DERIVATIVES BY TYPE OF RISK AND BY PRODUCT OR BY TYPE OF MARKET (MILLIONS OF EUROS)
| 2025 |  | 2024 |  | 2023
| Assets | Liabilities | Notional amount - Total |  | Assets | Liabilities | Notional amount - Total |  | Assets | Liabilities | Notional amount - Total
Interest rate | 13,040 | 9,573 | 4,948,476 |  | 11,588 | 9,627 | 4,951,022 |  | 15,251 | 13,171 | 4,741,629
OTC | 13,034 | 9,536 | 4,923,960 |  | 11,579 | 9,622 | 4,930,657 |  | 15,248 | 13,167 | 4,722,314
Organized market | 6 | 36 | 24,516 |  | 10 | 4 | 20,365 |  | 3 | 4 | 19,315
Equity instruments | 3,447 | 5,439 | 94,665 |  | 2,944 | 4,303 | 75,045 |  | 2,587 | 3,723 | 70,804
OTC | 997 | 3,724 | 41,328 |  | 682 | 2,347 | 38,612 |  | 1,212 | 2,551 | 49,038
Organized market | 2,450 | 1,714 | 53,337 |  | 2,261 | 1,956 | 36,433 |  | 1,375 | 1,172 | 21,767
Foreign exchange and gold | 15,150 | 14,507 | 1,012,015 |  | 21,060 | 18,704 | 825,158 |  | 15,911 | 15,608 | 632,780
OTC | 15,041 | 14,441 | 997,308 |  | 21,056 | 18,698 | 810,770 |  | 15,889 | 15,590 | 623,203
Organized market | 109 | 66 | 14,707 |  | 4 | 7 | 14,388 |  | 22 | 18 | 9,577
Credit | 790 | 756 | 66,427 |  | 386 | 375 | 42,799 |  | 543 | 542 | 31,478
Credit default swap | 681 | 720 | 62,702 |  | 349 | 369 | 40,847 |  | 540 | 528 | 29,844
Credit spread option | — | — | — |  | — | — | — |  | — | — | —
Total return swap | 109 | 36 | 3,725 |  | 37 | — | 1,952 |  | 3 | 14 | 1,475
Other | — | — | — |  | — | 6 | — |  | — | — | 159
Commodities | 124 | 70 | 4,521 |  | 25 | 50 | 1,939 |  | 1 | 1 | 169
DERIVATIVES | 32,551 | 30,345 | 6,126,104 |  | 36,003 | 33,059 | 5,895,964 |  | 34,293 | 33,045 | 5,476,860
Of which: OTC - credit institutions | 19,738 | 19,538 | 1,840,752 |  | 26,039 | 23,135 | 1,742,720 |  | 23,998 | 23,977 | 1,463,433
Of which: OTC - other financial corporations | 6,387 | 5,336 | 4,004,652 |  | 3,383 | 4,212 | 3,914,640 |  | 5,042 | 4,412 | 3,815,162
Of which: OTC - other | 3,862 | 3,655 | 185,799 |  | 4,306 | 3,744 | 166,402 |  | 3,854 | 3,461 | 147,310

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.146

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

11. Non-trading financial assets mandatorily at fair value through
profit or loss
The breakdown of the balance under this heading in the consolidated balance sheets is as follows:

NON-TRADING FINANCIAL ASSETS MANDATORILY AT FAIR VALUE THROUGH PROFIT OR LOSS (MILLIONS OF EUROS)
| Notes | 2025 | 2024 | 2023
Equity instruments | 7.2.2 | 10,539 | 9,782 | 7,963
Debt securities | 7.2.2 | 192 | 407 | 484
Loans and advances | 7.2.2 | 541 | 358 | 290
Total | 8.1 | 11,272 | 10,546 | 8,737

The equity instruments included in this heading mainly comprised financial assets related to the insurance activity of the BBVA
Group, including investments associated with life insurance products where the investment risk is assumed by the policyholder,
such as th e Unit-link products.
12. Financial assets and liabilities designated at fair value through
profit or loss
The breakdown of the balance under these headings in the consolidated balance sheets is as follows:

FINANCIAL ASSETS AND LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS (MILLIONS OF EUROS)
| Notes | 2025 | 2024 | 2023
ASSETS |  |  |  |
Debt securities | 7.2.2 | 1,006 | 836 | 955
Total assets | 8.1 | 1,006 | 836 | 955
LIABILITIES |  |  |  |
Customer deposits |  | 897 | 934 | 717
Debt certificates issued |  | 5,997 | 4,597 | 3,977
Other financial liabilities: Unit-linked products |  | 11,524 | 9,420 | 8,605
Total liabilities | 8.1 | 18,417 | 14,952 | 13,299

This heading includes mainly liabilities linked to insurance products where the risk is assumed by the policyholder (Unit-link)
products. Since the liabilities linked to insurance products in which the policyholder assumes the risk are valued the same way as
the assets associated with such insurance products, there is no credit risk borne by the Group in relation to these liabilities.
In addition, debt securities are included in these headings to reduce inconsistencies (asymmetries) in the valuation of such
operations and those operations used to manage the risk associated with them.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.147

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

13. Financial assets at fair value through other comprehensive
income
13.1 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, 2025, 2024 and 2023 is as follows:

FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (MILLIONS OF EUROS)
| Notes | 2025 | 2024 | 2023
Equity instruments | 7.2.2 | 1,360 | 1,451 | 1,217
Debt securities |  | 57,001 | 57,526 | 60,963
Loans and advances | 7.2.2 | 448 | 25 | 26
Total ⁽¹⁾ | 8.1 | 58,809 | 59,002 | 62,205
Of which: loss allowances of debt securities |  | (45) | (112) | (84)
Of which: loss allowances of loans and advances |  | (65) | — | —

(1) During financial years 2025, 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”.
13.2 Equity instruments
The breakdown of the balance under the heading "Equity instruments" of the consolidated balance sheets as of December 31,
2025, 2024 and 2023 is as follows:

FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME. EQUITY INSTRUMENTS (MILLIONS OF EUROS)
2025 | 2024 | 2023 |
Listed equity instruments |  |  |
Spanish companies shares | 992 | 1,100 | 987
Foreign companies shares | 131 | 131 | 111
Mexico | 19 | 27 | 33
The United States | 85 | 79 | 52
Turkey | 4 | 9 | 6
Other countries | 22 | 17 | 20
Subtotal listed equity instruments | 1,123 | 1,231 | 1,098
Unlisted equity instruments |  |  |
Spanish companies shares | 53 | 46 | 12
Foreign companies shares | 184 | 174 | 106
Subtotal unlisted equity instruments | 237 | 220 | 119
Total | 1,360 | 1,451 | 1,217

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.148

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

13.3 Debt securities
The breakdown of the balance under the heading “Debt securities” of the consolidated financial statements as of December 31,
2025, 2024 and 2023, broken down by issuers, is as follows:

FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME. DEBT SECURITIES (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Domestic debt securities |  |  |
Government and other government agency | 10,090 | 10,383 | 13,757
Credit institutions | 518 | 695 | 901
Other issuers | 389 | 397 | 454
Subtotal | 10,997 | 11,475 | 15,111
Foreign debt securities |  |  |
Mexico | 20,995 | 20,461 | 21,714
Government and other government agency | 19,752 | 19,313 | 20,364
Credit institutions | 876 | 759 | 886
Other issuers | 367 | 389 | 464
The United States | 6,214 | 6,552 | 6,344
Government and other government agency | 3,621 | 3,703 | 3,174
Credit institutions | 48 | 41 | 88
Other issuers | 2,546 | 2,808 | 3,082
Turkey | 2,907 | 2,849 | 2,459
Government and other government agency | 2,907 | 2,837 | 2,445
Other issuers | — | 12 | 14
Other countries | 15,888 | 16,190 | 15,336
Other foreign governments and government agency | 10,277 | 10,059 | 8,961
Central banks | 208 | 370 | 508
Credit institutions | 2,204 | 1,921 | 1,895
Other issuers | 3,199 | 3,840 | 3,971
Subtotal | 46,004 | 46,052 | 45,852
Total | 57,001 | 57,526 | 60,963

The credit ratings of the issuers of debt securities as of December 31, 2025 , 2024 and 2023 are as follows:

DEBT SECURITIES BY RATING
| 2025 |  | 2024 |  | 2023
| Fair value (Millions of Euros) | % |  | Fair value (Millions of Euros) | % |  | Fair value (Millions of euros) | %
AAA | 2,015 | 3.5 % |  | 1,370 | 2.4% |  | 1,000 | 1.6%
AA+ | 4,148 | 7.3 % |  | 4,170 | 7.2% |  | 3,685 | 6.0%
AA | 410 | 0.7 % |  | 261 | 0.5% |  | 384 | 0.6%
AA- | 1,854 | 3.3 % |  | 1,061 | 1.8% |  | 642 | 1.1%
A+ | 1,065 | 1.9 % |  | 905 | 1.6% |  | 1,798 | 3.0%
A | 11,235 | 19.7 % |  | 2,007 | 3.5% |  | 1,747 | 2.9%
A- | 1,613 | 2.8 % |  | 12,018 | 20.9% |  | 16,009 | 26.3%
BBB+ | 24,493 | 43.0 % |  | 19,897 | 34.6% |  | 22,854 | 37.5%
BBB | 3,586 | 6.3 % |  | 9,212 | 16.0% |  | 8,327 | 13.7%
BBB- | 1,640 | 2.9 % |  | 922 | 1.6% |  | 858 | 1.4%
BB+ or below | 4,916 | 8.6 % |  | 5,227 | 9.1% |  | 3,480 | 5.7%
Unclassified | 27 | 0.0 % |  | 474 | 0.8% |  | 178 | 0.3%
Total | 57,001 | 100.0 % |  | 57,526 | 100.0 % |  | 60,963 | 100.0 %

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.149

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

13.4 Gains/losses
The changes in the gains/losses (net of taxes) in 2025, 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 consolidated balance sheets are as
follows:

OTHER COMPREHENSIVE INCOME - CHANGES IN GAINS (LOSSES) (MILLIONS OF EUROS)
|  | Debt securities |  | Equity instruments
| Notes | 2025 | 2024 | 2023 |  | 2025 | 2024 | 2023
Balance at the beginning |  | (576) | (357) | (809) |  | (905) | (1,112) | (1,194)
Valuation gains and losses |  | 96 | (568) | 659 |  | (76) | 228 | 80
Amounts transferred to income |  | 434 | 247 | 5 |  |  |  |
Amounts transferred to Reserves |  |  |  |  |  | 1 | — | 2
Income tax and other |  | (163) | 101 | (211) |  | (3) | (20) | (1)
Balance at the end | 30 | (209) | (576) | (357) |  | (983) | (905) | (1,112)

In 2025, 2024 and 2023, equity instruments presented a €76 million loss, a €228 million gain and a €80 million gain, respectively,
in the heading “Accumulated other comprehensive income (loss) - 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 (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.150

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

14. Financial assets at amortized cost
14.1 Breakdown of the balance
The breakdown of the balance under this heading in the consolidated balance sheets, according to the nature of the financial
instrument, is as follows:

FINANCIAL ASSETS AT AMORTIZED COST (MILLIONS OF EUROS)
| Notes | 2025 | 2024 | 2023
Debt securities |  | 73,379 | 59,014 | 49,462
Central banks |  | 1,598 | 6 | 22
General governments |  | 65,868 | 54,806 | 45,124
Credit institutions |  | 3,914 | 2,459 | 2,366
Other financial corporations |  | 701 | 451 | 923
Non-financial corporations |  | 1,297 | 1,292 | 1,027
Loans and advances to central banks |  | 10,869 | 8,255 | 7,151
Loans and advances to credit institutions |  | 24,244 | 22,655 | 17,477
Reverse repurchase agreements |  | 8,120 | 9,157 | 5,786
Other loans and advances |  | 16,123 | 13,497 | 11,690
Loans and advances to customers | 7.2.2 | 460,401 | 412,477 | 377,643
General governments |  | 25,905 | 22,111 | 23,265
Other financial corporations |  | 23,522 | 17,497 | 13,251
Non-financial corporations |  | 217,390 | 193,386 | 171,063
Other |  | 193,583 | 179,483 | 170,063
Total | 8.2 | 568,893 | 502,400 | 451,732
Of which: impaired assets of loans and advances to customers | 7.2.2 | 14,346 | 14,211 | 14,444
Of which: loss allowances of loans and advances | 7.2.5 | (12,329) | (11,630) | (11,316)
Of which: loss allowances of debt securities |  | (49) | (57) | (82)

During 2025, the Group made a payment corresponding to the Interest Margin and Commission Tax (“IMIC”, by its acronym in
Spanish) for the year ended December 31, 2024, regulated by the Ninth Final Provision of Law 7/2024. However, given that such
payment was made but considered undue with respect to such year under the existing legal framework, as of December 31, 2025,
an asset for the amount disbursed (€295 million) was recorded under the “General governments” heading within the "Financial
assets at amortized cost - Loans and advances to customers" item in the balance sheet.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.151

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

14.2 Debt securities
The breakdown of the balance under the heading “Debt securities” in the consolidated balance sheets, according to the issuer of
the debt securities, is as follows:

FINANCIAL ASSETS AT AMORTIZED COST. DEBT SECURITIES (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Domestic debt securities |  |  |
Government and other government agencies | 39,252 | 35,664 | 25,857
Credit institutions | 1,108 | 1,099 | 1,028
Other issuers | 404 | 367 | 230
Subtotal | 40,764 | 37,130 | 27,114
Foreign debt securities |  |  |
Mexico | 6,701 | 4,139 | 6,277
Government and other government agencies | 5,142 | 4,076 | 6,205
Central banks | 1,519 | — | —
Credit institutions | 40 | 63 | 72
Other issuers | — | — | —
The United States | 2,282 | 2,505 | 2,229
Government and other government agencies | 2,244 | 2,463 | 2,188
Credit institutions | 21 | 20 | 19
Other issuers | 17 | 22 | 21
Turkey | 5,288 | 6,764 | 6,284
Government and other government agencies | 5,251 | 6,622 | 6,167
Credit institutions | 8 | 7 | 8
Other issuers | 29 | 135 | 109
Other countries | 18,345 | 8,476 | 7,558
Other foreign governments and other government agency | 13,980 | 5,982 | 4,707
Central banks | 79 | 6 | 22
Credit institutions | 2,738 | 1,269 | 1,239
Other issuers | 1,548 | 1,219 | 1,591
Subtotal | 32,615 | 21,884 | 22,348
Total | 73,379 | 59,014 | 49,462

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.152

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

As of December 31, 2025, 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
| 2025 |  | 2024 |  | 2023
| Carrying amount (Millions of Euros) | % |  | Carrying amount (Millions of Euros) | % |  | Carrying amount (Millions of Euros) | %
AAA | 2,703 | 3.7% |  | 1,907 | 3.2% |  | 1,829 | 3.7%
AA+ | 3,242 | 4.4% |  | 3,418 | 5.8% |  | 3,096 | 6.3%
AA | — | —% |  | 69 | 0.1% |  | 142 | 0.3%
AA- | 7,362 | 10.0% |  | 1,027 | 1.7% |  | 60 | 0.1%
A+ | 569 | 0.8% |  | 22 | —% |  | 25 | 0.1%
A | 37,936 | 51.7% |  | 497 | 0.8% |  | 444 | 0.9%
A- | 2,014 | 2.7% |  | 34,652 | 58.7% |  | 24,739 | 50.0%
BBB+ | 10,160 | 13.8% |  | 4,518 | 7.7% |  | 6,615 | 13.4%
BBB | 1,170 | 1.6% |  | 4,105 | 7.0% |  | 4,551 | 9.2%
BBB- | 1,856 | 2.5% |  | 890 | 1.5% |  | 548 | 1.1%
BB+ or below | 6,027 | 8.2% |  | 7,199 | 12.2% |  | 6,642 | 13.4%
Unclassified | 341 | 0.5% |  | 711 | 1.2% |  | 772 | 1.6%
Total | 73,379 | 100.0% |  | 59,014 | 100.0% |  | 49,462 | 100.0%

14.3 Loans and advances to customers
The breakdown of the balance under this heading in the consolidated balance sheets, according to their nature, is as follows:

LOANS AND ADVANCES TO CUSTOMERS (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
On demand and short notice | 6,192 | 5,307 | 3,040
Credit card debt | 30,651 | 27,720 | 22,889
Trade receivables | 34,291 | 31,693 | 25,096
Finance leases | 10,610 | 10,125 | 9,463
Reverse repurchase agreements | 743 | 262 | 92
Other term loans | 371,054 | 331,451 | 312,186
Advances that are not loans | 6,861 | 5,919 | 4,877
Total | 460,401 | 412,477 | 377,643

The following table sets forth a breakdown of the gross carrying amount "Loans and advances to customers" with maturity greater
than one year by fixed and variable rate as of December 31, 2025 , 2024 and 2023:

LOANS AND ADVANCES MATURING IN MORE THAN ONE YEAR BY FIXED AND VARIABLE RATE (MILLIONS OF EUROS)
| 2025 |  | 2024 |  | 2023
| Domestic | Foreign | Total |  | Domestic | Foreign | Total |  | Domestic | Foreign | Total
Fixed rate | 76,871 | 95,806 | 172,677 |  | 67,284 | 85,473 | 152,757 |  | 63,060 | 77,381 | 140,441
Variable rate | 59,584 | 81,950 | 141,534 |  | 62,359 | 65,493 | 127,851 |  | 66,188 | 61,723 | 127,911
Total | 136,454 | 177,757 | 314,211 |  | 129,642 | 150,966 | 280,608 |  | 129,248 | 139,104 | 268,352

As of December 31, 2025, 2024 and 2023, 55%, 54% and 52%, respectively, of "Loans and advances to customers" with maturity
greater than one year have fixed-interest rates and 45%, 46% and 48%, respectively, have variable interest rates.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.153

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

This heading also includes certain loans that have been securitized. The balances recognized in the consolidated balance sheets
corresponding to these securitized loans are as follows:

SECURITIZED LOANS (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Securitized mortgage assets | 17,408 | 19,537 | 20,406
Other securitized assets | 8,662 | 8,702 | 8,493
Total | 26,070 | 28,239 | 28,899

The heading Loans and advances to customers includes a non-significant 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.
15. 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 consolidated 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)
| 2025 | 2024 | 2023
ASSETS |  |  |
Derivatives - Hedge accounting | 570 | 1,158 | 1,482
Fair value changes of the hedged items in portfolio hedges of interest rate risk | (87) | (65) | (97)
LIABILITIES |  |  |
Derivatives - Hedge accounting | 1,933 | 2,503 | 2,625
Fair value changes of the hedged items in portfolio hedges of interest rate risk | — | — | —

As of December 31, 2025, 2024 and 2023, the main positions hedged by the Group 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 certificates 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”.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.154

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

– 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 30).
Note 7 analyzes the Group’s main risks that are hedged using these financial instruments.
The details of the net positions by hedged risk of the fair value of the hedging derivatives used by the Group as of December 31,
2025, 2024 and 2023, and which are recorded under the headings of "Derivatives - hedge accounting" of both assets and liabilities
of the consolidated balance sheet are as follows:

DERIVATIVES - HEDGE ACCOUNTING. BREAKDOWN BY TYPE OF RISK AND TYPE OF HEDGE (MILLIONS OF EUROS)
| Notes | 2025 |  | 2024 |  | 2023
| Assets | Liabilities |  | Assets | Liabilities |  | Assets | Liabilities
Interest rate |  | 329 | 162 |  | 257 | 344 |  | 422 | 364
OTC |  | 329 | 162 |  | 257 | 344 |  | 422 | 364
Organized market |  | — | — |  | — | — |  | — | —
Equity |  | 18 | 1 |  | — | — |  | — | —
OTC |  | 18 | 1 |  | — | — |  | — | —
Organized market |  | — | — |  | — | — |  | — | —
Foreign exchange and gold |  | 8 | 139 |  | 73 | 93 |  | 221 | 31
OTC |  | 8 | 139 |  | 73 | 93 |  | 221 | 31
Organized market |  | — | — |  | — | — |  | — | —
Credit |  | — | — |  | — | — |  | — | —
Commodities |  | — | — |  | — | — |  | — | —
Other |  | — | — |  | — | — |  | — | —
FAIR VALUE HEDGES |  | 355 | 302 |  | 330 | 437 |  | 644 | 395
Interest rate |  | 91 | 1,215 |  | 618 | 1,513 |  | 490 | 2,048
OTC |  | 91 | 1,212 |  | 615 | 1,513 |  | 483 | 2,048
Organized market |  | — | 3 |  | 3 | — |  | 7 | —
Equity |  | — | — |  | — | — |  | — | —
Foreign exchange and gold |  | 115 | 216 |  | 142 | 431 |  | 291 | 41
OTC |  | 115 | 216 |  | 142 | 431 |  | 291 | 41
Organized market |  | — | — |  | — | — |  | — | 1
Credit |  | — | — |  | — | — |  | — | —
Commodities |  | — | — |  | — | — |  | — | —
Other |  | — | — |  | — | — |  | — | —
CASH FLOW HEDGES |  | 206 | 1,431 |  | 760 | 1,944 |  | 781 | 2,089
HEDGE OF NET INVESTMENTS IN A FOREIGN OPERATION |  | 7 | 200 |  | 66 | 122 |  | 27 | 136
PORTFOLIO FAIR VALUE HEDGES OF INTEREST RATE RISK |  | 2 | — |  | 2 | — |  | 3 | 5
PORTFOLIO CASH FLOW HEDGES OF INTEREST RATE RISK |  | — | — |  | — | — |  | 27 | —
DERIVATIVES-HEDGE ACCOUNTING | 8 | 570 | 1,933 |  | 1,158 | 2,503 |  | 1,482 | 2,625
of which: OTC - credit institutions |  | 538 | 1,554 |  | 932 | 2,005 |  | 1,237 | 2,404
of which: OTC - other financial corporations |  | 24 | 343 |  | 223 | 499 |  | 237 | 221

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.155

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

Below there is a breakdown of the items covered by fair value hedges (mainly for the interest rates hedging) for years 2025 and
2024:

HEDGED ITEMS AND HEDGES. DECEMBER 2025 (MILLIONS OF EUROS)
| Notional | Hedged item amount | Accumulated fair value adjustments on the hedged item | Carrying amount of the hedging instrument
Assets | Liabilities
Fair value hedges | 69,514 | 68,884 | (507) | 357 | 303
Financial assets measured at fair value through other comprehensive income | 7,948 | 7,246 | (346) | 43 | 12
Debt securities | 7,632 | 6,945 | (336) | 22 | 6
Equity instruments | 250 | 231 | (14) | 18 | 1
Loans and advances | 66 | 71 | 4 | 2 | 5
Financial assets measured at amortized cost | 14,190 | 13,993 | (163) | 33 | 165
Debt securities | 8,758 | 8,619 | (86) | 19 | 158
Loans and advances | 5,432 | 5,375 | (77) | 14 | 7
Financial liabilities measured at amortized costs | 47,376 | 47,645 | 2 | 281 | 126
Debt certificates issued | 42,287 | 42,408 | 48 | 218 | 125
Deposits | 5,089 | 5,237 | (46) | 63 | 1

HEDGED ITEMS AND HEDGES. DECEMBER 2024 (MILLIONS OF EUROS)
| Notional | Hedged item amount | Accumulated fair value adjustments on the hedged item | Carrying amount of the hedging instrument
Assets | Liabilities
Fair value hedges | 59,371 | 58,230 | (329) | 330 | 437
Financial assets measured at fair value through other comprehensive income | 9,559 | 8,157 | (409) | 109 | 29
Debt securities | 9,559 | 8,157 | (409) | 109 | 29
Financial assets measured at amortized cost | 4,934 | 4,792 | (16) | 49 | 116
Debt securities | 3,860 | 3,757 | (48) | 47 | 102
Loans and advances | 1,074 | 1,035 | 32 | 2 | 14
Financial liabilities measured at amortized costs | 44,878 | 45,281 | 96 | 171 | 292
Debt certificates issued | 42,209 | 42,536 | 172 | 74 | 281
Deposits | 2,669 | 2,745 | (76) | 97 | 11

In 2025 and 2024, the inefficiencies of the fair value hedges amounted to €0 and €8 million, respectively, and are recognized in
the " Gains (losses) from hedge accounting, net " item of the consolidated income statement. (See Note 41).

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.156

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

Below is a breakdown of the items covered by cash flow hedges (mainly for the interest rates hedging) for years 2025 and 2024:

HEDGED ITEMS AND HEDGES. DECEMBER 2025 (MILLIONS OF EUROS)
| Notional | Hedged item amount | Carrying amount of the hedging instrument | Profit (loss) recognized in Other Comprehensive Income
| Assets | Liabilities
Cash flow hedges | 38,377 | 39,854 | 206 | 1,431 | 281
Financial assets measured at fair value through other comprehensive income | 2,905 | 3,050 | 142 | 303 | 60
Debt securities | 2,905 | 3,050 | 142 | 303 | 60
Financial assets measured at amortized cost | 33,861 | 35,188 | 33 | 1,057 | 326
Debt securities | 4,432 | 5,759 | 7 | 1,057 | 317
Loans and advances | 29,429 | 29,429 | 26 | — | 9
Financial liabilities measured at amortized costs | 1,611 | 1,616 | 30 | 72 | (105)
Debt certificates issued | 1,280 | 1,285 | 30 | 33 | (38)
Deposits | 330 | 332 | — | 39 | (67)

.

HEDGED ITEMS AND HEDGES. DECEMBER 2024 (MILLIONS OF EUROS)
| Notional | Hedged item amount | Carrying amount of the hedging instrument | Profit (loss) recognized in Other Comprehensive Income
| Assets | Liabilities
Cash flow hedges | 39,687 | 40,805 | 760 | 1,944 | 306
Financial assets measured at fair value through other comprehensive income | 6,941 | 8,078 | 445 | 1,892 | 235
Debt securities | 6,941 | 8,078 | 445 | 1,892 | 235
Financial assets measured at amortized cost | 31,308 | 31,287 | 240 | 60 | 82
Debt securities | 31,308 | 31,287 | 240 | 60 | 82
Financial liabilities measured at amortized costs | 1,438 | 1,440 | 75 | (8) | (11)
Debt certificates issued | 1,235 | 1,237 | 75 | 5 | (5)
Deposits | 203 | 203 | — | (13) | (6)

In 2025 and 2024, the inefficiencies of the cash flow hedges amounted to €-2 and €-3 million, respectively, and are recognized in
the " Gains (losses) from hedge accounting, net " item of the consolidated income statement. (See Note 41).
Below is a breakdown of the items covered by foreign currency hedges for the years 2025 and 2024:

HEDGED ITEMS AND HEDGES (MILLIONS OF EUROS)
| Carrying amount of the hedged item | Hedge of net investments in foreign operations (effective portion) | Carrying amount of the hedging instrument
Assets | Liabilities
Hedge of net investments in foreign operations 2025 | 35,760 | (3,117) | 7 | 200
Hedge of net investments in foreign operations 2024 | 31,820 | (2,329) | 66 | 122

As of December 31, 2025 and 2024, no inefficiencies were recorded in the hedge of net investments in foreign transactions.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.157

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

The following is the breakdown, by their notional maturities, of the hedging instruments as of December 31, 2025:

CALENDAR OF THE NOTIONAL MATURITIES OF THE HEDGING INSTRUMENTS (MILLIONS OF EUROS)
| Up to 3 months | From 3 months to 1 year | From 1 to 5 years | More than 5 years | Total
FAIR VALUE HEDGES | 6,701 | 15,373 | 25,342 | 19,101 | 66,516
Of which: Interest rate | 6,490 | 14,865 | 24,980 | 18,763 | 65,099
CASH FLOW HEDGES | 2,883 | 9,300 | 22,197 | 3,901 | 38,281
Of which: Interest rate | 2,883 | 9,300 | 20,190 | 1,411 | 33,784
HEDGE OF NET INVESTMENTS IN A FOREIGN OPERATION | 14,535 | 2,215 | — | — | 16,750
PORTFOLIO FAIR VALUE HEDGES OF INTEREST RATE RISK | 250 | 582 | 3,255 | 1,901 | 5,988
PORTFOLIO CASH FLOW HEDGES OF INTEREST RATE RISK | — | — | — | — | —
DERIVATIVES-HEDGE ACCOUNTING | 24,369 | 27,470 | 50,794 | 24,903 | 127,535

In 2025, 2024 and 2023, there was no reclassification in the consolidated income statements of any amount that was previously
recognized in equity (see Note 41). The amount of the derivatives designated as accounting hedges that did not pass the
effectiveness test in the years ended December 31, 2025, 2024 and 2023 was not material.
16. Investments in joint ventures and associates
16.1 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. BREAKDOWN BY ENTITIES (MILLIONS OF EUROS) |
| 2025 | 2024 | 2023
Joint ventures |  |  |
Altura Markets, S.V., S.A. | 44 | 38 | 31
RCI Colombia | 37 | 37 | 40
Other | 29 | 19 | 22
Subtotal | 111 | 94 | 93
Associates |  |  |
Metrovacesa, S.A. | 282 | 300 | 259
BBVA Allianz Seguros y Reaseguros, S.A. | 277 | 265 | 251
Atom Holdco Limited | 222 | 222 | 211
Servicios Electrónicos Globales S.A. de C.V. | 56 | 43 | 36
Other | 45 | 65 | 127
Subtotal | 883 | 895 | 883
Total | 994 | 989 | 976

Details of the joint ventures and associates as of December 31, 2025 are shown in Appendix II.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

The following is a summary of the changes in the years ended December 31, 2025 , 2024 and 2023 under this heading in the
consolidated balance sheets:

JOINT VENTURES AND ASSOCIATES. CHANGES IN THE YEAR (MILLIONS OF EUROS)
| Notes | 2025 | 2024 | 2023
Balance at the beginning |  | 989 | 976 | 916
Acquisitions and capital increases |  | 2 | 4 | 95
Disposals and capital reductions |  | (55) | (28) | (42)
Transfers and changes of consolidation method |  | — | (69) | 4
Share of profit and loss | 39 | 62 | 40 | 26
Exchange differences |  | (13) | 7 | 16
Impairment / reversal of impairment ⁽¹⁾ |  | 32 | 63 | (9)
Dividends, valuation adjustments and other |  | (23) | (5) | (30)
Balance at the end |  | 994 | 989 | 976

(1) See Note 16.3.
During the year 2025, there were no significant changes under the heading "Joint ventures and associates".
During the year 2024, the most significant changes under the heading "Joint ventures and associates" correspond to Solaris and
C ompañía Española de Financiación del Desarrollo S.A. (Cofides) that left the scope of the consolidation perimeter in the first half
of the year when the Group ceased to have significant influence in either entity.
During the year 2023, the most significant change under the heading "Joint ventures and associates" corresponds to a capital
increase in Atom Holdco Limited.
Appendix III 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.
16.2 Other information about associates and joint ventures
If these entities had been consolidated rather than accounted for using the equity method, the change in each of the lines of
balance sheet and the consolidated income statement would not be significant.
As of December 31, 2025, 2024 and 2023 there was no financial support agreement or other contractual commitment to
associates and joint ventures entities from the holding or the subsidiaries that are not recognized in the financial statements (see
Note 53.2).
As of December 31, 2025, 2024 and 2023 there was no contingent liability in connection with the investments in joint ventures and
associates (see Note 53.2).
16.3 Impairment
As required by IAS 36, the book value of the associates and joint venture entities has been compared with their recoverable
amount, with the latter being calculated as the higher between the value in use and the fair value minus the cost of sale. For the
year ended December 31, 2025, a net reversal of impairment was recorded for €32 million ; for the year ended December 31, 2024,
a net reversal of impairment was recorded for €63 million; for the year ended December 31, 2023, a net impairment was recorded
for €9 million (see Note 48).

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

17. Tangible assets
The breakdown of, and changes in, the balances under this heading in the consolidated 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 2025 (MILLIONS OF EUROS)
|  | Land and buildings | Work in progress | Furniture, fixtures and vehicles | Right to use asset | Investment Properties | Assets leased out under an operating lease | Total
| Notes | Own use | Investment Properties
Cost |  |  |  |  |  |  |  |  |
Balance at the beginning |  | 6,475 | 155 | 6,848 | 2,439 | 251 | 241 | 1,158 | 17,567
Additions |  | 62 | 101 | 520 | 437 | 5 | 1 | 157 | 1,282
Retirements |  | (78) | (1) | (334) | (178) | (4) | (6) | (2) | (602)
Acquisition of subsidiaries in the year |  | — | — | — | — | — | — | — | —
Disposal of entities in the year |  | — | — | — | — | — | — | — | —
Transfers |  | 5 | (162) | 84 | 1 | (1) | (2) | — | (75)
Exchange difference and other |  | (87) | (9) | (89) | (17) | — | (18) | (227) | (447)
Balance at the end |  | 6,377 | 83 | 7,029 | 2,683 | 251 | 216 | 1,085 | 17,724
Accrued depreciation |  |  |  |  |  |  |  |  |
Balance at the beginning |  | 1,262 | — | 4,850 | 1,164 | 91 | 27 | 153 | 7,547
Additions | 45 | 106 | — | 501 | 317 | 18 | 4 | — | 946
Additions transfer to discontinued operations |  | — | — | — | — | — | — | — | —
Retirements |  | (30) | — | (306) | (30) | — | (2) | (1) | (369)
Acquisition of subsidiaries in the year |  | — | — | — | — | — | — | — | —
Disposal of entities in the year |  | — | — | — | — | — | — | — | —
Transfers |  | (11) | — | (9) | 2 | (2) | 1 | 5 | (14)
Exchange difference and other |  | (10) | — | (74) | (74) | — | (2) | 48 | (112)
Balance at the end |  | 1,317 | — | 4,962 | 1,379 | 106 | 28 | 206 | 7,999
Impairment |  |  |  |  |  |  |  |  |
Balance at the beginning |  | 118 | — | — | 22 | 81 | 39 | — | 260
Additions | 49 | 2 | — | 6 | 4 | (10) | (8) | 1 | (5)
Additions transfer to discontinued operations |  | — | — | — | — | — | — | — | —
Retirements |  | — | — | — | — | — | — | — | —
Acquisition of subsidiaries in the year |  | — | — | — | — | — | — | — | —
Disposal of entities in the year |  | — | — | — | — | — | — | — | —
Transfers |  | 7 | — | — | — | — | — | — | 7
Exchange difference and other |  | (5) | — | (6) | (1) | — | (6) | (1) | (19)
Balance at the end |  | 122 | — | — | 25 | 71 | 26 | — | 243
Net tangible assets |  |  |  |  |  |  |  |  |
Balance at the beginning |  | 5,094 | 155 | 1,999 | 1,253 | 79 | 174 | 1,004 | 9,759
Balance at the end |  | 4,938 | 83 | 2,067 | 1,279 | 74 | 161 | 879 | 9,482

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

TANGIBLE ASSETS. BREAKDOWN BY TYPE OF ASSETS AND CHANGES IN THE YEAR 2024 (MILLIONS OF EUROS)
|  |  |  |  | Right to use asset | Investment properties | Assets leased out under an operating lease | Total
| Notes | Land and buildings | Work in progress | Furniture, fixtures and vehicles | Own use | Investment properties
Cost |  |  |  |  |  |  |  |  |
Balance at the beginning |  | 6,405 | 199 | 6,424 | 2,212 | 238 | 156 | 800 | 16,432
Additions |  | 295 | 110 | 513 | 574 | 2 | 52 | 369 | 1,914
Retirements |  | (38) | (1) | (89) | (332) | (32) | (10) | (63) | (566)
Acquisition of subsidiaries in the year |  | — | — | — | — | — | — | — | —
Disposal of entities in the year |  | — | — | — | — | — | — | — | —
Transfers |  | 5 | (136) | 145 | (44) | 44 | (20) | — | (5)
Exchange difference and other |  | (192) | (17) | (145) | 29 | — | 63 | 53 | (208)
Balance at the end |  | 6,475 | 155 | 6,848 | 2,439 | 251 | 241 | 1,158 | 17,567
Accrued depreciation |  |  |  |  |  |  |  |  |
Balance at the beginning |  | 1,226 | — | 4,606 | 906 | 93 | 17 | 49 | 6,896
Additions | 45 | 123 | — | 501 | 324 | 19 | 5 | — | 972
Additions transfer to discontinued operations |  | — | — | — | — | — | — | — | —
Retirements |  | (25) | — | (87) | (42) | — | (1) | (6) | (161)
Acquisition of subsidiaries in the year |  | — | — | — | — | — | — | — | —
Disposal of entities in the year |  | — | — | — | — | — | — | — | —
Transfers |  | (4) | — | 10 | 22 | (22) | (1) | — | 5
Exchange difference and other |  | (56) | — | (181) | (46) | — | 8 | 111 | (165)
Balance at the end |  | 1,262 | — | 4,850 | 1,164 | 91 | 27 | 153 | 7,547
Impairment |  |  |  |  |  |  |  |  |
Balance at the beginning |  | 166 | — | — | 40 | 61 | 15 | — | 283
Additions | 49 | (65) | — | 2 | (18) | 20 | 31 | 1 | (29)
Additions transfer to discontinued operations |  | — | — | — | — | — | — | — | —
Retirements |  | — | — | — | — | — | — | — | —
Acquisition of subsidiaries in the year |  | — | — | — | — | — | — | — | —
Disposal of entities in the year |  | — | — | — | — | — | — | — | —
Transfers |  | — | — | — | — | — | (5) | — | (5)
Exchange difference and other |  | 16 | — | (2) | — | — | (2) | (1) | 13
Balance at the end |  | 118 | — | — | 22 | 81 | 39 | — | 260
Net tangible assets |  |  |  |  |  |  |  |  |
Balance at the beginning |  | 5,013 | 199 | 1,817 | 1,266 | 84 | 124 | 751 | 9,253
Balance at the end |  | 5,094 | 155 | 1,999 | 1,253 | 79 | 174 | 1,004 | 9,759

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

TANGIBLE ASSETS. BREAKDOWN BY TYPE OF ASSETS AND CHANGES IN THE YEAR 2023 (MILLIONS OF EUROS)
|  |  |  | Furniture, fixtures and vehicles | Right to use asset | Investment properties | Assets leased out under an operating lease | Total
| Notes | Land and buildings | Work in progress | Own use | Investment properties
Cost |  |  |  |  |  |  |  |  |
Balance at the beginning |  | 6,255 | 93 | 5,833 | 1,871 | 214 | 242 | 582 | 15,089
Additions |  | 270 | 190 | 549 | 499 | 10 | 39 | 238 | 1,795
Retirements |  | (19) | (4) | (117) | (195) | — | (10) | (4) | (349)
Acquisition of subsidiaries in the year |  | — | — | — | — | — | — | — | —
Disposal of entities in the year |  | — | — | — | — | — | — | — | —
Transfers |  | 12 | (72) | 41 | (18) | 15 | — | — | (22)
Exchange difference and other |  | (113) | (8) | 118 | 55 | — | (115) | (16) | (79)
Balance at the end |  | 6,405 | 199 | 6,424 | 2,212 | 238 | 156 | 800 | 16,432
Accrued depreciation |  |  |  |  |  |  |  |  |
Balance at the beginning |  | 1,064 | — | 4,204 | 653 | 70 | 23 | 52 | 6,066
Additions | 45 | 121 | — | 426 | 296 | 21 | 3 | — | 867
Additions transfer to discontinued operations |  | — | — | — | — | — | — | — | —
Retirements |  | (9) | — | (73) | (26) | — | (1) | (1) | (111)
Acquisition of subsidiaries in the year |  | — | — | — | — | — | — | — | —
Disposal of entities in the year |  | — | — | — | — | — | — | — | —
Transfers |  | (2) | — | (7) | (5) | 3 | 1 | — | (11)
Exchange difference and other |  | 52 | — | 57 | (12) | — | (9) | (3) | 85
Balance at the end |  | 1,226 | — | 4,606 | 906 | 93 | 17 | 49 | 6,896
Impairment |  |  |  |  |  |  |  |  |
Balance at the beginning |  | 154 | — | — | 65 | 50 | 17 | — | 286
Additions | 49 | 15 | — | 1 | (14) | 12 | 2 | — | 16
Additions transfer to discontinued operations |  | — | — | — | — | — | — | — | —
Retirements |  | — | — | — | — | — | — | — | —
Acquisition of subsidiaries in the year |  | — | — | — | — | — | — | — | —
Disposal of entities in the year |  | — | — | — | — | — | — | — | —
Transfers |  | — | — | — | — | — | — | — | —
Exchange difference and other |  | (3) | — | (1) | (11) | — | (3) | — | (18)
Balance at the end |  | 166 | — | — | 40 | 61 | 15 | — | 283
Net tangible assets |  |  |  |  |  |  |  |  |
Balance at the beginning |  | 5,036 | 93 | 1,629 | 1,153 | 94 | 201 | 530 | 8,737
Balance at the end |  | 5,013 | 199 | 1,817 | 1,266 | 84 | 124 | 751 | 9,253

The right to use asset consists mainly of the rental of commercial real estate premises for central services and the network
branches located in the countries where the Group operates whose average term is between 5 and 20 years. The clauses included
in rental contracts correspond to a large extent to rental contracts under normal market conditions in the country where the
property is rented.
As of December 31, 2025, 2024 and 2023, the cost of fully amortized tangible assets that remained in use were €3,096 million,
€3,186 million and €2,796 million respectively while its recoverable residual value was not significant.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

As of December 31, 2025, 2024 and 2023 the amount of tangible assets under financial lease schemes in respect of which the
purchase option was expected to be exercised was not material.
The main activity of the Group is carried out through a network of bank branches located geographically as shown in the following
table:

BRANCHES BY GEOGRAPHICAL AREA (NUMBER OF BRANCHES)
| 2025 | 2024 | 2023
Spain | 1,871 | 1,881 | 1,882
Mexico | 1,635 | 1,691 | 1,706
South America | 1,192 | 1,221 | 1,395
Turkey | 913 | 925 | 935
Rest | 31 | 31 | 31
Total | 5,642 | 5,749 | 5,949

The following table shows the detail of the net carrying amount of the tangible assets corresponding to Spanish and foreign
subsidiaries as of December 31, 2025, 2024 and 2023:

TANGIBLE ASSETS BY SPANISH AND FOREIGN SUBSIDIARIES. NET ASSETS VALUES (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
BBVA and Spanish subsidiaries | 4,082 | 4,129 | 4,183
Foreign subsidiaries | 5,400 | 5,630 | 5,071
Total | 9,482 | 9,759 | 9,253

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

18. Intangible assets
18.1 Goodwill
The breakdown of the balance under this heading in the consolidated balance sheets, according to the CGU to which goodwill has
been allocated, is as follows:

GOODWILL. BREAKDOWN BY CGU AND CHANGES OF THE YEAR (MILLIONS OF EUROS)
| Mexico | Colombia | Chile | Other | Total
Balance as of December 31, 2022 | 559 | 118 | 25 | 5 | 707
Additions | — | — | — | — | —
Exchange difference | 64 | 25 | (1) | — | 88
Impairment | — | — | — | — | —
Companies held for sale | — | — | — | — | —
Balance as of December 31, 2023 | 623 | 143 | 24 | 5 | 795
Additions | — | — | — | — | —
Exchange difference | (82) | (11) | (1) | (1) | (95)
Impairment | — | — | — | — | —
Companies held for sale | — | — | — | — | —
Balance as of December 31, 2024 | 541 | 132 | 23 | 4 | 700
Additions | — | — | — | — | —
Exchange difference | 11 | 5 | (1) | — | 15
Impairment | — | — | — | — | —
Companies held for sale | — | — | — | — | —
Balance as of December 31, 2025 | 553 | 137 | 22 | 4 | 715

Goodwill in business combinations
There were no significant business combinations during 2025 , 2024 and 2023.
Impairment Test
As mentioned in Note 2.2.7, the CGU to which goodwill has been allocated, are periodically tested for impairment by including the
allocated goodwill in their carrying amount.
This analysis is performed at least annually and whenever there is any indication of impairment. Furthermore, it is analyzed
whether certain changes in the valuation assumptions used could give rise to differences in the result of the impairment test.
The BBVA Group performs estimations on the recoverable amount of certain CGU by calculating the value in use through the
discounted value of future cash flows method.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

The main hypotheses used for the value in use calculation are the following:
– The forecast cash flows, including net interest margin and cost of risk, estimated by the Group's management, and based
on the latest available budgets for the next 5 years, considering the macroeconomic variables of each CGU, regarding the
existing balance structure as well as macroeconomic variables such as the evolution of interest rates and the GDP of the
geographical area where the CGU is located, among others.
– The constant growth rate for extrapolating cash flows, starting in the fifth year, beyond the period covered by the budgets
or forecasts.
– The discount rate on future cash flows, which coincides with the cost of capital assigned to each CGU, and which consists
of a risk-free rate plus a premium that reflects the inherent risk of each of the businesses evaluated.
The focus used by the Group's management to determine the values of the assumptions is based both on its projections and past
experience. These values are verified and use external sources of information, wherever possible.
Goodwill - Mexico CGU
The Group’s most significant goodwill corresponds to the CGU in Mexico, the most relevant assumptions used in the impairment
test of this CGU as of December 31, 2025, 2024 and 2023 are as follows:

IMPAIRMENT TEST ASSUMPTIONS CGU GOODWILL IN MEXICO
| 2025 | 2024 | 2023
Discount rate (1) | 16.7 % | 18.3 % | 12.4 %
Growth rate | 5.2 % | 5.5 % | 5.6 %

(1) After tax discount rates.
In accordance with paragraph 33.c of IAS 36, as of December 31, 2025, the Group used a growth rate of 5.2 % based on the real
GDP growth rate of Mexico, the expected inflation rate and the potential growth of the banking sector in Mexico.
The assumptions with a greater relative weight and whose volatility could have a greater impact in determining the present value of
the cash flows starting on the fifth year are the discount rate and the growth rate. The table below shows, in a simplified way, the
relative variation by which the CGU recoverable amount would increase (or decrease) as a result of a reasonable variation (in basis
points) of each of the key assumptions, considered in isolation as of December 31, 2025, where, in each case, their value in use
would continue to exceed their book value:

SENSITIVITY ANALYSIS FOR MAIN ASSUMPTIONS - MEXICO
| Increase of 50 basis points (1) | Decrease of 50 basis points (1)
Discount rate | (3)% | 4%
Growth rate | 2% | (2)%

(1) The use of very different discount or growth rates would be inconsistent with the macroeconomic assumptions under which the Unit builds its business plan,
such as inflation assumptions or interest rate curves used to determine cash flows.
Goodwill - Other CGUs
The impairment tests carried out on the rest of the CGUs have not detected significant impairment. Likewise, the sensitivity
analysis on the main assumptions carried out for the rest of the CGU of the Group indicate that their value in use would continue to
exceed their book value.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

18.2 Other intangible assets
The breakdown of the balance and changes of this heading in the consolidated balance sheets, according to the nature of the
related items, is as follows:

OTHER INTANGIBLE ASSETS (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Computer software acquisition expense | 2,105 | 1,764 | 1,535
Other intangible assets with an infinite useful life | 8 | 9 | 8
Other intangible assets with a definite useful life | 27 | 17 | 25
Total | 2,140 | 1,790 | 1,568

The changes of this heading during the years ended December 31, 2025, 2024 and 2023 , are as follows:

OTHER INTANGIBLE ASSETS (MILLIONS OF EUROS)
| Notes | Computer software |  | Other intangible assets |  | Total of intangible assets
| 2025 | 2024 | 2023 |  | 2025 | 2024 | 2023 |  | 2025 | 2024 | 2023
Balance at the beginning |  | 1,764 | 1,535 | 1,396 |  | 26 | 33 | 56 |  | 1,790 | 1,568 | 1,453
Additions |  | 964 | 771 | 688 |  | 19 | 11 | 1 |  | 983 | 782 | 689
Amortization in the year | 45 | (566) | (543) | (518) |  | (9) | (18) | (19) |  | (575) | (561) | (536)
Amortization transfer to discontinued operations |  | — | — | — |  | — | — | — |  | — | — | —
Exchange differences and other |  | (43) | 16 | (6) |  | (1) | (1) | (5) |  | (44) | 16 | (11)
Impairment |  | (14) | (15) | (26) |  | — | — | — |  | (14) | (15) | (26)
Balance at the end |  | 2,105 | 1,764 | 1,535 |  | 36 | 26 | 33 |  | 2,140 | 1,790 | 1,568

As of December 31, 2025, 2024 and 2023, the cost of fully amortized intangible assets that remained in use were €4,483 million,
€4,214 million and €4,214 million respectively, while their recoverable value was not significant.
19. Tax assets and liabilities
19.1 Consolidated tax group
Pursuant to current legislation, BBVA consolidated tax group in Spain includes the Bank (as the parent company) and its Spanish
subsidiaries that meet the requirements provided for under Spanish legislation regulating the taxation regime for the consolidated
profit of corporate groups.
The Group’s non-Spanish banks and subsidiaries file tax returns in accordance with the tax legislation in force in each country.
19.2 Years open for review by the tax authorities
As of December 31, 2025, the BBVA consolidated tax group in Spain has the year 2021 and subsequent years subject to
inspection, with respect to the main taxes applicable to it. Without prejudice to the foregoing, with regard to Value Added Tax,
BBVA, S.A. and BBVA Seguros, S.A., de Seguros y Reaseguros are being audited for the financial years 2021 to 2024, inclusive.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

The remainder of the Spanish consolidated entities in general have the last four years open for inspection by the tax authorities
(the Tax Administration) for the main taxes applicable, except for those in which there has been an interruption of the limitation
period due to the start of an inspection.
With regard to the BBVA consolidated tax group in Spain, in 2025, as a result of tax audits conducted by the tax authorities,
inspection reports were issued for the financial years 2017 to 2020. These reports were signed by BBVA “in agreement” with the
tax authorities' findings, except for those related to Corporate Income Tax for financial years 2017 and 2018, for which partial
disagreement was expressed. At the close of the financial year, the reports signed "in agreement" with the tax authorities became
final. The closure of the tax audit and the subsequent reassessment of tax risk coverage needs has had a net positive effect on the
Group's effective tax rate (see Note 19.3) and, in addition, has affected the evolution in the Group's deferred tax assets during the
year (see Note 19.5). Notwithstanding the foregoing, the conclusion of the aforementioned inspections had no material impact on
the Group’s consolidated financial statements. Furthermore, in relation to the Value Added Tax, due to criteria that have been
established, the Group has revised the pro rata portion of BBVA, S.A. for the 2025 financial year and certain prior years (see Note
44.2).
In addition, i n the 2024 financial year, the temporary levy on credit institutions of BBVA, S.A. corresponding to the 2023 financial
year was audited by the Tax Administration. In the 2025 financial year, the tax assessment initiated by the Tax Administration was
signed by BBVA “in disagreement" and appealed, payment has been requested for suspension, and the amount claimed has been
secured by a guarantee.
Additionally, the temporary levy on credit institutions of BBVA, S.A. corresponding to the 2024 financial year is being audited by
the Tax Administration.
On the other hand, in relation to the main jurisdictions in which the Group has a presence and carries out its activity, in the case of
Mexico, during the 2025 financial year the review process corresponding to the Corporate Income Tax for the 2017 financial year
was completed, as the Appeal for Reconsideration filed by BBVA México, S.A. was resolved, w ith no material impact on the
Group’s consolidated financial statements.
In addition, with respect BBVA México, S.A., the review process corresponding to the Corporate Income Tax for the 2018 financial
year has continued and the review procedure corresponding to the 2019 and 2020 financia l years with relation to Corporate
Income Tax and Value Added Tax has been initiated.
With regard to the coverage, if applicable, of tax risks identified in the consolidated financial statements, 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.
In this regard, on the terms indicated in the previous paragraph (taking into account the provisions of Note 7.1, as well as in Note
19.5 with regard to the Group's deferred tax assets), the Group has established provisions that, without prejudice to the
uncertainty associated with any ongoing processes, it considers appropriate taking into account the identified risks to be covered
(in accordance with the relevant evaluation and estimation possibilities of such risks) and 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 objectively at the present time. However, the Group 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 consolidated financial statements of the Group.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.167

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

19.3 Reconciliation of the tax expense
The reconciliation of the Group’s corporate income tax expense resulting from the application of the Spanish corporation income
tax rate and the income tax expense recognized in the consolidated income statements is as follows:

RECONCILIATION OF TAXATION AT THE SPANISH CORPORATION TAX RATE TO THE TAX EXPENSE RECORDED FOR THE YEAR (MILLIONS OF EUROS)
| 2025 |  | 2024 |  | 2023
| Amount | Effective tax % |  | Amount | Effective tax % |  | Amount | Effective tax %
Profit or (-) loss before tax | 16,227 |  |  | 15,405 |  |  | 12,419 |
From continuing operations | 16,227 |  |  | 15,405 |  |  | 12,419 |
From discontinued operations | — |  |  | — |  |  | — |
Taxation at Spanish corporation tax rate 30% | 4,868 |  |  | 4,622 |  |  | 3,726 |
Lower/higher effective tax rate from foreign entities ⁽¹⁾ | 181 |  |  | 193 |  |  | 2 |
Mexico | (135) | 28 % |  | (180) | 28 % |  | (194) | 27 %
Chile | (1) | 29 % |  | (2) | 23 % |  | (4) | 11 %
Colombia | 18 | 38 % |  | (1) | 29 % |  | (25) | 14 %
Peru | (22) | 27 % |  | (44) | 23 % |  | (55) | 20 %
Turkey | 351 | 51 % |  | 498 | 62 % |  | 314 | 57 %
USA | (50) | 21 % |  | (14) | 26 % |  | 5 | 33 %
Others | 20 |  |  | (64) |  |  | (39) |
Revenues with lower tax rate (dividends/capital gains) | (37) |  |  | (44) |  |  | (26) |
Equity accounted earnings | (19) |  |  | (14) |  |  | (8) |
Other effects ⁽²⁾ | 107 |  |  | 73 |  |  | 309 |
Income tax | 5,100 |  |  | 4,830 |  |  | 4,003 |
Of which: Continuing operations | 5,100 |  |  | 4,830 |  |  | 4,003 |
Of which: Discontinued operations | — |  |  | — |  |  | — |

(1) Calculated by applying the difference between the tax rate in force in Spain and the one applied to the Group’s earnings in each jurisdiction.
(2) With regard to the 2025 financial year, it includes the net impact of several tax effects comprising, among others, (i) the recording of the impact of IMIC for
2025, as indicated in Note 19.6 below, (ii) the recognition of certain deferred tax assets corresponding to the Group in Spain that were not previously registered in
the financial statements, as referred to in Note 19.5 below, (iii) the positive effect of the result of the closure of the inspection process of the Group in Spain for the
financial years 2017 to 2020, and the consequent reassessment of the needs for covering tax risks, as indicated in Note 19.2 above, and (iv) the effects of the
limitation of the tax exemption on intragroup dividends and the withholding taxes associated with them.
On the other hand, regarding 2024, it shows the net impact of several tax effects that include, among others, (i) the accounting record of the impact associated
with the declaration of unconstitutionality of certain measures relating to the Spanish Corporate Income Tax introduced by Royal Decree-Law 3/2016, as well as
the impact of some of the measures introduced by Law 7/2024 on Corporate Income Tax that, in particular, are aimed at reinstating the measures declared
unconstitutional, (ii) the non-deductibility of the temporary taxation of credit institutions recorded for accounting purposes in the year 2024 (see Note 19.6), and
(iii) the effects of the limitation of the exemption on intra-group dividends and the withholding taxes associated with them.
The effective income tax rate for the Group in the years ended December 31, 2025, 2024 and 2023 is as follows:

EFFECTIVE TAX RATE (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Income from: |  |  |
Consolidated tax group in Spain | 5,011 | 4,810 | 2,601
Other Spanish entities | 91 | (41) | 6
Foreign entities | 11,125 | 10,636 | 9,812
Gains (losses) before taxes from continuing operations | 16,227 | 15,405 | 12,419
Tax expense or income related to profit or loss from continuing operations ⁽¹⁾ | 5,100 | 4,830 | 4,003
Effective tax rate | 31.4 % | 31.4 % | 32.2 %

(1) In 2025, 4,598 million and 502 million corresponded to current tax expenses and deferred tax expenses, respectively. In 2024, €3,970 million and €860 million
corresponded to current tax expenses and deferred tax expenses, respectively.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.168

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

In 2025, in general terms, there have been no changes in the nominal Corporate Income Tax rate in the main countries in which the
Group is present compared to those existing in the previous period. In 2024, in general terms, and in the main countries where the
Group has a presence, there were also no changes in the nominal Corporate Income Tax rate, compared to those existing in the
previous period. In 2023, the changes in the nominal tax rate in Corporate Income Tax, with respect to those existing in the
previous year in the main countries in which the Group is present, were Turkey (from 25% to 30%) and Colombia (from 38% to
40%).
19.4 Income tax recognized in equity
Regardless of the income tax expense recognized in the consolidated income statements, the Group has recognized income tax
charges in the consolidated total equity in 2025, 2024 and 2023 of €92 million (credit), €543 million (debit) and €285 million
(debit), respectively, mainly due to debt securities, actuarial gains and losses and cash flow hedges.
19.5 Tax assets and liabilities
The balance under the heading "Tax assets" in the consolidated 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 in respect of the Group’s various current and deferred tax liabilities. The details of the mentioned tax assets and liabilities
are as follows:

TAX ASSETS AND LIABILITIES (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Tax assets |  |  |
Current tax assets ⁽¹⁾ | 3,998 | 4,295 | 2,860
Deferred tax assets | 13,869 | 14,354 | 14,641
Pensions | 619 | 534 | 445
Financial Instruments | 814 | 1,335 | 1,069
Loss allowances | 2,210 | 2,158 | 2,127
Other | 1,518 | 1,495 | 1,467
Secured tax assets | 7,885 | 7,979 | 8,534
Tax losses | 823 | 853 | 999
Total | 17,867 | 18,650 | 17,501
Tax liabilities |  |  |
Current tax liabilities ⁽¹⁾ | 1,480 | 575 | 878
Deferred tax liabilities | 2,540 | 2,458 | 1,677
Financial Instruments | 1,184 | 915 | 761
Other | 1,356 | 1,543 | 916
Total | 4,020 | 3,033 | 2,554

(1)The decrease in current tax assets in 2025 compared to 2024 is due, among other things, to a lower Mexican tax receivable related to corporate income tax, as
the installment payments made in 2024 were particularly high. The increase in current tax liabilities in 2025 compared to 2024 is mainly due to the Spanish
Interest and Commission Margin Tax (IMIC) for the 2025 financial year, as well as the increase in the Mexican tax liability related to the estimated corporate
income tax for the 2025 financial year.
On the other hand, the increase in current tax assets in 2024 compared to 2023 corresponds mainly to a higher tax receivable of the tax group in Spain, as well as
in Mexico and Colombia, in relation to the Corporate Income Tax for the year 2024 related to the installment payments made in the year. On the other hand, the
decrease in current tax liabilities in 2024 compared to 2023, corresponds mainly to the decrease in the tax payable in Mexico and Argentina in relation to the
estimated income tax for the year 2023.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.169

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

The most significant variations of the deferred tax assets and liabilities in the years 2025, 2024 and 2023 were derived from the
following items:

DEFERRED TAX ASSETS AND LIABILITIES. ANNUAL VARIATIONS (MILLIONS OF EUROS)
| 2025 |  | 2024 |  | 2023
| Deferred assets | Deferred liabilities |  | Deferred assets | Deferred liabilities |  | Deferred assets | Deferred liabilities
Balance at the beginning | 14,354 | 2,458 |  | 14,641 | 1,677 |  | 14,747 | 1,520
Pensions | 85 | — |  | 89 | — |  | 23 | —
Financials instruments | (521) | 269 |  | 266 | 154 |  | (409) | 204
Loss allowances | 52 | — |  | 31 | — |  | 293 | —
Others | 23 | (187) |  | 28 | 627 |  | 206 | (47)
Secured tax assets | (94) | — |  | (555) | — |  | (155) | —
Tax losses | (30) | — |  | (146) | — |  | (64) | —
Balance at the end | 13,869 | 2,540 |  | 14,354 | 2,458 |  | 14,641 | 1,677

The changes in deferred tax assets and liabilities in 2025 were mainly attributable to:
– The decrease in secured tax assets as a result of the expected offsetting of such assets based on the estimate of the
Corporate Income Tax of the BBVA consolidated tax group in Spain corresponding to 2025. The balance of secured tax
assets was also affected by the closure of the Corporate Income Tax inspection process of the BBVA consolidated tax
group in Spain covering the financial years 2017 to 2020, as well as by the reassessment carried out by the Group of the
coverage needs for the identified tax risks.
– The decrease in tax assets due to tax losses in the 2025 financial year was moderate because, although the tax group in
Spain generated a positive taxable income that allowed the offsetting of tax losses and deductions, the evolution of its
balance was affected, as referred to in Note 19.2 and Note 19.3 above, by (i) on the one hand, the result of the Corporate
Income Tax inspection process of the BBVA consolidated tax group in Spain covering the financial years 2017 to 2020, as
well as the reassessment carried out by the Group of the coverage needs for the identified tax risks, and (ii) on the other
hand, the recognition of certain deferred tax assets corresponding to the group in Spain, which were not previously
recorded in the financial statements. This decision was based on the ability and acceleration observed in the absorption
process of these assets, solid historical results —including for the 2025 financial year—, the sustained capacity of the
Group to generate value and profit projections that support their recognition.
– As regards the evolution of deferred tax assets (other than secured tax assets and those linked to tax losses) net of
deferred tax liabilities, it was mainly driven by the effects associated with the valuation of financial instruments, the very
operation of the Corporate Income Tax which, due to the differences between accounting and taxation rules, results in
constant movements in deferred taxes, as well as by the effect of exchange rate s.
Of the deferred tax assets and liabilities shown above, those included in Note 19.4 above have been recognized against the entity's
equity, and the rest against earnings for the year or reserves.
As of December 31, 2025, 2024 and 2023, the estimated amount of temporary differences associated with investments in
subsidiaries, joint ventures and associates, which were not recognized as deferred tax liabilities in the consolidated balance sheets,
amounted to €413 million, €230 million and €96 million, respectively.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.170

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

With respect to the deferred tax assets shown above, the table below shows the amounts guaranteed by the Spanish government,
broken down by the items that originated the relevant assets:

SECURED TAX ASSETS (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Pensions | 1,557 | 1,622 | 1,622
Loss allowances | 6,328 | 6,357 | 6,912
Total | 7,885 | 7,979 | 8,534

As of December 31, 2025, non-guaranteed net deferred tax assets amounted to €3,443 million (€3,918 million and €4,430 million
as of December 31, 2024 and 2023, respectively). The breakdown by major geographical areas was as follows:
– Spain: net deferred tax assets recognized in Spain totaled €1,319 million as of December 31, 2025 (€1,421 million and
€1,805 million as of December 31, 2024 and 2023, respectively). €713 million of the figure recorded in the year ended
December 31, 2025 for net deferred tax assets related to tax credits and tax loss carry forwards and €606 million relate to
temporary differences.
– Mexico: net deferred tax assets recognized in Mexico amounted to €1,721 million as of December 31, 2025 (€1,798 million
and €1,899 million as of December 31, 2024 and 2023, respectively). Practically all of deferred tax assets as of December
31, 2025 relate to temporary differences.
– South America: net deferred tax assets recognized in South America amounted to €206 million as of December 31, 2025
(€245 million and €213 million as of December 31, 2024 and 2023, respectively). Of the figure recorded at year-end 2025
for net deferred tax assets, €73 million relate to tax credits for tax loss carryforwards and €133 million have arisen as
temporary differences.
– Turkey: net deferred tax assets recognized in Turkey amounted to €191 million as of December 31, 2025 (€443 million
and €499 million as of December 31, 2024 and 2023, respectively). All of the deferred tax assets have arisen as
temporary differences.
Based on the information available as of December 31, 2025, including historical levels of benefits and projected results available
to the Group, the Group 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.
On the other hand, the Group has not recognized for accounting purposes (or, as the case may be, has been subject to a valuation
adjustment) certain deferred tax assets (tax loss carryforwards, deductions and temporary differences) for which, in general,
there is no legal period for offsetting, amounting to approximately €1,969 million (in terms of quota), which mainly arise from the
integration of Catalunya Banc in the case of Spain, in accordance with the following breakdown by each of the jurisdictions in which
the Group is located and carries on its business activities: (i) Sp ain: €1,871,758 thousand; (ii) United States: €31,281 thousand; (iii)
Mexico: €31,769 thousand; (iv) Colombia: €12,275 thousand; (v) Peru: €6,427 thousand; (vi) Turkey: €5,672 thousand; (vii)
Portugal: €4,567 thousand; (viii) Japan: €2,849 thousand; (ix) Netherlands: €902 thousand; (x) China: €799 thousand; (xi) Hong
Kong: €487 thousand; (xii) Singapore: €327 thousand; (xiii) Uruguay: €314 thousand; and (xiv) Curacao: €4 thousand.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.171

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

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 other things, may 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 Group
company that is a shareholder of the entity being dissolved and liquidated, as a result of the disclosure of tax losses pending
deduction associated with the shareholding of the company which, as the case may be, is dissolved and liquidated.
19.6 Other contributions and taxes
Tax on net interest and commissions margin 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 net interest and commissions margin of certain financial institutions including BBVA, S.A. The tax is levied on the net
interest and commission margin obtained by credit institutions from the activity carried out in Spanish territory and is applicable
to the first three consecutive tax periods starting from 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, including, among others, the tax period and the accrual of the new tax. However, this Royal Decree-Law
was not ratified by the Congress of Deputies and was therefore repealed on January, 23 2025.
No impact associated with this tax was recognized in the Consolidated Financial Statements for the year ended December 31,
2024.
During 2025, the Group has made the payment corresponding to the IMIC for the 2024 financial year. However, since such
payment is not due under the applicable existing legal framework, an asset for the amount paid (€295 million) has been
recognized under the heading "General Governments" within "Financial assets at amortized cost - Loans and advances to
customers" in the balance sheet (see Note 14).
Finally, as of December 31, 2025, current tax liabilities include approximat ely €318 million corresponding to the accrual, for the
2025 financial year, of the IMIC applicable to certain financial entities, which was recognized under the heading "Tax expense or
income related to profit or loss from continuing operations", in accordance with its classification as an income tax under IAS 12,
given its characteristics as a direct tax, the taxable event of which is the generation within Spanish territory of a positive net
interest and fee and commissions margin during the tax period.
Temporary levy on credit institutions in Spain
On December 28, 2022, the Law for the establishment of the temporary levy on credit entities and financial credit establishments
was published in the Official State Gazette.
This law establishes the obligation to satisfy a public contribution with a non-tax nature during the years 2023 and 2024 for credit
institutions operating in Spanish territory whose sum of income from interest and commissions corresponding to the year 2019 is
equal to or greater than €800 million.
The amount of the public, non-tax nature contribution payable is calculated by applying a rate of 4.8% to the sum of the interest
margin and the income and expenses from commissions derived from the activity carried out in Spain and shown in the income
statement of the tax consolidation group to which the credit institution belongs, corresponding to the calendar year prior to the
year in which the payment obligation arises. The payment obligation arises on the first day of the calendar year 2023 and 2024.
For the 2023 and 2024 financial years, the impact of €215 million and €285 million, respectively, was recorded under the "Other
operating expenses" item in the consolidated income statement (see Note 42).

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.172

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

Top-up tax to ensure a global minimum taxation 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 Top-up 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.
This law transposed Council Directive (EU) 2022/2523 of December 15, 2022, which incorporates the Pillar Two rules into the
European legal framework.
The aforementioned law was approved with effect for tax periods beginning on or after December 31, 2023. Consequently, from
the year 2024, inclusive, the Group is subject to the Pillar Two rules.
In compliance with current legislation, the Group has calculated the estimated impact of the Top-up Tax based on the Transitional
Safe Harbour 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 15% minimum effective tax rate and, therefore, do not accrue a Top-up 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, 2025, has recognized as a current tax
expense the corresponding estimated Top-up Tax associated with those jurisdictions, the amount of which is not material.
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.
20. Other assets and liabilities
The breakdown of the balances of these headings of the consolidated balance sheets is as follows:

OTHER ASSETS AND LIABILITIES (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
ASSETS |  |  |
Inventories ⁽¹⁾ | 1,307 | 1,299 | 276
Transactions in progress | 182 | 482 | 41
Accruals | 2,101 | 1,862 | 1,368
Other items | 1,395 | 1,881 | 1,174
Total | 4,985 | 5,525 | 2,859
LIABILITIES |  |  |
Transactions in progress | 346 | 306 | 133
Accruals | 3,463 | 3,066 | 2,878
Other items | 1,900 | 1,997 | 2,466
Total | 5,709 | 5,370 | 5,477

(1) The variation in 2024 corresponded mainly to the acquisition of land plots from the Group's real estate company Crea Madrid Nuevo Norte, S.A. in relation to an
urban planning operation in the city of Madrid.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.173

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

21. Non-current assets and disposal groups classified as held for
sale and liabilities included in 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” and
“Liabilities included in disposal groups classified as held for sale” in the consolidated balance sheets, broken down by the origin of
the assets, is as follows:

NON-CURRENT ASSETS AND DISPOSAL GROUPS CLASSIFIED AS HELD FOR SALE AND LIABILITIES INCLUDED IN DISPOSAL GROUPS CLASSIFIED AS HELD FOR SALE. BREAKDOWN BY ITEMS (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
ASSETS |  |  |
Foreclosures and recoveries | 743 | 847 | 943
Other assets from tangible assets ⁽¹⁾ | 473 | 618 | 1,026
Companies held for sale | 55 | 55 | 43
Accrued amortization ⁽²⁾ | (58) | (46) | (84)
Impairment losses ⁽¹⁾ | (504) | (645) | (1,005)
Total | 709 | 828 | 923
LIABILITIES |  |  |
Companies held for sale | — | — | —
Total | — | — | —

(1) The variation is mainly due to sales of properties by the companies Tree Investments Inmobiliarias, SOCIMI, S.A. and Banco Bilbao Vizcaya Argentaria, S.A.
(2) Corresponds to the accumulated depreciation of assets before their classification as "Non-current assets and disposal groups classified as held for sale".

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.174

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

Non-current assets and disposal groups classified as held for sale
The changes in the balances of “Non-current assets and disposal groups classified as held for sale” in 2025, 2024 and 2023, are as
follows:

NON-CURRENT ASSETS AND DISPOSAL GROUPS CLASSIFIED AS HELD FOR SALE (MILLIONS OF EUROS)
| Notes | Foreclosed assets |  | Property, Plant and Equipment (1) |  | Companies held for sale |  | Total
| 2025 | 2024 | 2023 |  | 2025 | 2024 | 2023 |  | 2025 | 2024 | 2023 |  | 2025 | 2024 | 2023
Cost (a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at the beginning |  | 847 | 943 | 1,070 |  | 572 | 943 | 970 |  | 55 | 43 | 39 |  | 1,473 | 1,928 | 2,078
Additions |  | 145 | 250 | 190 |  | 2 | 18 | 2 |  | — | 15 | — |  | 147 | 283 | 192
Contributions from merger transactions |  | — | — | — |  |  | — | — |  | — | — | — |  | — | — | —
Retirements (sales and other decreases) |  | (226) | (338) | (323) |  | (178) | (446) | (34) |  | — | — | — |  | (404) | (784) | (357)
Transfers, other movements and exchange differences |  | (23) | (8) | 6 |  | 19 | 57 | 5 |  | 1 | (3) | 4 |  | (3) | 46 | 15
Disposals by companies held for sale |  | — | — | — |  |  | — | — |  |  | — | — |  | — | — | —
Balance at the end |  | 743 | 847 | 943 |  | 415 | 572 | 943 |  | 55 | 55 | 43 |  | 1,213 | 1,473 | 1,928
Impairment (b) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at the beginning |  | 237 | 299 | 356 |  | 409 | 706 | 701 |  | — | — | — |  | 645 | 1,005 | 1,057
Additions | 50 | 11 | 24 | 16 |  | 25 | 59 | 27 |  | — | — | — |  | 36 | 83 | 42
Additions transfer to discontinued operations |  |  | — | — |  |  | — | — |  | — | — | — |  | — | — | —
Contributions from merger transactions |  |  | — | — |  |  | — | — |  | — | — | — |  | — | — | —
Retirements (sales and other decreases) |  | (62) | (91) | (89) |  | (140) | (352) | (22) |  | — | — | — |  | (202) | (443) | (111)
Other movements and exchange differences |  | 33 | 5 | 16 |  | (9) | (5) | 1 |  | — | — | — |  | 24 | — | 17
Disposals by companies held for sale |  |  | — | — |  |  | — | — |  | — | — | — |  | — | — | —
Balance at the end |  | 219 | 237 | 299 |  | 285 | 409 | 706 |  | — | — | — |  | 504 | 645 | 1,005
Balance at the end of net carrying value (a)-(b) |  | 524 | 610 | 644 |  | 130 | 163 | 236 |  | 55 | 55 | 43 |  | 709 | 828 | 923

(1) Net of accumulated amortization until assets were reclassified as “Non-current assets and disposal groups classified as held for sale”.
As indicated in Note 2.2.6, “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 carrying amount. As of
December 31, 2025, 2024 and 2023 practically all of the carrying amount of the assets recorded at fair value on a non-recurring
basis equals their fair value.
Assets from foreclosures or recoveries
As of December 31, 2025, 2024 and 2023, assets from foreclosures and recoveries, net of impairment losses, by nature of the
asset, amounted to €356 million, €404 million and €460 million in assets for residential use; €139 million, €169 million and €154
million in assets for tertiary use (industrial, commercial or office) and €28 million, €31 million and €26 million in assets for
agricultural use, respectively.
During the years 2025 , 2024 and 2023, certain sale transactions for these assets were financed by Group companies. The amount
of loans granted to the buyers of these assets in those years amounted to €17 million, €12 million and €22 million, respectively;
with an average financing of 43% of the sales price during 2025.
As of December 31, 2025, 2024 and 2023, the amount of the profits arising from the sale of assets financed by Group companies
that are not recognized in the consolidated income statement is not significant.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.175

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

22. Financial liabilities at amortized cost
22.1 Breakdown of the balance
The breakdown of the balance under these headings in the consolidated balance sheets is as follows:

FINANCIAL LIABILITIES MEASURED AT AMORTIZED COST (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Deposits | 556,498 | 496,720 | 473,835
Deposits from central banks | 17,226 | 14,668 | 20,309
Demand deposits | 7 | 657 | 159
Time deposits and other | 13,774 | 6,369 | 12,203
Repurchase agreements | 3,445 | 7,642 | 7,947
Deposits from credit institutions | 36,771 | 34,406 | 40,039
Demand deposits | 6,764 | 6,977 | 6,629
Time deposits and other | 16,700 | 15,049 | 12,871
Repurchase agreements | 13,307 | 12,380 | 20,539
Customer deposits | 502,501 | 447,646 | 413,487
Demand deposits | 360,682 | 331,780 | 317,543
Time deposits and other | 127,397 | 106,658 | 91,740
Repurchase agreements | 14,422 | 9,208 | 4,204
Debt certificates issued | 81,842 | 69,867 | 68,707
Other financial liabilities | 20,258 | 17,753 | 15,046
Total | 658,599 | 584,339 | 557,589

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.176

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

22.2 Deposits from credit institutions
The breakdown by geographical area and the nature of the related instruments of this heading in the consolidated balance sheets
is as follows:

DEPOSITS FROM CREDIT INSTITUTIONS (MILLIONS OF EUROS)
| Demand deposits | Time deposits and other (1) | Repurchase agreements | Total
December 2025 |  |  |  |
Spain | 1,039 | 3,439 | 197 | 4,676
Mexico | 1,825 | 964 | — | 2,789
Turkey | 60 | 873 | 271 | 1,204
South America | 636 | 2,468 | 259 | 3,363
Rest of Europe | 1,890 | 3,513 | 11,707 | 17,110
Rest of the world | 1,315 | 5,442 | 874 | 7,630
Total | 6,764 | 16,700 | 13,307 | 36,771
December 2024 |  |  |  |
Spain | 1,039 | 3,116 | 538 | 4,693
Mexico | 973 | 981 | 231 | 2,185
Turkey | 158 | 2,002 | 2 | 2,162
South America | 577 | 2,387 | — | 2,963
Rest of Europe | 2,942 | 3,313 | 11,578 | 17,832
Rest of the world | 1,289 | 3,250 | 31 | 4,570
Total | 6,977 | 15,049 | 12,380 | 34,406
December 2023 |  |  |  |
Spain | 1,252 | 2,434 | 899 | 4,585
Mexico | 789 | 642 | — | 1,431
Turkey | 16 | 535 | 37 | 587
South America | 416 | 2,242 | — | 2,659
Rest of Europe | 3,011 | 2,742 | 19,344 | 25,097
Rest of the world | 1,145 | 4,277 | 259 | 5,681
Total | 6,629 | 12,871 | 20,539 | 40,039

(1) Subordinated deposits are included amounting to €104 million, €48 million and €35 million as of December 31, 2025, 2024 and 2023, respectively.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.177

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

22.3 Customer deposits
The breakdown by geographical area of this heading in the consolidated balance sheets, by type of instrument, is as follows:

CUSTOMER DEPOSITS (MILLIONS OF EUROS)
| Demand deposits | Time deposits and other ⁽¹⁾ | Repurchase agreements | Total
December 2025 |  |  |  |
Spain | 192,222 | 23,664 | 12,786 | 228,672
Mexico | 77,167 | 17,493 | 38 | 94,699
Turkey | 27,443 | 24,794 | 450 | 52,687
South America | 34,150 | 22,328 | — | 56,478
Rest of Europe | 24,758 | 29,665 | 1,148 | 55,571
Rest of the world | 4,942 | 9,452 | — | 14,394
Total | 360,682 | 127,397 | 14,422 | 502,501
December 2024 |  |  |  |
Spain | 186,489 | 22,501 | 6,474 | 215,464
Mexico | 70,133 | 14,319 | 987 | 85,439
Turkey | 23,228 | 25,388 | 652 | 49,267
South America | 32,443 | 20,232 | — | 52,675
Rest of Europe | 17,170 | 17,613 | 1,095 | 35,878
Rest of the world | 2,318 | 6,605 | — | 8,922
Total | 331,780 | 106,658 | 9,208 | 447,646
December 2023 |  |  |  |
Spain | 179,825 | 17,952 | 4 | 197,780
Mexico | 76,122 | 15,067 | 1,638 | 92,828
Turkey | 20,423 | 21,485 | 1,331 | 43,239
South America | 26,888 | 17,349 | — | 44,237
Rest of Europe | 12,863 | 16,257 | 1,231 | 30,350
Rest of the world | 1,422 | 3,630 | — | 5,052
Total | 317,543 | 91,740 | 4,204 | 413,487

(1) The balances corresponding to subordinated deposits under this heading were not significant in any of the years presented.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.178

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

22.4 Debt certificates issued
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) |
| 2025 | 2024 | 2023
In Euros | 42,070 | 37,118 | 44,622
Promissory bills and notes | 5,379 | 1,360 | 5,416
Non-convertible bonds and debentures | 15,860 | 17,788 | 16,256
Covered bonds | 3,371 | 5,825 | 6,734
Hybrid financial instruments ⁽¹⁾ | 1,160 | 519 | 800
Securitization bonds | 3,203 | 2,201 | 2,168
Wholesale funding | 3,688 | 1,030 | 6,182
Subordinated liabilities | 9,409 | 8,395 | 7,066
Convertible perpetual certificates | 3,750 | 2,750 | 3,000
Other non-convertible subordinated liabilities | 5,659 | 5,645 | 4,066
In foreign currencies | 39,773 | 32,748 | 24,086
Promissory bills and notes | 2,781 | 2,962 | 336
Non-convertible bonds and debentures | 13,302 | 12,136 | 8,684
Covered bonds | 94 | 95 | 99
Hybrid financial instruments ⁽¹⁾ | 7,914 | 5,327 | 4,722
Securitization bonds | — | — | —
Wholesale funding | 4,142 | 1,067 | 1,479
Subordinated liabilities | 11,540 | 11,161 | 8,766
Convertible perpetual certificates | 2,553 | 2,888 | 2,715
Other non-convertible subordinated liabilities | 8,986 | 8,273 | 6,051
Total | 81,842 | 69,867 | 68,707

(1) Corresponds to structured note issuances with embedded derivatives that have been segregated according to IFRS 9.
22.4.1 Subordinated liabilities
The breakdown of this heading in the consolidated balance sheets is as follows:

MEMORANDUM ITEM: SUBORDINATED LIABILITIES AT AMORTIZED COST (MILLIONS OF EUROS)
|  | 2025 | 2024 | 2023
Subordinated deposits |  | 104 | 56 | 35
Subordinated certificates |  | 20,949 | 19,556 | 15,832
Compound convertible financial instruments |  | 6,303 | 5,638 | 5,715
Other non-convertible subordinated liabilities |  | 14,645 | 13,918 | 10,117
Total |  | 21,053 | 19,612 | 15,867

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.179

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

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.
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, 2024 and 2025:
– 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.
– 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.
– On November 11, 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 €1 billion. This issuance is listed on the
Global Exchange Market of Euronext Dublin 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, 2024 and 2025 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.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.180

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

– 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.
– On March 5, 2025, 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 5, 2019, for an amount of USD 1 billion on the First
Reset Date and once the prior consent from the Regulator was obtained.
Additionally, on December 17, 2025, the Bank announced its irrevocable decision to redeem in full the issuance of green
contingently convertible preferred securities (which qualified as additional tier 1 instruments) carried out by the Bank on July 15,
2020, for an amount of €1 billion. The redemption was executed on January 15, 2026 (the First Reset Date of said issuance), once
the prior consent from the Regulator had been 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 this power 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 Annual General Shareholders' Meeting,
described in Note 26, 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 of preparation of these Consolidated Financial Statements, the Bank has not made use of the authority granted by
the BBVA Annual General Shareholders' Meeting held on March 18, 2022.
22.5 Other financial liabilities
The breakdown of the balance under this heading in the consolidated balance sheets is as follows:

OTHER FINANCIAL LIABILITIES (MILLIONS OF EUROS) |  |
| 2025 | 2024 | 2023
Lease liabilities | 1,463 | 1,467 | 1,507
Creditors for other financial liabilities | 4,597 | 4,859 | 3,439
Collection accounts | 4,450 | 3,693 | 3,642
Creditors for other payment obligations ⁽¹⁾ | 9,748 | 7,734 | 6,458
Total | 20,258 | 17,753 | 15,046

(1) In 2025, this caption includes the amount pending execution as of December 31, 2025, corresponding to the firm commitment for the acquisition of own shares
derived from the execution of the first tranche of the share buyback program announced on December 19, 2025 and started to be carried out on December 22, 2025
(see Notes 2.2.11 and 4).

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.181

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

A breakdown of the maturity of the lease liabilities, due after December 31, 2025 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
Leases | 227 | 279 | 204 | 752 | 1,463

23. Assets and liabilities under insurance and reinsurance contracts
The Group has insurance subsidiaries mainly in Spain, Latin America (mostly in Mexico) and Turkey. Specifically, the insurance
entities located in Spain and Mexico together accounted for approximately 95% in terms of total liabilities under insurance and
reinsurance contracts as of December 31, 2025.
The main product offered by the insurance subsidiaries is life insurance to cover the risk of death (risk insurance) and life-savings
insurance. Within life and accident insurance, a distinction is made between freely sold products and those offered to customers
who have taken mortgage or consumer loans, which cover the principal of those loans in the event of the customer’s death. There
are two types of savings products: individual insurance, which seeks to provide the customer with savings for retirement or other
events, and group insurance, which is taken out by employers to cover their commitments to their employees.
The insurance business is affected by different risks, including those that are related to the BBVA Group such as credit risk, market
risk, liquidity risk and operational risk and the methodology for risk measurement, control and follow-up applied in the insurance
activity is similar (see Note 7 and Management Report - Risk management) , although it has a differentiated management due to
the particular characteristics of the insurance business, such as the coverage of contracted obligations and the long term of the
commitments.
Additionally, the insurance business generates certain specific risks, of a probabilistic nature:
– Technical risk: arises from deviations in the estimation of the casualty rate of insurances, either in terms of numbers, the
amount of such claims and the timing of its occurrence.
– Longevity risk: is the risk of incurring higher benefit payments than expected due to an increase in the life expectancy of
the insured persons.
The insurance activity is fully integrated into the BBVA Group's risk management framework. From the definition of the risk
appetite to the management limits, the governance model, the admission process, the organizational scheme and the
development of computer systems/models, everything is designed with a global approach and under consistent and
homogeneous criteria, aligned with other financial business of the BBVA Group. This also means that control activities and
information flow are fully integrated into internal processes, from local reporting to the corporate bodies of the BBVA Group.
The insurance industry is highly regulated in each geographical area. In this regard, it should be noted that the insurance industry
is undergoing a gradual regulatory transformation through new accounting and risk-based capital regulations, which have already
been published in several countries.
The amounts that the consolidated insurance entities are entitled to receive from reinsurance contracts they maintain with third
parties are recognized under the heading “Assets under reinsurance and insurance contracts” in the consolidated balance sheets.
As of December 31, 2025, 2024 and 2023, the balance under this heading amounted to € 198 million, €191 million and €211 million,
respectively.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.182

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

The heading “Liabilities under insurance and reinsurance contracts” in the consolidated balance sheets includes the liabilities
recorded under insurance contracts of the consolidated insurance entities in accordance with IFRS 17 (see Note 2.2.8). The
breakdown of the balance of this heading as of December 31, 2025, 2024 and 2023 is as follows:

LIABILITIES UNDER INSURANCE AND REINSURANCE CONTRACTS (MILLIONS OF EUROS) |
| 2025 | 2024 | 2023
Insurances | 12,760 | 10,981 | 12,110
Liabilities for remaining coverage | 11,456 | 9,835 | 10,900
Estimates of the present value of cash flows | 9,950 | 8,462 | 9,516
Risk adjustment | 142 | 150 | 171
Cost service margin | 1,364 | 1,224 | 1,213
Liabilities for incurred claims | 1,304 | 1,146 | 1,210
Estimates of the present value of cash flows | 1,282 | 1,129 | 1,191
Risk adjustment | 22 | 17 | 19
Reinsurance | — | — | —
Total | 12,760 | 10,981 | 12,110

In addition, the breakdown of “Liabilities under insurance and reinsurance contracts” in the consolidated balance sheets by type of
product as of December 31, 2025, 2024 and 2023, excluding insurance contracts valued following the Simplified Model, is shown
in the table below:

LIABILITIES UNDER INSURANCE AND REINSURANCE CONTRACTS BY TYPE OF PRODUCT (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Liabilities for remaining coverage | 11,456 | 9,835 | 10,900
Life insurance | 11,141 | 9,555 | 10,657
Individuals life insurance ⁽¹⁾ | 9,433 | 7,643 | 8,900
Group insurance ⁽²⁾ | 1,708 | 1,912 | 1,757
Non-life insurance | 315 | 280 | 243
Liabilities for incurred claims | 1,304 | 1,146 | 1,210
Total | 12,760 | 10,981 | 12,110

(1) Provides coverage in the event of death, disability and serious illness.
(2) The insurance policies purchased by employers (other than BBVA Group) on behalf of their employees.
The variation in l iabilities under insurance and reinsurance contracts analyzed by liability for the remaining coverage and liability
for incurred claims for the years 2025, 2024 and 2023 is shown below:

VARIATION IN LIABILITIES UNDER INSURANCE AND REINSURANCE CONTRACTS ANALYZED BY LIABILITIES FOR THE REMAINING COVERAGE AND THE LIABILITIES FOR INCURRED CLAIMS. DECEMBER 2025 (MILLIONS OF EUROS)
| Liability for remaining coverage | Liability for incurred claims | Total
Initial balance | 9,835 | 1,146 | 10,981
Result from insurance service | (3,432) | 1,908 | (1,524)
Insurance revenue | (3,627) | — | (3,627)
Insurance expense | 195 | 1,908 | 2,103
Financial income/ expenses from insurance contracts | 1,355 | 11 | 1,366
Exchange differences | 294 | 23 | 317
Cash flows | 3,404 | (1,784) | 1,620
Final balance | 11,456 | 1,304 | 12,760

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.183

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

VARIATION IN LIABILITIES UNDER INSURANCE AND REINSURANCE CONTRACTS ANALYZED BY LIABILITIES FOR THE REMAINING COVERAGE AND THE LIABILITIES FOR INCURRED CLAIMS. DECEMBER 2024 (MILLIONS OF EUROS)
| Liability for remaining coverage | Liability for incurred claims | Total
Initial balance | 10,900 | 1,210 | 12,110
Result from insurance service | (3,371) | 1,862 | (1,509)
Insurance revenue | (3,494) | — | (3,494)
Insurance expense | 124 | 1,862 | 1,985
Financial income/ expenses from insurance contracts | (407) | 12 | (395)
Exchange differences | (657) | (110) | (767)
Cash flows | 3,370 | (1,828) | 1,542
Final balance | 9,835 | 1,146 | 10,981

VARIATION IN LIABILITIES UNDER INSURANCE AND REINSURANCE CONTRACTS ANALYZED BY LIABILITIES FOR THE REMAINING COVERAGE AND THE LIABILITIES FOR INCURRED CLAIMS. DECEMBER 2023 (MILLIONS OF EUROS)
| Liability for remaining coverage | Liability for incurred claims | Total
Initial balance | 9,157 | 974 | 10,131
Result from insurance service | (2,822) | 1,532 | (1,289)
Insurance revenue | (2,897) | — | (2,897)
Insurance expense | 75 | 1,532 | 1,607
Financial income/ expenses from insurance contracts | 563 | 1 | 564
Exchange differences | 1,008 | 59 | 1,067
Cash flows | 2,994 | (1,357) | 1,637
Final balance | 10,900 | 1,210 | 12,110

The variation of liabilities under insurance and reinsurance contracts, distinguishing between their different valuation components,
excluding contracts valued under the Simplified Model, for the years 2025, 2024 and 2023 is shown below:

VARIATION IN LIABILITIES UNDER INSURANCE AND REINSURANCE CONTRACTS ANALYZED BY VALUATION COMPONENT. DECEMBER 2025 (MILLIONS OF EUROS)
| Estimated present value of future cash flows | Risk adjustment | Contractual service margin | Total
Initial balance | 8,710 | 150 | 1,224 | 10,084
Insurance service result | (806) | (19) | 60 | (765)
Changes that relate to current services | (974) | (33) | (285) | (1,293)
Changes that relate to future services | (623) | 15 | 346 | (262)
Changes that relate to past services | 791 | — | — | 791
Financial income/ expenses from insurance contracts | 1,305 | 13 | 50 | 1,368
Exchange rate differences | 280 | (1) | 29 | 308
Cash flows | 746 | — | — | 746
Final balance | 10,235 | 143 | 1,363 | 11,742

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.184

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

VARIATION IN LIABILITIES UNDER INSURANCE AND REINSURANCE CONTRACTS ANALYZED BY VALUATION COMPONENT. DECEMBER 2024 (MILLIONS OF EUROS)
| Estimated present value of future cash flows | Risk adjustment | Contractual service margin | Total
Initial balance | 9,738 | 167 | 1,213 | 11,118
Insurance service result | (345) | (17) | 44 | (318)
Changes that relate to current services | (969) | (29) | (270) | (1,267)
Changes that relate to future services | (350) | 12 | 314 | (24)
Changes that relate to past services | 974 | — | — | 974
Financial income/ expenses from insurance contracts | (457) | 3 | 49 | (406)
Exchange rate differences | (636) | (3) | (82) | (721)
Cash flows | 411 | — | — | 411
Final balance | 8,710 | 150 | 1,224 | 10,084

VARIATION IN LIABILITIES UNDER INSURANCE AND REINSURANCE CONTRACTS ANALYZED BY VALUATION COMPONENT. DECEMBER 2023 (MILLIONS OF EUROS)
| Estimated present value of future cash flows | Risk adjustment | Contractual service margin | Total
Initial balance | 8,056 | 150 | 1,097 | 9,303
Insurance service result | (384) | — | (23) | (406)
Changes that relate to current services | (749) | (26) | (185) | (960)
Changes that relate to future services | (189) | 26 | 163 | —
Changes that relate to past services | 554 | — | — | 554
Financial income/ expenses from insurance contracts | 508 | 11 | 45 | 564
Exchange rate differences | 935 | 6 | 94 | 1,035
Cash flows | 623 | — | — | 623
Final balance | 9,738 | 167 | 1,213 | 11,118

The maturity of “Liabilities under insurance and reinsurance contracts” is as follows:

MATURITY OF THE LIABILITIES UNDER INSURANCE AND REINSURANCE CONTRACTS (MILLIONS OF EUROS)
| Up to 1 year | 1 to 3 years | 3 to 5 years | Over 5 years | Total
2025 | 666 | 89 | 1,709 | 10,296 | 12,760
2024 | 1,556 | 319 | 720 | 8,387 | 10,981
2023 | 1,356 | 962 | 2,425 | 7,367 | 12,110

The classification and valuation models used to calculate the liabilities under insurance and reinsurance contracts are detailed in
Note 2.2.8 of these Consolidated Financial Statements.
In general, in estimating compliance flows valued under the General Model, the Group has used tables based on the companies'
own experience to estimate discounted future cash flows for all units of account, except for those cases in which the entity has not
had sufficient historical data for the construction of the assumptions, so in such cases, regulatory tables have been used.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.185

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

24. Provisions
The breakdown of the balance under this heading in the consolidated balance sheets, based on type of provisions, is as follows:

PROVISIONS. BREAKDOWN BY CONCEPTS (MILLIONS OF EUROS)
| Notes | 2025 | 2024 | 2023
Provisions for pensions and similar obligations | 25 | 2,267 | 2,348 | 2,571
Other long-term employee benefits ⁽¹⁾ | 25 | 332 | 384 | 435
Provisions for taxes and other legal contingencies | 7.1 | 805 | 791 | 696
Provisions for contingent risks and commitments |  | 725 | 667 | 770
Other provisions ⁽²⁾ |  | 293 | 429 | 452
Total |  | 4,422 | 4,619 | 4,924

(1) It includes commitments undertaken under the collective layoff procedure that was carried out at Banco Bilbao Vizcaya Argentaria, S.A. in 2021.
(2) Individually non-significant provisions for various concepts and corresponding to different geographical areas.
The change in provisions for pensions and similar obligations for the years ended December 31, 2025, 2024 and 2023 is as follows:

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)
| Notes | 2025 | 2024 | 2023
Balance at the beginning |  | 2,732 | 3,006 | 3,098
Charges to income for the year |  | 172 | 197 | 211
Interest expense and similar charges | 25 | 118 | 138 | 133
Personnel expense |  | 53 | 57 | 49
Provision expense |  | 1 | 2 | 29
Charges (credits) to equity ⁽¹⁾ | 25 | 375 | 132 | 314
Transfers and other changes |  | (75) | (49) | (37)
Benefit payments |  | (276) | (410) | (474)
Employer contributions |  | (330) | (143) | (106)
Balance at the end |  | 2,599 | 2,732 | 3,006

(1) Correspond to actuarial losses (gains) arising from certain post-employment defined-benefit commitments for pensions recognized in “Equity” (see Note
2.2.13).

PROVISIONS FOR TAXES, LEGAL CONTINGENCIES AND OTHER PROVISIONS. CHANGES OVER THE YEAR (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Balance at beginning | 1,220 | 1,148 | 1,065
Additions | 367 | 370 | 651
Acquisition of subsidiaries | — | — | —
Unused amounts reversed during the year | (108) | (92) | (385)
Amount used and other variations | (381) | (206) | (183)
Balance at the end | 1,098 | 1,220 | 1,148

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.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.186

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

On the basis of the information available, the Group considers that, as of December 31, 2025, 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 7.1 "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.
25. Post-employment and other employee benefit commitments
The Group entities have assumed commitments with employees including short-term employee benefits (see Note 44.1), defined
contribution and defined benefit plans (see Glossary), healthcare and other long-term employee benefits (see Note 2.2.13).
The Group sponsors defined-contribution plans for the majority of its active employees, with the plans in Spain and Mexico being
the most significant. Most defined benefit plans are closed to new employees, with liabilities relating largely to retired employees,
the most significant being those in Spain, Mexico and Turkey. In Mexico, the Group provides medical benefits to a closed group of
employees and their family members, both in active service and retirement.
The breakdown of the net defined benefit liability recorded on the balance sheet as of December 31, 2025, 2024 and 2023 is
provided below:

NET DEFINED BENEFIT LIABILITY (ASSET) ON THE CONSOLIDATED BALANCE SHEET (MILLIONS OF EUROS)
| Notes | 2025 | 2024 | 2023
Pension commitments |  | 4,040 | 3,759 | 3,849
Early retirement commitments |  | 173 | 271 | 412
Medical benefits commitments |  | 1,702 | 1,269 | 1,728
Other long-term employee benefits |  | 332 | 384 | 435
Total commitments |  | 6,247 | 5,683 | 6,424
Pension plan assets |  | 1,903 | 1,584 | 1,675
Medical benefit plan assets |  | 1,747 | 1,367 | 1,744
Total plan assets (1) |  | 3,650 | 2,951 | 3,419
Total net liability / asset |  | 2,599 | 2,732 | 3,006
Of which: Net asset on the consolidated balance sheet (2) |  | — | — | —
Of which: Net liability on the consolidated balance sheet for provisions for pensions and similar obligations (3) | 24 | 2,267 | 2,348 | 2,571
Of which: Net liability on the consolidated balance sheet for other long-term employee benefits | 24 | 332 | 384 | 435

(1) In Turkey, the foundation responsible for managing the benefit commitments holds an additional asset of €237 million as of December 31, 2025 which, in
accordance with IFRS regarding the asset ceiling, has not been recognized in the Consolidated Financial Statements, because although it could be used to reduce
future pension contributions it could not be immediately refunded to the employer. As of December 31, 2024 and 2023, this amount amounted to €123 million and
€153 million, respectively.
(2) Recorded under the heading “Other Assets - Other” of the consolidated balance sheet (see Note 20).
(3) Recorded under the heading “Provisions - Provisions for pensions and similar obligations” of the consolidated balance sheet.
The impact relating to benefit commitments on the consolidated income statement for the years 2025, 2024 and 2023 is as
follows:

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.187

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

CONSOLIDATED INCOME STATEMENT IMPACT (MILLIONS OF EUROS)
| Notes | 2025 | 2024 | 2023
Interest income and expense |  | 118 | 138 | 133
Interest expense |  | 487 | 494 | 444
Interest income |  | (369) | (356) | (311)
Personnel expense |  | 205 | 215 | 188
Defined contribution plan expense | 44.1 | 152 | 158 | 139
Defined benefit plan expense | 44.1 | 43 | 51 | 49
Other expense |  | 10 | 6 | —
Provisions or (reversal) of provisions | 46 | 2 | 3 | 31
Early retirement expense |  | — | — | —
Past service cost expense |  | 6 | 7 | 36
Remeasurements ⁽¹⁾ |  | (5) | (5) | (7)
Other provision expense |  | 1 | 1 | 2
Total impact on consolidated income statement: expense (income) | 325 | 355 | 352

(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 statements (see Note 2.2.13).
The amounts relating to post-employment benefits charged to the consolidated balance sheet correspond to the actuarial gains
(losses) on remeasurement of the net defined benefit liability relating to pension and medical commitments before income taxes
as of December 31, 2025, 2024 and 2023 are as follows:

EQUITY IMPACT (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Defined benefit plans | 210 | 218 | 302
Post-employment medical benefits | 165 | (86) | 12
Total impact on equity: debit (credit) | 375 | 132 | 314

In 2025, the aggregate impact of this heading amounted to a debit of €375 million, which is mainly explained by: the variation of
the main commitments for long-term remuneration in Mexico (debit of €448 million, mainly due to the variation of financial
assumptions and expected return on the plan assets); Turkey (debit of €31 million, mainly due to the variation of financial
assumptions, expected return on the plan assets and experience); and Spain (credit of €97 million, mainly due to the variation of
financial assumptions).
In 2024, the aggregate impact of this heading amounted to a debit of €132 million driven by the variation in the main long-term
remuneration commitments in Mexico (debit of €55 million, mainly due to the variation of financial assumptions and expected
profitability of plan assets), Turkey (debit of €32 million due to the variation of financial assumptions, expected profitability of plan
assets and experience), Spain (debit of €28 million, essentially due to the variation in financial assumptions) and Portugal (debit of
€16 million due to the expected profitability of the plan assets and experience).
In 2023, the aggregate impact of this heading amounted to a debit of €314 million driven by the variation in financial assumptions,
losses of €71 million from commitments in Spain, and losses of €170 million for commitments in Mexico. These amounts are offset
by other minor effects of actuarial experience in these geographical areas and financial, demographic and experience effects in
other geographical areas.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.188

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

25.1 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 Group pays the required premiums to fully insure the related liability. The change in these
pension commitments during the years ended December 31, 2025, 2024 and 2023 is presented below:

DEFINED BENEFITS (MILLIONS OF EUROS)
| 2025 |  | 2024 |  | 2023
| Defined benefit obligation | Plan assets | Net liability (asset) |  | Defined benefit obligation | Plan assets | Net liability (asset) |  | Defined benefit obligation | Plan assets | Net liability (asset)
Balance at the beginning | 5,299 | 2,951 | 2,348 |  | 5,989 | 3,419 | 2,571 |  | 5,715 | 3,084 | 2,632
Current service cost | 44 | — | 44 |  | 51 | — | 51 |  | 52 | — | 52
Interest income/expense | 475 | 369 | 105 |  | 472 | 356 | 115 |  | 425 | 311 | 114
Contributions by plan participants | 15 | 15 | — |  | 16 | 16 | — |  | 10 | 10 | —
Employer contributions | — | 330 | (330) |  | — | 143 | (143) |  | — | 106 | (106)
Past service costs (1) | 6 | — | 6 |  | 7 | — | 7 |  | 36 | — | 36
Remeasurements | 726 | 352 | 373 |  | (202) | (330) | 128 |  | 375 | 68 | 307
Return on plan assets (2) | — | 352 | (352) |  | — | (330) | 330 |  | — | 68 | (68)
From changes in demographic assumptions | 21 | — | 21 |  | 2 | — | 2 |  | (86) | — | (86)
From changes in financial assumptions | 520 | — | 520 |  | (362) | — | (362) |  | 248 | — | 248
Other actuarial gains and losses | 185 | — | 185 |  | 158 | — | 158 |  | 212 | — | 212
Benefit payments | (546) | (275) | (271) |  | (564) | (230) | (334) |  | (655) | (232) | (424)
Settlement payments | — | — | — |  | (1) | (1) | — |  | (76) | (75) | (1)
Business combinations and disposals | — | — | — |  | — | — | — |  | (1) | — | (1)
Effect on changes in foreign exchange rates | (100) | (83) | (17) |  | (467) | (416) | (51) |  | 124 | 153 | (29)
Conversions to defined contributions | — | — | — |  | — | — | — |  | — | — | —
Other effects | (4) | (7) | 4 |  | (3) | (7) | 4 |  | (15) | (7) | (8)
Balance at the end | 5,915 | 3,650 | 2,265 |  | 5,299 | 2,951 | 2,348 |  | 5,989 | 3,419 | 2,571
Of which: Spain | 1,770 | 96 | 1,674 |  | 2,078 | 114 | 1,964 |  | 2,310 | 129 | 2,181
Of which: Mexico | 3,218 | 2,733 | 485 |  | 2,385 | 2,114 | 271 |  | 2,988 | 2,702 | 286
Of which: Turkey | 675 | 599 | 77 |  | 567 | 488 | 80 |  | 435 | 363 | 72

(1) Including gains and losses arising from settlements.
(2) Excluding interest, which is recorded under "Interest income or expense".

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.189

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

The balance under the heading “Provisions - Pensions and other post-employment defined benefit obligations” of the consolidated
balance sheet as of December 31, 2025 includes €182 million relating to post-employment benefit commitments to former
members of the Board of Directors and the Bank’s Management (see Note 54).
The most significant commitments are those in Spain and Mexico and, to a lesser extent, in Turkey. The remaining commitments
are located mostly in Portugal and South America. Unless otherwise required by local regulation, all defined benefit plans have
been closed to new entrants, who instead are able to participate in the Group´s defined contribution plans.
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 Group 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, 2025,
2024 and 2023:

ACTUARIAL ASSUMPTIONS (%)
| 2025 |  | 2024 |  | 2023
| Spain | Mexico | Turkey |  | Spain | Mexico | Turkey |  | Spain | Mexico | Turkey
Discount rate | 4.00 % | 10.72 % | 31.1% |  | 3.25 % | 12.11 % | 31.02 % |  | 3.43 % | 10.44 % | 25.60 %
Rate of salary increase | — | 4.50 % | 27.74 % |  | — | 4.50 % | 27.80 % |  | — | 4.50 % | 23.44 %
Rate of pension increase | — | 5.14 % | 26.24 % |  | — | 3.92 % | 26.30 % |  | — | 4.14 % | 21.94 %
Medical cost trend rate | — | 8.04 % | 30.44 % |  | — | 8.00 % | 30.50 % |  | — | 8.04 % | 26.14 %
Mortality tables | PER 2020 | EMSSA09 | TUIK 2024 |  | PER 2020 | EMSSA09 | TUIK 2022 |  | PER 2020 | EMSSA09 | TUIK 2019

In Spain, the discount rate shown as of December 31, 2025, corresponds to the discount rate for long-term commitments, with the
discount rate used for short-term commitments being 2.75%.
Discount rates used to value future benefit cash flows have been determined by reference to high quality corporate bonds (see
Note 2.2.13) denominated in Euro in the case of Spain and Mexican peso for Mexico, and government bonds denominated in
Turkish Lira for Turkey. 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, the contractually agreed
age in the case of early retirements in Spain or by using retirement rates.
Changes in the main actuarial assumptions may affect the valuation of the commitments. The table below shows the sensitivity of
the benefit obligations to changes in the key assumptions:

SENSITIVITY ANALYSIS (MILLIONS OF EUROS)
| Basis points change | 2025 |  | 2024 |  | 2023
| Increase | Decrease |  | Increase | Decrease |  | Increase | Decrease
Discount rate | 50 | (262) | 287 |  | (213) | 232 |  | (265) | 291
Rate of salary increase | 50 | 5 | (5) |  | 4 | (4) |  | 4 | (4)
Rate of pension increase | 50 | 40 | (38) |  | 27 | (26) |  | 34 | (32)
Medical cost trend rate | 50 | 151 | (137) |  | 102 | (93) |  | 141 | (126)
Change in obligation from each additional year of longevity |  | 154 | — |  | 120 | — |  | 134 | —

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.190

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

The sensitivities provided above have been determined at the date of these consolidated financial statements, and reflect solely
the impact of changing one individual assumption at a time, keeping the rest of the assumptions unchanged, thereby excluding the
effects which may result from combined assumption changes.
In addition to the commitments to employees shown above, the Group has other less material long-term employee benefits. These
include leaves and long-service awards, which consist of either an established monetary award or some vacation days granted to
certain groups of employees when they complete a given number of years of service. Additionally, a fund related to the collective
layoff procedure that was carried out in Banco Bilbao Vizcaya Argentaria, S.A. was created in 2021. As of December 31, 2025,
2024 and 2023, the actuarial liabilities for the o utstanding awards amounted to €332 million, €384 million and €435 million,
respectively. These commitments are recorded under the heading "Provisions - Other long-term employee benefits" of the
consolidated balance sheet (see Note 24).
25.1.1 Post-employment commitments and similar obligations
These commitments relate mostly to pension payments, and which have been determined based on salary and years of service.
For most plans, pension payments are due on retirement, death and long-term disability.
Additionally, there are commitments with early retired personnel from Spanish companies of the Group. These commitments
include the compensation and indemnities due as well as the contributions payable to external pension funds during the early
retirement period. As of December 31, 2025, 2024 and 2023, the value of these commitments amounted to € 173 million, €271
million and €412 million, respectively.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.191

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

The change in the benefit plan obligations and plan assets during the year ended December 31, 2025 was as follows:

POST-EMPLOYMENT COMMITMENTS 2025 (MILLIONS OF EUROS)
| Spain | Mexico | Turkey | Rest of the world
Defined benefit obligation |  |  |  |
Balance at the beginning | 2,078 | 1,125 | 567 | 260
Current service cost | 4 | 9 | 16 | 3
Interest income or expense | 61 | 126 | 133 | 9
Contributions by plan participants | — | — | 13 | 2
Employer contributions | — | — | — | —
Past service costs (1) | — | — | 4 | 2
Remeasurements | (104) | 374 | 141 | (17)
Return on plan assets (2) | — | — | — | —
From changes in demographic assumptions | — | — | 21 | —
From changes in financial assumptions | (91) | 344 | 22 | (22)
Other actuarial gains and losses | (13) | 30 | 97 | 5
Benefit payments | (275) | (138) | (34) | (12)
Settlement payments | — | — | — | —
Business combinations and disposals | — | — | — | —
Effect on changes in foreign exchange rates | — | 26 | (155) | (1)
Conversions to defined contributions | — | — | — | —
Other effects | 6 | — | (10) | —
Balance at the end | 1,770 | 1,522 | 675 | 246
Of which: Vested benefit obligation relating to current employees | 72 |  |  |
Of which: Vested benefit obligation relating to retired employees | 1,698 |  |  |
Plan Assets |  |  |  |
Balance at the beginning | 114 | 748 | 488 | 234
Current service cost | — | — | — | —
Interest income or expense | 3 | 81 | 116 | 8
Contributions by plan participants | — | — | 13 | 2
Employer contributions | — | 185 | 37 | 2
Past service costs (1) | — | — | — | —
Remeasurements | (5) | 93 | 110 | (12)
Return on plan assets (2) | (5) | 93 | 110 | (12)
From changes in demographic assumptions | — | — | — | —
From changes in financial assumptions | — | — | — | —
Other actuarial gains and losses | — | — | — | —
Benefit payments | (16) | (138) | (24) | (11)
Settlement payments | — | — | — | —
Business combinations and disposals | — | — | — | —
Effect on changes in foreign exchange rates | — | 18 | (133) | —
Conversions to defined contributions | — | — | — | —
Other effects | — | — | (7) | —
Balance at the end | 96 | 986 | 599 | 223
Net liability (asset) |  |  |  |
Balance at the beginning | 1,964 | 377 | 80 | 26
Current service cost | 4 | 9 | 16 | 3
Interest income or expense | 58 | 45 | 17 | 1
Contributions by plan participants | — | — | — | —
Employer contributions | — | (185) | (37) | (2)
Past service costs (1) | — | — | 4 | 2
Remeasurements | (99) | 281 | 31 | (5)
Return on plan assets (2) | 5 | (93) | (110) | 12
From changes in demographic assumptions | — | — | 21 | —
From changes in financial assumptions | (91) | 344 | 22 | (22)
Other actuarial gains and losses | (13) | 30 | 97 | 5
Benefit payments | (259) | — | (11) | (1)
Settlement payments | — | — | — | —
Business combinations and disposals | — | — | — | —
Effect on changes in foreign exchange rates | — | 8 | (22) | (1)
Conversions to defined contributions | — | — | — | —
Other effects | 6 | — | (2) | —
Balance at the end | 1,674 | 536 | 77 | 23

(1) Including gains and losses arising from settlements.
(2) Excluding interest, which is recorded under "Interest income or expense".

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.192

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

The change in net liabilities (assets) during the years ended December 31, 2024 and 2023 was as follows:

POST-EMPLOYMENT COMMITMENTS (MILLIONS OF EUROS)
| 2024: Net liability (assets) |  | 2023: Net liability (assets)
| Spain | Mexico | Turkey | Rest of the world |  | Spain | Mexico | Turkey | Rest of the world
Balance at the beginning | 2,181 | 311 | 72 | 23 |  | 2,399 | 132 | 103 | 25
Current service cost | 4 | 10 | 18 | 3 |  | 3 | 9 | 17 | 3
Interest income or expense | 69 | 30 | 16 | 2 |  | 85 | 17 | 8 | 2
Contributions by plan participants | — | — | — | — |  | — | — | — | —
Employer contributions | — | (68) | (39) | (22) |  | — | (37) | (23) | (29)
Past service costs (1) | — | — | 3 | 4 |  | — | — | 33 | 3
Remeasurements | 23 | 139 | 32 | 19 |  | 67 | 175 | 32 | 21
Return on plan assets (2) | (1) | 125 | (50) | 10 |  | — | 19 | (129) | 25
From changes in demographic assumptions | — | 2 | (15) | — |  | — | — | (14) | (2)
From changes in financial assumptions | 34 | (10) | (97) | 3 |  | 78 | 114 | 10 | (10)
Other actuarial gains and losses | (10) | 22 | 195 | 6 |  | (11) | 42 | 165 | 8
Benefit payments | (321) | — | (11) | (1) |  | (379) | — | (43) | (1)
Settlement payments | — | — | — | — |  | — | — | — | (1)
Business combinations and disposals | — | — | — | — |  | — | — | — | (1)
Effect on changes in foreign exchange rates | — | (45) | (8) | (2) |  | — | 15 | (40) | 1
Conversions to defined contributions | — | — | — | — |  | — | — | — | —
Other effects | 8 | — | (4) | — |  | 6 | — | (14) | —
Balance at the end | 1,964 | 377 | 80 | 26 |  | 2,181 | 311 | 72 | 23

(1) Includes gains and losses from settlements.
(2) Excludes interest which is reflected in the line item “Interest income and 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.
In the Spanish entities these commitments are covered by insurance contracts which meet the requirements of the accounting
standard regarding the non-recoverability of contributions. However, a significant number of the insurance contracts are with
BBVA Seguros, S.A. (a consolidated subsidiary and related party) and consequently these policies cannot be considered plan
assets under IAS 19. 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 consolidated balance sheet (see Note 24), while the
related assets held by the insurance company are included within the Group´s consolidated assets (recorded according to the
classification of the corresponding financial instruments). As of December 31, 2025 the value of these separate assets was €1,371
million, (€1,553 million and €1,631 million as of December 31, 2024 and 2023, respectively) representing direct rights of the
insured employees held in the consolidated balance sheet, hence these benefits are effectively fully funded.
On the other hand, some pension commitments have been funded through insurance contracts with insurance companies not
related to the Group. In this case the consolidated balance sheet reflects the value of the obligations net of the fair value of the
qualifying insurance policies. As of December 31, 2025, 2024 and 2023, the value of the aforementioned insurance policies (€96
million, €114 million and € 130 million, respectively) exactly matches the value of the corresponding obligations and therefore no
amount for this item has been recorded in the consolidated balance sheet.
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 (see Glossary) and interest rate risk (see Note 7.3.1).
In Mexico, there is a defined benefit plan for employees hired prior to 2001. Other employees participate in a defined contribution
plan. External funds/trusts have been constituted locally to meet benefit payments as required by local regulation.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.193

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

In 2008, the Turkish government passed a law to unify the different existing pension systems under a single umbrella Social
Security system. Such system provides for the transfer of the various previously established funds. The financial sector is in this
stage at present, maintaining these pension commitments managed by external pension funds (foundations) established for that
purpose.
The foundation that maintains the assets and liabilities relating to employees of Garanti BBVA in Turkey, as per the local regulatory
requirements, has recognized an obligation amounting to €259 million as of December 31, 2025 pending future transfer to the
Social Security system. Furthermore, Garanti BBVA has set up a defined benefit pension plan for employees, additional to the
social security benefits, reflected in the consolidated balance sheet.
25.1.2 Medical benefit commitments
The change in defined benefit obligations and plan assets during the years 2025, 2024 and 2023 was as follows:

MEDICAL BENEFITS COMMITMENTS (MILLIONS OF EUROS)
| 2025 |  | 2024 |  | 2023
| Defined benefit obligation | Plan assets | Net liability (asset) |  | Defined benefit obligation | Plan assets | Net liability (asset) |  | Defined benefit obligation | Plan assets | Net liability (asset)
Balance at the beginning | 1,269 | 1,367 | (98) |  | 1,728 | 1,744 | (16) |  | 1,448 | 1,476 | (28)
Current service cost | 13 | — | 13 |  | 18 | — | 18 |  | 20 | — | 20
Interest income or expense | 145 | 161 | (16) |  | 167 | 168 | (2) |  | 167 | 165 | 2
Contributions by plan participants | — | — | — |  | — | — | — |  | — | — | —
Employer contributions | — | 106 | (106) |  | — | 15 | (15) |  | — | 17 | (17)
Past service costs (1) | — | — | — |  | — | — | — |  | — | — | —
Remeasurements | 332 | 167 | 165 |  | (333) | (247) | (86) |  | (5) | (17) | 12
Return on plan assets (2) | — | 167 | (167) |  | — | (247) | 247 |  | — | (17) | 17
From changes in demographic assumptions | — | — | — |  | 15 | — | 15 |  | (70) | — | (70)
From changes in financial assumptions | 266 | — | 266 |  | (293) | — | (293) |  | 56 | — | 56
Other actuarial gain and losses | 65 | — | 65 |  | (55) | — | (55) |  | 8 | — | 8
Benefit payments | (86) | (86) | — |  | (71) | (70) | — |  | (70) | (70) | —
Settlement payments | — | — | — |  | — | — | — |  | — | — | —
Business combinations and disposals | — | — | — |  | — | — | — |  | — | — | —
Effect on changes in foreign exchange rates | 30 | 32 | (2) |  | (240) | (243) | 3 |  | 168 | 173 | (5)
Other effects | — | — | — |  | — | — | — |  | — | — | —
Balance at the end | 1,702 | 1,747 | (45) |  | 1,269 | 1,367 | (98) |  | 1,728 | 1,744 | (16)

(1) Including gains and losses arising from settlements.
(2) Excluding interest, which is recorded under "Interest income or expense".
In Mexico, there is a medical benefit plan for employees hired prior to 2007. New employees from 2007 are covered by a medical
insurance policy. An external trust has been constituted locally to fund the plan, in accordance with local legislation and Group
policy.
In Turkey, employees are currently provided with medical benefits through a foundation in collaboration with the Social Security
system, although local legislation prescribes the future unification of this and similar systems into the general Social Security
system itself.
The valuation of these benefits and their accounting treatment follow the same methodology as that employed in the valuation of
pension commitments.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.194

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

25.1.3 Estimated benefit payments
As of December 31, 2025, the estimated benefit payments over the next ten years for all the entities in Spain, Mexico and Turkey
are as follows:

ESTIMATED BENEFIT PAYMENTS (MILLIONS OF EUROS)
| 2026 | 2027 | 2028 | 2029 | 2030 | 2031 - 2035
Commitments in Spain | 380 | 240 | 209 | 180 | 153 | 557
Commitments in Mexico | 229 | 246 | 261 | 278 | 297 | 1,635
Commitments in Turkey | 30 | 36 | 46 | 58 | 75 | 895
Total | 639 | 522 | 516 | 516 | 525 | 3,087

25.1.4 Plan assets
The majority of the Group´s defined benefit plans are funded by plan assets held in external funds/trusts legally separate from the
Group sponsoring entity. However, in accordance with local regulation, some commitments are not externally funded and covered
through internally held provisions, principally those relating to early retirements.
Plan assets are those assets which will be used to directly settle the assumed commitments and which meet the following
conditions: they are not part of the Group sponsoring entities assets, they are available only to pay post-employment benefits and
they cannot be returned to the Group sponsoring entity.
To manage the assets associated with defined benefit plans, BBVA Group has established investment policies designed according
to criteria of prudence and minimizing the financial risks associated with plan assets.
The investment policy consists of investing in a low risk and diversified portfolio of assets with maturities consistent with the term
of the benefit obligation and which, together with contributions made to the plan, will be sufficient to meet benefit payments when
due, thus mitigating the plans‘ risks.
In those countries where plan assets are held in pension funds or trusts, the investment policy is developed consistently with local
regulation. When selecting specific assets, current market conditions, the risk profile of the assets and their future market outlook
are all taken into consideration. In all the cases, the selection of assets takes into consideration the term of the benefit obligations
as well as short-term liquidity requirements.
The risks associated with these commitments are those which give rise to a deficit in the plan assets. A deficit could arise from
factors such as a fall in the market value of plan assets, an increase in long-term interest rates leading to a decrease in the fair
value of fixed income securities, or a deterioration of the economy resulting in more write-downs and credit rating downgrades.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

The table below shows the allocation of plan assets of the main companies of the BBVA Group as of December 31, 2025, 2024 and
2023:

PLAN ASSETS BREAKDOWN (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Cash and cash equivalents | 233 | 60 | 86
Debt securities (government bonds) | 2,697 | 2,267 | 2,818
Mutual funds | 1 | 1 | —
Asset-backed securities | — | — | —
Structured debt | — | — | —
Insurance contracts | 24 | 21 | 21
Total | 2,956 | 2,349 | 2,924
Of which: Bank account in BBVA | 6 | 25 | 23
Of which: Debt certificates issued by BBVA | — | — | —
Of which: Property occupied by BBVA | — | — | —

In addition to the above there are plan assets relating to the previously mentioned insurance contracts in Spain and the foundation
in Turkey.
The following table provides details of investments in listed securities (level 1) as of December 31, 2025, 2024 and 2023:

INVESTMENTS IN LISTED MARKETS (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Cash and cash equivalents | 233 | 60 | 86
Debt securities (Government bonds) | 2,697 | 2,267 | 2,818
Mutual funds | 1 | 1 | —
Total | 2,931 | 2,328 | 2,904
Of which: Bank account in BBVA | 6 | 25 | 23
Of which: Debt certificates issued by BBVA | — | — | —
Of which: Property occupied by BBVA | — | — | —

The remainder of the assets are mainly invested in Level 2 assets in in accordance with the classification established under IFRS 13
(mainly insurance contracts). As of December 31, 2025, almost all of the assets related to employee commitments corresponded
to fixed income securities.
25.2 Defined contribution plans
Certain Group entities sponsor defined contribution plans. Some of these plans allow employees to make contributions which are
then matched by the employer.
Contributions are recognized as and when they are accrued, with a charge to the consolidated income statement in the
corresponding year. No liability is therefore recognized in the consolidated balance sheet (see Note 44.1).

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

26. Capital
As of December 31, 2025 and 2024 BBVA’s share capital amounted to €2,797,394,663.00 and €2,824,009,877.85 divided into
5,708,968,700 and 5,763,285,465 shares, respectively. As of December 31, 2023 BBVA’s share capital amounted to
€2,860,590,786.20 divided into 5,837,940,380 shares. These decreases have been the result, respectively, of the partial
execution of the share capital reduction resolution adopted by the Annual General Shareholders’ Meeting of BBVA held on March
21, 2025, under agenda item three, and of 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, which were notified through Other
Relevant Information notices on December 23, 2025 and on May 24, 2024, respectively (see Note 4).
As of December 31, 2025, 2024 and 2023, the shares were fully subscribed and paid-up, of the same class and series, of €0.49 par
value each, and represented through book-entry accounts. 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, 2025, 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, through its American
Depositary Shares (ADS s) o n 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, 2025, State Street Bank and Trust Company, The Bank of New York Mellon, Chase Nominees and Northern
Trust Company, in their capacity as international custodian/depositary banks, held 13.87%, 11.33%, 9.69%, and 3.14% of BBVA
ordinary shares, 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 ordinary shares outstanding.
On July 4, 2025, Blackrock, Inc. reported to the CNMV that it had an indirect holding of BBVA ordinary shares totaling 7.158%, of
which 7.076% were voting rights attributed to shares and 0.082% were voting rights held through financial instruments.
On July 29, 2025, Capital Research and Management Company reported to the CNMV that it had an indirect holding of BBVA
ordinary shares totaling 4.968%, 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 agreements regulating 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.
BBVA banking subsidiaries, associates and joint ventures worldwide, are subject to supervision and regulation from a variety of
regulatory bodies in relation to, among other aspects, the satisfaction of minimum capital requirements. The obligation to satisfy
such capital requirements may affect the ability of such entities to transfer funds in the form of cash dividends, loans or advances.
In addition, under the laws of the various jurisdictions where such entities are incorporated, dividends may only be paid out
through funds legally available for such purpose. Even when the minimum capital requirements are met and funds are legally
available, the relevant regulators or other public administrations could discourage or delay the transfer of funds to the Group in the
form of cash, dividends, loans or advances for prudential reasons.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

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 exclude shareholders' pre-emptive subscription rights, in whole or in part, 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 preparation of these Consolidated Financial Statements, the Bank has not made use of the delegation granted by
the General Shareholders' Meeting.
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.
BBVA's Annual General Shareholders' Meeting held on March 21, 2025 resolved, under item four of the agenda, to renew said
agreement for its execution within a period of one (1) year from that date. The voluntary tender offer was terminated on October
16, 2025, after the CNMV published the results thereof and the minimum acceptance condition set by BBVA was not met;
therefore, the Bank will not exercise the delegation granted by the Annual General Shareholders' Meeting.
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.
In execution of said resolution, (see Note 4), BBVA has carried out 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 cancellation, charged to unrestricted reserves, of the 64,643,559

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

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 cancellation, charged to unrestricted reserves,
of the 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's 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 execution of the resolution of the Annual General Shareholders' Meeting held on March 15, 2024, BBVA has carried out 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 cancellation, 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.
The Annual General Shareholders' Meeting of BBVA held on March 21, 2025, in the third item of its agenda, agreed to approve the
reduction of BBVA's share capital up to a maximum amount corresponding to 10% of the share capital on the date of the
agreement, through the amortization of own shares that have been derivatively acquired by BBVA under the authorization
conferred by the General Shareholders' Meeting of BBVA held on March 18, 2022 under its sixth item of the agenda, through any
mechanism with the aim of being amortized and whose execution period was determined to be until the date of the next Annual
General Shareholders' Meeting, with any unexecuted part remaining without effect as of said date. The Annual General
Shareholders' Meeting authorized the Board of Directors, with powers of subdelegation, to execute all or part of the reduction of
the share capital, in one or several times, leaving without effect, in its unused part, the resolution adopted by the Annual General
Shareholders' Meeting held on March 15, 2024, in the third item of the agenda, whose partial executions have been described
above.
In the execution of the Annual General Shareholders' Meeting held on March 21, 2025, BBVA has executed the following share
capital reduction (see Note 4):
– On December 23, 2025, BBVA notified the partial execution of the aforementioned resolution through the reduction of
BBVA's share capital in a nominal amount of €26,615,214.85 and the consequent cancellation, charged to unrestricted
reserves, of 54,316,765 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 22.4 introduces the details of the convertible and/or exchangeable securities.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

27. Share premium
As of December 31, 2025, the balance under this heading in the consolidated balance sheets was €18,469 million. As of December
31, 2024 and 2023, the balance under this heading was €19,184 million and €19,769 million, respectively (see Note 4).
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 26).
28. Retained earnings and other reserves
28.1 Breakdown of the balance
The breakdown of the balance under this heading in the consolidated balance sheets is as follows:

RETAINED EARNINGS AND OTHER RESERVES. BREAKDOWN BY CONCEPTS (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Legal reserve | 559 | 565 | 572
Restricted reserve | 746 | 582 | 561
Voluntary reserves | 10,529 | 6,470 | 5,478
Total reserves holding company ⁽¹⁾ | 11,834 | 7,616 | 6,612
Consolidation reserves attributed to the Bank and subsidiary consolidated companies | 34,715 | 34,891 | 31,639
Total | 46,550 | 42,507 | 38,251

(1) Total reserves of BBVA, S.A. (See Appendix IX).
28.2 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.
28.3 Restricted reserves
As of December 31, 2025, 2024 and 2023, the Bank’s restricted reserves are as follows:

RESTRICTED RESERVES. BREAKDOWN BY CONCEPTS (MILLIONS OF EUROS) |  |
| 2025 | 2024 | 2023
Restricted reserve for retired capital | 558 | 531 | 495
Restricted reserve for Parent Company shares and loans for those shares | 187 | 49 | 65
Restricted reserve for redenomination of capital in euros | 2 | 2 | 2
Total | 746 | 582 | 561

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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 21, 2025, March 15, 2024 and March 17, 2023, respectively (see Note 26).
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.
28.4 Retained earnings and other reserves by entity
The breakdown, by company or corporate group, under the headings “Retained earnings” and “other reserves” in the consolidated
balance sheets is as follows:

RETAINED EARNINGS AND OTHER RESERVES. BREAKDOWN BY COMPANY OR CORPORATE GROUP (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Retained earnings (losses), revaluation reserves and other reserves |  |  |
Holding Company | 19,311 | 18,157 | 15,672
BBVA Mexico Group | 19,235 | 17,209 | 15,705
Garanti BBVA Group | 6,291 | 6,065 | 5,857
BBVA Provincial Group | 1,803 | 1,774 | 1,758
BBVA Colombia Group | 1,655 | 1,639 | 1,573
BBVA Argentina Group | 1,427 | 1,315 | 1,474
BBVA Peru Group | 1,356 | 1,245 | 1,158
Forum Chile Group | 672 | 663 | 652
BBVA Uruguay Group | 215 | 166 | 139
Corporación General Financiera, S.A. | 494 | 410 | 368
BV America, S.L. | 474 | 469 | 374
BBVA Leasing México, S.A. DE CV | 252 | 221 | 181
Bilbao Vizcaya Holding, S.A. | 140 | 205 | 198
Gran Jorge Juan, S.A. | 105 | 83 | 66
BBVA Technology América S.A. | 109 | 92 | 87
Anida Operaciones Singulares, S.A. | (5,509) | (5,524) | (5,497)
Tree Invesiones Inmboliarias, S.A. | (231) | (288) | (357)
Other Real State Spanish Companies ⁽¹⁾ | (1,063) | (1,152) | (1,164)
Other | 41 | (14) | 243
Subtotal | 46,778 | 42,734 | 38,488
Other reserves or accumulated losses of investments in joint ventures and associates
ATOM Holdco Limited | (167) | (169) | (181)
Metrovacesa, S.A. | (120) | (84) | (84)
Other | 59 | 26 | 28
Subtotal | (228) | (227) | (237)
Total | 46,550 | 42,507 | 38,251

(1) Includes balances corresponding to Sociedades inmobiliarias CX, Anida Grupo Inmobiliario and Sociedades inmobiliarias Unnim.
For the purpose of allocating the reserves and accumulated losses to the consolidated entities and to the parent company, the
transfers of reserves arising from the dividends paid and transactions between these entities are taken into account in the period
in which they took place.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

29. Treasury shares
In the years ended December 31, 2025, 2024 and 2023 the Group entities performed the following transactions with shares issued
by the Bank:

TREASURY SHARES (MILLIONS OF EUROS)
| 2025 |  | 2024 |  | 2023
| Number of Shares | Millions of Euros |  | Number of Shares | Millions of Euros |  | Number of Shares | Millions of Euros
Balance at beginning | 6,666,856 | 66 |  | 4,386,625 | 34 |  | 5,485,414 | 29
+ Purchases | 126,490,393 | 1,994 |  | 154,564,499 | 1,528 |  | 301,882,728 | 2,166
- Sales and other changes | (115,548,741) | (1,761) |  | (152,284,268) | (1,497) |  | (302,981,517) | (2,161)
Balance at the end | 17,608,508 | 299 |  | 6,666,856 | 66 |  | 4,386,625 | 34
Of which: |  |  |  |  |  |  |  |
Held by BBVA, S.A. | 7,496,937 | 152 |  | 410,370 | 7 |  | — | 3
Held by Corporación General Financiera, S.A. | 10,111,571 | 148 |  | 6,256,486 | 59 |  | 4,354,004 | 31
Held by other subsidiaries | — | — |  | — | — |  | 32,621 | —
Average purchase price in Euros | 15.77 | — |  | 9.89 | — |  | 7.18 | —
Average selling price in Euros (including other changes) | 15.20 | — |  | 9.89 | — |  | 7.14 | —
Net gains or losses on transactions (Shareholders' funds-Reserves) |  | 26 |  |  | 10 |  |  | 1

In 2025, 2024 and 2023 there were transactions included in the share buyback program (see Note 4).
The percentages of treasury shares held by the Group in the years ended December 31, 2025, 2024 and 2023 are as follows:

TREASURY SHARE |  |  |  |  |  |  |  |  |  |  |
| 2025 |  | 2024 |  | 2023
| Min | Max | Closing |  | Min | Max | Closing |  | Min | Max | Closing
% treasury share | 0.080 % | 1.146 % | 0.314 % |  | 0.076 % | 1.513 % | 0.116 % |  | 0.038 % | 2.214 % | 0.075 %

The number of BBVA shares accepted by the Group in pledge of loans as of December 31, 2025, 2024 and 2023 is as follows:

SHARES OF BBVA ACCEPTED IN PLEDGE
| 2025 | 2024 | 2023
Number of shares in pledge | 5,476,895 | 13,308,677 | 17,492,194
Nominal value (in Euros) | 0.49 | 0.49 | 0.49
% of share capital | 0.10 % | 0.23 % | 0.29 %

The number of BBVA shares owned by third parties but under management of a company within the Group as of December 31,
2025, 2024 and 2023 is as follows:

SHARES OF BBVA OWNED BY THIRD PARTIES BUT MANAGED BY THE GROUP
| 2025 | 2024 | 2023
Number of shares owned by third parties | 11,752,103 | 11,834,596 | 13,258,994
Nominal value (in Euros) | 0.49 | 0.49 | 0.49
% of share capital | 0.21 % | 0.21 % | 0.23 %

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

30. Accumulated other comprehensive income (loss)
The breakdown of the balance under this heading in the consolidated balance sheets is as follows:

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS). BREAKDOWN BY CONCEPTS (MILLIONS OF EUROS)
| Notes | 2025 | 2024 | 2023
Items that will not be reclassified to profit or loss |  | (2,505) | (1,988) | (2,105)
Actuarial gains (losses) on defined benefit pension plans |  | (1,396) | (1,067) | (1,049)
Fair value changes of equity instruments measured at fair value through other comprehensive income | 13.4 | (983) | (905) | (1,112)
Fair value changes of financial liabilities at fair value through profit or loss attributable to changes in their credit risk |  | (127) | (17) | 55
Items that may be reclassified to profit or loss |  | (16,366) | (15,232) | (14,148)
Hedge of net investments in foreign operations (effective portion) |  | (3,117) | (2,329) | (2,498)
Mexican peso |  | (3,454) | (2,697) | (3,147)
Turkish lira |  | 368 | 394 | 670
Other exchanges |  | (31) | (25) | (21)
Foreign currency translation |  | (13,340) | (12,702) | (11,419)
Mexican peso |  | (3,139) | (3,644) | (640)
Turkish lira |  | (6,625) | (5,835) | (6,908)
Argentine peso |  | (832) | (555) | (1,296)
Venezuelan bolivar |  | (1,910) | (1,865) | (1,865)
Other exchanges |  | (834) | (803) | (711)
Hedging derivatives. Cash flow hedges (effective portion) |  | 311 | 370 | 133
Fair value changes of debt instruments measured at fair value through other comprehensive income | 13.4 | (209) | (576) | (357)
Hedging instruments (non-designated items) |  | (4) | — | —
Share of other recognized income and expense of investments in joint ventures and associates |  | (7) | 5 | (8)
Total |  | (18,871) | (17,220) | (16,254)

The balances recognized under these headings are presented net of tax.
The main changes in 2025 are explained by the depreciation against the euro of some of the currencies of the main geographical
areas where the Group operates against the euro, mainly the Turkish lira (27%) and the Argentine peso (37%), and the application
of IAS 29 "Financial Reporting in Hyperinflationary Economies" in Turkey and Argentina (see Note 2.2.18).

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

31. Minority interests (non-controlling interests)
The breakdown by groups of consolidated entities of the balance under the heading “Minority interests (non-controlling interests)”
of total equity in the consolidated balance sheets is as follows:

MINORITY INTERESTS (NON-CONTROLLING INTERESTS). BREAKDOWN BY SUBGROUPS (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Garanti BBVA | 1,315 | 1,351 | 1,129
BBVA Peru | 2,004 | 1,779 | 1,586
BBVA Argentina | 729 | 843 | 544
BBVA Colombia | 53 | 60 | 82
BBVA Venezuela | 133 | 134 | 108
Other entities | 206 | 191 | 115
Total | 4,441 | 4,359 | 3,564

These amounts are broken down by groups of consolidated entities under the heading “Attributable to minority interests (non-
controlling interests)” in the consolidated income statements:

PROFIT ATTRIBUTABLE TO MINORITY INTERESTS (NON-CONTROLLING INTERESTS). BREAKDOWN BY SUBGROUPS (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Garanti BBVA | 154 | 116 | 95
BBVA Peru | 335 | 260 | 236
BBVA Argentina | 70 | 105 | 59
BBVA Colombia | 3 | (1) | (16)
BBVA Venezuela | 44 | 32 | 24
Other entities | 9 | 9 | (1)
Total | 615 | 521 | 397

Dividends distributed to minority interests of the Group during the year 2025 related to: BBVA Peru Group €127 million, Garanti
BBVA Group €88 million, BBVA Argentina Group €27 million and other Group entities €12 million.
32. Capital base and capital management
32.1 Capital base
The entry into force of Regulation (EU) 2024/1623 (commonly referred to as ‘CRR3’) on January 1, 2025 brought about
substantial changes in the calculation of minimum capital requirements. The impact of these changes on the Group's CET1 ratio
was not significant at that date.
As of December 31, 2025, 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.
3 Considering the latest official updates to the countercyclical capital buffer and the buffer against systemic risks, applied on the basis of exposure as of September 30, 2025, and incorporating the
increase in the percentage of the countercyclical capital buffer applicable to exposures located in Spain approved by the Bank of Spain and published on October 1, 2025, applied on said exposure
basis.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

The CET1 fully loaded ratio of the BBVA Group stood at 12.70% at the end of December 2025, representing a large management
buffer over the Group's CET 1 requirement (9.28% 3) and over the Group's target management range of between 11.5 - 12% of CET
1. With regard to the minimum total capital requirements applicable to the Group as of December 31, 2025, these amount to
13.44%3.
Following the latest decision of the SREP (Supervisory Review and Evaluation Process), which came into force on January 1, 2026,
the ECB has notified the Group that the Pillar 2 requirement is maintained at 1.62% (of which 0.96% at least should be covered by
CET1). In addition, the Bank of Spain has reduced the D-SIB (Domestic Systemically Important Banks) buffer requirement which
the Group must maint ain to 0.75% sin ce January 1, 2026, 0.25% less than that in force on December 31, 2025. Therefore, BBVA
must maintain a CET1 capital ratio of 8.97%3 and a total capital ratio of 13.13%3 at a consolidated level.
A reconciliation of the main figures between the accounting and regulatory own funds as of December 31, 2025, 2024 and 2023 is
shown below:

ELIGIBLE CAPITAL RESOURCES (MILLIONS OF EUROS)
| Notes | 2025 ⁽¹⁾ | 2024 | 2023
Capital | 26 | 2,797 | 2,824 | 2,861
Share premium | 27 | 18,469 | 19,184 | 19,769
Retained earnings, revaluation reserves and other reserves | 28 | 46,550 | 42,507 | 38,251
Other equity instruments, net |  | 40 | 40 | 40
Treasury shares | 29 | (299) | (66) | (34)
Profit (loss) attributable to the parent company | 5 | 10,511 | 10,054 | 8,019
Interim dividend |  | (1,840) | (1,668) | (951)
Total equity |  | 76,228 | 72,875 | 67,955
Accumulated other comprehensive income (loss) | 30 | (18,871) | (17,220) | (16,254)
Minority interests | 31 | 4,441 | 4,359 | 3,564
Shareholders' equity |  | 61,798 | 60,014 | 55,265
Goodwill and other intangible assets |  | (1,691) | (1,553) | (1,421)
Equity not eligible at solvency level |  | (231) | (185) | (137)
Other adjustments and deductions ⁽²⁾ |  | (9,430) | (7,476) | (7,591)
Common Equity Tier 1 (CET 1) |  | 50,446 | 50,799 | 46,116
Additional Tier 1 |  | 5,488 | 6,023 | 6,033
Tier 2 |  | 12,431 | 9,858 | 8,182
Total Capital (Total Capital = Tier 1 + Tier 2) |  | 68,365 | 66,680 | 60,332
Total Minimum equity required ⁽³⁾ |  | 53,403 | 52,427 | 47,455

(1)Provisional Data
(2) Other adjustments and deductions include, among others, the adjustment for non-computable minority interests, the amount of dividends pending distribution
and in 2025 the amount corresponding to the maximum limit authorized by the ECB for the repurchase of BBVA Group's own shares (excluding the amount
corresponding to the tranches already initiated and recognized to date).
(3) Calculated based on total minimum capital requirements applicable in each period.
4 Considering the latest official updates to the countercyclical capital buffer and the buffer against systemic risks, applied on the basis of exposure as of September 30,
2025, and incorporating the increase in the percentage of the countercyclical capital buffer applicable to exposures located in Spain approved by the Bank of Spain and
published on October 1, 2025, applied on said exposure basis.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

The Group’s eligible own funds and risk-weighted assets (RWAs) in accordance with the aforementioned applicable regulation as
of December 31, 2025, 2024 and 2023 are shown below:

AMOUNT OF CAPITAL CC1 (MILLIONS OF EUROS) |  |  |
| 2025 ⁽¹⁾ | 2024 | 2023
Capital and share premium | 21,266 | 22,008 | 22,629
Retained earnings and equity instruments ⁽²⁾ | 42,657 | 39,652 | 34,889
Other accumulated income and other reserves | (17,459) | (14,334) | (12,872)
Minority interests | 2,762 | 2,343 | 1,864
Net attributable profit ⁽³⁾ | 5,244 | 5,013 | 4,759
Common Equity Tier I (CET1) before other regulatory adjustments | 54,471 | 54,681 | 51,269
Goodwill and intangible assets | (1,691) | (1,553) | (1,421)
Direct, indirect and synthetic holdings in own Common Equity Tier I instruments | (390) | (243) | (331)
Deferred tax assets | (815) | (844) | (988)
Other deductions and filters ⁽⁴⁾ | (1,129) | (1,242) | (2,412)
Total common equity Tier 1 regulatory adjustments | (4,024) | (3,882) | (5,153)
Common equity TIER 1 (CET1) | 50,446 | 50,799 | 46,116
Capital instruments and share premium accounts classified as liabilities and qualifying as Additional Tier I | 5,303 | 5,638 | 5,715
Qualifying Tier 1 capital included in consolidated AT1 capital issued by subsidiaries and held by third parties | 185 | 386 | 319
Additional Tier 1 (AT 1) before regulatory adjustments | 5,488 | 6,023 | 6,033
Transitional Tier 1 adjustments | — | — | —
Total regulatory adjustments to additional Tier 1 | — | — | —
Additional Tier 1 (AT1) | 5,488 | 6,023 | 6,033
Tier 1 (Common equity TIER 1 + additional TIER 1) | 55,934 | 56,822 | 52,150
Capital instruments and share premium accounted as Tier 2 | 6,239 | 5,629 | 5,214
Qualifying Tier 2 capital included in consolidated T2 capital issued by subsidiaries and held by third parties | 6,022 | 4,192 | 2,890
Credit risk adjustments | 180 | 47 | 88
Tier 2 before regulatory adjustments | 12,441 | 9,868 | 8,192
Tier 2 regulatory adjustments | (10) | (10) | (10)
Tier 2 | 12,431 | 9,858 | 8,182
Total capital (Total capital = Tier 1 + Tier 2) | 68,365 | 66,680 | 60,332
Total RWA | 397,241 | 394,468 | 363,915
CET 1 ratio | 12.70 % | 12.88 % | 12.67 %
Tier 1 ratio | 14.08% | 14.40% | 14.33%
Total capital ratio | 17.21% | 16.90% | 16.58%

(1) Provisional Data.
(2) It includes the amount of the share buyback program not recognized for accounting purposes.
(3) As of December 31, 2025, the expected total shareholder remuneration corresponding to the year 2025, which is subject to approval by the next General
Shareholders' Meeting, is deducted. As of December 31, 2024, the total shareholder remuneration corresponding to the year 2024, approved by the General
Shareholders' Meeting, is deducted. As of December 31, 2023, the cash amount is deducted from the total shareholder remuneration corresponding to 2023,
approved by the General Shareholders' Meeting.
(4) As of December 31, 2023, the amount of the share buyback program, considered as dividend approved by the General Shareholders' Meetings, was deducted
from the total shareholder remuneration corresponding to the year 2023.
The strength of the BBVA Group's earnings has contributed to achieving a consolidated CET1 ratio of 12.70% as of December 31,
2025, which allows it to maintain a large management buffer over the Group's CET1 requirement as of that date (9.28% 4), which is
also above the Group's target management range of 11.5 - 12.0% CET1.
5 Multiple Point of Entry established by the Single Resolution Board (SRB). Being an MPE implies that, should any of the group's subsidiaries have solvency, liquidity or operational problems, the
resolution authority could liquidate/resolve that entity without affecting the rest of the companies in the banking group.
6 The resolution group is made up of Banco Bilbao Vizcaya Argentaria, S.A. and the subsidiaries belonging to the same European resolution group.
7 The subordinated requirement in RWA is 13.50%.
8 Considering the latest official updates of the countercyclical capital buffer and the buffer against systemic risks, applied on the basis of exposure as of September 30, 2025, and incorporating the
increase in the percentage of the countercyclical capital buffer applicable to exposures located in Spain approved by the Bank of Spain and published on October 1, 2025, applied on said exposure
basis. .
9 The subordinated requirement in LR is 5.66%.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

The CET1 ratio decreased by 18 basis points, mainly explained by the impact of -105 basis points from the extraordinary share
buyback program (SBB).
Among the recurring impacts, there has been a great generation of earnings in the year (265 basis points) which, net of
shareholder remuneration and payment of convertible contingent instrument coupons (CoCos), generated a positive contribution
of 122 basis points.
Meanwhile, the growth in risk-weighted assets (RWA) derived from the organic growth of the business in constant terms, mainly as
a result of the increase in the loan portfolio, and, to a lesser extent, debt securities, as well as risk transfer initiatives drained the
ratio by 152 basis points.
Finally, the other elements that make up CET1 had a positive contribution of 61 basis points; these include the calculation of
minority interests and the positive impact in Other Comprehensive Income (OCI) equivalent to the net monetary position value
loss in hyperinflationary economies, as well as the portfolio recorded in fair value through other comprehensive income
(corresponding to assets classified as Held to Collect and Sell) HTC&S. In addition, the negative effects of market evolution are
also included, particularly the variation of the foreign exchange, mainly represented by the variation of Turkish lira and, to a lesser
extent, the Mexican peso, partially offset by the depreciation of US dollar, throughout the year.
Consolidated Additional Tier 1 (AT1) capital fully loaded stood at 1.38% as of December 31, 2025, 15 basis points lower than in
2024. In January 2025, BBVA, S.A. issued contingent convertible instruments (CoCos) for USD 1 billion, and it made a further
issuance in November 2025 for €1 billion. On the other hand, in March 2025, BBVA redeemed an issuance of contingent
convertible bonds of USD 1 billion. Additionally, in December 2025, the early redemption of a CoCo issuance with a nominal value
of €1 billion was announced, which took place in January 2026.
The Tier 2 fully stood at 3.13% which represents an increase of 63 basis points compared to 2024, mainly due to the issuance of a
subordinated bond in Spain €1 billion in February 2025 and, to a lesser extent, the issuance in Mexico, also in February 2025 of
subordinated debt for amount of USD 1 billion, in addition to the issuances in July and October of USD 500 million and USD 700
million of subordinated debt in Turkey, respectively.
As a result of the above, the total capital ratio stood at 17.21% as of December 31, 2025.
With regard to MREL (Minimum Requirement for own funds and Eligible Liabilities) BBVA, as an MPE 5, has sub-consolidated
requirements, based on its resolution group 6.
On June 12, 2025 the Group made public that it had received a communication from the Bank of Spain regarding its MREL
requirement, established by the Single Resolution Board (“SRB”). According to this communication, BBVA must maintain, as from
June 12, 2025, an MREL in RWA of 23.13% 7, not taking into account the current 8 combined buffer requirement (CBR) of 3.97%. In
addition, BBVA must keep, also as from June 12, 2025, a volume of own funds and eligible liabilities in terms of total exposure
considered for purposes of calculating the leverage ratio of 8.59% (the “MREL in LR”) 9.
With respect to the MREL ratios achieved as of December 31, 2025, these were 28.89% and 10.21%, respectively for MREL in RWA
and MREL in LR, reaching the subordinated ratios of both 24.67% and 8.72%, respectively.

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Given the structure of the resolution group's own funds and eligible liabilities, as of December 31, 2025, the Group meets the
aforementioned requirements.
32.2 Leverage ratio
The leverage ratio (LR) is a regulatory measure complementing capital designed to promote the financial strength of institutions in
terms of indebtedness. This measurement can be used to estimate the percentage of the assets and off-balance sheet
arrangements financed with Tier 1 capital, being the carrying amount of the assets used in this ratio adjusted to reflect the Group’s
current or potential leverage of a given balance-sheet position (Leverage ratio exposure).
Breakdown of leverage ratio as of December 31, 2025, 2024 and 2023, calculated according to CCR, is as follows:

LEVERAGE RATIO |  |
| 2025 ⁽¹⁾ | 2024 | 2023
Tier 1 (millions of Euros) (a) | 55,934 | 56,822 | 52,150
Exposure to leverage ratio (millions of Euros) (b) | 909,048 | 834,488 | 797,888
Leverage ratio (a)/(b) (percentage) | 6.15 % | 6.81 % | 6.54 %

(1) Provisional Data.
32.3 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).
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;

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– 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.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

33. Commitments and guarantees given
The breakdown of the off-balance sheet exposures is as follows:

COMMITMENTS AND GUARANTEES GIVEN (MILLIONS OF EUROS)
| Notes | 2025 | 2024 | 2023
Loan commitments given | 7.2.2 | 227,554 | 188,515 | 152,868
Of which: impaired |  | 179 | 160 | 165
Central banks |  | — | 254 | —
General governments |  | 3,886 | 3,247 | 3,115
Credit institutions |  | 18,223 | 13,441 | 15,595
Other financial corporations |  | 14,295 | 8,656 | 7,063
Non-financial corporations |  | 92,124 | 82,891 | 71,303
Households |  | 99,026 | 80,026 | 55,791
Financial guarantees given | 7.2.2 | 24,865 | 22,503 | 18,839
Of which: impaired (1) |  | 138 | 192 | 229
Central banks |  | — | — | —
General governments |  | 147 | 183 | 74
Credit institutions |  | 774 | 636 | 978
Other financial corporations |  | 3,204 | 2,843 | 2,177
Non-financial corporations |  | 20,512 | 18,724 | 15,460
Households |  | 228 | 116 | 150
Other commitments given | 7.2.2 | 60,159 | 51,215 | 42,577
Of which: impaired (1) |  | 359 | 439 | 636
Central banks |  | — | — | —
General governments |  | 368 | 354 | 327
Credit institutions |  | 7,265 | 6,447 | 3,607
Other financial corporations |  | 4,043 | 3,256 | 1,837
Non-financial corporations |  | 48,291 | 41,005 | 36,681
Households |  | 192 | 153 | 125
Total | 7.2.2 | 312,578 | 262,233 | 214,283

(1) Non-performing financial guarantees given amounted to €497 million, €631 million and €865 million, respectively, as of December 31, 2025, 2024 and 2023.
As of December 31, 2025 and 2024, the provisions for loan commitments, financial guarantees and other commitments given,
recorded in the consolidated balance sheet amounted to €482 million, €110 million and €133 million, and €372 million, €140
million and €155 million, respectively (see Note 24).
Since a significant portion of the amounts above will expire without any payment being made by the consolidated entities, the
aggregate balance of these commitments cannot be considered to be the actual future requirement for financing or liquidity to be
provided by the BBVA Group to third parties.
In the years 2025, 2024 and 2023, no issuance of debt securities carried out by associates of the BBVA Group, joint venture
entities or non-Group entities have been guaranteed.
34. Other contingent assets and liabilities
As of December 31, 2025, 2024 and 2023 there were no other material contingent assets or liabilities other than those disclosed in
the Consolidated Financial Statements or those referred to in these Notes.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

35. Purchase and sale commitments and future payment obligations
The purchase and sale commitments of the BBVA Group are disclosed in Notes 10, 14 and 22.
Future payment obligations mainly correspond to leases payable derived from operating lease contracts, as detailed in Note 22.5,
and estimated employee benefit payments, as detailed in Note 25.1.3.
36. Transactions on behalf of third parties
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)
| 2025 | 2024 | 2023
Financial instruments entrusted to BBVA by third parties | 572,336 | 496,082 | 430,377
Conditional bills and other securities received for collection | 14,536 | 13,460 | 12,125
Securities lending | 6,065 | 5,700 | 6,397
Total | 592,938 | 515,241 | 448,899

37. Net interest income
37.1 Interest and other income
The breakdown of the interest and other income recognized in the consolidated income statement is as follows:

INTEREST AND OTHER INCOME. BREAKDOWN BY ORIGIN (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Financial assets at fair value through profit or loss | 5,299 | 6,243 | 5,497
Financial assets at fair value through other comprehensive income | 3,342 | 4,108 | 3,505
Financial assets at amortized cost ⁽¹⁾ | 48,695 | 50,393 | 38,545
Adjustments of income as a result of hedging transactions | 777 | 701 | 72
Other income | 233 | 214 | 231
Total | 58,345 | 61,659 | 47,850
Of which: Insurance activity | 1,432 | 1,448 | 1,052

(1) Includes interest on demand deposits at central banks and credit institutions.
The amounts recognized in consolidated equity in connection with hedging derivatives for the years ended December 31, 2025,
2024 and 2023 and the amounts derecognized from the consolidated equity and taken to the consolidated income statements
during those years are included in the “Consolidated statements of recognized income and expense”.

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

37.2 Interest expense
The breakdown of the balance under this heading in the consolidated income statements is as follows:

INTEREST EXPENSE. BREAKDOWN BY ORIGIN (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Financial liabilities at fair value through profit or loss | 4,392 | 5,633 | 3,979
Financial liabilities at amortized cost | 26,182 | 28,506 | 19,276
Adjustments of expense as a result of hedging transactions | 388 | 1,097 | 809
Cost attributable to pension funds | 234 | 228 | 174
Other expense | 869 | 929 | 523
Total | 32,065 | 36,392 | 24,761
Of which: Insurance activity | 979 | 1,016 | 633

38. Dividend income
The balances for this heading in the consolidated income statements correspond to dividends on shares and equity instruments
other than those from shares in entities accounted for using the equity method (see Note 39), as shown in the breakdown below:

DIVIDEND INCOME (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Non-trading financial assets mandatorily at fair value through profit or loss | 10 | 10 | 11
Financial assets at fair value through other comprehensive income ⁽¹⁾ | 113 | 109 | 107
Total | 123 | 120 | 118

(1) Dividend income corresponds mainly to investments held at the end of the year.
39. Share of profit or loss of entities accounted for using the equity
method
Results from “Share of profit or loss of entities accounted for using the equity method” resulted in a positive impact of €62 million
for the year ended December 31, 2025, compared with the positive impact of €40 million and the positive impact of €26 million
recorded for the years ended December 31, 2024 and 2023 , respectively (see Note 16.1).

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

40. Fee and commission income and expense
The breakdown of the balance under these headings in the consolidated income statements is as follows:

FEE AND COMMISSION INCOME. BREAKDOWN BY ORIGIN (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Bills receivables | 19 | 21 | 24
Demand accounts | 298 | 300 | 300
Credit and debit cards and POS | 7,308 | 7,106 | 4,665
Checks | 134 | 166 | 175
Transfers and other payment orders | 970 | 961 | 862
Insurance product commissions | 524 | 461 | 384
Loan commitments given | 371 | 322 | 307
Other commitments and financial guarantees given | 548 | 530 | 471
Asset management | 1,845 | 1,685 | 1,407
Securities fees | 401 | 360 | 345
Custody securities | 219 | 221 | 207
Other fees and commissions | 1,105 | 902 | 751
Total | 13,743 | 13,036 | 9,899

The breakdown of fee and commission expense under this heading in the consolidated income statements is as follows:

FEE AND COMMISSION EXPENSE. BREAKDOWN BY ORIGIN (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Demand accounts | 9 | 7 | 6
Credit and debit cards | 3,654 | 3,534 | 2,337
Transfers and other payment orders | 192 | 153 | 156
Commissions for selling insurance | 44 | 47 | 40
Custody securities | 96 | 101 | 111
Other fees and commissions | 1,533 | 1,206 | 961
Total | 5,528 | 5,048 | 3,611

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

41. 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 consolidated income statements is as
follows:

GAINS (LOSSES) ON FINANCIAL ASSETS AND LIABILITIES, HEDGE ACCOUNTING AND EXCHANGE DIFFERENCES, NET (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Gains (losses) on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net | 423 | 327 | 76
Financial assets at amortized cost | 24 | 20 | 41
Other financial assets and liabilities | 398 | 307 | 35
Gains (losses) on financial assets and liabilities held for trading, net | 2,255 | 2,458 | 1,352
Reclassification of financial assets from fair value through other comprehensive income | — | — | —
Reclassification of financial assets from amortized cost | — | — | —
Other gains (losses) | 2,255 | 2,458 | 1,352
Gains (losses) on non-trading financial assets mandatorily at fair value through profit or loss, net | 236 | 179 | 337
Reclassification of financial assets from fair value through other comprehensive income | — | — | —
Reclassification of financial assets from amortized cost | — | — | —
Other gains (losses) | 236 | 179 | 337
Gains (losses) on financial assets and liabilities designated at fair value through profit or loss, net | 28 | 249 | 96
Gains (losses) from hedge accounting, net | (1) | 5 | (17)
Subtotal gains (losses) on financial assets and liabilities and hedge accounting | 2,941 | 3,218 | 1,844
Exchange differences, net | (285) | 695 | 339
Total | 2,656 | 3,913 | 2,183

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 AND HEDGE ACCOUNTING. BREAKDOWN BY NATURE OF THE FINANCIAL INSTRUMENT (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Debt instruments | 430 | 841 | 799
Equity instruments | 1,817 | 553 | 669
Trading derivatives and hedge accounting | (695) | 181 | (812)
Loans and advances to customers | (30) | 236 | 165
Customer deposits | (21) | (81) | (95)
Other | 1,439 | 1,488 | 1,118
Total | 2,941 | 3,218 | 1,844

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|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

The breakdown of the balance of the impact of the derivatives (trading and hedging) under this heading in the consolidated income
statements is as follows:

DERIVATIVES - HEDGE ACCOUNTING (MILLIONS OF EUROS)
| Notes | 2025 | 2024 | 2023
Derivatives |  |  |  |
Interest rate agreements |  | (505) | (21) | 427
Securities agreements |  | (1,001) | 236 | (402)
Credit derivative agreements |  | (44) | (123) | (56)
Foreign-exchange agreements |  | 775 | (15) | (431)
Commodity and other agreements |  | 81 | 99 | (332)
Subtotal |  | (694) | 176 | (795)
Hedging derivatives ineffectiveness |  |  |  |
Fair value hedges | 15 | — | 8 | (10)
Hedging derivative |  | 329 | (512) | (114)
Hedged item |  | (328) | 520 | 103
Cash flow hedges | 15 | (2) | (3) | (7)
Subtotal |  | (1) | 5 | (17)
Total |  | (695) | 181 | (812)

42. Other operating income and expense
The breakdown of the balance under the heading “Other operating income” in the consolidated income statements is as follows:

OTHER OPERATING INCOME (MILLIONS OF EUROS) |
| 2025 | 2024 | 2023
Gains from sales of non-financial services | 373 | 354 | 347
Other operating income | 316 | 269 | 272
Total | 688 | 623 | 619

The breakdown of the balance under the heading “Other operating expense” in the consolidated income statements is as follows:

OTHER OPERATING EXPENSE (MILLIONS OF EUROS) |
| 2025 | 2024 | 2023
Change in inventories | 149 | 165 | 151
Contributions to guaranteed banks deposits funds ⁽¹⁾ | 656 | 636 | 1,017
Hyperinflation adjustment ⁽²⁾ | 742 | 1,775 | 2,007
Other operating expense ⁽³⁾ | 1,066 | 1,374 | 867
Total | 2,614 | 3,951 | 4,042

(1) In 2025 and 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 no additional contributions were necessary for this purpose during 2025 and 2024.
(2) For the years ended December 31, 2025, 2024 and 2023 it includes €356 million, €1,419 million and €1,062 million related to Argentina; €204 million, €348
million and €916 million related to Turkey; and €183 million, €9 million and €28 million related to Venezuela, respectively (see Note 2.2.18).
(3) For the year ended December 2024 and 2023, it includes €285 million 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.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.215

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

43. Income and expense from insurance and reinsurance contracts
The balances of the headings “Income and expense from insurance and reinsurance contracts” in the consolidated income
statements stem from the insurance activity and include the following:

INCOME AND EXPENSE FROM INSURANCE AND REINSURANCE CONTRACTS (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Income from insurance and reinsurance contracts | 3,890 | 3,720 | 3,081
Expense from insurance and reinsurance contracts | (2,370) | (2,238) | (1,821)
Total | 1,520 | 1,482 | 1,261

The table below shows the contribution of each insurance product to the Group´s income for the years ended December 31, 2025,
2024 and 2023:

NET INCOME BY TYPE OF PRODUCT (MILLIONS OF EUROS) |  |  |
| 2025 | 2024 | 2023
Life insurance | 683 | 752 | 617
Individual | 513 | 656 | 590
Group insurance | 170 | 96 | 27
Non-Life insurance | 837 | 730 | 643
Home insurance | — | — | —
Other non-life insurance products | 837 | 730 | 643
Total | 1,520 | 1,482 | 1,261

44. Administration costs
44.1 Personnel expense
The breakdown of the balance under this heading in the consolidated income statements is as follows:

PERSONNEL EXPENSE (MILLIONS OF EUROS)
| Notes | 2025 | 2024 | 2023
Wages and salaries |  | 6,088 | 5,937 | 5,068
Social security costs |  | 1,070 | 1,007 | 834
Defined contribution plan expense | 25 | 152 | 158 | 139
Defined benefit plan expense | 25 | 43 | 51 | 49
Other personnel expense |  | 420 | 506 | 440
Total |  | 7,773 | 7,659 | 6,530

44.1.1 Share-based employee remuneration
The amounts recognized under the heading “Administration costs - Personnel expense - Other personnel expense” in the
consolidated income statements for the year ended December 31, 2025, 2024 and 2023, corresponding to the remuneration plans
based on equity instruments in each year, amounted to €25 million, €23 million and €24 million, respectively. These amounts have
been recognized with a corresponding entry under the heading “Shareholders’ funds - Other equity” in the consolidated balance
sheets, net of tax effect.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.216

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

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.
In 2025, 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.
Thus, according to the applicable remuneration policies, t he 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.
– 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 the date of
delivery. The foregoing shall not apply to those shares that are sold, where appropriate, in order to meet the payment of
tax obligations accruing on the 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.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.217

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

– 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 (hereinafter "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 the 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 21, 2025 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 11, 2025.
The delivery of shares in 2025 to the members of the Identified Staff is derived from the settlement of the Annual Variable
Remuneration for 2024 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.
According to the remuneration policy applicable in 2024, during 2025 a total amount of 2,383,411 BBVA shares or instruments
linked to BBVA shares, corresponding, mostly, to the Upfront Portion of 2024 Annual Variable Remuneration of the Identified
Staff, which includes executive directors and other members of BBVA's Senior Management, as well as to other variable
components of remuneration, were delivered.
Additionally, according to the remuneration policy applicable in 2019, during 2025 a total amount of 220,803 BBVA shares,
corresponding mostly to the third and last payment of the Deferred Portion of 2019 Annual Variable Remuneration of the Identified
Staff, which includes executive directors and other members of BBVA's Senior Management, as well as to other variable
components of remuneration, were delivered.
Likewise, according to the remuneration policy applicable in 2020, during 2025 a total amount of 14,340 BBVA shares were
delivered, corresponding 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 2025 a total of 744,077 BBVA shares were delivered, the
majority corresponding to the third payment of the Deferred Portion of 2021 Annual Variable Remuneration of the Identified Staff,
which includes executive directors and other members of BBVA's Senior Management, as well as to other variable components of
remuneration.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.218

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

According to the remuneration policy applicable in 2022, during 2025 a total amount of 728,081 BBVA shares were delivered,
corresponding, mainly, to the second payment of the Deferred Portion of 2022 Annual Variable Remuneration of the Identified
Staff, among which executive directors and the rest of the members of BBVA's Senior Management are included, as well as to
other variable components of remuneration.
Finally, In accordance with the remuneration policy applicable in 2023, during 2025 a total of 577,686 BBVA shares were delivered,
the majority corresponding to the first payment of the Deferred Portion of 2023 Annual Variable Remuneration of the Identified
Staff, which includes executive directors and other 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, 2025, is included in Note 54.
Lastly, in line with specific regulation applicable in Brazil and Portugal, BBVA Brazil Banco de Investimento and BBVA IFIC have
identified (on an individual basis, respectively) the staff in these countries whose annual variable remuneration should be subject
to a specific settlement and payment scheme established in their corresponding remuneration policies, more specifically:
– A percentage of the annual variable remuneration is subject to a three-year deferral that shall be paid yearly over the
mentioned period.
– 50% of the annual variable remuneration, both the upfront portion and deferred portion, shall be established in BBVA
shares.
– In BBVA Brazil Banco de Investimento, both the cash amounts and share amounts of the deferred portion may be subject
to update adjustments which are payable in cash.
– In BBVA IFIC the deferred portion of the annual variable remuneration may be reduced, but never increased, depending
on the result of multi-year performance indicators. The cash amounts of the deferred portion that are finally paid will be
subject to updating by applying the CPI measured as a year-on-year change in prices.
According to this remuneration scheme, during financial year 2025 a total of 7,376 BBVA shares corresponding to the upfront
portion of 2024 annual variable remuneration were delivered to the staff of BBVA Brazil Banco de Investimento.
Additionally, during 2025 a total of 1,463 BBVA shares corresponding to the first third of the deferred portion of 2023 annual
variable remuneration were delivered as well as a total of €1,053 as adjustments for updates, a total of 1,832 BBVA shares
corresponding to the second third of the deferred portion of 2022 annual variable remuneration and €2,230 as adjustments for
updates, and a total of 1,624 BBVA shares corresponding to the last third of the deferred portion of 2021 annual variable
remuneration and €2,579 as adjustments for updates.
With regard to the BBVA IFIC group, it should be noted that the exception provided for in the remuneration policy for said year
corresponding to payment in shares has been applied to the annual variable remuneration for the year 2024 of some members of
this group, in line with the provisions of the regulations in force. For this reason in 2025 just 2,659 BBVA shares have been
delivered to BBVA IFIC identified members corresponding to 2024 variable remuneration.
Additionally, during 2025 a total of 326 BBVA shares corresponding to the first third of the deferred portion of 2023 annual
variable remuneration and a total of 3,218 BBVA shares corresponding to the last third of the deferred portion of 2021 annual
variable remuneration were delivered to this group.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.219

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

44.2 Other administrative expense
The breakdown of the balance under this heading in the consolidated income statements is as follows:

OTHER ADMINISTRATIVE EXPENSE. BREAKDOWN BY MAIN CONCEPTS (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Technology and systems | 1,778 | 1,732 | 1,512
Communications | 247 | 261 | 219
Advertising | 564 | 441 | 349
Property, fixtures and materials | 561 | 577 | 520
Taxes other than income tax ⁽¹⁾ | 322 | 481 | 451
Surveillance and cash courier services | 244 | 255 | 234
Other expense | 1,323 | 1,253 | 1,090
Total | 5,038 | 5,001 | 4,375

(1) The year-on-year variation is mainly explained by the recognition of a lower expense corresponding to the value added tax in BBVA, S.A., during the first half of
2025 as a result of the upward re-estimation of its pro-rata portion applied both to previous years and to financial year 2025 (see Note 19).
45. Depreciation and amortization
The breakdown of the balance under this heading in the consolidated income statements for the years ended December 31, 2025,
2024 and 2023 is as follows:

DEPRECIATION AND AMORTIZATION (MILLIONS OF EUROS)
| Notes | 2025 | 2024 | 2023
Tangible assets | 17 | 946 | 972 | 867
For own use |  | 607 | 623 | 547
Right-of-use assets |  | 335 | 343 | 317
Investment properties and other |  | 4 | 5 | 3
Intangible assets | 18.2 | 575 | 561 | 536
Total |  | 1,521 | 1,533 | 1,403

46. Provisions or reversal of provisions
For the years ended December 31, 2025, 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 | 2025 | 2024 | 2023
Pensions and other post-employment defined benefit obligations | 23 | 2 | 3 | 31
Commitments and guarantees given |  | 112 | (84) | 76
Pending legal issues and tax litigation |  | 213 | 191 | 171
Other provisions |  | 46 | 88 | 95
Total |  | 373 | 198 | 373

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.220

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

47. 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 consolidated 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 | 2025 | 2024 | 2023
Financial assets at fair value through other comprehensive income - Debt securities |  | (28) | 58 | 42
Financial assets at amortized cost |  | 6,101 | 5,687 | 4,386
Of which: recovery of written-off assets by cash collection | 7.2.5 | (396) | (403) | (369)
Total |  | 6,073 | 5,745 | 4,428

48. Impairment or reversal of impairment of investments in joint
ventures and associates
The heading “Impairment or reversal of the impairment of investments in joint ventures or associates" included a net reversal of
impairment of €32 million in the year ended December 31, 2025. This heading included a net impairment of €63 million for the
year ended December 31, 2024, and it included a net reversal of impairment of €42 million for the year ended December 31, 2023
(see Note 16.3).
49. Impairment or reversal of impairment of non-financial assets
The impairment losses on non-financial assets broken down by the nature of those assets in the consolidated income statements
are as follows:

IMPAIRMENT OR REVERSAL OF IMPAIRMENT ON NON-FINANCIAL ASSETS (MILLIONS OF EUROS)
| Notes | 2025 | 2024 | 2023
Tangible assets | 17 | (5) | (29) | 16
Intangible assets |  | 14 | 15 | 26
Others |  | 3 | 13 | 12
Total |  | 13 | (1) | 54

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.221

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

50. 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 consolidated 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 | 2025 | 2024 | 2023
Gains on sale of real estate |  | 54 | 66 | 64
Impairment of non-current assets held for sale | 21 | (36) | (83) | (42)
Gains (losses) on sale of investments classified as non-current assets held for sale |  | — | — | —
Gains on sale of equity instruments classified as non-current assets held for sale |  | — | — | —
Total |  | 18 | (17) | 22

(1) In 2022 it includes the closing of the transaction with Merlin Properties in which 100% of the shares of Tree Inversiones Inmobiliarias, SOCIMI, S.A. were
acquired by the BBVA Group (see Note 17).
51. Consolidated statements of cash flows
The variation between 2025, 2024 and 2023 of the financial liabilities from financing activities is the following:

LIABILITIES FROM FINANCING ACTIVITIES (MILLIONS OF EUROS)
| Liabilities at amortized cost: Debt certificates |  | Of which: Issuances of subordinated liabilities (1)
| 2025 | 2024 | 2023 |  | 2025 | 2024 | 2023
Balance at the beginning | 69,867 | 68,707 | 55,429 |  | 19,556 | 15,832 | 12,485
Cash flows | 15,120 | 627 | 13,283 |  | 2,738 | 3,303 | 3,388
Non-cash changes | (3,145) | 532 | (5) |  | (1,345) | 421 | (40)
Acquisition | — | — | — |  | — | — | —
Disposal | — | — | — |  | — | — | —
Disposals by companies held for sale | — | — | — |  | — | — | —
Fair value changes | — | — | — |  | — | — | —
Foreign exchange movement and others | (3,145) | 532 | (5) |  | (1,345) | 421 | (40)
Balance at the end | 81,842 | 69,867 | 68,707 |  | 20,949 | 19,556 | 15,832

(1) There were €104 million, €56 million and €35 million of subordinated deposits as of December 31, 2025, 2024 and 2023, respectively (see Note 22.4). In
addition, there were coupon payments on subordinated liabilities for €397 million, €388 million and €345 million in 2025, 2024 and 2023, respectively. Appendix
VI details the outstanding subordinated debt issued by their nominal value.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.222

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

52. Accountant fees and services
The details of the fees for the services contracted by entities of the BBVA Group for the year ended December 31, 2025, with their
respective auditors and other audit entities are as follows:

FEES FOR AUDITS CONDUCTED AND OTHER RELATED SERVICES (1) (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Audits of the companies audited by firms belonging to the EY worldwide organization and other reports related with the audit (2) | 33.0 | 32.8 | 28.5
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 | 1.6 | 1.5 | 1.4
Fees for audits conducted by other firms | 0.1 | 0.1 | 0.1

(1) Regardless of the billed year.
(2) Including fees pertaining to annual audits and other financial statements (€ 26.7 million as of December 31, 2025).
In the year ended December 31, 2025, certain entities in the BBVA Group contracted other services (other than audits) as follows:

OTHER SERVICES RENDERED (MILLIONS OF EUROS) |  |  |
| 2025 | 2024 | 2023
Firms belonging to the EY worldwide organization | 0.2 | 0.2 | 0.2

This total of contracted services includes the detail of the services provided by Ernst & Young, S.L. to BBVA, S.A. or its controlled
companies at the date of preparation of these consolidated financial statements as follows:

FEES FOR AUDITS CONDUCTED (1) (MILLIONS OF EUROS) |  |
| 2025 | 2024 | 2023
Legal audit of BBVA,S.A. or its companies under control | 8.8 | 8.5 | 7.9
Other audit services of BBVA, S.A. or its companies under control | 5.8 | 5.6 | 5.4
Limited Review of BBVA, S.A. or its companies under control | 2.0 | 2.0 | 1.9
Reports related to issuances | 0.9 | 1.2 | 1.0
Assurance services and other required by the regulator | 1.2 | 1.2 | 0.8
Other | 0.1 | — | —

(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.
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.
53. Related-party transactions
BBVA and other Group companies, in their capacity as financial institutions, maintain transactions with their related parties within
the ordinary course of their businesses. These transactions are of minor significance and are carried out under normal market
conditions. As of December 31, 2025, 2024 and 2023, transactions with the following related parties have been identified:

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.223

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

53.1 Transactions with significant shareholders
As of December 31, 2025, 2024 and 2023, there were no shareholders with significant influence (see Note 26).
53.2 Transactions of BBVA Group entities with joint ventures and associates
The balances of the main captions in the consolidated balance sheets arising from the transactions carried out by the BBVA Group
with joint ventures and associates are as follows:

BALANCES ARISING FROM TRANSACTIONS OF BBVA GROUP ENTITIES WITH JOINT VENTURES AND ASSOCIATES (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Assets |  |  |
Loans and advances to credit institutions | 38 | 13 | 5
Loans and advances to customers | 632 | 639 | 791
Debt securities | 4 | 4 | 4
Liabilities |  |  |
Deposits from credit institutions | 1 | 1 | —
Customer deposits | 109 | 160 | 134
Memorandum accounts |  |  |
Financial guarantees given | 100 | 171 | 177
Other commitments given | 625 | 784 | 595
Loan commitments given | 82 | 117 | 119

The balances of the main captions in the consolidated income statements resulting from transactions with joint ventures and
associates are as follows:

BALANCES OF CONSOLIDATED INCOME STATEMENT ARISING FROM TRANSACTIONS OF BBVA GROUP ENTITIES WITH JOINT VENTURES AND ASSOCIATES (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Income statement |  |  |
Interest and other income | 29 | 37 | 44
Interest expense | 1 | 4 | 4
Fee and commission income | 9 | 7 | 4
Fee and commission expense | 46 | 55 | 49

There were no other material effects in the consolidated financial statements arising from dealings with these entities, other than
the effects from using the equity method (see Note 2.1), from the insurance policies to cover pension or similar commitments (see
Note 25), and from the derivatives transactions arranged by BBVA Group with t hese entities, associates and joint ventures.
In addition, as part of its normal activity, the BBVA Group has entered into agreements and commitments of various types with
shareholders of subsidiaries and associates, which have no material effects on the consolidated financial statements.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.224

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

53.3 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 31 ST DECEMBER OF EACH YEAR (THOUSANDS OF EUROS)
| 2025 |  | 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 |  | Directors | Related parties of Directors | Senior Management (1) | Related parties of Senior Management
Loans and credits | 1,741 | 204 | 5,285 | 369 |  | 2,176 | 210 | 4,664 | 688 |  | 531 | 243 | 5,553 | 727
Bank guarantees | — | — | 10 | — |  | — | — | 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 54.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.225

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

54. Remuneration and other benefits of 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 2025 and 2024 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 | Remuneration Committee | Appointments and Corporate Governance Committee | Technology and Cybersecurity Committee | Other positions (2) | Total
2025 | 2024
José Miguel Andrés Torrecillas | 129 | 167 | 165 | ─ | ─ | 115 | ─ | 50 | 625 | 625
Jaime Caruana Lacorte | 129 | 167 | ─ | 107 | ─ | 46 | ─ | ─ | 449 | 455
Enrique Casanueva Nárdiz (3) | 129 | ─ | 66 | 107 | ─ | ─ | ─ | ─ | 302 | 223
Sonia Dulá | 129 | ─ | 66 | 107 | ─ | ─ | ─ | ─ | 302 | 302
Raúl Galamba de Oliveira | 129 | ─ | ─ | 214 | ─ | 46 | 43 | 80 | 512 | 512
Belén Garijo López | 129 | 167 | ─ | ─ | ─ | 46 | ─ | ─ | 342 | 378
Connie Hedegaard Koksbang | 129 | ─ | 66 | ─ | ─ | ─ | ─ | ─ | 195 | 195
Lourdes Máiz Carro | 129 | ─ | 66 | ─ | 43 | ─ | ─ | ─ | 238 | 238
Cristina de Parias Halcón (4) | 129 | ─ | ─ | ─ | ─ | 46 | 43 | ─ | 218 | 167
Ana Peralta Moreno | 129 | ─ | 66 | ─ | 43 | ─ | ─ | ─ | 238 | 238
Ana Revenga Shanklin | 129 | ─ | ─ | 107 | 107 | ─ | 43 | ─ | 386 | 364
Carlos Salazar Lomelín (5) | 129 | ─ | ─ | ─ | 43 | ─ | ─ | ─ | 172 | 172
Jan Verplancke | 129 | ─ | ─ | ─ | 43 | ─ | 43 | ─ | 214 | 214
Total (6) | 1,673 | 500 | 497 | 642 | 278 | 301 | 171 | 130 | 4,193 | 4,083

(1)Includes the amounts corresponding to the positions on the Board of Directors and its various Committees, the composition of which was last 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) 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, in 2025 and 2024, she received €30 thousand and 7,593 BBVA shares and €56 thousand and 14,697 BBVA shares, respectively, 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. Likewise, in 2024, she received €72 thousand, 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; positions from which she resigned in 2024.
(5) In addition, in the financial years 2025 and 2024, the director Carlos Salazar Lomelín has received €171 thousand and €113 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 C.V.
(6) The total amount reported for the 2024 financial year does not include amounts corresponding to the positions on the Board and its various Committees
received by José Maldonado Ramos and Juan Pi Llorens, who ceased to hold office on March 15, 2024, and whose remuneration for those items in 2024 amounted
to €85 thousand and €81 thousand, respectively.
Likewise, during financial years 2025 and 2024, €103 thousand and €112 thousand were paid out, respectively, in healthcare and
casualty insurance premiums for non-executive directors.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.226

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

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 successively by resolutions of the General Shareholders’
Meetings held on 2011, 2016, 2021 and 2023.
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 60 trading sessions prior to the date of the Annual General Shareholders’ Meeting
approving the 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.
During financial years 2025 and 2024, the following theoretical shares derived from this system were allocated:

| 2025 |  | 2024
| 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 | 10,930 | 158,385 |  | 13,407 | 147,455
Jaime Caruana Lacorte | 7,959 | 114,269 |  | 11,350 | 106,310
Enrique Casanueva Nárdiz (2) | 3,894 | 3,894 |  | ─ | ─
Sonia Dulá | 5,279 | 10,321 |  | 5,042 | 5,042
Raúl Galamba de Oliveira | 8,944 | 49,135 |  | 10,423 | 40,191
Belén Garijo López | 6,598 | 117,191 |  | 9,401 | 110,593
Connie Hedegaard Koksbang | 3,410 | 10,587 |  | 3,914 | 7,177
Lourdes Máiz Carro | 4,159 | 81,136 |  | 5,384 | 76,977
Cristina de Parias Halcón (2) | 2,915 | 2,915 |  | ─ | ─
Ana Peralta Moreno | 4,159 | 51,872 |  | 5,384 | 47,713
Ana Revenga Shanklin | 6,364 | 37,525 |  | 6,947 | 31,161
Carlos Salazar Lomelín | 2,998 | 24,010 |  | 3,882 | 21,012
Jan Verplancke | 3,747 | 44,370 |  | 4,851 | 40,623
Total (3) | 71,356 | 705,610 |  | 79,985 | 634,254

(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 21, 2025 and March 15, 2024 which were €11.45 and €8.84 per share, respectively.
(2) Directors appointed by the General Shareholders’ Meeting held on March 15, 2024, therefore the allocation of theoretical shares was made for the first time in
2025.
(3) The total number of theoretical shares allocated during the 2024 financial year does not include 7,735 and 8,157 theoretical shares allocated to José
Maldonado Ramos and Juan Pi Llorens, respectively, whose terms of office ended on March 15, 2024, and who after leaving office, in application of the system,
received a total of 154,609 and 156,699 BBVA shares, respectively, which is equivalent to the total theoretical shares accumulated up to that date by each of them.
Remuneration of executive directors
The remuneration of executive directors for financial years 2025 and 2024 indicated below, individually and by remuneration item,
is the result of applying the BBVA Directors’ Remuneration Policies approved by the General Shareholders’ Meeting.

ANNUAL FIXED REMUNERATION (THOUSANDS OF EUROS) |
| 2025 | 2024
Chair | 2,924 | 2,924
Chief Executive Officer | 2,179 | 2,179
Total | 5,103 | 5,103

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.227

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

In addition to the amounts indicated in the table, during the 2025 and 2024 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 is not entitled to receive a retirement benefit (see section on “Pension commitments with executive
directors” in this Note), and the amount of €600 thousand as mobility allowance.

REMUNERATION IN KIND (THOUSANDS OF EUROS) |  |

Likewise, the executive directors received remuneration in kind during the financial years 2025 and 2024, including insurance
premiums and others, €132 thousand and €140 thousand, respectively, in the case of the Chair and €128 thousand, in each
financial year, in the case of the Chief Executive Officer.

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 by the Group of the minimum profit and capital ratio thresholds approved by the Board of Directors. The sum of
the STI and LTI constitutes the AVR for the year of each executive director.
T he 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 vest and be paid, provided that the relevant conditions are met, as a general rule,
in the first quarter of the year following to 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 end 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 2025 the executive directors accrued a Short-Term Incentive amounting to €2,627 thousand
in the case of the Chair and €1,965 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 2028), 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.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.228

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

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 2025, 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) potential application of ex post risk
adjustments; (v) malus and clawback arrangements throughout the whole periods of deferral and retention of the shares or
instruments; and (vi) 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 2025.
Taking into account the above, the Upfront Portion of the AVR for the financial years 2025 and 2024 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) |  |  |  |
| 2025 (1) |  | 2024 (2)
| In cash (thousands of Euros) | In shares |  | In cash (thousands of Euros) | In shares
Chair | 821 | 40,850 |  | 897 | 92,803
Chief Executive Officer | 614 | 30,552 |  | 671 | 69,408
Total | 1,435 | 71,402 |  | 1,568 | 162,211

(1) Upfront Portion (36%) of the Annual Variable Remuneration, which represents the first payment of the Short-Term Incentive
for financial year 2025 and will be paid during the first quarter of financial year 2026, in equal parts in cash and BBVA shares. The
remaining amount of the 2025 Annual Variable Remuneration (which includes the Long-Term Incentive of the 2025 financial year)
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 Long-Term
Incentive of the 2025 financial year. 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 2024 and which was paid in 2025, in equal parts in cash and BBVA shares. The remaining amount of the 2024
Annual Variable Remuneration (which includes the Long-Term Incentive for the 2024 financial year) was deferred over a 5-year
period (40% in cash and 60% in BBVA 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 Long-Term
Incentive of the 2024 financial year. 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 (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.229

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

DEFERRED ANNUAL VARIABLE REMUNERATION (AVR) FROM PREVIOUS FINANCIAL YEARS
|  |  | 2025 (1) |  | 2024 (2)
| Deferred AVR |  | In cash (thousands of Euros) | In shares | In stock- options (3) |  | In cash (thousands of Euros) | In shares | In stock- options (3)
Chair | 2024 |  | 222 | 33,410 | — |  | — | — | —
2023 |  | 228 | 11,862 | 189,609 |  | 221 | 38,821 | —
2022 |  | 243 | 56,941 | — |  | 236 | 56,941 | —
2021 |  | 235 | 57,325 | — |  | 228 | 57,325 | —
2020 |  | 0 | 0 | 0 |  | 0 | 0 | 0
2019 |  | — | — | — |  | 181 | 45,529 | —
Subtotal |  | 927 | 159,538 | 189,609 |  | 867 | 198,616 | ─
Chief Executive Officer | 2024 |  | 166 | 24,987 | ─ |  | — | — | —
2023 |  | 170 | 8,872 | 141,809 |  | 166 | 29,034 | —
2022 |  | 187 | 43,793 | ─ |  | 181 | 43,793 | —
2021 |  | 179 | 43,552 | ─ |  | 173 | 43,552 | —
2020 |  | 0 | 0 | 0 |  | 0 | 0 | 0
2019 |  | — | — | — |  | 163 | 40,858 | —
Subtotal |  | 701 | 121,204 | 141,809 |  | 683 | 157,237 | ─
Total |  | 1,629 | 280,742 | 331,418 |  | 1,550 | 355,853 | ─

(1) Deferred remuneration payable after the 2025 year-end, including the update of its cash portion. Payment to the Chair and
Chief Executive Officer will take place in 2026 in accordance with the vesting and payment rules set out in the remuneration
policies applicable for each financial year:
• 2024 Deferred AVR: the first payment of the Deferred STI (17.9% of the Deferred Portion) is due to the executive
directors. Thereafter, the second payment of the Deferred STI (17.9% of the Deferred Portion) and 2024 LTI (64.2% of
the Deferred Portion), will be deferred for both executive directors. The 2024 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 2027), 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 2027 and the three payments of the 2024 LTI will be made in 2028, 2029 and 2030.
• 2023 Deferred AVR: the second payment of the Deferred STI (17.9% of the Deferred Portion) is due to the executive
directors. Thereafter, 2023 LTI (64.2% of the Deferred Portion), will be deferred for both executive directors. 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 three payments of the 2023 LTI will be made in 2027, 2028 and 2029.
• 2022 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 2022 by
the Board of Directors. Thereafter, 40% of the 2022 Deferred AVR will be deferred for both executive directors, which, if
the relevant conditions are met, will be paid in 2027 and 2028.
• 2021 Deferred AVR: the fourth payment (20% of the Deferred Portion) is due to executive directors. Thereafter, 20% of
the 2021 Deferred AVR will be deferred for both executive directors, which, if the relevant conditions are met, will be paid
in 2027.
• 2020 Deferred AVR: given the exceptional circumstances arising from the COVID-19 crisis, executive directors voluntarily
waived the whole of their 2020 AVR.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.230

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

(2) Deferred remuneration which was payable after the 2024 year-end, including the update of its cash portion. Its payment to the
Chair and Chief Executive Officer took place in 2025, in accordance with the vesting and payment rules established in the
remuneration policies applicable in each financial year:
• 2023 Deferred AVR: in 2025, the first payment of the Deferred STI (17.9% of the Deferred Portion) was made to executive
directors.
• 2022 Deferred AVR: in 2025, the second payment (20% of the Deferred Portion) was made to executive directors.
• 2021 Deferred AVR: in 2025, the third 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 2025, the third and final payment (20% of the Deferred Portion) was made to executive directors.
Following this, the payment of the 2019 Deferred AVR to both executive directors was completed.
(3) The delivery of the stock options awarded as part of the 2023 Deferred AVR is part of the second payment of the Deferred STI,
which is due after the 2025 year-end (in 2026). The delivery of the stock options awarded as part of the 2024 Deferred AVR is part
of the second payment of the Deferred STI, which, if the relevant conditions are met, will be due after the 2026 year-end (in 2027).
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.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.231

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

In accordance with the foregoing, in the financial year 2025, 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 adjustment of the “discretionary pension benefits” for the financial year 2024, which were declared at the end of that year
and which had to be included in the accumulated fund in 2025. Likewise, an amount of €236 thousand was paid in insurance
premiums for the death and disability contingencies.
As of December 31, 2025, the total accumulated fund to meet the retirement commitments with the Chair amounted to €29,821
thousand.
Of the annual contribution for the retirement contingency corresponding to the financial year 2025, 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 2025 financial year, being determined in an amount of €76 thousand, which represents an upward adjustment of €10
thousand. These “discretionary pension benefits” will be included in the accumulated fund in the 2026 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 2025 financial year, the Bank paid the Chief Executive Officer the amount of €654 thousand as “cash in lieu of
pension”, as described in the “Remuneration of executive directors” section of this Note.
For its part, the Bank has undertaken commitments to cover the death and disability contingencies with the Chief Executive
Officer. For this purpose, in 2025, €220 thousand was paid corresponding to annual insurance premiums.

PENSION SYSTEMS (THOUSANDS OF EUROS)
| Contributions (1) |  | Accumulated funds
| Retirement |  | Death and disability |
| 2025 | 2024 |  | 2025 | 2024 |  | 2025 | 2024
Chair | 456 | 456 |  | 236 | 252 |  | 29,821 | 26,893
Chief Executive Officer | — | — |  | 220 | 221 |  |  | —
Total | 456 | 456 |  | 457 | 472 |  | 29,821 | 26,893

(1) Contributions recognized to meet the pension commitments with the executive directors in financial years 2025 and 2024. 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 2024 and 2023,
the contribution of which to the accumulated fund was to be made in the financial years 2025 and 2024, 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 2025 and 2024 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.
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.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.232

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

Remuneration of Senior Management
The remuneration of Senior Management, excluding executive directors, for financial years 2025 and 2024 (16 members with this
position as of December 31, 2025 and 2024) 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.

FIXED REMUNERATION (THOUSANDS OF EUROS) |
| 2025 | 2024
Senior Management Total | 20,787 | 19,928

In addition to the amounts indicated in the table, during the 2025 and 2024 financial years, the members of Senior Management
collectively received fixed allowances for vehicle rental and others totaling €257 thousands and €347 thousands, respectively.

REMUNERATION IN KIND (THOUSANDS OF EUROS) |  |

During the 2025 and 2024 financial years, remuneration in kind, including insurance premiums and others, totaling €640
thousand and €603 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 set out above for the executive directors, in 2025 financial year, all members of Senior
Management accrued a Short-Term Incentive for a total combined amount of €7,299 thousand.
In addition, all members of Senior Management accrued the right to a Long-Term Incentive for a maximum theoretical amount of
€5,149 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 2028). 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 €3,433 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
2025, which include: (i) a retention period of one year following delivery of the BBVA shares or instruments linked to BBVA shares;
(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) potential application of ex post risk
adjustments; (v) malus and clawback arrangements throughout the whole periods of deferral and retention of the shares or
instruments; and (vi) 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 2025.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.233

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

Taking into account the above, the total sum of the Upfront Portion of the AVR for financial years 2025 and 2024 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) |  |  |  |
| 2025 (1) |  | 2024 (2)
| In cash (thousands of Euros) | In shares |  | In cash (thousands of Euros) | In shares
Senior Management Total | 2,281 | 112,500 |  | 2,266 | 235,016

(1) Upfront Portion of the Annual Variable Remuneration, which represents the first payment of the 2025 Short-Term Incentive
and will be paid during the first quarter of 2026 financial year, in equal parts in cash and BBVA shares. The remaining amount of
the 2025 Annual Variable Remuneration (which includes the 2025 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 2025 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 2024 and which was paid in 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) 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 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.

DEFERRED ANNUAL VARIABLE REMUNERATION (AVR) FROM PREVIOUS FINANCIAL YEARS |
|  |  | 2025 (1) |  | 2024 (2)
| Deferred AVR |  | In cash (thousands of Euros) | In shares | In stock- options (3) |  | In cash (thousands of Euros) | In shares | In stock- options (3)
Senior Management Total | 2024 |  | 534 | 81,445 | — |  | — | — | —
2023 |  | 549 | 30,492 | 444,545 |  | 574 | 98,636 | —
2022 |  | 501 | 117,265 | — |  | 526 | 125,129 | —
2021 |  | 469 | 112,536 | — |  | 488 | 119,207 | —
2020 |  | 51 | 14,340 | — |  | 56 | 14,340 | —
2019 |  | — | — | — |  | 314 | 77,447 | —
Total |  | 2,104 | 356,078 | 444,545 |  | 1,957 | 434,759 | —

(1) Deferred remuneration payable after 2025 year-end, including the update of its cash portion. Payment thereof to members of
Senior Management who are beneficiaries will take place in 2026 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:
• 2024 Deferred AVR: the first payment of the Deferred STI is due.
• 2023 Deferred AVR: the second payment of the Deferred STI is due.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.234

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

• 2022 Deferred AVR: the third payment of the Deferred STI is due, after having verified that no reduction had to be made
according to the result of the multi-year performance indicators approved in 2022 by the Board of Directors.
• 2021 Deferred AVR: the fourth payment is due.
• 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 third and final
payment of the deferred portion of a success bonus on the sale of BBVA USA is due to one member of Senior
Management, who was an executive of BBVA USA at that time.
(2) Deferred remuneration which was payable after the 2024 year-end, including the update of its cash portion. Payment thereof
to members of Senior Management who were beneficiaries took place in 2025 in accordance with the vesting and payment rules
set forth in the remuneration policies applicable in each financial year:
• 2023 Deferred AVR: in 2025, the first payment of the Deferred STI was made.
• 2022 Deferred AVR: in 2025, the second payment was made.
• 2021 Deferred AVR: in 2025, the third payment was made.
• 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 third and final
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: in 2025, the third and final payment was made.
(3) The delivery of the stock options awarded as part of the 2023 Deferred AVR is part of the second payment of the Deferred STI,
which is due after the 2025 year-end (in 2026). The delivery of the stock options awarded as part of the 2024 Deferred AVR is part
of the second payment of the Deferred STI, which, if the relevant conditions are met, will be due after the 2026 year-end (in 2027).
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, 2025,
excluding the executive directors), a total aggregate amount of €4,411 thousand was recognized in financial year 2025 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 €139 thousand pertaining to the adjustment of the “discretionary pension benefits” for financial year
2024, which had to be included in the accumulated fund in 2025. In addition, an aggregate total amount of €1,115 thousand was
paid in insurance premiums to cover the contingencies of death and disability.
As of December 31, 2025, the total accumulated fund to meet the retirement commitments with members of Senior Management
amounted to €47,281 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 2025 financial year, a total amount
of €625 thousand was recognized in 2025 as “discretionary pension benefits”. Following the end of the financial year, this amount

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.235

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

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 2025 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 €747
thousand, which represents an upward adjustment of €122 thousand. These “discretionary pension benefits” will be included in
the accumulated fund in the 2026 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 regard.

PENSION SYSTEMS (THOUSANDS OF EUROS) |
| Contributions (1) |  | Accumulated funds |
| Retirement |  | Death and disability |  |
| 2025 | 2024 |  | 2025 | 2024 |  | 2025 | 2024 |
Senior Management Total | 4,411 | 4,226 |  | 1,115 | 1,181 |  | 47,281 | 40,549 |

(1) Contributions recognized in financial years 2025 and 2024 to meet pension commitments with members of Senior Management with such position on
December 31, 2025 and 2024 (16 members in both cases, excluding the executive directors), which relate to the sum of the annual retirement pension
contributions and the adjustments made to the “discretionary pension benefits” for 2024 and 2023 which were included in the accumulated fund in 2025 and
2024, respectively, and to the insurance premiums paid by the Bank for death and disability contingencies.
Payments for termination of the contractual relationship
Regarding Senior Management, excluding the executive directors, in 2025 the contractual relationship of a member of Senior
Management was terminated, giving rise to the right of a severance payment of €1,908 thousand. In this regard, the Senior
Management contracts include, among others, the right to receive the severance payment that legally corresponds, provided that
termination of the contractual relationship is not pursuant to the member's own will, retirement, disability or serious dereliction of
duties, the amount of which will be calculated in accordance with the provisions in the applicable labor regulations. Likewise, the
contract establishes a post-contractual non-compete agreement for a one-year term duration, which shall be compensated with
an amount of €885 thousand which shall be paid on a monthly basis during the non-competition period.
In 2024 there were no terminations of contractual relationships of members of Senior Management.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.236

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

55. Other information
55.1 Environmental impact
Given the activities BBVA Group entities engage in, the Group has no environmental liabilities, expenses, assets, provisions or
contingencies that could have a significant effect on its consolidated equity, financial situation and profits. Consequently, as of
December 31, 2025, 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. The accompanying Consolidated Management Report
presents in more detail the BBVA Group's management of environmental impacts and risks.
55.2 Information required regarding dividends, business segmentation and
employees
Dividends paid
The table below presents the dividends per share paid in cash during 2025, 2024 and 2023 (cash basis dividend, regardless of the
year in which they were accrued). For a complete analysis of all remuneration awarded to the shareholders in 2025, 2024 and
2023 (see Note 4).

PAID DIVIDENDS |  |  |
| 2025 | 2024 | 2023
| % Over nominal | Euros per share | Amount (Millions of Euros) | % Over nominal | Euros per share | Amount (Millions of Euros) | % Over nominal | Euros per share | Amount (Millions of Euros)
Ordinary shares | 148.98% | 0.73 | 4,205 | 138.78% | 0.68 | 3,921 | 95.92% | 0.47 | 2,812
Rest of shares | — | — | — | — | — | — | — | — | —
Total dividends paid in cash | 148.98 % | 0.73 | 4,205 | 138.78 % | 0.68 | 3,921 | 95.92 % | 0.47 | 2,812
Dividends with charge to income | 148.98% | 0.73 | 4,205 | 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 | — | — | — | — | — | — | — | — | —

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.237

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

Ordinary income and attributable profit by operating segment
The detail of the consolidated ordinary income and profit for each operating segment is as follows as of December 31, 2025, 2024
and 2023:

ORDINARY INCOME AND ATTRIBUTABLE PROFIT BY OPERATING SEGMENT (MILLIONS OF EUROS)
| Income from ordinary activities (1) | Profit/ (loss) (2)
| 2025 | 2024 ⁽³⁾ | 2023 | 2025 | 2024 ⁽³⁾ | 2023
Spain | 17,387 | 19,094 | 16,401 | 4,175 | 3,752 | 2,720
Mexico | 24,375 | 25,498 | 22,822 | 5,264 | 5,447 | 5,319
Turkey | 22,957 | 21,414 | 10,674 | 805 | 611 | 527
South America | 10,881 | 12,260 | 10,913 | 726 | 635 | 601
Rest of Business | 3,994 | 3,968 | 3,053 | 627 | 511 | 396
Subtotal operating segments | 79,594 | 82,234 | 63,862 | 11,597 | 10,956 | 9,564
Corporate Center and adjustments | 137 | 142 | (452) | (1,086) | (901) | (1,544)
Total | 79,731 | 82,376 | 63,411 | 10,511 | 10,054 | 8,019

(1) The line comprises interest income; dividend income; fee and commission income; gains (losses) on derecognition of financial assets and liabilities not
measured at fair value through profit or loss, net; 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; gains (losses) on financial assets and liabilities designated at fair value through profit or loss, net; gains (losses)
from hedge accounting, net; other operating income; and income from insurance and reinsurance contracts.
(2) See Note 6.
(3) In the first quarter of 2025 certain immaterial balance sheet amounts related to specific activities undertaken by the business units were reallocated between
the operating segments and the Corporate Center. As a result, certain expenses were reallocated, in particular, between Spain, Rest of Business and the Corporate
Center. In order to make the period-on-period comparison homogeneous, the figures for years 2024 and 2023 have been revised, which has not affected the
consolidated financial information of the Group.
Interest income by geographical area
The breakdown of the balance of “Interest income and similar income” in the consolidated income statements by geographical
area is as follows:

INTEREST INCOME. BREAKDOWN BY GEOGRAPHICAL AREA (MILLIONS OF EUROS)
| Notes | 2025 | 2024 | 2023
Domestic |  | 12,719 | 14,758 | 12,621
Foreign |  | 45,627 | 46,901 | 35,229
European Union |  | 1,887 | 1,685 | 1,149
Eurozone |  | 1,639 | 1,426 | 925
Not Eurozone |  | 248 | 259 | 224
Other countries |  | 43,739 | 45,216 | 34,081
Total | 37.1 | 58,345 | 61,659 | 47,850

Number of employees
The detail of the average number of employees is as follows as of December 31, 2025, 2024 and 2023:

AVERAGE NUMBER OF EMPLOYEES |  |  |
| 2025 | 2024 | 2023
Men | 61,237 | 59,754 | 56,907
Women | 64,968 | 63,846 | 62,078
Total | 126,204 | 123,600 | 118,985

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.238

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

The breakdown of the average number of employees in the BBVA Group as of December 31, 2025, 2024 and 2023 is as follows:

AVERAGE NUMBER OF EMPLOYEES
| 2025 | 2024 | 2023
Spanish banks |  |  |
Management Team | 2,005 | 1,834 | 1,722
Managers | 10,402 | 10,150 | 9,582
Other line personnel and clerical staff | 9,796 | 9,796 | 9,878
Branches abroad | 1,561 | 1,259 | 1,131
Subtotal | 23,764 | 23,039 | 22,313
Banks abroad |  |  |
Mexico | 44,666 | 44,991 | 42,834
Turkey | 23,079 | 22,254 | 21,810
Venezuela | 1,823 | 1,794 | 1,772
Argentina | 6,365 | 5,914 | 5,771
Colombia | 5,208 | 5,398 | 5,419
Peru | 7,482 | 7,266 | 6,990
Other | 691 | 662 | 650
Subtotal | 89,314 | 88,278 | 85,245
Pension fund managers | 40 | 79 | 258
Other non-banking companies | 13,086 | 12,204 | 11,169
Total | 126,204 | 123,600 | 118,985

The breakdown of the number of employees in the BBVA Group as of December 31, 2025, 2024 and 2023 by category and gender
is as follows:

NUMBER OF EMPLOYEES AT THE YEAR END. PROFESSIONAL CATEGORY AND GENDER
| 2025 | 2024 | 2023
| Male | Female | Male | Female | Male | Female
Management team | 3,966 | 2,240 | 3,753 | 2,057 | 3,557 | 1,886
Managers | 23,337 | 21,896 | 21,901 | 21,213 | 20,741 | 19,986
Other line personnel and clerical staff | 34,446 | 41,289 | 35,345 | 41,647 | 34,203 | 41,113
Total | 61,749 | 65,425 | 60,999 | 64,917 | 58,501 | 62,985

55.3 Payments made and outstanding balances
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)
| 2025 | 2024
Average payment period to third parties (days) | 26 | 28
Ratio of outstanding payment transactions (days) (1) | 27 | 28
Ratio outstanding payment transactions (days) (1) | 18 | 19
Total payments | 3,444 | 3,028
Total outstanding payments | 153 | 166

(1) To obtain these ratios, the total number of registered invoices is taken into account.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.239

|  | Consolidated Financial Statements | > Notes to the Consolidated Financial Statements

Including other BBVA Group companies in Spain, the total payments made for the years 2025 and 2024 amounted to €3,450
million and €3,033 million, respectively.
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, 2025, according to Law 18/2022, of September 28, on creation and development of entities, BBVA paid a total
of 148,997 invoices (representing 96.3% of the total invoices received) with a total amount of €2,300 million (representing 95.1%
of the volume invoiced) in a period less than or equal to the maximum established in the delinquency regulations.
56. Subsequent events
On January 15, 2026, once the prior consent from the Regulator had been obtained, the Bank redeemed the issuance of green
contingently convertible preferred securities carried out on July 15, 2020, for an amount of €1 billion, on the First Reset Date of
said issuance (see Note 22.4).
On February 5, 2026, BBVA announced by means of an inside information notice filing with the CNMV a cash distribution in the
amount of €0.60 gross, for each of the outstanding shares entitled to receive said distribution, to be paid presumably in April 2026
as the final dividend for the year 2025, was planned to be proposed to the corresponding governing bodies for consideration as
ordinary remuneration to shareholders for 2025 (see Note 4).
From January 1, 2026 to the date of preparation of these Consolidated Financial Statements, no subsequent events not mentioned
in these Consolidated Financial Statements have taken place that could significantly affect the Group’s earnings or its equity
position.
57. Explanation added for translation into English
These consolidated financial statements are presented on the basis of IFRS, as adopted by the European Union. Certain
accounting practices applied by the Group that conform to EU-IFRS may not conform to other generally accepted accounting
principles.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.240

|  | Consolidated Financial Statements | > Appendices

Appendices

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.241

|  | Consolidated Financial Statements | > Appendices

APPENDIX I. Additional information on subsidiaries and structured entities
composing the BBVA Group as of December 31, 2025

|  |  | % share of participation (1) | Millions of Euros (2)
|  |  | Affiliate entity data
Company | Location | Activity | Direct | Indirect | Total | Net carrying amount | Equity excluding profit (loss) 31.12.2025 | Profit (loss) 31.12.2025
ADELANTE CLASSE DE INVESTIMENTO MULTIMERCADO CREDITO PRIVADO IE - RESP LIMITADA | BRAZIL | OTHER INVESTMENT COMPANIES | 100.00 | — | 100.00 | 4 | 4 | —
ADQUIRA MEXICO SA DE CV | MEXICO | SERVICES | — | 100.00 | 100.00 | 10 | 7 | 3
ALCALA 120 PROMOC. Y GEST.IMMOB. S.L.(SOCIEDAD UNIPERSINAL) | SPAIN | REAL ESTATE | — | 100.00 | 100.00 | 19 | 19 | —
ANIDA GRUPO INMOBILIARIO SL | SPAIN | INVESTMENT COMPANY | 100.00 | — | 100.00 | 661 | 668 | (2)
ANIDA INMOBILIARIA, S.A. DE C.V. | MEXICO | INVESTMENT COMPANY | — | 100.00 | 100.00 | 11 | 11 | 1
ANIDA OPERACIONES SINGULARES, S.A.(SOCIEDAD UNIPERSONAL) | SPAIN | REAL ESTATE | — | 100.00 | 100.00 | 605 | 608 | (3)
ANIDA PROYECTOS INMOBILIARIOS, S.A. DE C.V. | MEXICO | REAL ESTATE | — | 100.00 | 100.00 | 8 | 9 | —
ANIDAPORT INVESTIMENTOS IMOBILIARIOS, UNIPESSOAL, LTDA | PORTUGAL | REAL ESTATE | — | 100.00 | 100.00 | 20 | 16 | 3
ANTHEMIS BBVA VENTURE PARTNERSHIP LLP | UNITED KINGDOM | INVESTMENT COMPANY | — | 100.00 | 100.00 | 11 | 13 | (1)
ARRAHONA NEXUS, S.L. (SOCIEDAD UNIPERSONAL) | SPAIN | REAL ESTATE | — | 100.00 | 100.00 | 56 | 62 | —
ARRELS CT FINSOL, S.A. (SOCIEDAD UNIPERSONAL) | SPAIN | REAL ESTATE | — | 100.00 | 100.00 | 56 | 72 | —
ARRELS CT PROMOU SA (SOCIEDAD UNIPERSONAL) | SPAIN | REAL ESTATE | — | 100.00 | 100.00 | 14 | 27 | —
BANCO BBVA ARGENTINA S.A. | ARGENTINA | BANKING | 40.01 | 26.54 | 66.55 | 158 | 1,137 | 497
BANCO BBVA PERÚ SA ⁽³⁾ | PERU | BANKING | — | 47.13 | 47.13 | 1,788 | 3,202 | 594
BANCO BILBAO VIZCAYA ARGENTARIA URUGUAY SA | URUGUAY | BANKING | 100.00 | — | 100.00 | 110 | 308 | 64
BANCO OCCIDENTAL SA | SPAIN | BANKING | 49.43 | 50.57 | 100.00 | 17 | 20 | —
BANCO PROVINCIAL OVERSEAS NV | CURAÇAO | BANKING | — | 100.00 | 100.00 | 50 | 43 | 7
BANCO PROVINCIAL SA - BANCO UNIVERSAL | VENEZUELA | BANKING | 1.46 | 53.75 | 55.21 | 40 | 276 | (34)
BBV AMERICA SL | SPAIN | INVESTMENT COMPANY | 99.80 | 0.20 | 100.00 | — | 760 | 13
BBVA (SUIZA) SA | SWITZERLAND | BANKING | 100.00 | — | 100.00 | 114 | 159 | 12
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 | 49 | 18 | 31
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 | 45 | 13 | 32
BBVA ASSET MANAGEMENT SA SAF | PERU | INVESTMENT FUND MANAGEMENT | — | 100.00 | 100.00 | 10 | 6 | 5
BBVA ASSET MANAGEMENT SA SGIIC | SPAIN | INVESTMENT FUND MANAGEMENT | 100.00 | — | 100.00 | 36 | (122) | 199
BBVA ASSET MANAGEMENT SA SOCIEDAD FIDUCIARIA (BBVA FIDUCIARIA) | COLOMBIA | INVESTMENT FUND MANAGEMENT | — | 100.00 | 100.00 | 33 | 19 | 14
BBVA BOLSA SOCIEDAD AGENTE DE BOLSA S.A. | PERU | SECURITIES DEALER | — | 100.00 | 100.00 | 4 | 4 | 1
BBVA BRASIL BANCO DE INVESTIMENTO SA | BRAZIL | BANKING | 100.00 | — | 100.00 | 172 | 171 | 1
BBVA BROKER ARGENTINA SA | ARGENTINA | INSURANCES SERVICES | — | 99.96 | 99.96 | — | 2 | 7
BBVA BROKER CORREDURIA DE SEGUROS Y REASEGUROS SA | SPAIN | FINANCIAL SERVICES | 99.94 | 0.06 | 100.00 | — | 4 | 8
BBVA COLOMBIA SA | COLOMBIA | BANKING | 78.12 | 18.22 | 96.34 | 740 | 1,571 | 100
BBVA DISTRIBUIDORA DE SEGUROS S.R.L. | URUGUAY | FINANCIAL SERVICES | — | 100.00 | 100.00 | 7 | 3 | 5
BBVA FUNDOS S.GESTORA FUNDOS PENSOES SA | PORTUGAL | PENSION FUND MANAGEMENT | 100.00 | — | 100.00 | 13 | 11 | 2
BBVA GLOBAL MARKETS BV | NETHERLANDS | OTHER ISSUANCE COMPANIES | 100.00 | — | 100.00 | — | — | —
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 | 19 | 19 | (12)
BBVA GLOBAL WEALTH INSURANCE AGENCY, INC | UNITED STATES | FINANCIAL SERVICES | — | 100.00 | 100.00 | 1 | 1 | —

(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 considering the interim dividends of the year, according to the provisional financial statements of each company, generally as of December 31, 2025.
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, 2025. 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 (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.242

|  | Consolidated Financial Statements | > Appendices

Additional information on subsidiaries and structured entities composing the
BBVA Group as of December 31, 2025 (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) 31.12.2025 | Profit (loss) 31.12.2025
BBVA HOLDING CHILE SA | CHILE | INVESTMENT COMPANY | 61.22 | 38.78 | 100.00 | 158 | 288 | 37
BBVA INSTITUIÇAO FINANCEIRA DE CREDITO SA | PORTUGAL | FINANCIAL SERVICES | 49.90 | 50.10 | 100.00 | 39 | 65 | 3
BBVA LEASING MEXICO SA DE CV | MEXICO | FINANCIAL SERVICES | — | 100.00 | 100.00 | 51 | 287 | 31
BBVA MEDIACION OPERADOR DE BANCA-SEGUROS VINCULADO, S.A. | SPAIN | FINANCIAL SERVICES | 99.99 | 0.01 | 100.00 | 11 | (17) | 34
BBVA MEXICO SA INSTITUCION DE BANCA MULTIPLE GRUPO FINANCIERO BBVA MEXICO | MEXICO | BANKING | — | 100.00 | 100.00 | 18,942 | 14,377 | 4,565
BBVA OPERADORA MEXICO SA DE CV | MEXICO | SERVICES | 100.00 | — | 100.00 | 62 | 65 | (2)
BBVA PENSIONES MEXICO, S.A. DE C.V., GRUPO FINANCIERO BBVA MEXICO | MEXICO | INSURANCES SERVICES | — | 100.00 | 100.00 | 412 | 322 | 90
BBVA PENSIONES SA ENTIDAD GESTORA DE FONDOS DE PENSIONES | SPAIN | PENSION FUND MANAGEMENT | 100.00 | — | 100.00 | 13 | (21) | 50
BBVA PERU HOLDING SAC | PERU | INVESTMENT COMPANY | 100.00 | — | 100.00 | 151 | 1,518 | 280
BBVA PREVISION AFP SA ADM.DE FONDOS DE PENSIONES | BOLIVIA | PENSION FUND MANAGEMENT | 75.00 | 5.00 | 80.00 | 2 | 4 | —
BBVA PROCESSING SERVICES INC. | UNITED STATES | FINANCIAL SERVICES | — | 100.00 | 100.00 | 2 | 2 | —
BBVA RE INHOUSE COMPAÑIA DE REASEGUROS, S.E. | SPAIN | INSURANCES SERVICES | 100.00 | — | 100.00 | 63 | 65 | 12
BBVA SECURITIES INC | UNITED STATES | FINANCIAL SERVICES | — | 100.00 | 100.00 | 263 | 226 | 53
BBVA SEGUROS ARGENTINA SA | ARGENTINA | INSURANCES SERVICES | 87.78 | 12.22 | 100.00 | 9 | 26 | 14
BBVA SEGUROS CA | VENEZUELA | INSURANCES SERVICES | — | 100.00 | 100.00 | 6 | 8 | (2)
BBVA SEGUROS COLOMBIA SA | COLOMBIA | INSURANCES SERVICES | 94.00 | 6.00 | 100.00 | 10 | 34 | 7
BBVA SEGUROS DE VIDA COLOMBIA SA | COLOMBIA | INSURANCES SERVICES | 94.00 | 6.00 | 100.00 | 14 | 161 | 9
BBVA SEGUROS MÉXICO SA DE CV GRUPO FINANCIERO BBVA MEXICO | MEXICO | INSURANCES SERVICES | — | 100.00 | 100.00 | 998 | 341 | 657
BBVA SEGUROS SA DE SEGUROS Y REASEGUROS | SPAIN | INSURANCES SERVICES | 99.96 | — | 99.96 | 713 | 361 | 285
BBVA SEGUROS SALUD MEXICO SA DE CV GRUPO FRO. BBVA MEXICO. | MEXICO | INSURANCES SERVICES | — | 100.00 | 100.00 | 20 | 28 | (9)
BBVA SERVICIOS ADMINISTRATIVOS MEXICO, S.A. DE C.V. | MEXICO | SERVICES | — | 100.00 | 100.00 | 17 | 16 | 1
BBVA SERVICIOS, S.A. | SPAIN | COMMERCIAL | — | 100.00 | 100.00 | — | — | —
BBVA SOCIEDAD TITULIZADORA S.A. | PERU | OTHER ISSUANCE COMPANIES | — | 100.00 | 100.00 | 2 | 1 | —
BBVA TECHNOLOGY AMERICA SA | MEXICO | SERVICES | 100.00 | — | 100.00 | 240 | 269 | 13
BBVA TECHNOLOGY SLU | SPAIN | SERVICES | 100.00 | — | 100.00 | 44 | 54 | 9
BBVA TRADE, S.A. | SPAIN | INVESTMENT COMPANY | — | 100.00 | 100.00 | 10 | 10 | —
BBVA USD INVESTMENTS SA | SPAIN | INVESTMENT COMPANY | 100.00 | — | 100.00 | 2,134 | 2,089 | 33
BBVA VALORES COLOMBIA SA COMISIONISTA DE BOLSA | COLOMBIA | SECURITIES DEALER | — | 100.00 | 100.00 | 18 | 13 | 5
BILBAO VIZCAYA INVESTMENTS SA UNIPERSONAL | SPAIN | INVESTMENT COMPANY | 100.00 | — | 100.00 | 582 | 642 | (16)
CARTERA E INVERSIONES SA | SPAIN | INVESTMENT COMPANY | 100.00 | — | 100.00 | 92 | 139 | —
CASA DE BOLSA BBVA MEXICO SA DE CV | MEXICO | SECURITIES DEALER | — | 100.00 | 100.00 | 70 | 24 | 45
CATALUNYACAIXA IMMOBILIARIA SA (SOCIEDAD UNIPERSONAL) | SPAIN | REAL ESTATE | 100.00 | — | 100.00 | 158 | 139 | 19
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 | 85 | 1
COMERCIALIZADORA CORPORATIVA SAC | PERU | FINANCIAL SERVICES | — | 50.00 | 50.00 | — | — | 1
COMERCIALIZADORA DE SERVICIOS FINANCIEROS, S.A. | COLOMBIA | SERVICES | — | 100.00 | 100.00 | 5 | 5 | —

(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 considering the interim dividends of the year, according to the provisional financial statements of each company, generally as of December 31, 2025.
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, 2025. 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 (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.243

|  | Consolidated Financial Statements | > Appendices

Additional information on subsidiaries and structured entities composing the
BBVA Group as of December 31, 2025 (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) 31.12.2025 | Profit (loss) 31.12.2025
COMPAÑIA CHILENA DE INVERSIONES SL | SPAIN | INVESTMENT COMPANY | 99.97 | 0.03 | 100.00 | 221 | 276 | 6
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 | 6 | 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 | 1,006 | 56
CREA MADRID NUEVO NORTE SA | SPAIN | REAL ESTATE | — | 75.54 | 75.54 | 392 | 527 | (8)
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 | 100.00 | 133 | 83 | (22)
ECASA, S.A. | CHILE | FINANCIAL SERVICES | — | 100.00 | 100.00 | 15 | 13 | 1
EMPRENDIMIENTOS DE VALOR S.A. | URUGUAY | FINANCIAL SERVICES | — | 100.00 | 100.00 | 2 | 2 | (1)
EUROPEA DE TITULIZACION SA SGFT . | SPAIN | NON-MORTGAGE SECURITIZATION ENTITIES | 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 | —
FIAT CREDITO ARGENTINA COMPAÑIA FINANCIERA SA | ARGENTINA | FINANCIAL SERVICES | — | 50.00 | 50.00 | 18 | 36 | —
FIDEICOMISO 28991-8 TRADING EN LOS MCADOS FINANCIEROS | MEXICO | FINANCIAL SERVICES | — | 100.00 | 100.00 | 5 | 4 | —
FIDEICOMISO F/29764-8 SOCIO LIQUIDADOR DE OPERACIONES FINANCIERAS DERIVADAS | MEXICO | FINANCIAL SERVICES | — | 100.00 | 100.00 | 71 | 59 | 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 | —
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 DISTRIBUIDORA DEL PERU SA | PERU | FINANCIAL SERVICES | — | 100.00 | 100.00 | 8 | 8 | —
FORUM DISTRIBUIDORA, S.A. | CHILE | FINANCIAL SERVICES | — | 100.00 | 100.00 | 379 | 367 | 10
FORUM SERVICIOS FINANCIEROS, S.A. | CHILE | FINANCIAL SERVICES | — | 100.00 | 100.00 | 238 | 201 | 28
G NETHERLANDS BV | NETHERLANDS | INVESTMENT COMPANY | — | 100.00 | 100.00 | 393 | 315 | —
GARANTI BANK SA | ROMANIA | BANKING | — | 100.00 | 100.00 | 246 | 421 | 24
GARANTI BBVA AS | TURKEY | BANKING | 85.97 | — | 85.97 | 7,490 | 6,891 | 2,042
GARANTI BBVA EMEKLILIK AS | TURKEY | INSURANCES SERVICES | — | 84.91 | 84.91 | 169 | 70 | 132
GARANTI BBVA FACTORING AS | TURKEY | FINANCIAL SERVICES | — | 81.84 | 81.84 | 86 | 63 | 42
GARANTI BBVA FILO AS | TURKEY | SERVICES | — | 100.00 | 100.00 | 300 | 226 | 72
GARANTI BBVA FINANSAL TEKNOLOJILER AS | TURKEY | FINANCIAL SERVICES | — | 100.00 | 100.00 | 31 | 43 | —
GARANTI BBVA LEASING AS | TURKEY | FINANCIAL SERVICES | — | 100.00 | 100.00 | 474 | 347 | 126
GARANTI BBVA PORTFOY YONETIMI AS | TURKEY | INVESTMENT FUND MANAGEMENT | — | 100.00 | 100.00 | 70 | 22 | 48
GARANTI BBVA YATIRIM AS | TURKEY | FINANCIAL SERVICES | — | 100.00 | 100.00 | 280 | 177 | 104
GARANTI DIVERSIFIED PAYMENT RIGHTS FINANCE COMPANY | CAYMAN ISLANDS | OTHER ISSUANCE COMPANIES | — | 100.00 | 100.00 | — | (10) | 2

(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 considering the interim dividends of the year, according to the provisional financial statements of each company, generally as of December 31, 2025.
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, 2025. 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 (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.244

|  | Consolidated Financial Statements | > Appendices

Additional information on subsidiaries and structured entities composing the
BBVA Group as of December 31, 2025 (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) 31.12.2025 | Profit (loss) 31.12.2025
GARANTI FILO SIGORTA ARACILIK HIZMETLERI A.S. | TURKEY | FINANCIAL SERVICES | — | 100.00 | 100.00 | — | — | 1
GARANTI HOLDING BV | NETHERLANDS | INVESTMENT COMPANY | — | 100.00 | 100.00 | 692 | 393 | —
GARANTI KRIPTO VARLIK ALM SATM PLATFORMU ANONIM SIRKETI | TURKEY | FINANCIAL SERVICES | — | 100.00 | 100.00 | 43 | 39 | (8)
GARANTI KULTUR AS | TURKEY | SERVICES | — | 100.00 | 100.00 | — | — | —
GARANTI ODEME SISTEMLERI AS (GOSAS) | TURKEY | FINANCIAL SERVICES | — | 100.00 | 100.00 | 22 | 11 | 12
GARANTI ODEME VE ELEKTRONIK PARA HIZMETLERI ANONIM SIRKETI | TURKEY | PAYMENT ENTITIES | — | 100.00 | 100.00 | 16 | 20 | (5)
GARANTI PORTFOLIO BESINCI SERBEST FON | TURKEY | INVESTMENT COMPANY | — | 83.98 | 83.98 | 74 | 88 | 12
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 | 1,323 | 1,100 | 119
GESCAT GESTIO DE SOL SL (SOCIEDAD UNIPERSONAL) | SPAIN | REAL ESTATE | 100.00 | — | 100.00 | 18 | 7 | 11
GESCAT LLEVANT, S.L.(SOCIEDAD UNIPERSONAL) | SPAIN | REAL ESTATE | — | 100.00 | 100.00 | 1 | — | 1
GESCAT VIVENDES EN COMERCIALITZACIO SL (SOCIEDAD UNIPERSONAL) | SPAIN | REAL ESTATE | 100.00 | — | 100.00 | 27 | 27 | —
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 | 478 | 18
GRUPO FINANCIERO BBVA MEXICO SA DE CV | MEXICO | FINANCIAL SERVICES | 99.98 | — | 99.98 | 10,072 | 17,201 | 5,368
HANS FACTORY SL | SPAIN | FINANCIAL SERVICES | — | 100.00 | 100.00 | 11 | 9 | (3)
INMUEBLES Y RECUPERACIONES BBVA SA | PERU | REAL ESTATE | — | 100.00 | 100.00 | 39 | 39 | —
INVERAHORRO SL | SPAIN | INVESTMENT COMPANY | 100.00 | — | 100.00 | 378 | 385 | (7)
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 | 45 | 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 | 4 | —
MOTORACTIVE IFN SA | ROMANIA | FINANCIAL SERVICES | — | 100.00 | 100.00 | 34 | 41 | 4
MOTORACTIVE MULTISERVICES SRL | ROMANIA | SERVICES | — | 100.00 | 100.00 | — | 5 | —
MOVISTAR CONSUMER FINANCE COLOMBIA SAS | COLOMBIA | IN LIQUIDATION | — | 50.00 | 50.00 | — | 6 | (3)
MULTIASISTENCIA, S.A. DE C.V. | MEXICO | INSURANCES SERVICES | — | 100.00 | 100.00 | 68 | 44 | 23
OPENPAY ARGENTINA SA | ARGENTINA | PAYMENT ENTITIES | — | 100.00 | 100.00 | 10 | 5 | (1)
OPENPAY COLOMBIA SAS | COLOMBIA | PAYMENT ENTITIES | — | 100.00 | 100.00 | 3 | 3 | (1)
OPENPAY PERÚ SA | PERU | PAYMENT ENTITIES | — | 100.00 | 100.00 | 2 | 8 | (7)
OPENPAY SA DE CV | MEXICO | PAYMENT ENTITIES | — | 100.00 | 100.00 | 72 | 50 | (20)
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 | 51 | 8
PECRI INVERSION SL | SPAIN | INVESTMENT COMPANY | 100.00 | — | 100.00 | 71 | 68 | 2
PROMOTORA DEL VALLES, S.L. (SOCIEDAD UNIPERSONAL) | SPAIN | REAL ESTATE | — | 100.00 | 100.00 | 13 | 19 | 7

(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 considering the interim dividends of the year, according to the provisional financial statements of each company, generally as of December 31, 2025.
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, 2025. 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 (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.245

|  | Consolidated Financial Statements | > Appendices

Additional information on subsidiaries and structured entities composing the
BBVA Group as of December 31, 2025 (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) 31.12.2025 | Profit (loss) 31.12.2025
PRONORTE UNO PROCAM, S.A.(SOCIEDAD UNIPERSONAL) | SPAIN | REAL ESTATE | — | 100.00 | 100.00 | 1 | 1 | —
PROPEL EXPLORER FUND I LP | UNITED STATES | INVESTMENT COMPANY | — | 99.50 | 99.50 | 39 | 36 | 2
PROPEL EXPLORER FUND II LP | UNITED STATES | INVESTMENT COMPANY | — | 99.50 | 99.50 | 22 | 21 | (1)
PROPEL VENTURE PARTNERS BRAZIL US LP | UNITED STATES | INVESTMENT COMPANY | — | 99.80 | 99.80 | 12 | 13 | —
PROPEL VENTURE PARTNERS GLOBAL US, LP | UNITED STATES | INVESTMENT COMPANY | — | 99.50 | 99.50 | 102 | 128 | 99
PROPEL VENTURE PARTNERS US FUND I, L.P. | UNITED STATES | VENTURE CAPITAL | — | 99.50 | 99.50 | 146 | 174 | (22)
PROPEL XYZ I LP | UNITED STATES | INVESTMENT COMPANY | — | 99.40 | 99.40 | 19 | 19 | 2
PRO-SALUD, C.A. | VENEZUELA | INACTIVE | — | 58.86 | 58.86 | — | — | —
PROVINCIAL DE VALORES CASA DE BOLSA CA | VENEZUELA | SECURITIES DEALER | — | 60.00 | 60.00 | 1 | 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 | — | — | —
PSA FINANCE ARGENTINA COMPAÑIA FINANCIERA SA | ARGENTINA | BANKING | — | 50.00 | 50.00 | 17 | 16 | 18
RALFI IFN SA | ROMANIA | FINANCIAL SERVICES | — | 100.00 | 100.00 | 36 | 6 | —
RPV COMPANY | CAYMAN ISLANDS | OTHER ISSUANCE COMPANIES | — | 100.00 | 100.00 | — | — | —
SATICEM GESTIO SL (SOCIEDAD UNIPERSONAL) | SPAIN | REAL ESTATE | 100.00 | — | 100.00 | 6 | 2 | 3
SATICEM HOLDING SL (SOCIEDAD UNIPERSONAL) | 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 | (3)
TREE INVERSIONES INMOBILIARIAS SA SOCIEDAD UNIPERSONAL | SPAIN | REAL ESTATE | 100.00 | — | 100.00 | 1,096 | 217 | 72
TRIFOI REAL ESTATE SRL | ROMANIA | REAL ESTATE | — | 100.00 | 100.00 | 1 | 1 | —
UNNIM SOCIEDAD PARA LA GESTION DE ACTIVOS INMOBILIARIOS SA (SOCIEDAD UNIPERSONAL) | SPAIN | REAL ESTATE | 100.00 | — | 100.00 | 471 | 422 | 2
URBANIZADORA SANT LLORENC SA | SPAIN | INACTIVE | 60.60 | — | 60.60 | — | — | —
VOLKSWAGEN FINANCIAL SERVICES COMPAÑIA FINANCIERA SA | ARGENTINA | BANKING | — | 51.00 | 51.00 | 26 | 33 | 18

(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 considering the interim dividends of the year, according to the provisional financial statements of each company, generally as of December 31, 2025.
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, 2025. 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 3 of the consolidated financial statements for the year ended December 31, 2025.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.246

|  | Consolidated Financial Statements | > Appendices

APPENDIX II. Additional information on investments in joint ventures and
associates in the BBVA Group as of December 31, 2025
Most significant companies are included, which together represent 99.58% of the total investment in this group.

|  |  | % share of participation | Millions of Euros (1)
|  |  | Affiliate entity data
Company | Location | Activity | Direct | Indirect | Total | Consolidated Net carrying amount | Assets 31.12.2025 | Liabilities 31.12.2025 | Equity excluding profit (loss) 31.12.2025 | Profit (loss) 31.12.2025
ASSOCIATES |  |  |  |  |  |  |  |  |  |
ADQUIRA ESPAÑA, S.A. | SPAIN | SERVICES | — | 44.44 | 44.44 | 5 | 20 | 9 | 10 | 1
ATOM HOLDCO LIMITED | UNITED KINGDOM | INVESTMENT COMPANY | 49.45 | — | 49.45 | 222 | 11,656 | 11,102 | 533 | 20
BBVA ALLIANZ SEGUROS Y REASEGUROS, S.A. | SPAIN | INSURANCES SERVICES | — | 50.00 | 50.00 | 277 | 1,188 | 601 | 543 | 44
COMPAÑIA PERUANA DE MEDIOS DE PAGO SAC (VISANET PERU) | PERU | PAYMENT ENTITIES | — | 20.20 | 20.20 | 2 | 329 | 317 | 9 | 3
CORPORACION SUICHE 7B CA | VENEZUELA | FINANCIAL SERVICES | — | 19.80 | 19.80 | 2 | 12 | 3 | 5 | 4
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 | 2 | 5 | — | 5 | 1
METROVACESA SA | SPAIN | REAL ESTATE | 20.85 | — | 20.85 | 282 | 2,304 | 950 | 1,357 | (4)
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 | 17 | 135 | 58 | 63 | 14
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 | 5 | — | 4 | 1
SERVICIOS ELECTRONICOS GLOBALES SA DE CV | MEXICO | PAYMENT ENTITIES | — | 46.14 | 46.14 | 56 | 122 | — | 96 | 26
SISTEMAS DE TARJETAS Y MEDIOS DE PAGO SA | SPAIN | PAYMENT ENTITIES | 20.61 | — | 20.61 | 2 | 610 | 601 | 7 | 2
TELEFONICA FACTORING ESPAÑA SA ⁽²⁾ | SPAIN | FINANCIAL SERVICES | 30.00 | — | 30.00 | 5 | 277 | 260 | 7 | 10
VERIDAS DIGITAL AUTHENTICATION SOLUTIONS S.L. | SPAIN | SERVICES | — | 29.38 | 29.38 | 3 | 26 | 16 | 13 | (3)
JOINT VENTURES |  |  |  |  |  |  |  |  |  |
ALTURA MARKETS SOCIEDAD DE VALORES SA | SPAIN | SECURITIES DEALER | 50.00 | — | 50.00 | 44 | 2,107 | 2,019 | 76 | 12
COMPAÑIA MEXICANA DE PROCESAMIENTO SA DE CV | MEXICO | SERVICES | — | 50.00 | 50.00 | 5 | 11 | — | 12 | (1)
CORPORACION IBV PARTICIPACIONES EMPRESARIALES, S.A. ⁽³⁾ | SPAIN | INVESTMENT COMPANY | — | 50.00 | 50.00 | 31 | 110 | 48 | 61 | —
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 | 5 | 96 | — | 96 | —
INVERSIONES PLATCO CA | VENEZUELA | FINANCIAL SERVICES | — | 50.00 | 50.00 | 4 | 9 | 1 | 8 | —
RCI COLOMBIA SA COMPAÑIA DE FINANCIAMIENTO | COLOMBIA | FINANCIAL SERVICES | — | 49.00 | 49.00 | 37 | 804 | 727 | 77 | (1)
ROMBO COMPAÑIA FINANCIERA SA | ARGENTINA | BANKING | — | 40.00 | 40.00 | 13 | 191 | 159 | 15 | 18

(1) In foreign companies the exchange rate of December 31, 2025 is applied.
(2) Financial Statements as of December 31, 2024.
(3) Classified as Non-current asset held for sale.
This Appendix is an integral part of Notes 3 and 16.1 of the consolidated financial statements for the year ended December 31,
2025.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.247

|  | Consolidated Financial Statements | > Appendices

APPENDIX III. Changes and notifications of participations in the BBVA Group in
2025
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)
ADELANTE CLASSE DE INVESTIMENTO MULTIMERCADO CREDITO PRIVADO IE - RESP LIMITADA | FOUNDING | 100.00 | 03-Oct-25
BBVA GLOBAL WEALTH INSURANCE AGENCY, INC | FOUNDING | 100.00 | 05-Feb-25
FIAT CREDITO ARGENTINA COMPAÑIA FINANCIERA SA | ACQUISITION | 50.00 | 10-Dec-25
GARANTI PORTFOLIO BESINCI SERBEST FON | FOUNDING | 83.98 | 01-Sep-25

(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)
ACTIVOS MACORP SL EN LIQUIDACIÓN | LIQUIDATION | — | 16-Dec-25
ARRELS CT PATRIMONI I PROJECTES, S.A. (SOCIEDAD UNIPERSONAL)EN LIQUIDACIÓN | LIQUIDATION | — | 11-Dec-25
BBVA CONSUMER FINANCE ENTIDAD DE DESARROLLO A LA PEQUEÑA Y MICRO EMPRESA EDPYME SA (BBVA CONSUMER FINANCE - EDPYME) | LIQUIDATION | — | 16-Jul-25
BBVA GLOBAL FINANCE LTD | LIQUIDATION | — | 31-Dec-25
FORUM COMERCIALIZADORA DEL PERU SA | LIQUIDATION | — | 09-Jun-25
GESCAT LLOGUERS SL | LIQUIDATION | — | 18-Apr-25
LA ESMERALDA DESARROLLOS, S.L.(SOCIEDAD UNIPERSONAL EN LIQUIDACIÓN) | LIQUIDATION | — | 17-Nov-25
PROVINCIAL DE VALORES CASA DE BOLSA CA | DISPOSAL | 60 | 01-Jun-25
TASFIYE HALINDE GARANTI KONUT FINANSMANI DANISMANLIK HIZMETLERI ANONIM SIRKETI | LIQUIDATION | — | 30-Dec-25

(1) Variations of less than 0.1% have not been considered due to immateriality.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.248

|  | Consolidated Financial Statements | > Appendices

Changes and notifications of participations in the BBVA Group in 2025
(continued)
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)
ALFA TECH CORE SERVICES S DE RL DE CV | FOUNDING | 20.00 | 01-Oct-25
ALFATECH CORE SERVICES SL | FOUNDING | 20.00 | 01-Oct-25
CIBERENTIDAD MEXICO SA DE CV | FOUNDING | 20.00 | 01-Aug-25

(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)
CAMARATE GOLF, S.A. EN LIQUIDACIÓN | LIQUIDATION | — | 04-Nov-25
FIDEICOMISO F/402770-2 ALAMAR | DISPOSAL | — | 28-Apr-25
OPERADORA ALAMAR SA DE CV | DISPOSAL | — | 15-Dec-25

(1) Variations of less than 0.1% have not been considered due to immateriality.
This Appendix is an integral part of Notes 3 and 16.1 of the consolidated financial statements for the year ended December 31,
2025 .

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.249

|  | Consolidated Financial Statements | > Appendices

APPENDIX IV. Fully consolidated subsidiaries with more than 10% owned by
non-Group shareholders as of December 31, 2025

|  | % 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
COMERCIALIZADORA CORPORATIVA SAC | FINANCIAL SERVICES | — | 50.00 | 50.00
CREA MADRID NUEVO NORTE SA | REAL ESTATE | — | 75.54 | 75.54
F/11395 FIDEICOMISO IRREVOCABLE DE ADMINISTRACION CON DERECHO DE REVERSION | REAL ESTATE | — | 42.40 | 42.40
F/253863 EL DESEO RESIDENCIAL | REAL ESTATE | — | 65.00 | 65.00
FIAT CREDITO ARGENTINA COMPAÑIA FINANCIERA SA | FINANCIAL SERVICES | — | 50.00 | 50.00
FIDEICOMISO LOTE 6.1 ZARAGOZA | REAL ESTATE | — | 59.99 | 59.99
FOMENTO Y DESARROLLO DE CONJUNTOS RESIDENCIALES S.L. EN LIQUIDACION | IN LIQUIDATION | — | 60.00 | 60.00
GARANTI BBVA EMEKLILIK AS | INSURANCES | — | 84.91 | 84.91
GESTION DE PREVISION Y PENSIONES SA | PENSION FUND MANAGEMENT | 60.00 | — | 60.00
INVERSIONES BANPRO INTERNATIONAL INC NV | INVESTMENT COMPANY | 48.00 | — | 48.00
INVERSIONES P.H.R.4, C.A. | NO ACTIVITY | — | 60.46 | 60.46
MOVISTAR CONSUMER FINANCE COLOMBIA SAS | IN LIQUIDATION | — | 50.00 | 50.00
PRO-SALUD, C.A. | NO ACTIVITY | — | 58.86 | 58.86
PROVINCIAL DE VALORES CASA DE BOLSA CA | SECURITIES DEALER | — | 60.00 | 60.00
PSA FINANCE ARGENTINA COMPAÑIA FINANCIERA SA | BANKING | — | 50.00 | 50.00
SOCIEDAD PERUANA DE FINANCIAMIENTO SAC | FINANCIAL SERVICES | — | 50.00 | 50.00
VOLKSWAGEN FINANCIAL SERVICES COMPAÑIA FINANCIERA SA | BANKING | — | 51.00 | 51.00

This Appendix is an integral part of Note 3 of the consolidated financial statements for the year ended December 31, 2025.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.250

|  | Consolidated Financial Statements | > Appendices

APPENDIX V. BBVA Group’s securitization funds. Structured entities in 2025

|  |  | Millions of Euros
Securitization fund (consolidated) | Company | Origination date | Total securitized exposures at the origination date | Total securitized exposures as of December 31, 2025
TDA 22 Mixto FTA | BANCO BILBAO VIZCAYA ARGENTARIA SA | 9-dic.-04 | 592 | 26
HIPOCAT 9 FTA | BANCO BILBAO VIZCAYA ARGENTARIA SA | 25-nov.-05 | 1,016 | 68
HIPOCAT 10 FTA | BANCO BILBAO VIZCAYA ARGENTARIA SA | 5-jul.-06 | 1,526 | 101
TDA 27 Mixto FTA | BANCO BILBAO VIZCAYA ARGENTARIA SA | 22-dic.-06 | 275 | 88
BBVA RMBS 1 FTA | BANCO BILBAO VIZCAYA ARGENTARIA SA | 19-feb.-07 | 2,500 | 378
HIPOCAT 11 FTA | BANCO BILBAO VIZCAYA ARGENTARIA SA | 9-mar.-07 | 1,628 | 118
BBVA RMBS 2 FTA | BANCO BILBAO VIZCAYA ARGENTARIA SA | 26-mar.-07 | 5,000 | 714
BBVA LEASING 1 FTA | BANCO BILBAO VIZCAYA ARGENTARIA SA | 24-jun.-07 | 2,500 | 84
BBVA RMBS 3 FTA | BANCO BILBAO VIZCAYA ARGENTARIA SA | 22-jul.-07 | 3,000 | 711
TDA 28 Mixto FTA | BANCO BILBAO VIZCAYA ARGENTARIA SA | 23-jul.-07 | 250 | 66
TDA TARRAGONA 1 FTA | BANCO BILBAO VIZCAYA ARGENTARIA SA | 30-nov.-07 | 397 | 36
GAT VPO | BANCO BILBAO VIZCAYA ARGENTARIA SA | 25-jun.-09 | 780 | 5
BBVA RMBS 14 FTA | BANCO BILBAO VIZCAYA ARGENTARIA SA | 24-nov.-14 | 700 | 213
BBVA Consumer Auto 2020-1 | BANCO BILBAO VIZCAYA ARGENTARIA SA | 15-jun.-20 | 1,100 | 184
BBVA CONSUMO 11 FT | BANCO BILBAO VIZCAYA ARGENTARIA SA | 12-mar.-21 | 2,500 | 271
BBVA RMBS 20 FT | BANCO BILBAO VIZCAYA ARGENTARIA SA | 14-jun.-21 | 2,500 | 1,580
BBVA RMBS 21 FT | BANCO BILBAO VIZCAYA ARGENTARIA SA | 17-mar.-22 | 12,400 | 7,910
BBVA CONSUMER AUTO 2022-1 | BANCO BILBAO VIZCAYA ARGENTARIA SA | 13-jun.-22 | 1,200 | 341
BBVA RMBS 22 FT | BANCO BILBAO VIZCAYA ARGENTARIA SA | 28-nov.-22 | 1,400 | 1,094
BBVA CONSUMO 12 FT | BANCO BILBAO VIZCAYA ARGENTARIA SA | 13-mar.-23 | 3,000 | 1,114
BBVA CONSUMER AUTO 2023-1 | BANCO BILBAO VIZCAYA ARGENTARIA SA | 8-jun.-23 | 800 | 409
BBVA LEASING 3 FT | BANCO BILBAO VIZCAYA ARGENTARIA SA | 27-nov.-23 | 2,400 | 909
BBVA CONSUMO 13 FT | BANCO BILBAO VIZCAYA ARGENTARIA SA | 11-mar.-24 | 2,000 | 1,057
BBVA CONSUMER 2024-1 | BANCO BILBAO VIZCAYA ARGENTARIA SA | 20-may.-24 | 800 | 477
BBVA RMBS 23 FT | BANCO BILBAO VIZCAYA ARGENTARIA SA | 13-jun.-24 | 5,450 | 4,672
BBVA CONSUMER AUTO 2024-1 | BANCO BILBAO VIZCAYA ARGENTARIA SA | 16-sep.-24 | 1,000 | 744
BBVA CONSUMER 2025-1 | BANCO BILBAO VIZCAYA ARGENTARIA SA | 26-may.-25 | 2,350 | 1,993
BBVA CONSUMER AUTO 2025-1 | BANCO BILBAO VIZCAYA ARGENTARIA SA | 11-sep.-25 | 1,000 | 951

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.251

|  | Consolidated Financial Statements | > Appendices

APPENDIX VI. Details of the outstanding subordinated debt and preferred
securities issued by the Bank or entities in the Group consolidated as of
December 31, 2025, 2024 and 2023
Outstanding as of December 31, 2025, 2024 and 2023 of subordinated issues

|  | Nominal value. Millions of Euros |  |
Issuer entity and issued date | Currency | December 2025 | December 2024 | December 2023 | Prevailing Interest Rate as of December 31, 2025 | Maturity Date
BANCO BILBAO VIZCAYA ARGENTARIA S.A. |  |  |  |  |  |
March-08 | EUR | 125 | 125 | 125 | 6.03 % | March-33
March-19 | EUR | — | — | 1,000 | 6.00 % | Perpetual
July-20 | EUR | 1,000 | 1,000 | 1,000 | 6.00 % | Perpetual
February-17 | EUR | 1,000 | 999 | 1,000 | 3.50 % | February-27
February-17 | EUR | 165 | 165 | 165 | 4.00 % | February-32
May-17 | EUR | 150 | 150 | 150 | 2.54 % | May-27
February-19 | EUR | — | — | 750 | 2.58 % | February-29
January-20 | EUR | — | 994 | 994 | 1.00 % | January-30
June-23 | EUR | 745 | 745 | 741 | 5.75 % | September-33
June-23 | EUR | 1,000 | 1,000 | 1,000 | 8.38 % | Perpetual
February-24 | EUR | 1,248 | 1,247 | — | 4.87 % | February-36
June-24 | EUR | 750 | 750 | — | 6.88 % | Perpetual
August-24 | EUR | 997 | 996 | — | 4.38 % | August-36
February-25 | EUR | 999 | — | — | 4.00 % | February-37
November-25 | EUR | 1,000 | — | — | 5.63 % | Perpetual
Different issued | EUR | 128 | 128 | 127 | — |
November-17 | USD | 851 | 963 | 905 | 6.13 % | Perpetual
September-19 | USD | — | 963 | 905 | 6.50 % | Perpetual
March-17 | USD | 102 | 116 | 109 | 5.70 % | March-32
May-18 | USD | 253 | 287 | 269 | 5.25 % | May-33
September-23 | USD | 851 | 963 | 905 | 9.38 % | Perpetual
November-23 | USD | 638 | 722 | 679 | 7.88 % | November-34
January-25 | USD | 851 | — | — | 7.75 % | Perpetual
May-17 | CHF | 21 | 21 | 22 | 1.60 % | May-27
July-20 | GBP | 344 | 362 | 345 | 3.10 % | July-31
August-23 | GBP | 343 | 361 | 345 | 8.25 % | November-33
Subtotal |  | 13,562 | 13,055 | 11,534 |  |

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.252

|  | Consolidated Financial Statements | > Appendices

Outstanding as of December 31, 2025, 2024 and 2023 of subordinated issues

|  | Nominal value. Millions of Euros |  |
Issuer entity and issued date | Currency | December 2025 | December 2024 | December 2023 | Prevailing Interest Rate as of December 31, 2025 | Maturity Date
BBVA GLOBAL FINANCE LTD
December-95 | USD | — | 192 | 179 | 7.00 % | December-25
Subtotal |  | — | 192 | 179 |  |
BBVA BANCOMER S.A. INSTITUCION DE BANCA MULTIPLE GRUPO FINANCIERO BBVA BANCOMER
November-14 | USD | — | — | 178 | 5.35% | November-29
January-18 | USD | 851 | 967 | 903 | 5.13% | January-33
September-19 | USD | 638 | 724 | 676 | 5.88% | September-34
June-23 | USD | 850 | 965 | 906 | 8.45% | June-38
January-24 | USD | 767 | 871 | — | 8.13% | January-39
February-25 | USD | 849 | — | — | 7.63% | February-39
Subtotal |  | 3,954 | 3,528 | 2,663 |  |
BBVA COLOMBIA S.A.
September-11 | COP | 35 | 34 | 37 | 10.25% | September-26
February-13 | COP | 37 | 36 | 39 | 9.40% | February-28
November-14 | COP | 20 | 20 | 21 | 9.91% | November-29
November-14 | COP | 28 | 27 | 27 | 10.04% | November-34
April-15 | USD | — | 385 | 362 | 4.88% | April-25
November-24 | USD | 42 | 48 | — | 7.48% | November-34
April-25 | USD | 38 | — | — | 7.43% | April-35
Subtotal |  | 201 | 550 | 486 |  |
BANCO BBVA PERÚ
June-07 | PEN | 25 | 25 | 24 | 3.47% | June-32
November-07 | PEN | 23 | 23 | 21 | 3.56% | November-32
December-08 | PEN | 13 | 13 | 12 | 4.19% | December-33
February-08 | USD | 17 | 20 | 18 | 6.47% | February-28
September-14 | USD | — | — | 267 | 5.25% | September-29
March-24 | USD | 263 | 291 | — | 6.20% | March-34
Subtotal |  | 341 | 372 | 342 |  |
GARANTI BBVA AS
May-17 | USD | 523 | 579 | 667 | 7.30% | May-27
February-24 | USD | 425 | 470 | — | 8.55% | February-34
December-24 | USD | 637 | 705 | — | 8.29% | January-35
July-25 | USD | 425 | — | — | 8.62% | January-36
October-25 | USD | 595 | — | — | 7.77% | April-36
October-19 | TRY | — | — | 8 | 46.02% | October-29
February-20 | TRY | — | 20 | 23 | 62.47% | February-30
Subtotal |  | 2,604 | 1,775 | 698 |  |
Total |  | 20,663 | 19,472 | 15,902 |  |

Additionally, the Group maintains an issuance of preferred shares in Colombia that amounts to €1 million as of December 31, 2025
and 2024.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.253

|  | Consolidated Financial Statements | > Appendices

APPENDIX VII. Consolidated balance sheets held in foreign currency as of
December 31, 2025, 2024 and 2023

BALANCE SHEETS HELD IN FOREIGN CURRENCY (MILLIONS OF EUROS)
| U.S. dollar | Mexican peso | Turkish lira | Other foreign currencies | Total foreign currencies
December 2025 |  |  |  |  |
Assets |  |  |  |  |
Cash, cash balances at central banks and other demand deposits | 21,350 | 6,763 | 2,899 | 5,252 | 36,263
Financial assets held for trading | 24,443 | 25,159 | 189 | 9,715 | 59,505
Non- trading financial assets mandatorily at fair value through profit or loss | 1,266 | 8,938 | 114 | 81 | 10,400
Financial assets at fair value through comprehensive income | 8,253 | 19,255 | 2,368 | 5,164 | 35,040
Financial assets at amortized cost | 81,458 | 91,785 | 42,448 | 59,027 | 274,718
Joint ventures and associates | — | 18 | — | 590 | 608
Tangible assets | 200 | 2,295 | 1,858 | 1,214 | 5,567
Other assets | (1,857) | 7,641 | 2,607 | 3,805 | 12,195
Total | 135,112 | 161,855 | 52,482 | 84,848 | 434,297
Liabilities |  |  |  |  |
Financial liabilities held for trading | 18,069 | 18,608 | 245 | 4,989 | 41,910
Financial liabilities at amortized cost | 112,567 | 96,014 | 38,508 | 65,431 | 312,520
Other liabilities | 5,670 | 25,213 | 1,440 | 2,623 | 34,947
Total | 136,306 | 139,834 | 40,193 | 73,043 | 389,377
December 2024 |  |  |  |  |
Assets |  |  |  |  |
Cash, cash balances at central banks and other demand deposits | 20,836 | 6,899 | 3,334 | 4,400 | 35,469
Financial assets held for trading | 18,727 | 22,117 | 259 | 6,171 | 47,274
Non- trading financial assets mandatorily at fair value through profit or loss | 1,525 | 8,002 | 85 | 165 | 9,778
Financial assets at fair value through comprehensive income | 9,674 | 18,493 | 2,299 | 4,994 | 35,461
Financial assets at amortized cost | 67,256 | 83,444 | 40,105 | 52,379 | 243,185
Joint ventures and associates | — | 17 | — | 590 | 607
Tangible assets | 168 | 2,256 | 2,013 | 1,333 | 5,770
Other assets | (326) | 7,125 | 2,457 | 3,363 | 12,619
Total | 117,860 | 148,353 | 50,553 | 73,396 | 390,162
Liabilities |  |  |  |  |
Financial liabilities held for trading | 14,474 | 18,660 | 268 | 2,776 | 36,178
Financial liabilities at amortized cost | 95,613 | 88,375 | 39,187 | 55,748 | 278,923
Other liabilities | 4,039 | 20,665 | 1,338 | 2,636 | 28,679
Total | 114,126 | 127,700 | 40,793 | 61,160 | 343,780
December 2023 |  |  |  |  |
Assets |  |  |  |  |
Cash, cash balances at central banks and other demand deposits | 13,372 | 7,581 | 3,764 | 4,089 | 28,807
Financial assets held for trading | 21,147 | 28,570 | 282 | 5,806 | 55,806
Non- trading financial assets mandatorily at fair value through profit or loss | 1,292 | 6,596 | 5 | 186 | 8,079
Financial assets at fair value through comprehensive income | 9,384 | 20,767 | 1,785 | 4,484 | 36,421
Financial assets at amortized cost | 58,732 | 81,907 | 31,298 | 46,122 | 218,059
Joint ventures and associates | 5 | 19 | — | 590 | 614
Tangible assets | 105 | 2,609 | 1,446 | 995 | 5,155
Other assets | (1,049) | 6,872 | 1,761 | 2,346 | 9,930
Total | 102,988 | 154,922 | 40,341 | 64,619 | 362,870
Liabilities |  |  |  |  |
Financial liabilities held for trading | 21,204 | 17,829 | 207 | 2,705 | 41,946
Financial liabilities at amortized cost | 78,365 | 95,685 | 30,127 | 50,900 | 255,076
Other liabilities | 3,223 | 20,186 | 1,048 | 2,801 | 27,258
Total | 102,792 | 133,700 | 31,382 | 56,406 | 324,280

This Appendix is an integral part of Notes 2.2.17 of the consolidated financial statements for the year ended December 31, 2025.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.254

|  | Consolidated Financial Statements | > Appendices

APPENDIX VIII. Consolidated income statements for the first and second half of
2025 and 2024

CONSOLIDATED INCOME STATEMENTS (MILLIONS OF EUROS)
| Six months ended June 30, 2025 | Six months ended December 31, 2025 | Six months ended June 30, 2024 ⁽¹⁾ | Six months ended December 31, 2024 ⁽¹⁾
Interest and other income | 28,468 | 29,877 | 30,680 | 30,979
Interest income using effective interest rate method | 25,731 | 27,085 | 27,328 | 27,896
Other interest income | 2,737 | 2,792 | 3,352 | 3,083
Interest expense | (15,861) | (16,204) | (17,687) | (18,705)
NET INTEREST INCOME | 12,607 | 13,673 | 12,993 | 12,274
Dividend income | 76 | 47 | 76 | 44
Share of profit or loss of entities accounted for using the equity method | 30 | 32 | 20 | 20
Fee and commission income | 6,514 | 7,229 | 6,149 | 6,887
Fee and commission expense | (2,503) | (3,025) | (2,307) | (2,742)
Gains (losses) on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net | 193 | 230 | 128 | 199
Financial assets at amortized cost | 30 | (6) | 9 | 12
Other financial assets and liabilities | 163 | 235 | 119 | 187
Gains (losses) on financial assets and liabilities held for trading, net | 1,151 | 1,104 | 991 | 1,467
Reclassification of financial assets from fair value through other comprehensive income | — | — | — | —
Reclassification of financial assets from amortized cost | — | — | — | —
Other gains (losses) | 1,151 | 1,104 | 991 | 1,467
Gains (losses) on non-trading financial assets mandatorily at fair value through profit or loss, net | 188 | 49 | 53 | 126
Reclassification of financial assets from fair value through other comprehensive income | — | — | — | —
Reclassification of financial assets from amortized cost | — | — | — | —
Other gains (losses) | 188 | 49 | 53 | 126
Gains (losses) on financial assets and liabilities designated at fair value through profit or loss, net | 29 | (1) | 219 | 30
Gains (losses) from hedge accounting, net | (7) | 6 | 98 | (93)
Exchange differences, net | (123) | (162) | 398 | 297
Other operating income | 351 | 337 | 310 | 313
Other operating expense | (1,228) | (1,385) | (2,415) | (1,535)
Income from insurance and reinsurance contracts | 1,866 | 2,024 | 1,800 | 1,921
Expense from insurance and reinsurance contracts | (1,109) | (1,261) | (1,066) | (1,173)
GROSS INCOME | 18,034 | 18,897 | 17,446 | 18,036
Administration costs | (6,038) | (6,773) | (6,100) | (6,560)
Personnel expense | (3,693) | (4,079) | (3,633) | (4,026)
Other administrative expense | (2,345) | (2,694) | (2,467) | (2,534)
Depreciation and amortization | (749) | (772) | (759) | (774)
Provisions or reversal of provisions | (133) | (240) | (38) | (159)
Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification | (2,761) | (3,311) | (2,839) | (2,906)
Financial assets measured at amortized cost | (2,794) | (3,307) | (2,781) | (2,906)
Financial assets at fair value through other comprehensive income | 33 | (5) | (59) | —
NET OPERATING INCOME | 8,353 | 7,800 | 7,708 | 7,636
Impairment or reversal of impairment of investments in joint ventures and associates | 32 | — | 52 | 10
Impairment or reversal of impairment on non-financial assets | (5) | (8) | 30 | (28)
Tangible assets | — | 5 | 45 | (16)
Intangible assets | (4) | (10) | (11) | (4)
Other assets | — | (3) | (5) | (9)
Gains (losses) on derecognition of non-financial assets and subsidiaries, net | 7 | 29 | (1) | 15
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 | 37 | (19) | (10) | (8)
PROFIT (LOSS) BEFORE TAX FROM CONTINUING OPERATIONS | 8,424 | 7,802 | 7,780 | 7,626
Tax expense or income related to profit or loss from continuing operations | (2,626) | (2,475) | (2,525) | (2,306)
PROFIT (LOSS) AFTER TAX FROM CONTINUING OPERATIONS | 5,798 | 5,328 | 5,255 | 5,320
Profit (loss) after tax from discontinued operations | — | — | — | —
PROFIT (LOSS) | 5,798 | 5,328 | 5,255 | 5,320
ATTRIBUTABLE TO MINORITY INTERESTS (NON-CONTROLLING INTERESTS) | 351 | 264 | 261 | 260
ATTRIBUTABLE TO OWNERS OF THE PARENT | 5,447 | 5,064 | 4,994 | 5,060

(1) Presented for comparison purposes only (see Note 1.3).

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.255

|  | Consolidated Financial Statements | > Appendices

APPENDIX VIII. Consolidated income statements for the first and second half of
2025 and 2024 (continued)

EARNINGS (LOSSES) PER SHARE (EUROS) |  |  |  |
| Six months ended June 30, 2025 | Six months ended December 31, 2025 | Six months ended June 30, 2024 ⁽¹⁾ | Six months ended December 31, 2024 ⁽¹⁾
EARNINGS (LOSSES) PER SHARE (EUROS) | 0.91 | 0.85 | 0.83 | 0.84
Basic earnings (losses) per share from continuing operations | 0.91 | 0.85 | 0.83 | 0.84
Diluted earnings (losses) per share from continuing operations | 0.91 | 0.85 | 0.83 | 0.84
Basic earnings (losses) per share from discontinued operations | — | — | — | —
Diluted earnings (losses) per share from discontinued operations | — | — | — | —

(1) Presented for comparison purposes only (see Note 1.3).

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.256

|  | Consolidated Financial Statements | > Appendices

APPENDIX IX. Financial Statements of Banco Bilbao Vizcaya Argentaria, S.A.
Balance sheets as of December 31, 2025 and 2024

ASSETS (MILLIONS OF EUROS)
| 2025 | 2024 ⁽¹⁾
CASH, CASH BALANCES AT CENTRAL BANKS AND OTHER DEMAND DEPOSITS | 31,176 | 20,755
FINANCIAL ASSETS HELD FOR TRADING | 98,448 | 89,167
Derivatives | 32,640 | 36,405
Equity instruments | 9,642 | 6,457
Debt securities | 15,151 | 11,806
Loans and advances to central banks | 620 | 556
Loans and advances to credit institutions | 15,569 | 19,265
Loans and advances to customers | 24,827 | 14,679
NON-TRADING FINANCIAL ASSETS MANDATORILY AT FAIR VALUE THROUGH PROFIT OR LOSS | 569 | 895
Equity instruments | 448 | 626
Debt securities | 121 | 269
Loans and advances to central banks | — | —
Loans and advances to credit institutions | — | —
Loans and advances to customers | — | —
FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | — | —
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME | 14,091 | 14,842
Equity instruments | 1,091 | 1,193
Debt securities | 12,577 | 13,649
Loans and advances | 423 | —
FINANCIAL ASSETS AT AMORTIZED COST | 338,143 | 295,471
Debt securities | 56,806 | 45,846
Loans and advances to central banks | 73 | 33
Loans and advances to credit institutions | 21,316 | 18,774
Loans and advances to customers | 259,948 | 230,818
DERIVATIVES - HEDGE ACCOUNTING | 223 | 784
FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | (87) | (65)
INVESTMENTS IN SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES | 27,703 | 25,252
Subsidiaries | 27,101 | 24,683
Joint ventures | 24 | 24
Associates | 578 | 545
TANGIBLE ASSETS | 3,418 | 3,516
Properties, plant and equipment | 3,345 | 3,437
For own use | 3,345 | 3,437
Other assets leased out under an operating lease | — | —
Investment properties | 74 | 79
INTANGIBLE ASSETS | 1,132 | 983
Goodwill | — | —
Other intangible assets | 1,132 | 983
TAX ASSETS | 12,323 | 12,300
Current tax assets | 3,038 | 2,890
Deferred tax assets | 9,285 | 9,410
OTHER ASSETS | 4,647 | 4,064
Insurance contracts linked to pensions | 1,117 | 1,260
Inventories | 2,450 | 1,302
Other | 1,080 | 1,501
NON-CURRENT ASSETS AND DISPOSAL GROUPS CLASSIFIED AS HELD FOR SALE | 263 | 331
TOTAL ASSETS | 532,047 | 468,295

(1) Presented for comparison purposes only.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.257

|  | Consolidated Financial Statements | > Appendices

LIABILITIES AND EQUITY (MILLIONS OF EUROS)
| 2025 | 2024 ⁽¹⁾
FINANCIAL LIABILITIES HELD FOR TRADING | 77,667 | 70,943
Derivatives | 28,193 | 30,287
Short positions | 9,427 | 9,635
Deposits from central banks | 3,399 | 360
Deposits from credit institutions | 17,541 | 15,026
Customer deposits | 19,107 | 15,636
Debt certificates | — | —
Other financial liabilities | — | —
FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | 4,644 | 2,955
Deposits from central banks | — | —
Deposits from credit institutions | — | —
Customer deposits | 4,644 | 2,955
Debt certificates | — | —
Other financial liabilities | — | —
Subordinated liabilities | — | —
FINANCIAL LIABILITIES AT AMORTIZED COST | 405,055 | 349,381
Deposits from central banks | 13,678 | 6,985
Deposits from credit institutions | 27,121 | 24,686
Customer deposits | 301,478 | 260,366
Debt certificates | 50,102 | 47,086
Other financial liabilities | 12,676 | 10,258
Memorandum item: Subordinated liabilities | 13,688 | 13,355
DERIVATIVES - HEDGE ACCOUNTING | 1,261 | 1,536
FAIR VALUE CHANGES OF THE HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | — | —
PROVISIONS | 2,480 | 2,823
Pensions and other post-employment defined benefit obligations | 1,423 | 1,673
Other long-term employee benefits | 298 | 351
Provisions for taxes and other legal contingencies | 456 | 419
Commitments and guarantees given | 180 | 178
Other provisions | 122 | 201
TAX LIABILITIES | 1,483 | 1,137
Current tax liabilities | 533 | 225
Deferred tax liabilities | 950 | 912
OTHER LIABILITIES | 2,391 | 2,454
LIABILITIES INCLUDED IN DISPOSAL GROUPS CLASSIFIED AS HELD FOR SALE | — | —
TOTAL LIABILITIES | 494,979 | 431,229

(1) Presented for comparison purposes only.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.258

|  | Consolidated Financial Statements | > Appendices

LIABILITIES AND EQUITY (CONTINUED) (MILLIONS OF EUROS) |  |
| 2025 | 2024 ⁽¹⁾
STOCKHOLDERS’ FUNDS | 38,304 | 38,220
Capital | 2,797 | 2,824
Paid up capital | 2,797 | 2,824
Unpaid capital which has been called up | — | —
Share premium | 18,469 | 19,184
Equity instruments issued other than capital | — | —
Equity component of compound financial instruments | — | —
Other equity instruments issued | — | —
Other equity | 40 | 40
Retained earnings | 14,487 | 8,663
Revaluation reserves | — | —
Other reserves | (2,653) | (1,047)
Less: treasury shares | (152) | (7)
Profit or loss attributable to owners of the parent | 7,157 | 10,235
Less: interim dividends | (1,842) | (1,671)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | (1,235) | (1,154)
Items that will not be reclassified to profit or loss | (1,349) | (1,140)
Actuarial gains (losses) on defined benefit pension plans | (39) | (48)
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 | (1,183) | (1,075)
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) | (14) | —
Fair value changes of equity instruments measured at fair value through other comprehensive income (hedging instrument) | 14 | —
Fair value changes of financial liabilities at fair value through profit or loss attributable to changes in their credit risk | (127) | (17)
Items that may be reclassified to profit or loss | 114 | (14)
Hedge of net investments in foreign operations (effective portion) | — | —
Foreign currency translation | — | —
Hedging derivatives. Cash flow hedges (effective portion) | 219 | 251
Fair value changes of debt instruments measured at fair value through other comprehensive income | (101) | (264)
Hedging instruments (non-designated items) | (4) | —
Non-current assets and disposal groups classified as held for sale | — | —
TOTAL EQUITY | 37,068 | 37,066
TOTAL EQUITY AND TOTAL LIABILITIES | 532,047 | 468,295
MEMORANDUM ITEM - OFF BALANCE SHEET EXPOSURES (MILLIONS OF EUROS) |  |
| 2025 | 2024 ⁽¹⁾
Loan commitments given | 126,208 | 108,206
Financial guarantees given | 26,758 | 21,811
Other commitments given | 45,160 | 37,641

(1) Presented for comparison purposes only.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.259

|  | Consolidated Financial Statements | > Appendices

Income statements for the years ended December 31, 2025 and 2024

INCOME STATEMENTS (MILLIONS OF EUROS) |  |
| 2025 | 2024 ⁽¹⁾
Interest income | 15,444 | 17,586
Interest expense | (8,802) | (11,190)
NET INTEREST INCOME | 6,642 | 6,396
Dividend income | 4,656 | 5,417
Fee and commission income | 3,185 | 2,936
Fee and commission expense | (875) | (695)
Gains (losses) on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net | 55 | 76
Financial assets at amortized cost | 32 | 28
Other financial assets and liabilities | 23 | 48
Gains or (losses) on financial assets and liabilities held for trading, net | 587 | 684
Reclassification of financial assets from fair value through other comprehensive income | — | —
Reclassification of financial assets from amortized cost | — | —
Other profit or loss | 587 | 684
Gains (losses) on non-trading financial assets mandatorily at fair value through profit or loss, net | 40 | 77
Reclassification of financial assets from fair value through other comprehensive income | — | —
Reclassification of financial assets from amortized cost | — | —
Other profit or loss | 40 | 77
Gains (losses) on financial assets and liabilities designated at fair value through profit or loss, net | (53) | 174
Gains (losses) from hedge accounting, net | 1 | 2
Exchange differences, net | 11 | 258
Other operating income | 636 | 563
Other operating expense | (174) | (516)
GROSS INCOME | 14,710 | 15,373
Administrative expense | (4,760) | (4,540)
Personnel expense | (2,808) | (2,613)
Other administrative expense | (1,952) | (1,927)
Depreciation and amortization | (666) | (641)
Provisions or reversal of provisions | (166) | (132)
Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification | (728) | (741)
Financial assets measured at amortized cost | (716) | (744)
Financial assets at fair value through other comprehensive income | (11) | 3
NET OPERATING INCOME | 8,390 | 9,319
Impairment or reversal of impairment of investments in subsidiaries, joint ventures and associates | (58) | 2,246
Impairment or reversal of impairment on non-financial assets | (9) | (11)
Tangible assets | (1) | (5)
Intangible assets | (8) | (7)
Other assets | — | —
Gains (losses) on derecognition of non - financial assets and subsidiaries, net | 13 | 50
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 | 12 | (14)
PROFIT (LOSS) BEFORE TAX FROM CONTINUING OPERATIONS | 8,347 | 11,590
Tax expense or income related to profit or loss from continuing operations | (1,190) | (1,355)
PROFIT (LOSS) AFTER TAX FROM CONTINUING OPERATIONS | 7,157 | 10,235
Profit (loss) after tax from discontinued operations | — | —
PROFIT (LOSS) FOR THE YEAR | 7,157 | 10,235

(1) Presented for comparison purposes only.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.260

|  | Consolidated Financial Statements | > Appendices

Statements of recognized income and expense for the years ended December 31, 2025 and 2024

STATEMENTS OF RECOGNIZED INCOME AND EXPENSE (MILLIONS OF EUROS)
| 2025 | 2024 ⁽¹⁾
PROFIT RECOGNIZED IN INCOME STATEMENT | 7,157 | 10,235
OTHER RECOGNIZED INCOME (EXPENSE) | (80) | 249
ITEMS NOT SUBJECT TO RECLASSIFICATION TO INCOME STATEMENT | (208) | 33
Actuarial gains (losses) from defined benefit pension plans | 12 | (25)
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 | (107) | 146
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 | (157) | (102)
Other valuation adjustments | — | —
Income tax related to items not subject to reclassification to income statement | 44 | 13
ITEMS SUBJECT TO RECLASSIFICATION TO INCOME STATEMENT | 127 | 217
Hedge of net investments in foreign operations [effective portion] | — | —
Valuation gains (losses) taken to equity | — | —
Transferred to profit or loss | — | —
Other reclassifications | — | —
Other reclassifications | — | —
Cash flow hedges [effective portion] | (45) | 294
Valuation gains (losses) taken to equity | (45) | 294
Transferred to profit or loss | — | —
Transferred to initial carrying amount of hedged items | — | —
Other reclassifications | — | —
Hedging instruments [non-designated elements] | (6) | —
Valuation gains (losses) taken to equity | (6) | —
Transferred to profit or loss | — | —
Other reclassifications | — | —
Debt securities at fair value through other comprehensive income | 231 | 16
Valuation gains (losses) taken to equity | 256 | 63
Transferred to profit or loss | (25) | (47)
Other reclassifications | — | —
Non-current assets and disposal groups held for sale | — | —
Valuation gains (losses) taken to equity | — | —
Income tax relating to items subject to reclassification to income statements | (53) | (93)
TOTAL RECOGNIZED INCOME/EXPENSE | 7,077 | 10,484

(1) Presented for comparison purposes only.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.261

|  | Consolidated Financial Statements | > Appendices

Statement of changes in equity for the year ended December 31, 2025 of BBVA, S.A.

STATEMENT OF CHANGES IN EQUITY (MILLIONS OF EUROS)
2025 | 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 | Total
Balances as of January 1, 2025 | 2,824 | 19,184 | — | 40 | 8,663 | — | (1,047) | (7) | 10,235 | (1,671) | (1,154) | 37,066
Total income/expense recognized | — | — | — | — | — | — | — | — | 7,157 | — | (80) | 7,077
Other changes in equity | (27) | (715) | — | 1 | 5,824 | — | (1,606) | (145) | (10,235) | (171) | (1) | (7,074)
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 | (27) | (715) | — | — | 21 | — | (273) | 993 | — | — | — | —
Dividend distribution | — | — | — | — | (2,363) | — | — | — | — | (1,842) | — | (4,205)
Purchase of treasury shares | — | — | — | — | — | — | — | (1,736) | — | — | — | (1,736)
Sale or cancellation of treasury shares | — | — | — | — | — | — | (6) | 598 | — | — | — | 592
Reclassification of financial liabilities to other equity instruments | — | — | — | — | — | — | — | — | — | — | — | —
Reclassification of other equity instruments to financial liabilities | — | — | — | — | — | — | — | — | — | — | — | —
Transfers between total equity entries | — | — | — | 9 | 8,563 | — | (8) | — | (10,235) | 1,671 | (1) | —
Increase/Reduction of equity due to business combinations | — | — | — | — | — | — | — | — | — | — | — | —
Share based payments | — | — | — | (26) | — | — | — | — | — | — | — | (26)
Other increases or (-) decreases in equity | — | — | — | 18 | (397) | — | (1,319) | — | — | — | — | (1,699)
Balances as of December 31, 2025 | 2,797 | 18,469 | — | 40 | 14,487 | — | (2,653) | (152) | 7,157 | (1,842) | (1,235) | 37,068

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.262

|  | Consolidated Financial Statements | > Appendices

Statement of changes in equity for the year ended December 31, 2024 of BBVA, S.A.

STATEMENT OF CHANGES IN EQUITY (MILLIONS OF EUROS)
2024 ⁽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 | 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 | — | — | — | — | — | — | — | — | — | — | — | —
Settlement or maturity of other equity instruments issued | — | — | — | — | — | — | — | — | — | — | — | —
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 other equity instruments to financial liabilities | — | — | — | — | — | — | — | — | — | — | — | —
Reclassification of financial liabilities to other equity instruments | — | — | — | — | — | — | — | — | — | — | — | —
Transfers within total equity | — | — | — | 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

(1) Presented for comparison purposes only.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.263

|  | Consolidated Financial Statements | > Appendices

Statements of cash flows for the years ended December 31, 2025 and 2024

CASH FLOWS STATEMENTS (MILLIONS OF EUROS) |  |
| 2025 | 2024 ⁽¹⁾
A) CASH FLOWS FROM OPERATING ACTIVITIES (1+2+3+4+5) | 14,695 | (23,846)
1.Profit (loss) for the year | 7,157 | 10,235
2.Adjustments to obtain the cash flow from operating activities | 917 | (1,075)
Depreciation and amortization | 666 | 641
Other adjustments | 252 | (1,717)
3.Net increase/decrease in operating assets | (52,379) | (2,045)
Financial assets held for trading | (9,281) | 27,661
Non-trading financial assets mandatorily at fair value through profit or loss | 327 | (166)
Other financial assets designated at fair value through profit or loss | — | —
Financial assets at fair value through other comprehensive income | 751 | 4,610
Financial assets at amortized cost | (44,501) | (33,796)
Other operating assets | 324 | (355)
4.Net increase/decrease in operating liabilities | 60,289 | (29,468)
Financial liabilities held for trading | 6,723 | (37,406)
Other financial liabilities designated at fair value through profit or loss | 1,689 | 594
Financial liabilities at amortized cost | 53,782 | 7,882
Other operating liabilities | (1,905) | (539)
5.Collection/payments for income tax | (1,289) | (1,492)
B) CASH FLOWS FROM INVESTING ACTIVITIES (1+2) | (358) | (448)
1.Investment | (999) | (1,367)
Tangible assets | (135) | (133)
Intangible assets | (496) | (410)
Investments in subsidiaries, joint ventures and associates | (368) | (824)
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 | 642 | 919
Tangible assets | 30 | 2
Intangible assets | — | —
Investments in subsidiaries, joint ventures and associates | 511 | 656
Other business units | — | —
Non-current assets classified as held for sale and associated liabilities | 101 | 261
Other collections related to investing activities | — | —
C) CASH FLOWS FROM FINANCING ACTIVITIES (1 + 2) | (5,441) | (3,522)
1. Payments | (8,856) | (7,368)
Dividends (shareholders remuneration) | (4,205) | (3,921)
Subordinated liabilities | (2,547) | (2,138)
Treasury share amortization | (27) | (37)
Treasury share acquisition | (1,709) | (1,273)
Other items relating to financing activities | (368) | —
2. Collections | 3,415 | 3,846
Subordinated liabilities | 2,851 | 3,000
Common stock increase | — | —
Treasury share disposal | 564 | 482
Other items relating to financing activities | — | 364
D) EFFECT OF EXCHANGE RATE CHANGES | 1,524 | (643)
E) NET INCREASE/DECREASE IN CASH OR CASH EQUIVALENTS (A+B+C+D) | 10,421 | (28,459)
F) CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR | 20,755 | 49,213
G) CASH AND CASH EQUIVALENTS AT END OF THE YEAR (E+F) | 31,176 | 20,755
COMPONENTS OF CASH AND EQUIVALENTS AT END OF THE YEAR (MILLIONS OF EUROS)
| 2025 | 2024 ⁽¹⁾
Cash | 1,049 | 1,027
Balance of cash equivalent in central banks | 27,478 | 17,603
Other financial assets | 2,649 | 2,124
Less: Bank overdraft refundable on demand | — | —
TOTAL CASH AND CASH EQUIVALENTS AT END OF THE YEAR | 31,176 | 20,755

This Appendix is an integral part of Notes 2.1 of the consolidated financial statements for the year ended December 31, 2025.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.264

|  | Consolidated Financial Statements | > Appendices

APPENDIX X. Quantitative information on refinancing and restructuring
operations and other requirements under Bank of Spain Circular 6/2012
a. Quantitative information on refinancing and restructuring operations
The breakdown of refinancing and restructuring operations as of December 31, 2025, 2024 and 2023 is as follows:

| DECEMBER 2025 BALANCE OF FORBEARANCE (MILLIONS OF EUROS)
| TOTAL
| Unsecured loans | Secured loans | Accumulated impairment or accumulated losses in fair value due to credit risk
|  |  |  |  | Maximum amount of secured loans that can be considered
| Number of operations | Gross carrying amount | Number of operations | Gross carrying amount | Real estate mortgage secured | Rest of secured loans
Credit institutions | — | — | — | — | — | — | —
General Governments | 30 | 29 | — | — | — | — | (6)
Other financial corporations and individual entrepreneurs (financial business) | 267 | 14 | 18 | 4 | 2 | — | (6)
Non-financial corporations and individual entrepreneurs (corporate non-financial activities) | 155,874 | 3,854 | 7,306 | 1,474 | 623 | 174 | (1,851)
Of which: financing the construction and property (including land) | 379 | 222 | 488 | 126 | 69 | 6 | (114)
Other households (1) | 337,495 | 2,390 | 48,637 | 3,681 | 2,772 | 30 | (1,662)
Total | 493,666 | 6,286 | 55,961 | 5,159 | 3,397 | 204 | (3,527)
| Of which: IMPAIRED
| Unsecured loans | Secured loans | Accumulated impairment or accumulated losses in fair value due to credit risk
|  |  |  |  | Maximum amount of secured loans that can be considered
| Number of operations | Gross carrying amount | Number of operations | Gross carrying amount | Real estate mortgage secured | Rest of secured loans
Credit institutions | — | — | — | — | — | — | —
General Governments | 16 | 7 | — | — | — | — | (5)
Other financial corporations and individual entrepreneurs (financial business) | 154 | 12 | 13 | 4 | 2 | — | (6)
Non-financial corporations and individual entrepreneurs (corporate non-financial activities) | 120,364 | 2,124 | 4,202 | 805 | 259 | 25 | (1,592)
Of which: financing the construction and property (including land) | 280 | 220 | 340 | 80 | 32 | 3 | (111)
Other households (1) | 196,425 | 1,208 | 24,813 | 1,904 | 1,215 | 8 | (1,428)
Total | 316,959 | 3,351 | 29,028 | 2,714 | 1,476 | 33 | (3,031)

(1) Number of operations does not include Garanti BBVA. Includes mortgage-backed real estate operations with loan to value ratio of greater than 1, and secured
operations, other than transactions secured by real estate mortgage regardless of their loan to value ratio.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.265

|  | Consolidated Financial Statements | > Appendices

| DECEMBER 2024 BALANCE OF FORBEARANCE (MILLIONS OF EUROS)
| TOTAL
| Unsecured loans | Secured loans | Accumulated impairment or accumulated losses in fair value due to credit risk
|  |  |  |  | Maximum amount of secured loans that can be considered
| Number of operations | Gross carrying amount | Number of operations | Gross carrying amount | Real estate mortgage secured | Rest of secured loans
Credit institutions | — | — | — | — | — | — | —
General Governments | 38 | 37 | 4 | 1 | — | — | (6)
Other financial corporations and individual entrepreneurs (financial business) | 297 | 7 | 20 | 8 | 4 | 1 | (5)
Non-financial corporations and individual entrepreneurs (corporate non-financial activities) | 102,661 | 3,265 | 7,726 | 1,966 | 851 | 203 | (2,067)
Of which: financing the construction and property (including land) | 445 | 349 | 569 | 181 | 81 | 10 | (335)
Other households (1) | 348,925 | 1,894 | 54,201 | 4,181 | 2,972 | 27 | (1,726)
Total | 451,921 | 5,203 | 61,951 | 6,156 | 3,827 | 231 | (3,805)
| Of which: IMPAIRED
| Unsecured loans | Secured loans | Accumulated impairment or accumulated losses in fair value due to credit risk
|  |  |  |  | Maximum amount of secured loans that can be considered
| Number of operations | Gross carrying amount | Number of operations | Gross carrying amount | Real estate mortgage secured | Rest of secured loans
Credit institutions | — | — | — | — | — | — | —
General Governments | 23 | 9 | 4 | 1 | — | — | (4)
Other financial corporations and individual entrepreneurs (financial business) | 179 | 4 | 13 | 4 | 1 | 1 | (5)
Non-financial corporations and individual entrepreneurs (corporate non-financial activities) | 77,926 | 2,072 | 4,989 | 1,093 | 395 | 26 | (1,808)
Of which: financing the construction and property (including land) | 332 | 347 | 429 | 121 | 31 | 7 | (328)
Other households (1) | 247,529 | 1,095 | 31,775 | 2,572 | 1,613 | 8 | (1,519)
Total | 325,657 | 3,181 | 36,781 | 3,671 | 2,008 | 35 | (3,336)

(1) Number of operations does not include Garanti BBVA. Includes mortgage-backed real estate operations with loan to value ratio of greater than 1, and secured
operations, other than transactions secured by real estate mortgage regardless of their loan to value ratio.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.266

|  | Consolidated Financial Statements | > Appendices

| DECEMBER 2023 BALANCE OF FORBEARANCE (MILLIONS OF EUROS)
| TOTAL
| Unsecured loans | Secured loans | Accumulated impairment or accumulated losses in fair value due to credit risk
|  |  |  |  | Maximum amount of secured loans that can be considered
| Number of operations | Gross carrying amount | Number of operations | Gross carrying amount | Real estate mortgage secured | Rest of secured loans
Credit institutions | — | — | — | — | — | — | —
General Governments | 50 | 31 | 24 | 7 | 5 | — | (6)
Other financial corporations and individual entrepreneurs (financial business) | 292 | 17 | 24 | 11 | 5 | 3 | (6)
Non-financial corporations and individual entrepreneurs (corporate non-financial activities) | 79,943 | 3,870 | 10,602 | 2,395 | 1,053 | 264 | (2,422)
Of which: financing the construction and property (including land) | 703 | 420 | 717 | 269 | 125 | 10 | (428)
Other households (1) | 242,532 | 1,390 | 63,320 | 4,642 | 3,380 | 20 | (1,677)
Total | 322,817 | 5,308 | 73,970 | 7,055 | 4,443 | 287 | (4,111)
| Of which: IMPAIRED
| Unsecured loans | Secured loans | Accumulated impairment or accumulated losses in fair value due to credit risk
|  |  |  |  | Maximum amount of secured loans that can be considered
| Number of operations | Gross carrying amount | Number of operations | Gross carrying amount | Real estate mortgage secured | Rest of secured loans
Credit institutions | — | — | — | — | — | — | —
General Governments | 25 | 14 | 4 | 2 | 1 | — | (4)
Other financial corporations and individual entrepreneurs (financial business) | 206 | 5 | 17 | 4 | 1 | 2 | (4)
Non-financial corporations and individual entrepreneurs (corporate non-financial activities) | 59,133 | 2,409 | 6,483 | 1,323 | 473 | 56 | (2,070)
Of which: financing the construction and property (including land) | 491 | 417 | 540 | 196 | 66 | 8 | (417)
Other households (1) | 158,595 | 900 | 36,108 | 3,001 | 1,957 | 4 | (1,519)
Total | 217,959 | 3,329 | 42,612 | 4,330 | 2,432 | 62 | (3,597)

(1) Number of operations does not include Garanti BBVA. Includes mortgage-backed real estate operations with loan to value ratio of greater than 1, and secured
operations, other than transactions secured by real estate mortgage regardless of their loan to value ratio.
In addition to the restructuring and refinancing transactions mentioned in this section, loans that were not considered impaired or
renegotiated have been modified based on the criteria set out in the accounting regulation that applies. These loans have not been
classified as renegotiated or impaired, since they were modified for commercial or competitive reasons (for instance, to improve
relationships with clients) rather than for economic or legal reasons relating to the borrower's financial situation.
The table below provides a breakdown by segments of the forbearance operations (net of provisions) as of December 31, 2025,
2024 and 2023:

FORBEARANCE OPERATIONS. BREAKDOWN BY SEGMENTS (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Credit institutions | — | — | —
Central governments | 23 | 32 | 32
Other financial corporations and individual entrepreneurs (financial activity) | 12 | 9 | 22
Non-financial corporations and individual entrepreneurs (non-financial activity) | 3,476 | 3,163 | 3,843
Of which: Financing the construction and property development (including land) | 234 | 195 | 261
Households | 4,408 | 4,349 | 4,354
Total carrying amount | 7,919 | 7,553 | 8,251
Financing classified as non-current assets and disposal groups held for sale | — | — | —

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.267

|  | Consolidated Financial Statements | > Appendices

NPL ratio by type of renegotiated loan
The non-performing ratio of the renegotiated portfolio is defined as the impaired balance of renegotiated loans that shows signs of
difficulties as of the closing of the reporting period, divided by the total payment outstanding in that portfolio.
As of December 31, 2025 and December 31, 2024, the non-performing ratio for each of the portfolios of renegotiated loans is as
follows:

NPL RATIO BY TYPE OF RENEGOTIATED LOAN
| Ratio of impaired loans - past due
| 2025 | 2024
General governments | 23 % | 28 %
Commercial | 55 % | 61 %
Of which: Construction and developer | 86 % | 88 %
Other consumer | 51 % | 60 %

b. Qualitative information on the concentration of risk by activity and guarantees
Loans and advances to customers by activity (carrying amount)

DECEMBER 2025 (MILLIONS OF EUROS)
|  |  |  | Loans to customers. Loan to value
| Total (1) | Mortgage loans | Secured loans | 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%
General governments | 25,243 | 213 | 6,530 | 923 | 2,477 | 392 | 2,513 | 438
Other financial institutions and individual entrepreneurs | 47,821 | 891 | 25,127 | 455 | 501 | 302 | 15,855 | 8,905
Non-financial institutions and individual entrepreneurs | 230,209 | 29,868 | 12,162 | 16,284 | 7,512 | 4,980 | 6,372 | 6,882
Construction and property development | 6,875 | 4,746 | 86 | 1,419 | 1,340 | 887 | 395 | 792
Construction of civil works | 7,143 | 559 | 421 | 217 | 251 | 77 | 18 | 417
Other purposes | 216,191 | 24,564 | 11,655 | 14,648 | 5,921 | 4,017 | 5,959 | 5,674
Large companies | 149,588 | 10,549 | 7,111 | 5,773 | 2,578 | 1,674 | 4,022 | 3,613
SMEs (2) and individual entrepreneurs | 66,603 | 14,015 | 4,544 | 8,875 | 3,343 | 2,343 | 1,937 | 2,061
Rest of households and NPISHs (3) | 182,405 | 100,887 | 2,641 | 24,747 | 28,608 | 33,491 | 12,963 | 3,719
Housing | 103,390 | 99,679 | 113 | 24,057 | 27,994 | 33,161 | 11,264 | 3,316
Consumption | 74,152 | 601 | 2,231 | 392 | 467 | 191 | 1,510 | 273
Other purposes | 4,864 | 607 | 297 | 298 | 147 | 139 | 190 | 131
TOTAL | 485,678 | 131,859 | 46,460 | 42,409 | 39,098 | 39,165 | 37,703 | 19,944
MEMORANDUM ITEM: |  |  |  |  |  |  |  |
Forbearance operations (4) | 7,937 | 3,637 | 130 | 980 | 918 | 796 | 610 | 462

(1) The amounts included in this table are net of loss allowances.
(2) Small and medium enterprises.
(3) Non-profit institutions serving households.
(4) Net of provisions.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.268

|  | Consolidated Financial Statements | > Appendices

DECEMBER 2024 (MILLIONS OF EUROS)
|  |  |  | Loans to customers. Loan to value
| Total (1) | Mortgage loans | Secured loans | 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%
General governments | 22,011 | 245 | 6,059 | 902 | 2,472 | 441 | 2,143 | 346
Other financial institutions and individual entrepreneurs | 28,150 | 683 | 16,999 | 357 | 376 | 272 | 8,469 | 8,208
Non-financial institutions and individual entrepreneurs | 203,240 | 27,815 | 11,047 | 13,453 | 7,828 | 4,865 | 4,888 | 7,828
Construction and property development | 6,572 | 4,304 | 266 | 1,947 | 1,299 | 700 | 291 | 334
Construction of civil works | 6,837 | 582 | 386 | 227 | 274 | 89 | 22 | 356
Other purposes | 189,831 | 22,929 | 10,394 | 11,278 | 6,255 | 4,077 | 4,575 | 7,138
Large companies | 128,917 | 9,955 | 6,915 | 5,166 | 2,417 | 1,906 | 2,312 | 5,070
SMEs (2) and individual entrepreneurs | 60,914 | 12,974 | 3,479 | 6,113 | 3,838 | 2,171 | 2,263 | 2,069
Rest of households and NPISHs (3) | 170,213 | 95,846 | 2,387 | 23,100 | 26,889 | 31,365 | 12,450 | 4,430
Housing | 98,560 | 94,573 | 111 | 22,569 | 26,301 | 31,099 | 10,794 | 3,920
Consumption | 67,225 | 584 | 2,004 | 242 | 440 | 136 | 1,462 | 308
Other purposes | 4,427 | 689 | 272 | 289 | 148 | 130 | 193 | 202
TOTAL | 423,613 | 124,590 | 36,492 | 37,812 | 37,565 | 36,943 | 27,950 | 20,812
MEMORANDUM ITEM: |  |  |  |  |  |  |  |
Forbearance operations (4) | 7,553 | 4,268 | 234 | 993 | 1,005 | 900 | 702 | 902

(1) The amounts included in this table are net of loss allowances.
(2) Small and medium enterprises.
(3) Non-profit institutions serving households.
(4) Net of provisions.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.269

|  | Consolidated Financial Statements | > Appendices

DECEMBER 2023 (MILLIONS OF EUROS)
|  |  |  | Loans to customers. Loan to value
| Total (1) | Mortgage loans | Secured loans | 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%
General governments | 23,025 | 271 | 7,104 | 1,137 | 2,911 | 429 | 2,369 | 527
Other financial institutions and individual entrepreneurs | 23,086 | 525 | 13,315 | 182 | 378 | 68 | 9,304 | 3,909
Non-financial institutions and individual entrepreneurs | 183,279 | 24,472 | 10,791 | 11,930 | 7,260 | 4,556 | 4,230 | 7,287
Construction and property development | 5,788 | 4,064 | 248 | 1,662 | 1,192 | 768 | 239 | 451
Construction of civil works | 5,173 | 554 | 382 | 231 | 191 | 87 | 37 | 390
Other purposes | 172,318 | 19,854 | 10,160 | 10,037 | 5,877 | 3,701 | 3,954 | 6,446
Large companies | 111,122 | 7,360 | 5,744 | 4,092 | 2,071 | 1,479 | 1,882 | 3,579
SMEs (2) and individual entrepreneurs | 61,196 | 12,494 | 4,416 | 5,944 | 3,806 | 2,222 | 2,072 | 2,867
Rest of households and NPISHs (3) | 157,847 | 95,040 | 2,166 | 21,700 | 25,396 | 31,265 | 13,960 | 4,886
Housing | 97,395 | 93,813 | 118 | 21,155 | 24,954 | 31,014 | 12,435 | 4,374
Consumption | 56,520 | 475 | 1,879 | 230 | 291 | 137 | 1,423 | 273
Other purposes | 3,933 | 753 | 169 | 315 | 152 | 114 | 102 | 239
TOTAL | 387,238 | 120,308 | 33,376 | 34,949 | 35,944 | 36,319 | 29,864 | 16,609
MEMORANDUM ITEM: |  |  |  |  |  |  |  |
Forbearance operations (4) | 8,251 | 4,894 | 240 | 1,050 | 1,072 | 1,001 | 953 | 1,058

(1) The amounts included in this table are net of loss allowances.
(2) Small and medium enterprises.
(3) Non-profit institutions serving households.
(4) Net of provisions.
c. Information on the concentration of risk by activity and geographical areas

DECEMBER 2025 (MILLIONS OF EUROS)
| TOTAL (1) | Spain | Rest of European Union | America | Other
Credit institutions | 143,686 | 24,453 | 36,190 | 47,739 | 35,303
General governments | 167,380 | 68,664 | 25,270 | 63,390 | 10,056
Central Administration | 142,761 | 52,409 | 24,587 | 55,950 | 9,814
Other | 24,620 | 16,256 | 683 | 7,439 | 241
Other financial institutions and individual entrepreneurs | 87,472 | 7,354 | 23,190 | 34,378 | 22,550
Non-financial institutions and individual entrepreneurs | 314,130 | 93,419 | 37,423 | 113,776 | 69,512
Construction and property development | 11,407 | 3,548 | 942 | 2,458 | 4,459
Construction of civil works | 12,646 | 6,571 | 1,639 | 1,959 | 2,477
Other purposes | 290,077 | 83,300 | 34,843 | 109,359 | 62,576
Large companies | 216,732 | 56,936 | 33,853 | 78,833 | 47,110
SMEs and individual entrepreneurs | 73,345 | 26,364 | 989 | 30,526 | 15,466
Other households and NPISHs | 182,946 | 93,402 | 3,772 | 66,889 | 18,884
Housing | 103,392 | 72,038 | 2,158 | 27,152 | 2,044
Consumer | 74,152 | 17,680 | 1,350 | 38,790 | 16,332
Other purposes | 5,403 | 3,683 | 263 | 947 | 509
TOTAL | 895,615 | 287,292 | 125,845 | 326,172 | 156,306

(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 (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.270

|  | Consolidated Financial Statements | > Appendices

DECEMBER 2024 (MILLIONS OF EUROS)
| TOTAL ⁽¹⁾ | Spain | Rest of European Union | America | Other
Credit institutions | 134,618 | 20,574 | 36,788 | 44,739 | 32,516
General governments | 148,541 | 63,146 | 15,277 | 58,857 | 11,261
Central Administration | 127,232 | 49,454 | 14,743 | 52,035 | 11,000
Other | 21,310 | 13,692 | 534 | 6,822 | 261
Other financial institutions and individual entrepreneurs | 62,821 | 5,508 | 19,786 | 22,289 | 15,239
Non-financial institutions and individual entrepreneurs | 279,097 | 86,803 | 32,185 | 100,623 | 59,487
Construction and property development | 10,778 | 3,168 | 722 | 2,448 | 4,439
Construction of civil works | 11,556 | 6,484 | 1,222 | 1,257 | 2,593
Other purposes | 256,764 | 77,151 | 30,241 | 96,919 | 52,454
Large companies | 187,984 | 51,296 | 28,984 | 71,896 | 35,808
SMEs and individual entrepreneurs | 68,780 | 25,855 | 1,257 | 25,022 | 16,646
Other households and NPISHs | 170,724 | 90,552 | 2,644 | 60,413 | 17,115
Housing | 98,561 | 70,761 | 1,235 | 24,757 | 1,807
Consumer | 67,257 | 16,271 | 1,149 | 35,055 | 14,782
Other purposes | 4,906 | 3,520 | 259 | 600 | 526
TOTAL | 795,801 | 266,583 | 106,680 | 286,921 | 135,617

(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 (MILLIONS OF EUROS)
| TOTAL (1) | Spain | Rest of European Union | America | Other
Credit institutions | 192,222 | 54,246 | 61,342 | 42,084 | 34,550
General governments | 144,082 | 59,385 | 12,198 | 61,473 | 11,025
Central Administration | 121,149 | 45,259 | 11,767 | 53,640 | 10,482
Other | 22,933 | 14,125 | 431 | 7,833 | 543
Other financial institutions and individual entrepreneurs | 54,064 | 9,564 | 18,279 | 18,097 | 8,124
Non-financial institutions and individual entrepreneurs | 246,103 | 80,219 | 23,614 | 90,342 | 51,928
Construction and property development | 9,256 | 2,888 | 640 | 2,573 | 3,156
Construction of civil works | 9,524 | 5,988 | 885 | 1,558 | 1,093
Other purposes | 227,323 | 71,344 | 22,089 | 86,211 | 47,679
Large companies | 159,906 | 45,738 | 21,086 | 61,867 | 31,214
SMEs and individual entrepreneurs | 67,417 | 25,606 | 1,003 | 24,344 | 16,464
Other households and NPISHs | 158,344 | 88,561 | 2,477 | 58,686 | 8,620
Housing | 97,395 | 70,073 | 1,302 | 24,899 | 1,120
Consumer | 56,521 | 15,111 | 956 | 33,207 | 7,246
Other purposes | 4,428 | 3,377 | 218 | 579 | 254
TOTAL | 794,814 | 291,975 | 117,910 | 270,682 | 114,247

(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.
This Appendix is an integral part of Note 7.2.7 of the consolidated financial statements for the year ended December 31, 2025.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.271

|  | Consolidated Financial Statements | > Appendices

APPENDIX XI. Additional information on risk concentration
a. Sovereign risk exposure
The table below provides a breakdown of exposure to financial assets (excluding derivatives and equity instruments), as of
December 31, 2025, 2024 and 2023: by type of counterparty and the country of residence of such counterparty. The below figures
do not take into account accumulated other comprehensive income, loss allowances or loan-loss provisions:

RISK EXPOSURE BY COUNTRIES (MILLIONS OF EUROS)
| Sovereign risk
| 2025 | 2024 | 2023
Spain | 68,620 | 63,277 | 59,704
Italy | 14,244 | 12,264 | 10,744
Turkey | 8,634 | 9,995 | 9,284
Portugal | 568 | 288 | 424
Germany | 129 | 195 | 142
France | 8,247 | 1,366 | 182
Netherlands | 1 | 10 | 14
Romania | 1,135 | 791 | 587
Rest of Europe | 1,718 | 1,227 | 1,187
Subtotal Europe | 103,297 | 89,413 | 82,268
Mexico | 45,851 | 43,909 | 48,929
The United States | 6,442 | 6,408 | 5,591
Colombia | 5,482 | 4,021 | 3,540
Peru | 1,293 | 1,208 | 1,526
Argentina | 2,380 | 2,633 | 1,308
Venezuela | — | — | —
Rest of countries | 2,651 | 1,337 | 1,782
Subtotal rest of countries | 64,101 | 59,517 | 62,676
Total exposure to financial instruments | 167,397 | 148,930 | 144,945

The exposure to sovereign risk set out in the above table includes positions held in government debt securities in countries where
the Group operates. They are used for ALCO’s management of the interest rate risk on the balance sheets of the Group’s entities in
these countries, as well as for hedging of pension and insurance commitments by insurance entities within the BBVA Group.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.272

|  | Consolidated Financial Statements | > Appendices

b. Concentration of risk on activities in the real estate market in Spain
Quantitative information on activities in the real estate market in Spain
As of December 31, 2025, 2024 and 2023, the Group's exposure to the construction and real estate development sectors
(excluding the mortgage portfolio) in Spain amounted to €10,602 million, €9,600 million and €9,476 million, respectively, of which
€2,314 million, €2,207 million and €2,105 million, respectively, related to construction loans, real estate development activities
and house purchases in Spain. Data as of December 31, 2025, 2024 and 2023 is shown below:

FINANCING ALLOCATED BY CREDIT INSTITUTIONS TO CONSTRUCTION AND REAL ESTATE DEVELOPMENT AND LENDING FOR HOUSE PURCHASE (MILLIONS OF EUROS)
| Gross amount | Drawn over the guarantee value | Accumulated impairment
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023
Financing to construction and real estate development (including land) (Business in Spain) | 2,314 | 2,207 | 2,105 | 665 | 473 | 482 | (69) | (102) | (115)
Of which: Impaired assets | 99 | 136 | 183 | 31 | 45 | 53 | (60) | (88) | (98)
Memorandum item: | — | — | — | — | — | — | — | — | —
Write-offs | 2,100 | 2,100 | 2,097 |  |  |  |  |  |
Memorandum item: | — | — | — |  |  |  |  |  |
Total loans and advances to customers, excluding the General Governments (Business in Spain) (book value) | 199,056 | 177,946 | 168,660 |  |  |  |  |  |
Total consolidated assets (total business) (book value) | 859,576 | 772,402 | 775,558 |  |  |  |  |  |
Impairment and provisions for normal exposures | (5,015) | (4,841) | (4,752) |  |  |  |  |  |

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)
| 2025 | 2024 | 2023
Without secured loan | 356 | 408 | 359
With secured loan | 1,958 | 1,799 | 1,746
Terminated buildings | 837 | 832 | 857
Homes | 646 | 656 | 685
Other | 191 | 177 | 172
Buildings under construction | 1,007 | 869 | 749
Homes | 1,000 | 843 | 731
Other | 7 | 26 | 18
Land | 114 | 97 | 139
Urbanized land | 91 | 76 | 92
Rest of land | 23 | 22 | 47
Total | 2,314 | 2,207 | 2,105

As of December 31, 2025, 2024 and 2023, 36.2% , 37.7% and 40.7% of loans to developers were guaranteed with buildings
(77.2% , 78.8% and 79.9% are homes), and only 4.9%, 4.4% and 6.6% by land, of which 79.8%, 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, 2025, 2024 and 2023 :

FINANCIAL GUARANTEES GIVEN (MILLIONS OF EUROS)
| 2025 | 2024 | 2023
Houses purchase loans | 83 | 53 | 36
Without mortgage | 2 | 2 | 3

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.273

|  | Consolidated Financial Statements | > Appendices

The information on the retail mortgage portfolio risk (housing mortgage) as of D ecember 31, 2025, 2024 and 2023 is as follow s:

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
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023
Houses purchase loans | 72,631 | 71,709 | 71,144 | 2,071 | 2,889 | 3,267
Without mortgage | 1,313 | 1,416 | 1,415 | 10 | 9 | 10
With mortgage | 71,318 | 70,294 | 69,729 | 2,061 | 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
Gross amount December 31, 2025 | 19,309 | 21,566 | 23,824 | 4,198 | 2,421 | 71,318
Of which: Impaired loans | 348 | 472 | 472 | 332 | 437 | 2,061
Gross amount December 31, 2024 | 18,584 | 21,171 | 23,193 | 4,643 | 2,702 | 70,294
Of which: Impaired loans | 314 | 502 | 622 | 539 | 904 | 2,880
Gross amount December 31, 2023 | 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 as of December 31, 2025, 2024 and 2023 had an average LTV of 41%, 41% and 42%
respectively.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.274

|  | Consolidated Financial Statements | > Appendices

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 ⁽¹⁾ ⁽²⁾ | Provisions | Of which: Valuation adjustments on impaired assets, from the time of foreclosure | Carrying amount
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023
Real estate assets from loans to the construction and real estate development sectors in Spain | 191 | 303 | 398 | (150) | (246) | (307) | (97) | (159) | (183) | 41 | 57 | 92
Terminated buildings | 28 | 41 | 72 | (15) | (24) | (44) | (9) | (16) | (24) | 13 | 17 | 28
Homes | 16 | 19 | 31 | (8) | (10) | (16) | (4) | (6) | (7) | 8 | 9 | 15
Other | 12 | 23 | 41 | (7) | (15) | (28) | (5) | (10) | (17) | 5 | 8 | 13
Buildings under construction | 5 | 8 | 8 | (5) | (6) | (7) | (2) | (2) | (2) | — | 2 | 1
Homes | 5 | 8 | 7 | (5) | (6) | (6) | (2) | (2) | (2) | — | 2 | 1
Other |  | — | 1 | — | — | (1) | — | — | (1) | — | — | —
Land | 158 | 254 | 318 | (130) | (216) | (256) | (86) | (141) | (156) | 28 | 38 | 62
Urbanized land | 153 | 248 | 299 | (125) | (210) | (242) | (83) | (138) | (145) | 28 | 38 | 57
Rest of land | 5 | 6 | 19 | (5) | (5) | (14) | (3) | (3) | (11) | — | 1 | 5
Real estate assets from mortgage financing for households for the purchase of a home | 331 | 392 | 544 | (193) | (209) | (299) | (76) | (72) | (99) | 138 | 183 | 245
Rest of foreclosed real estate assets | 214 | 283 | 364 | (149) | (195) | (231) | (46) | (61) | (76) | 65 | 88 | 133
Total | 736 | 978 | 1,306 | (492) | (650) | (837) | (219) | (292) | (358) | 244 | 328 | 469

(1) Represents original loan value at the time of foreclosure.
(2) The value of real estate assets foreclosed or received in payment of debts should be initially recognized at the lower of the carrying amount of the financial
assets and the fair value at the time of foreclosure less estimated sales costs. The gross value of the assets acquired in payment of debts is €463 million and €620
million as of December 31, 2025 and December 31, 2024, respectively.
As of December 31, 2025, 2024 and 2023, the gross book value of the Group’s real estate assets from corporate financing of real
estate construction and development was €191 million, €303 million and €398 million, respectively, with an average coverage ratio
of 78.5%, 81.2% and 77.0%, respectively.
The gross book value of real estate assets from mortgage lending to households for home purchase as of December 31, 2025,
2024 and 2023, amounted to €331 million, €392 million and €544 million, respectively, with an average coverage ratio of 58.3%,
53.3% and 55.0%.
As of December 31, 2025, 2024 and 2023, the gross book value of the BBVA Group’s total real estate assets (business in Spain),
including other real estate assets received as debt payment, was €736 million, €978 million and €1,306 million, respectively. The
coverage ratio was 66.8%, 66.5% and 64.1%, respectively.
This Appendix is an integral part of Note 7 of the consolidated financial statements for the year ended December 31, 2025.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.275

|  | Consolidated Financial Statements | > Appendices

c. Concentration of risk by geographical areas
Below is a breakdown of the balances of financial instruments recognized in the consolidated balance sheets by their concentration in geographical areas and according to the residence of the
customer or counterparty. As of December 31, 2025, 2024 and 2023 it does not take into account loss allowances or loan-loss provisions:

RISKS BY GEOGRAPHICAL AREAS. DECEMBER 2025 (MILLIONS OF EUROS) |
| Spain | Rest of Europe | Mexico | The United States | Turkey | South America | Rest of business | Total
Derivatives | 3,210 | 16,061 | 4,721 | 5,076 | 55 | 2,091 | 1,337 | 32,551
Equity instruments (1) | 2,275 | 6,305 | 7,144 | 4,438 | 116 | 195 | 1,327 | 21,800
Debt securities ⁽²⁾ | 56,555 | 33,777 | 43,399 | 9,659 | 8,489 | 9,714 | 1,480 | 163,073
Central banks | — | — | 1,519 | — | — | 912 | 70 | 2,501
General governments | 53,986 | 25,059 | 38,963 | 6,561 | 8,354 | 8,181 | 238 | 141,342
Credit institutions | 1,744 | 4,478 | 1,830 | 71 | 102 | 246 | 595 | 9,066
Other financial corporations | 184 | 2,378 | 361 | 1,371 | 1 | 148 | 246 | 4,689
Non-financial corporations | 641 | 1,862 | 726 | 1,655 | 33 | 226 | 331 | 5,475
Loans and advances | 190,259 | 77,941 | 107,795 | 27,831 | 59,649 | 64,649 | 30,634 | 558,758
Central banks | 3 | 1,834 | — | — | 8,598 | 1,031 | 35 | 11,501
General governments | 14,492 | 341 | 7,457 | — | 260 | 2,507 | 869 | 25,926
Credit institutions | 3,217 | 24,592 | 3,437 | 363 | 1,782 | 3,415 | 5,576 | 42,381
Other financial corporations | 3,522 | 18,198 | 5,467 | 8,867 | 1,993 | 1,850 | 12,182 | 52,078
Non-financial corporations | 69,782 | 28,991 | 41,602 | 18,578 | 23,645 | 30,402 | 11,908 | 224,908
Households | 99,243 | 3,985 | 49,832 | 24 | 23,371 | 25,445 | 64 | 201,963
Total risk in financial assets | 252,299 | 134,084 | 163,059 | 47,005 | 68,309 | 76,648 | 34,778 | 776,183
Loan commitments given | 38,222 | 55,254 | 29,277 | 26,268 | 51,876 | 21,253 | 5,404 | 227,554
Financial guarantees given | 2,964 | 6,365 | 63 | 4,181 | 8,637 | 945 | 1,710 | 24,865
Other commitments given | 21,587 | 15,038 | 2,295 | 6,308 | 6,677 | 3,821 | 4,433 | 60,158
Off-balance sheet exposures | 62,773 | 76,658 | 31,635 | 36,757 | 67,190 | 26,019 | 11,546 | 312,578
Total risks in financial instruments | 315,072 | 210,742 | 194,694 | 83,762 | 135,499 | 102,667 | 46,325 | 1,088,761

(1) Equity instruments are shown net of valuation adjustment.
(2) The debt securities of the "Financial assets at fair value through other comprehensive income" portfolio do not include gains/losses.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.276

|  | Consolidated Financial Statements | > Appendices

RISKS BY GEOGRAPHICAL AREAS. DECEMBER 2024 (MILLIONS OF EUROS) |  |  |
| Spain | Rest of Europe | Mexico | The United States | Turkey | South America | Rest of business | Total
Derivatives | 3,391 | 19,034 | 2,269 | 6,996 | 70 | 3,044 | 1,199 | 36,003
Equity instruments ⁽¹⁾ | 2,034 | 5,850 | 6,700 | 2,782 | 103 | 214 | 310 | 17,993
Debt securities ⁽²⁾ | 53,698 | 22,913 | 39,208 | 9,992 | 10,067 | 8,443 | 1,586 | 145,907
Central banks | — | — | — | — | — | 1,359 | 89 | 1,448
General governments | 50,854 | 15,410 | 36,667 | 6,408 | 9,756 | 6,410 | 200 | 125,705
Credit institutions | 2,040 | 3,092 | 1,527 | 64 | 153 | 302 | 408 | 7,585
Other financial corporations | 350 | 2,126 | 428 | 1,577 | 3 | 158 | 250 | 4,893
Non-financial corporations | 455 | 2,285 | 585 | 1,943 | 155 | 213 | 638 | 6,275
Loans and advances | 179,935 | 70,972 | 95,747 | 17,794 | 52,234 | 58,668 | 18,278 | 493,628
Central banks | 18 | 1,626 | — | — | 5,876 | 1,297 | — | 8,817
General governments | 12,001 | 137 | 7,187 | — | 239 | 1,831 | 755 | 22,150
Credit institutions | 5,063 | 27,439 | 2,731 | 349 | 1,044 | 2,828 | 4,216 | 43,669
Other financial corporations | 2,926 | 15,069 | 2,106 | 2,953 | 1,987 | 1,992 | 5,463 | 32,496
Non-financial corporations | 63,409 | 23,821 | 40,016 | 14,468 | 22,812 | 27,155 | 7,778 | 199,459
Households | 96,517 | 2,879 | 43,708 | 25 | 20,275 | 23,565 | 67 | 187,037
Total risk in financial assets | 239,058 | 118,770 | 143,924 | 37,564 | 62,473 | 70,369 | 21,372 | 693,530
Loan commitments given | 37,120 | 43,253 | 24,000 | 22,579 | 38,003 | 19,841 | 3,718 | 188,515
Financial guarantees given | 3,056 | 5,376 | 212 | 2,958 | 8,911 | 1,031 | 960 | 22,503
Other commitments given | 19,266 | 12,922 | 2,826 | 4,279 | 5,421 | 3,202 | 3,299 | 51,215
Off-balance sheet exposures | 59,441 | 61,551 | 27,038 | 29,816 | 52,336 | 24,074 | 7,977 | 262,233
Total risks in financial instruments | 298,500 | 180,321 | 170,962 | 67,380 | 114,809 | 94,443 | 29,349 | 955,763

(1) Equity instruments are shown net of valuation adjustment.
(2) The debt securities of the "Financial assets at fair value through other comprehensive income" portfolio do not include gains/losses.

Translation of the Consolidated Financial Statements, originally issued in Spanish (see Note 1.2). In the event of a discrepancy, the Spanish-language version prevails. | p.277

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