BANCO BILBAO VIZCAYA ARGENTARIA

Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) is a Spain-based multinational banking group formed through the mergers of Banco de Bilbao, Banco de Vizcaya and Argentaria, with operational centers in Madrid and historical roots in Bilbao. The group provides retail and commercial banking, corporate and investment banking, wealth management, asset management and insurance, serving individuals, SMEs, large corporates and public-sector entities. It operates primarily in Spain and Mexico, with additional exposure to Turkey through Garanti BBVA and to several South American markets; it exited U.S. retail banking in 2021 via the sale of its subsidiary to PNC. Earnings are driven mainly by net interest income and fees, with geographic diversification that increases sensitivity to local macroeconomic cycles, currency moves and regulatory changes, particularly in Mexico and Turkey; Turkey is accounted for under hyperinflationary standards, which adds volatility to reported figures. The group funds itself through customer deposits complemented by covered bonds and senior and subordinated issuance (including AT1 and Tier 2), maintains liquidity ratios in line with European requirements, and reports a fully loaded CET1 capital ratio in the low-to-mid teens, subject to ECB supervision, O-SII buffers and MREL obligations under the EU’s resolution framework. Asset quality metrics and coverage levels are disclosed under IFRS, and credit risk, market risk, operational risk and cyber risk remain key management areas. BBVA has a stated distribution policy combining cash dividends and share buybacks subject to capital and regulatory conditions. In 2024 it launched an all-share voluntary offer for Banco Sabadell, a process contingent on regulatory clearances and shareholder approvals that, if completed, would affect domestic market share, integration costs and capital consumption. The bank invests in digital channels and data-driven processes, reports high digital adoption among customers, and pursues sectoral decarbonization targets alongside broader ESG commitments. BBVA is primarily listed in Madrid as a member of the IBEX 35 and maintains an ADR program for U.S. investors; its debt and deposits are rated investment grade by major rating agencies.