E11805103

For quantitative and qualitative disclosures about market risk, see Notes 7.4 and 7.3 to the Consolidated Financial Statements. 202

A. Selected Consolidated Financial Data [Reserved] B. Capitalization and Indebtedness Not Applicable. C. Reasons for the Offer and Use of Proceeds Not Applicable. 7 D. Risk Factors MACROECONOMIC AND GEOPOLITICAL RISKS A deterioration in economic or political conditions in the countries where the Group operates could have a material adverse effect on the Group’s business, financial condition and results of operations The Group is sensitive to the deterioration of economic conditions or the alteration of the institutional environment of the countries in which it operates, especially Spain, Mexico and Turkey, which respectively represented 53.1%, 21.2% and 10.6% of the Group’s assets as of December 31, 2025 (53.3%, 21.8% and 10.7% as of December 31, 2024, respectively, and 58.3% 22.4% and 8.8%, as of December 31, 2023, respectively). Additionally, the Group is exposed to sovereign debt, especially sovereign debt related to these countries. For summarized information on the macroeconomic conditions that these countries are currently facing, and which could significantly affect the Group, see “Item 5. Operating and Financial Review and Prospects—Operating Results—Operating Environment”. The global economy is undergoing significant changes, driven in part by the policies of the U.S. administration. Uncertainty surrounding the consequences of such changes is exceptionally high, substantially increasing geopolitical, economic and financial risks. The increase in U.S. tariffs on imports from its trade partners has triggered financial market volatility, reinforcing risks to the global economic outlook. The final level and duration of these tariffs, and the high uncertainty in connection therewith, could negatively impact the world economy, worsening the prospects for the macroeconomic environment. As a result of adopted or announced tariffs, global growth could slow or decline significantly. While fiscal stimulus and monetary easing measures could partially offset the impact of trade protectionism, particularly 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, weakening confidence levels and financial deterioration, among other factors. Increased tariffs also raise 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 (“Fed”) and the ECB’s ability to lower rates if warranted by activity. Beyond higher import tariffs, tighter U.S. 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, among others, could likewise contribute to financial and macroeconomic volatility. This is compounded by concerns that the Fed’s independence in decision-making may be weakened by political considerations. Amid heightened uncertainty over U.S. policies and the prospect of large fiscal deficits, the U.S. risk premium has increased, and could rise further, pushing up long-term sovereign yields and further weakening the U.S. dollar. These developments could also spark episodes of volatility, especially given the high debt levels in both developed and emerging economies. The relatively high valuations of AI-related stocks are also a source of uncertainty and may lead to financial market volatility. Rising trade protectionism and the U.S.-China rivalry could further heighten 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 the changes in the foreign policy of the U.S. administration, the European Union (EU) has adopted measures to increase military spending, which could support growth but, to some extent, add pressure on inflation and interest rates in the region. Overall, rising global geopolitical tensions increase uncertainty around the outlook for the world economy and the likelihood of economic and financial disruptions, including an economic recession. Further, the Group is exposed to, among other risks, the following general risks with respect to the economic and institutional environment in the countries where it operates: a deterioration in economic activity, including potential recession scenarios; inflationary pressures which could lead to tightening of monetary conditions; stagflation triggered by intense or prolonged supply shocks, including as a result of protectionist escalation or a sharp rise 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 policies adopted by the U.S. administration, around which significant uncertainty remains; and episodes of volatility in the financial markets, such as those seen recently. Any of the above could result in significant losses for the Group. Our results may also be adversely affected by factors specific to the countries where we operate. In Spain, political, regulatory, and economic uncertainty may have a negative impact on activity. In Mexico, there is considerable uncertainty 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). 8 In Turkey, despite the gradual recent improvement, macroeconomic conditions remain 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 trigger new episodes of financial volatility and macroeconomic risks. Moreover, uncertainty remains over the impact on Turkey of the geopolitical situation in the Middle East. These factors could lead to a deterioration in the purchasing power and creditworthiness of the Group’s customers. In addition, official interest rates, regulatory and macroprudential policies affecting the banking sector, hyperinflation and currency depreciation in Turkey have impacted and may continue to impact the Group’s results. 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 improved prospects for the economy 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 adversely on economic performance. Given the significance of the Group’s exposure to each of Spain, Mexico and Turkey, any adverse change affecting political, economic and social conditions in any of such countries could have a material adverse effect on the Group’s business, financial condition and results of operations. Any of these factors may have a material adverse effect on the Group’s business, financial condition and results of operations. Political, economic and social conditions in any of Spain, Mexico and Turkey may have a material adverse effect on our business, financial condition and results of operations The Group has historically carried out its lending activity mainly in Spain, which continues to be its primary business area. In addition, the Group is significantly exposed to Mexico and Turkey. As of December 31, 2025, total risk in financial assets in Spain, Mexico and Turkey (in each case calculated as set forth in Appendix IX (Additional information on risk concentration) of the Consolidated Financial Statements) amounted to €252,299 million, €163,059 million and €68,309 million, respectively, equivalent to 32.5%, 21.0% and 8.8%, respectively, of the Group’s total risk in financial assets. The Group’s gross exposure to loans and advances to customers in Spain, Mexico and Turkey totaled €261,536 million, €100,699 million and €55,756 million, respectively, as of December 31, 2025, representing 55.3%, 21.3% and 11.8%, respectively, of the Group’s total amount of loans and advances to customers. Given the significance of the Group’s exposure to each of Spain, Mexico and Turkey, any adverse change affecting political, economic and social conditions in any such country could have a material adverse effect on the Group’s business, financial condition and results of operations. BUSINESS RISKS The Group’s business is subject to inherent risks concerning counterparties’ credit quality and the value of collateral The total maximum credit risk exposure of the Group (calculated as set forth in Note 7.2.2 to the Consolidated Financial Statements) as of December 31, 2025 was €1,104,820 million (€972,990 million and €904,889 million as of December 31, 2024 and 2023, respectively). The Group has exposures to many different products and counterparties, and the credit quality of its exposures can have a significant effect on the Group’s earnings. Adverse changes in the credit quality of the Group’s counterparties (including borrowers), or any adverse changes in the value of collateral they may have provided, may reduce the value of the Group’s assets, and materially increase the Group’s write-downs and loss allowances. Credit risk can be affected by a range of factors, including an adverse economic environment, a decrease in consumption or corporate or government spending, changes in the credit sovereign rating or in the rating of individual contractual counterparties, their debt levels and the environment in which they operate, increased unemployment, higher commodity prices (especially of energy commodities), reduced asset values (including as a result of natural disasters), increased retail or corporate insolvency levels, litigation and legal and regulatory developments. Credit risk may also be significantly affected by changes in interest rates (as well as the timing, magnitude and pace of these changes). While interest rates have decreased in certain countries, they remain relatively high, and the persistence of relatively high interest rates or any increase in interest rates in the future may lead to a deterioration of the Group’s non-performing loan (“NPL”) ratio and an increase in the Group’s risk-weighted assets (“RWAs”). See “—The Group’s business is particularly vulnerable to interest rates”. The impact of an increase in default rates on the Group will depend on its magnitude, timing and pace, and could be significant. Furthermore, it is possible that the Group has incorrectly assessed the creditworthiness or willingness to pay of its counterparties, that it has underestimated the credit risks and potential losses inherent in its credit exposure, that it has made insufficient provisions for such risks in a timely manner and that it has overestimated the extent to which it may be able to recover certain debts, including aged non-performing loans. 9 The processes involved in making such assessments, which have a crucial impact on the Group’s results and financial condition, require difficult, subjective and complex calculations, including forecasts of the impact that macroeconomic conditions could have on these counterparties. In particular, the Group’s estimates of losses derived from its exposure to credit risk may prove to be inadequate or insufficient in the current environment of economic uncertainty, which could affect the adequacy of the provisions for insolvencies provided by the Group. An increase in non-performing or low-quality loans could significantly and adversely affect the Group’s business, financial condition and results of operations. Furthermore, a deterioration of economic conditions typically results in a decrease in the price of real estate assets. The Group remains significantly exposed to the real estate market, mainly in Spain and, to a lesser extent, Mexico, due to the fact that many of its loans are secured by real estate assets and due to the significant volume of real estate assets that it maintains on its balance sheet. A fall in the price of real estate assets in a particular region would reduce the value of any real estate securing loans granted by the Group in such region and, therefore, in the event of default, the amount of the expected losses related to such loans would increase. Further, a fall in real estate prices could have a material adverse effect on the default rates of the Group’s residential mortgage and real estate developer credit portfolios. The balance of the Group’s residential mortgage portfolio at a global level was €99,668 million as of December 31, 2025 (€94,577 million and €93,358 million as of December 31, 2024 and 2023, respectively), 69.8% of which related to Spain as of December 31, 2025. Further, the Group’s corporate credit portfolios include real estate developers and constructors. As of December 31, 2025, the Group’s exposure to the construction and real estate sectors (excluding the mortgage portfolio) in Spain was equivalent to €10,602 million, of which €2,314 million corresponded to loans for construction and development activities in Spain (representing 1.2% of the Group’s loans and advances to customers in Spain (excluding the public sector) and 0.3% of the Group’s consolidated assets as of December 31, 2025). The total real estate exposure (excluding the mortgage portfolio), including developer credit and foreclosed assets had a coverage ratio of 18.4% in Spain as of December 31, 2025. Any decrease in the value of collateral will adversely affect our potential losses upon an event of default. In addition, the Group is directly and directly exposed to the private equity and private credit sectors. Private market funds, to which the Group provides credit, are playing an increasingly important role in financial intermediation. While the Group monitors its exposure to private market funds, it remains at risk both from direct exposure and contagion and systemic risk, which could materially increase its write-downs and allowances for impairment losses. The Group’s business is particularly vulnerable to interest rates The Group’s results of operations are substantially dependent upon the level of its net interest income, which is the difference between interest income from interest-earning assets and interest expense on interest-bearing liabilities. Changes in market interest rates often affect the Group’s interest-earning assets differently from the Group’s interest-bearing liabilities. This, in turn, may lead to a reduction in the Group’s net interest margin, which could have a material adverse effect on its results. Moreover, changes in interest rates may affect the Group’s credit risk exposure (see “—The Group’s business is subject to inherent risks concerning counterparties’ credit quality and the value of collateral, particularly in Spain, that strengthens its lending portfolio”). Interest rates are highly sensitive to many factors beyond the Group’s control, including fiscal and monetary policies of governments and central banks, regulation of the financial sector, domestic and international economic and political conditions and other factors. The Group’s results of operations have been positively affected by the increases in interest rates adopted by central banks in recent years in an attempt to tame inflation, contributing to a rise in net interest income that exceeded the corresponding rise in funding costs. Interest rates have begun to decline in most of the regions in which BBVA is present (including the Eurozone and the United States) driven by the central banks’ monetary policies in response to easing inflationary pressures. However, interest rates remain relatively high compared to prior years. The continued prevalence of relatively high interest rates or any increase in interest rates in the future could adversely affect the Group by reducing the demand for credit, limiting its ability to generate credit for its clients and/or increasing the default rate of its counterparties (including borrowers). In particular, the repayment capacity of loans tied to variable interest rates is more sensitive to changes in interest rates. As of December 31, 2025, 2024 and 2023, 45.0%, 45.6% and 47.7%, respectively, of the Group’s gross exposure to loans and advances to customers with maturity greater than one year had floating-interest rates. Changes in interest rate policies may be implemented at a different pace across regions and it is possible that such policies could be accelerated or reversed based on various factors, such as inflation, economic growth or financial stability concerns among other considerations. As a result of the foregoing, the evolution of interest rates could have a material adverse effect on the Group’s business, financial condition and results of operations. 10 The Group faces increasing competition and is exposed to a changing business model The markets in which the Group operates are highly competitive and it is expected that this trend will continue in the coming years with the increasing entry of non-bank competitors (some of which have large client portfolios and strong brand recognition) and the emergence of new business models (for example, neobanks, a new generation of financial institutions that operate exclusively online, without physical branch networks). In recent years, the financial services sector has undergone a significant transformation driven by the development of mobile technologies, data-driven innovation, and the entry of new players into activities previously controlled by financial institutions. Although the Group is making efforts to adapt to these changes through its digital transformation, its competitive position is also affected by some regulatory asymmetries that benefit non-bank operators. For example, banking groups are subject to prudential regulations that have implications for most of their businesses, including those in which they compete with non-bank operators (such as FinTechs or BigTechs) that are subject only to regulations specific to the activity they develop or that benefit from loopholes in the regulatory environment. For instance, when banking entities such as the Group carry out financial activities through the use of new technologies, they are generally subject to additional regulations that place them at a competitive disadvantage. Moreover, the widespread adoption of new technologies, including artificial intelligence, cloud computing, big data analysis, crypto currencies and alternative payment systems that do not use the banking system, could erode the Group’s business or require the Group to make substantial investments to modify or adapt existing products and services, including its mobile and internet banking capabilities. Likewise, the increasing use of these new technologies and mobile banking platforms could have an adverse impact on the Group’s investments in facilities, equipment and employees. A faster pace of transformation towards mobile and online banking models could require changes in the Group’s commercial banking strategy, including the closure or sale of certain branches and the restructuring of others, and a significant reduction in headcount. These changes could result in sizable expenses as the Group reconfigures and transforms its commercial network. In addition, the trend towards the consolidation in the banking industry has created larger banks with which the Group must compete. Any failure by the Group to adapt to its competitive environment or failure to implement any necessary changes to its business model efficiently or on a timely basis could have a material adverse impact on the Group’s competitive position or otherwise have a material adverse effect on the Group’s business, financial condition and results of operations. The future success of the Group depends, in part, on its ability to use technology to provide suitable products and services for customers and adequately manage information technology obsolescence. While the Group has focused on developing its technological capabilities in recent years and is committed to digitization, its ability to capture the benefits of emerging technologies and otherwise compete successfully is likely to be adversely affected by, on the one hand, the existing uneven playing field between banks and non-bank players, and on the other hand, the increasing relevance of access to digital data and interactions for customer relationship management, which places digital platforms at an advantage. Digital platforms (such as those maintained by large technology or social media companies, and FinTechs) increasingly dominate access to data and control over digital interactions, and are already eroding the Group’s results in highly relevant markets such as payments. These platforms can leverage their advantage in access to data to compete with the Group in other markets and could reduce the Group’s operations and margins in its core businesses such as lending or wealth management. Some of the Group’s competitors have created alliances with BigTechs that may affect the Group’s ability to compete successfully and could adversely affect the Group. In the event that the Group is not successful in addressing increasing competition, its business, financial condition and results of operations could be materially and adversely affected. The Group faces risks derived from its international geographic diversification and its significant presence in emerging countries, which exposes it to heightened political risks The Group is made up of commercial banks, insurance companies and other financial services companies in various countries and its performance as a global business depends on its ability to manage its different businesses under various economic, social and political conditions, as well as different legal and regulatory requirements (including, among others, different supervisory regimes and different tax and legal regimes related to the repatriation of funds or the nationalization or expropriation of assets). In addition, the Group’s international operations may be exposed to risks and challenges to which its local competitors may not be exposed, such as currency risk, the difficulty of managing or supervising a local entity from abroad, political risks (which could affect only foreign investors) or limitations on the distribution or repatriation of dividends, thus worsening its position compared to that of local competitors. There can be no guarantee that the Group will be successful in developing and implementing policies and strategies in all of the countries in which it operates, some of which have experienced significant economic, political and social volatility in recent decades. In particular, the Group has a significant presence in several emerging countries, particularly in Mexico and in Turkey (see “—Political, economic and social conditions in any of Spain, Mexico and Turkey may have a material adverse effect on our business, financial condition and results of operations”), and is therefore vulnerable to any deterioration in economic, social or political conditions in these countries. 11 Further, the Group has significant operations in South America. Generally, emerging economies face higher anti-money laundering and other compliance risks as a result of greater political instability, higher levels of corruption, weaker governance structures and fewer financial and technical resources dedicated to enforcement. Further, emerging markets are generally affected by the conditions of other related markets and by the evolution of global financial markets in general (they may be affected, for example, by the evolution of GDP and interest rates in the United States and the exchange rate of the U.S. dollar), as well as by fluctuations in the prices of commodities. The risks associated with investing in emerging economies, in general, or in emerging markets where the Group operates, in particular, could trigger capital outflows from those economies and adversely affect such economies and therefore the Group. Moreover, emerging countries are more prone to experiencing significant changes in inflation and volatility in exchange rates, which may have a material impact on the Group’s results of operations, assets (including RWAs) and liabilities. In Turkey, for example, inflation was 30.9% for the year ended December 31, 2025 (according to the Turkish Statistical Institute, TUIK) and the Turkish lira depreciated 27.2% against the euro as of December 31, 2025 compared to December 31, 2024. The Group’s operations in emerging countries are also exposed to heightened political risks, such as changes in governmental policies, expropriation, nationalization, interest rate limits, exchange controls, capital controls, government restrictions on dividends or bank fees and adverse tax policies. For example, the repatriation of dividends from BBVA’s Venezuelan, Argentinian and Turkish subsidiaries is subject to certain restrictions and there is no assurance that these restrictions will be lifted in the future, or that further restrictions will not be imposed. Since BBVA’s ability to pay dividends depends, in part, on the receipt of dividends from its subsidiaries, such restrictions may affect, in turn, BBVA’s ability to pay dividends. ESG risks (see “—Environmental, social and governance (ESG) risks may adversely impact the Group”) may also be higher in the emerging markets where the Group operates as a result of, among other things, more limited resources and capital for ESG investment, lack of comprehensive and reliable data on ESG practices, resource dependency that may lead to unsustainable practices that are at odds with ESG initiatives and underdeveloped or inconsistently enforced regulatory frameworks. If the Group failed to adopt effective and timely policies and strategies in response to the risks and challenges it faces in each of the regions where it operates, particularly in emerging countries, the Group’s business, financial condition and results of operations could be materially and adversely affected. 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, 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. 12 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 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. The outbreak and spread of a pandemic and other large-scale public health events could have a material adverse effect on the Group’s business, financial condition and results of operations 13 Economic conditions in the countries in which the Group operates may be adversely affected by an outbreak of a contagious disease, which develops into a regional or global pandemic and other large scale public health events. The outbreak of a pandemic or another large-scale public health event may have an adverse material impact on our business, financial condition and results of operations, including as a result of the exacerbation of any of the other risks described in this section. Furthermore, the measures that may be taken by governments, regulators and businesses to respond to any such pandemic or event may lead to slower or negative economic growth, supply disruptions, inflationary pressures and significant increases in public debt, and may also adversely affect the Group’s counterparties (including borrowers), which may lead to increased loan losses. Such measures could also impact the business and operations of third parties that provide critical services to the Group, which may have an adverse material impact on our business, financial condition and results of operations. The Group faces risks related to its acquisitions and divestitures activity The Group has acquired and sold several companies, assets and/or businesses over the past few years, and may acquire or sell additional companies, assets and/or businesses in the future. The Group may not complete any ongoing or future transactions in a timely manner, on a cost-effective basis or at all and, if completed, they may not have the expected results. If any acquisitions or divestitures are completed, the Group’s results of operations could be adversely affected by such acquisition or divestiture-related charges and contingencies. The Group may be subject to litigation in connection with, or as a result of, acquisitions or divestitures, including claims from terminated employees, customers or third parties. In the case of an acquisition, the Group may be liable for potential or existing litigation and claims related to an acquired business, including because either the Group is not indemnified for such claims, or the indemnification is insufficient. Further, in the case of a divestiture, the Group may be required to indemnify the buyer in respect of similar or other matters, including claims against the divested entity or business. In the case of an acquisition, even though the Group reviews the companies it plans to acquire, it is often not possible for these reviews to be complete in all respects and there may be risks associated with unforeseen events or liabilities relating to the acquired companies, assets or businesses that may not have been revealed or properly assessed during the due diligence processes, resulting in the Group assuming unforeseen liabilities or an acquisition not performing as expected. In addition, acquisitions are inherently risky because of the difficulties that may arise in integrating people, operations and technologies. There can be no assurance that any of the companies, assets or businesses the Group acquires can be successfully integrated or that they will perform well once integrated. Furthermore, completion of any acquisition may constitute a breach or default under agreements or instruments of the company that is being acquired, or otherwise result in the acceleration of obligations (including, without limitation, payment obligations) or changes to rights thereunder or the termination thereof. In addition, BBVA may not be able to anticipate all losses, costs and other liabilities that may be incurred in connection with a transaction that is completed or may fail to accurately analyze or estimate the consequences of completing such a transaction, either of which could have an adverse effect on the Group’s business, financial condition and results of operations after completion of the transaction. Acquisitions may also lead to potential write-downs that adversely affect the Group’s results of operations. If an announced transaction is not completed, the market prices of BBVA’s securities may decline or otherwise be subject to fluctuations to the extent the market prices of BBVA’s securities reflect a market assumption that such a transaction would be completed. In addition, the failure to complete a transaction may result in negative publicity or otherwise adversely affect BBVA’s reputation in the investment community and BBVA’s relationship with its employees, clients and other partners in the business community. Following completion of a transaction, BBVA may be exposed to other risk factors specific to the company, asset or business being acquired or otherwise arising from such transaction. Furthermore, completion of a transaction may adversely affect the capital, leverage, liquidity, MREL (as defined below) or resolution profile of BBVA or the Group. Relevant regulators could also impose additional capital, leverage, liquidity, MREL or resolution requirements on the Group as a result of a transaction, which might require the Group to issue additional capital instruments or MREL and/or incur additional costs. Any of the foregoing may cause the Group to incur significant unexpected expenses, may divert significant resources and management attention from the Group’s other business concerns, or may otherwise have a material adverse effect on the Group’s business, financial condition and results of operations. FINANCIAL RISKS The Group has a continuous demand for liquidity to finance its activities and the withdrawal of deposits or other sources of liquidity could significantly affect it 14 Traditionally, one of the Group’s main sources of financing has been savings accounts and demand deposits. As of December 31, 2025, the balance of customer deposits represented 76.3% of the Group’s total financial liabilities at amortized cost. However, the volume of wholesale and retail deposits can fluctuate significantly, including as a result of factors beyond the Group’s control, such as general economic conditions, changes in economic policy or administrative decisions that diminish their attractiveness as savings instruments (for example, as a consequence of changes in taxation, coverage by guarantee funds for deposits or expropriations) or competition from other savings or investment instruments (including deposits from other banks). In the last years, competition for deposits has increased in various of the regions where the Group operates as interest rates have increased and competitors (including neobanks) have offered remuneration on customer deposits. The vast majority of the Group’s deposits are demand deposits, which may be freely withdrawn by depositors at any time. The methods for withdrawing or transferring deposits, and the speed with which such transactions may be realized, continue to increase, which could affect the stickiness of the Group’s deposit base. Changes in interest rates and credit spreads may significantly affect the cost of the Group’s short- and long-term wholesale financing. Changes in credit spreads are driven by market factors and are also influenced by the market’s perception of the Group’s solvency. As of December 31, 2025, debt securities issued by the Group represented 12.4% of the total financial liabilities at amortized cost of the Group. In addition, while the Group’s current use of public sources of liquidity is limited, the Group has historically made significant use of public sources of liquidity, such as the ECB’s extraordinary measures taken in response to the financial crisis since 2008 or those taken in connection with the crisis caused by the COVID-19 pandemic. In the event of a withdrawal of deposits or other sources of liquidity, especially if it is sudden or unexpected, the Group may not be able to finance its financial obligations or meet the minimum liquidity requirements that apply to it, and may be forced to incur higher financial costs, liquidate assets and take additional measures to reduce leverage. Furthermore, the Group could be subject to the adoption of early intervention measures or, ultimately, to the adoption of a resolution measure by the Relevant Spanish Resolution Authority (see “Item 4. Information on the Company—Business Overview—Supervision and Regulation—Capital Requirements, MREL and Resolution”). Any of the above could have a material adverse effect on the Group’s business, financial condition and results of operations. The Group depends on its credit ratings and sovereign credit ratings, especially Spain’s and Mexico’s credit ratings Rating agencies periodically review the Group’s debt credit ratings. Any reduction, effective or anticipated, in any such ratings of the Group, whether below investment grade or otherwise, could limit or impair the Group’s access to capital markets and other possible sources of liquidity and increase the Group’s financing cost, and entail the breach or early termination of certain contracts or give rise to additional obligations under those contracts, such as the need to grant additional guarantees. Furthermore, if the Group were required to cancel its derivative contracts with some of its counterparties and were unable to replace them, its market risk would worsen. Likewise, a reduction in the credit rating could affect the Group’s ability to sell or market some of its products or to participate in certain transactions, and could lead to the loss of customer deposits and make third parties less willing to carry out commercial transactions with the Group (especially those that require a minimum credit rating), having a material adverse effect on the Group’s business, financial condition and results of operations. Furthermore, the Group’s credit ratings could be affected by variations in sovereign credit ratings, particularly the rating of Spanish and Mexican sovereign debt. The Group holds a significant portfolio of debt issued by Spain, Spanish autonomous communities, Mexico and other Spanish and Mexican issuers. As of December 31, 2025 and 2024, the Group’s exposure (per European Banking Authority (“EBA”) criteria) to Spain’s public debt portfolio was €58,760 million and €51,833 million, respectively, representing 6.8% and 6.7% of the consolidated total assets of the Group, respectively. As of December 31, 2025 and 2024, the Group’s exposure (per EBA criteria) to Mexico’s public debt portfolio was €31,025 million and €31,681 million, respectively, representing 3.6% and 4.1% of the consolidated total assets of the Group, respectively. Any decrease in the credit rating of Spain or Mexico could adversely affect the valuation of the respective debt portfolios held by the Group and lead to a reduction in the Group’s credit ratings. Additionally, counterparties to many of the credit agreements signed with the Group could also be affected by a decrease in the credit rating of these countries, which could limit their ability to attract additional resources or otherwise affect their ability to pay their outstanding obligations to the Group. It is possible that current or future economic and geopolitical conditions or other factors could lead to ratings actions and changes to BBVA’s credit ratings, any of which could have a material adverse effect on the Group’s business, financial condition and results of operations. The trading market for securities issued by BBVA depends in part on the research reports of third-party securities analysts 15 The trading market for securities issued by BBVA depends in part on the research reports that third-party securities analysts publish about BBVA and the industry and the countries in which it operates. The publication by one or more of these analysts of a negative recommendation or unfavorable outlook with respect to BBVA or the industry and countries in which it operates could cause the trading price of any such securities to decline. The Group’s earnings and financial condition have been, and its future earnings and financial condition may continue to be, materially affected by asset impairment Regulatory, business, economic or political changes and other factors could lead to asset impairment. In recent years, severe market events such as the past sovereign debt crisis, rising risk premiums and falls in share market prices, have resulted in the Group recording large write-downs on its credit market exposures. Doubts regarding the asset quality of European banks have also affected their evolution in the market in recent years. Several ongoing factors could depress the valuation of the Group’s assets or otherwise lead to the impairment of such assets (including goodwill and deferred tax assets). These include a deteriorating macroeconomic and geopolitical environment, including the risk of a sharp global growth slowdown. Any asset impairments resulting from these or other factors could have a material adverse effect on the Group’s business, financial condition and results of operations. The Group has a substantial amount of commitments with personnel considered wholly unfunded due to the absence of qualifying plan assets The Group faces liquidity risk in connection with its ability to make payments on its unfunded commitments with personnel (which are recognized under the heading “Provisions—Provisions for pensions and similar obligations” in the Group’s consolidated balance sheet), which it seeks to mitigate, with respect to post-employment benefits, by maintaining insurance contracts which were contracted with insurance companies owned by the Group. The insurance companies have recorded in their balance sheets specific assets (fixed interest deposit and bonds) assigned to the funding of these commitments. The Group’s Assets and Liabilities Committee (“ALCO”) and the insurance companies also manage derivatives (primarily swaps) to mitigate the interest rate risk in connection with the payments of these commitments. The Group seeks to mitigate liquidity risk with respect to early retirements and post-employment welfare benefits through oversight by the ALCO of the Group. The Group’s ALCO manages a specific asset portfolio to mitigate the liquidity risk resulting from the payments of these commitments. These assets are government and covered bonds which are issued at fixed interest rates with maturities matching the aforementioned commitments. Should BBVA fail to adequately manage liquidity risk and interest rate risk either as described above or otherwise, it could have a material adverse effect on the Group’s business, financial condition and results of operations. LEGAL RISKS The Group is party to a number of legal and regulatory actions and proceedings The financial sector faces an environment of increasing regulatory and litigation pressure. The Group is party to government procedures and investigations, such as those carried out by the antitrust authorities 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. The various Group entities are also frequently party to individual or collective judicial proceedings (including class actions) resulting from their activity and operations, as well as arbitration proceedings. For example, in April 2017, the Mexican Federal Economic Competition Commission (Comisión Federal de Competencia Económica) launched an antitrust investigation relating to alleged monopolistic practices of certain financial institutions, including BBVA’s subsidiary BBVA Mexico, in connection with transactions in Mexican government bonds. This investigation concluded with the Commission imposing fines on all financial institutions involved, including a fine insignificant in amount imposed on BBVA Mexico, which BBVA Mexico has challenged. In March 2018, BBVA Mexico and certain other affiliates of the Group were named as defendants in a putative class action lawsuit filed in the United States District Court for the Southern District of New York, alleging that the defendant banks and their named subsidiaries engaged in collusion with respect to the purchase and sale of Mexican government bonds. In December 2019, following a decision from the judge assigned to hear the proceedings, the plaintiffs withdrew their claims against BBVA Mexico’s affiliates. In November 2020, the judge granted the remaining defendants’ motion to dismiss for lack of personal jurisdiction. The plaintiffs filed a motion for reconsideration of that decision in May 2021, which the judge denied in March 2022. Final judgment dismissing the plaintiffs’ claims was entered in August 2022. In September 2022 the plaintiffs appealed the district court’s decisions to the United States Court of Appeals for the Second Circuit. 16 On February 9, 2024, the United States Court of Appeals for the Second Circuit vacated the district court’s decisions, and in June 2024, the plaintiffs filed an amended complaint in the United States District Court for the Southern District of New York. In July 2024, the defendants moved to dismiss the amended complaint. On January 15, 2025, the judge denied the defendants’ motion to dismiss. The case is ongoing. More generally, in recent years, regulators have increased their supervisory focus on consumer protection and corporate behavior, which has resulted in an increased number of regulatory actions. In Spain and in other jurisdictions where the Group operates, legal and regulatory actions and proceedings against financial institutions, prompted in part by certain national and supranational rulings in favor of consumers (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. See “Item 4. Information on the Company—Business Overview—Supervision and Regulation—Principal Markets” for information on certain additional legal and regulatory actions and initiatives. 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. All of the above may result in a significant increase in operating and compliance costs and/or a reduction in revenues, and it is possible that an adverse outcome in any proceedings (depending on the amount thereof, the penalties imposed or the resulting procedural or management costs for the Group) could materially and adversely affect the Group, including by damaging its reputation. 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 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 draw resources away from the Group and may require significant attention on the part of the Group’s management and employees. As of December 31, 2025, the Group had €805 million in provisions for the proceedings it is facing. See Note 24 to the Consolidated Financial Statements. 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, because it is not possible to estimate such provisions 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. 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. The Spanish judicial authorities are carrying out a criminal investigation relating to possible bribery and revelation of secrets by BBVA 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 BBVA and certain current and former employees of BBVA, 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. REGULATORY, TAX, COMPLIANCE AND REPORTING RISKS 17 The financial services sector is one of the most regulated sectors in the world. The Group is subject to a broad regulatory and supervisory framework, which has increased significantly in the last decade. 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; conduct with clients; the protection of personal data; antitrust; 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. Furthermore, the international nature of the Group’s operations means that the Group is subject to a wide and complex range of local and international regulations in these matters, sometimes with overlapping scopes and areas regulated. This complexity, which can be exacerbated by differences and changes in the interpretation or application of these standards by local authorities, makes compliance risk management difficult and costly, requiring highly sophisticated monitoring, qualified personnel and general training and awareness of employees. 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, damage to the Group’s reputation, 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 Group is subject to a comprehensive regulatory and supervisory framework, including resolution regulations, which could have a material adverse effect on its business, financial condition and results of operations The Group is subject to a comprehensive regulatory and supervisory framework, the complexity and scope of which has increased significantly following the 2008 financial crisis and the crisis caused by the COVID-19 pandemic. In particular, the banking sector is subject to continuous scrutiny at the political level and by the supervisory bodies, and it is foreseeable that in the future there will continue to be political intervention in regulatory and supervisory processes, as well as in the governance of the main financial entities. For these reasons, the laws, regulations and policies to which the Group is subject, as well as their interpretation and application, may change at any time. In addition, supervisors and regulators have significant discretion in carrying out their duties, which gives rise to uncertainty regarding the interpretation and implementation of the regulatory framework. Moreover, regulatory fragmentation and the implementation by some countries of more flexible or stricter rules or regulations could also negatively affect the Group’s ability to compete with financial institutions that may or may not have to comply with any such rules or regulations, as applicable. Regulatory changes over the last decade, as well as those currently being proposed (including changes in the interpretation or application of existing regulations), have increased and may continue to substantially increase the Group’s operating expenses and adversely affect its business model. For example, the imposition of prudential capital standards has limited and is expected to continue to limit the ability of subsidiaries to distribute capital to the Group, while liquidity standards may lead the Group to hold a higher proportion of financial instruments with higher liquidity and lower performance, which can adversely affect its net interest margin. The Group’s regulatory and supervisory authorities may also require the Group to increase its loan loss allowances and record asset impairments, which could have an adverse effect on its financial condition. Any legislative or regulatory measure, any necessary change in the Group’s business operations as a consequence of such measures, as well as any failure to comply with them, could result in a significant loss of income or reputation, represent a limitation on the ability of the Group to take advantage of business opportunities and offer certain products and services, affect the value of the Group’s assets, force the Group to increase prices (which could reduce the demand for its products), impose additional compliance costs or result in other possible adverse effects for the Group. One of the most significant regulatory changes resulting from the 2008 financial crisis was the introduction of resolution regulations (see “Item 4. Information on the Company—Business Overview—Supervision and Regulation—Capital Requirements, MREL and Resolution”). In the event that the Relevant Spanish Resolution Authority (as defined herein) considers that the Group is in a situation where conditions for early intervention or resolution are met, it may adopt the measures provided for in the applicable resolution regulations, including without prior notice. Such measures could include, among others, the write down and/or conversion into equity (or other securities or obligations) of the Group’s unsecured debt. Likewise, the Relevant Spanish Resolution Authority may apply Non-Viability Loss Absorption (as defined herein) in the event that it determines that the entity meets the conditions for its resolution or that it will no longer be viable unless capital instruments are written down or converted into equity or extraordinary public support is provided. 18 Any such determination, or the mere possibility that such determination could be made, could materially and adversely affect the Group’s business, financial condition and results of operations, as well as the market price and behavior of certain securities issued by the Group or their terms, if amended following any exercise of the Spanish Bail-in Power (as defined herein)). Increasingly onerous capital and liquidity requirements may have a material adverse effect on the Group’s business, financial condition and results of operations The Group is subject to various minimum capital, liquidity and funding requirements, among others. For example, in its capacity as a Spanish credit institution, the Group is subject to compliance with a “Pillar 1” solvency requirement, a “Pillar 2” solvency requirement and a “combined buffer requirement”, at both the individual and consolidated levels. For additional information on such requirements, see “Item 4. Information on the Company—Business Overview—Supervision and Regulation—Capital Requirements, MREL and Resolution” and, with respect to the Group’s requirements in particular, “Item 5. Operating and Financial Review and Prospects—Liquidity and Capital Resources—Capital” and Note 32.1 to the Consolidated Financial Statements. While the Group believes it meets its current requirements (as applicable to BBVA and the Group as a whole, respectively), the capital requirements, the minimum requirement for own funds and eligible liabilities (“MREL”) and the calculation of the own funds and the eligible liabilities available for MREL purposes are subject to interpretation and change and, therefore, no assurance can be given that the Group’s interpretation is the appropriate one or that BBVA and/or the Group will not be subject to more stringent requirements at any future time. Likewise, no assurance can be given that BBVA and/or the Group will be able to fulfil whatever future requirements may be imposed, even if such requirements were to be equal or lower than those currently in force, or that BBVA and/or the Group will be able to comply with any capital target that may have been announced to the market. Any such failure could be adversely perceived by investors and/or supervisors who could interpret that a lack of capital-generating capacity for BBVA and/or the Group exists or that the capital structure has deteriorated, either of which could adversely affect the market value or behavior of securities issued by BBVA and/or the Group (in particular, any of its capital instruments and eligible liabilities). Further, BBVA and/or the Group may report amounts different from consensus estimates, which may also affect market perceptions of BBVA and the Group. If BBVA or the Group failed to comply with its “combined buffer requirement”, BBVA would have to calculate the Maximum Distributable Amount (“MDA”) and, until such calculation has been undertaken and reported to the Bank of Spain, BBVA would not be able to make any (i) distributions relating to CET1 capital; (ii) payments related to variable remuneration or discretionary pension benefits; and (iii) distributions linked to additional tier 1 (AT1) instruments (collectively, “discretionary payments”). Once the MDA has been calculated and reported, such discretionary payments would be limited to the calculated MDA. Likewise, should BBVA or the Group not meet the applicable combined buffer requirement, it could result in the imposition of additional requirements of “Pillar 2”. Regarding MREL, failure by BBVA to meet its respective “combined buffer requirement” for these purposes, taken together with its MREL requirements could result in the imposition of restrictions or prohibitions on discretionary payments (the MREL-MDA). Additionally, failure to comply with the capital requirements may result in the implementation of early intervention measures or, ultimately, resolution measures by the resolution authorities. For additional information on such requirements, see “Item 4. Information on the Company—Business Overview—Supervision and Regulation—Capital Requirements, MREL and Resolution”. Regulation (EU) No. 575/2013 of the European Parliament and of the Council of June 26, 2013 on the prudential requirements for credit institutions establishes a binding requirement for the leverage ratio effective from June 28, 2021 of 3.00% of Tier 1 capital (as of December 31, 2025 the phased-in and the fully loaded leverage ratios of the Group were 6.15%). Any failure to comply with this leverage ratio buffer may also result in the need to calculate and report the MDA, and restrictions on discretionary payments. Additionally, the implementation of the ECB expectations regarding prudential provisions for NPLs (published on May 15, 2018) and the ECB’s review of internal models being used by banks subject to its supervision for the calculation of their RWAs (“TRIM”), as well as complementary regulatory initiatives like the EBA’s roadmap to repair internal models used to calculate own funds requirements for credit risk under the Internal Ratings Based (IRB) approach, could result in the need to increase provisions for future NPLs and increases in the Group’s capital needs. Furthermore, the implementation of the Basel III reforms (informally referred to as Basel IV) described in “Item 4. Information on the Company—Business Overview—Supervision and Regulation—Capital Requirements, MREL and Resolution” (including changes to the calculation of the Group’s operational risk) could result in an increase of BBVA’s and the Group’s total RWAs and, therefore, could also result in a decrease of BBVA’s and the Group’s capital ratios. Likewise, the lack of uniformity in the implementation of the Basel III reforms across jurisdictions in terms of timing and applicable regulations could give rise to inequalities and competition distortions. Moreover, the lack of regulatory coordination, with some countries bringing forward the application of Basel III requirements or increasing such requirements, could adversely affect an entity with global operations such as the Group and could affect its profitability. 19 Additionally, should the Total Loss Absorbing Capacity (TLAC) requirements, currently only imposed upon financial institutions of global systemic importance (“G-SIBs”), be imposed on non-G-SIBs entities or should the Group once again be classified as a G-SIB, additional minimum requirements similar to MREL could in the future be imposed upon the Group. There can be no assurance that the capital or MREL requirements will not adversely affect BBVA’s or its subsidiaries’ ability to make discretionary payments, or result in the cancellation of such payments (in whole or in part), or require BBVA or such subsidiaries to issue additional securities that qualify as eligible liabilities or regulatory capital, to liquidate assets, to curtail business or to take any other actions, any of which may have adverse effects on the Group’s business, financial condition and results of operations. Furthermore, an increase in capital or MREL requirements could adversely affect the return on equity and other of the Group’s financial results indicators. Moreover, BBVA’s or the Group’s failure to comply with their capital or MREL requirements could have a material adverse effect on the Group’s business, financial condition and results of operations. Lastly, the Group must also comply with liquidity and funding ratios. Several elements of the liquidity coverage ratio (“LCR”) and net stable financing ratio (“NSFR”), as introduced by national banking regulators, have required implementing changes in some of the Group’s commercial practices, which have exposed the Group to additional expenses (including an increase in compliance expenses) and affected the profitability of its activities and could result in a material adverse effect on the Group’s business, financial condition and results of operations. For information on the Group’s requirements, see “Item 5. Operating and Financial Review and Prospects—Liquidity and Capital Resources”. The Group is exposed to tax risks that may adversely affect it The size, geographic diversity and complexity of the Group and its commercial and financial relationships with both third parties and related parties result in the need to consider, evaluate and interpret a considerable number of tax laws and regulations, as well as any relevant interpretative materials, which in turn involve the use of estimates, the interpretation of indeterminate legal concepts and the determination of appropriate valuations in order to comply with the tax obligations of the Group. In particular, the preparation of the Group’s tax returns and the process for establishing tax provisions involve the use of estimates and interpretations of tax laws and regulations, which are complex and subject to review by the tax authorities. Any error or discrepancy with tax authorities in any of the jurisdictions in which the Group operates may give rise to prolonged administrative or judicial proceedings that may have a material adverse effect on the Group’s results of operations. In addition, governments in different jurisdictions, including Spain, have sought to identify new funding sources, and they have recently focused on the financial sector, including in response to the demands of various political forces. The Group’s presence in various jurisdictions increases its exposure to regulatory and interpretative changes, which may include (i) increases in the tax rates to which the Group is subject, such as the introduction in Spain of a minimum effective tax rate for purposes of the Spanish Corporate Income Tax and the Non-Residents Income Tax introduced by Law 22/2021, of December 28, with effect as of January 1, 2022 (in particular, the minimum net tax liability for credit institutions is 18% of their tax base), and the introduction of a global minimum effective tax rate of corporate taxation (15%) for multinational enterprises and large-scale domestic groups in the EU introduced by the EU Council Directive 2022/2523 of December 14, 2022 that has already been transposed into Spanish law, or (ii) the creation of new taxes and/or levies, like the common financial transaction tax (“FTT”) in the proposed Tax Directive of the European Commission for the Financial Transactions Tax (which would tax the acquisitions of certain securities negotiated in markets where the Group operates) and the Spanish FTT which came into effect in Spain in January 2021. Further, in Spain, new taxes have been created that apply only to credit institutions. On December 19, 2024, the Spanish Congress passed Law 7/2024 which transposes the EU Council Directive 2022/2523, creating a new tax on the net interest income and commissions of certain credit institutions in Spain, including BBVA. The taxable base of this tax is the positive balance of the net interest income and the net commissions derived from the activity carried out in Spain, subject to an exemption of €100 million. The net taxable base cannot be negative, and the applicable tax rate varies from 1% to 7%. Certain reductions and deductions from the tax quota are provided for in the law. The new tax applies for the first three consecutive tax periods starting on or after January 1, 2024. For additional information, see “Item 4. Information on the Company—Business Overview—Supervision and Regulation—Principal Markets—Spain—Interest Margin and Commission Tax (IMIC)”. Increases in the tax burden of the Group could materially and adversely affect the Group’s business, financial condition and results of operations. The Group is exposed to compliance risks The Group, due to its role in the economy and the nature of its activities, is singularly exposed to certain compliance risks. In particular, the Group must comply with regulations regarding customer conduct, antitrust, market conduct, the prevention of money laundering and the financing of terrorist activities, the protection of personal data, the restrictions established by national or international sanctions programs and anti-corruption laws (including the U.S. Foreign Corrupt Practices Act of 1977 and the UK Bribery Act of 2010), the violations of which could lead to very significant penalties. 20 These anti-corruption laws generally prohibit providing anything of value to government officials for the purposes of obtaining or retaining business or securing any improper business advantage. As part of the Group’s business, the Group directly or indirectly, through third parties, deals with entities whose employees are considered to be government officials. Generally, all these regulations require banking entities to, among other measures, use due diligence measures to manage compliance risk. Sometimes, banking entities must apply enhanced due diligence measures due to the very nature of their activities (among others, private banking, money transfer and foreign currency exchange operations), as they may present a higher risk of money laundering or terrorist financing. Although the Group has adopted policies, procedures, systems and other measures to manage compliance risk, it is dependent on its employees and external suppliers for the implementation of these policies, procedures, systems and other measures, and it cannot guarantee that these are sufficient or that the employees (127,174 as of December 31, 2025) or other persons of the Group or its business partners, agents and/or other third parties with a business or professional relationship with the Group do not circumvent or violate regulations or the Group’s ethics and compliance regulations, acts for which such persons or the Group could be held ultimately responsible and/or that could damage the Group’s reputation. In particular, acts of misconduct by any employee, and particularly by senior management, could erode trust and confidence and damage the Group’s reputation among existing and potential clients and other stakeholders. Actual or alleged misconduct by Group entities in any number of activities or circumstances, including operations, employment-related offenses such as sexual harassment and discrimination, regulatory compliance, the use and protection of data and systems, and the satisfaction of client expectations, and actions taken by regulators or others in response to such misconduct, could lead to, among other things, sanctions, fines and reputational damage, any of which could have a material adverse effect on the Group’s business, financial condition and results of operations. Furthermore, the Group may not be able to prevent third parties outside the Group from using the banking network in order to launder money or carry out illegal or inappropriate activities. The inherent risk of money laundering has increased in recent years, due to the accelerated transformation of the financial services business model, including the digitalization of the customer relationship, increased complexity in clients (including clients’ legal structures), and the growing cross-border interconnection of operations and products. Further, financial crimes continually evolve and emerging technologies, such as cryptocurrencies and blockchain, could limit the Group’s ability to track the movement of funds. Additionally, in a context of adverse economic conditions and growing geopolitical tensions, it is possible that financial crime attempts will increase significantly. If there is a breach of the applicable regulations or the Group’s ethics and compliance regulations or if the competent authorities consider that the Group does not perform the necessary due diligence inherent to its activities, such authorities could impose limitations on the Group’s activities, the revocation of its authorizations and licenses, and economic penalties, in addition to having significant consequences for the Group’s reputation, which could have a material adverse effect on the Group’s business, financial condition and results of operations. Furthermore, the Group from time to time conducts investigations related to alleged violations of such regulations and the Group’s ethics and compliance regulations, and any such investigation or any related proceedings could be time consuming and costly, and its results difficult to predict. BBVA’s financial statements are based in part on assumptions and estimates which, if inaccurate, could cause material misstatement of the results of its operations and financial condition The preparation of financial statements in compliance with IFRS-IASB and EU-IFRS requires the use of estimates. It also requires management to exercise judgment in applying relevant accounting policies. The key areas involving a higher degree of judgment or complexity, or areas where assumptions are significant to the consolidated and individual financial statements, include the classification, measurement and impairment of financial assets, particularly where such assets do not have a readily available market price, the assumptions used to quantify certain provisions and for the actuarial calculation of post-employment benefit liabilities and commitments, the useful life and impairment losses of tangible and intangible assets, the valuation of goodwill and purchase price allocation of business combinations, the fair value of certain unlisted financial assets and liabilities, the recoverability of deferred tax assets and the exchange and inflation rates of certain countries where the Group operates. There is a risk that if the judgment exercised or the estimates or assumptions used subsequently turn out to be incorrect then this could result in significant loss to the Group beyond that anticipated or provided for, which could have a material adverse effect on the Group’s business, financial condition and results of operations. Observable market prices are not available for many of the financial assets and liabilities that the Group holds at fair value and a variety of techniques to estimate the fair value are used. Should the valuation of such financial assets or liabilities become observable, for example as a result of sales or trading in comparable assets or liabilities by third parties, this could result in a materially different valuation to the current carrying value in the Group’s financial statements. The further development of standards and interpretations under IFRS-IASB and EU-IFRS could also significantly affect the results of operations, financial condition and prospects of the Group. 21 OPERATIONAL RISKS Attacks, failures or deficiencies in the Group’s procedures, systems and security or those of third parties to which the Group is exposed could have a material adverse effect on the Group’s business, financial condition and results of operations, and could harm its reputation The Group’s activities depend to a large extent on its ability to process and report effectively and accurately on a high volume of highly complex transactions with numerous and diverse products and services, in different currencies and subject to different regulatory regimes. Therefore, it relies on information technology (“IT”) systems for data transmission, processing and storage. However, IT systems are vulnerable to various problems, such as hardware and software malfunctions, computer viruses, hacking, and physical damage to IT centers. BBVA’s exposure to these risks has increased significantly in recent years due to the Group’s implementation of its ambitious digital strategy. Currently, approximately 66% of new clients choose digital channels to start their relationship with BBVA. The Group suffers cybersecurity incidents and other attacks, failures or deficiencies in the Group’s procedures, systems and security from time to time. Such attacks, failures and deficiencies have from time to time in the past and may in the future lead to, among other things, the misappropriation of funds of the Group’s clients or the Group itself and the unauthorized disclosure, destruction or use of confidential information or personal data, 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, such attacks, failures or deficiencies have from time to time in the past and may in the future result in the loss of customers and business opportunities, damage to computers and systems, violation of regulations regarding data protection and/or other regulations, exposure to litigation, fines, sanctions or interventions, loss of confidence in the Group’s security measures, damage to its reputation, reimbursements and compensation, and additional regulatory compliance expenses and may have a material adverse effect on the Group’s business, financial condition and results of operations. Furthermore, it is possible that such attacks, failures or deficiencies will not be detected on time or ever. The Group is likely to be forced to spend significant additional resources to improve its security measures in the future. As cyber-attacks are becoming increasingly sophisticated and difficult to prevent (including as a result of the use of artificial intelligence), the Group may not be able to anticipate or prevent all possible vulnerabilities, nor implement preventive measures that are effective or sufficient. The prolific use of artificial intelligence technologies has increased the risk of unauthorized access to BBVA’s IT systems and client accounts and of unauthorized disclosure, destruction or use of confidential information or personal data. While there is potential for these technologies to support BBVA’s detection of and defense against unauthorized access attempts and accidental disclosures, malicious or negligent use of these technologies by employees or other third parties may increase these risks. For example, our employees or other third parties may input confidential information into a generative artificial intelligence system (in particular, a system that is managed, owned or controlled by a third party), thereby compromising our business operations or the integrity of BBVA’s proprietary information or client data. Any such incident of unauthorized access or disclosure could have a material adverse effect on the Group’s business, financial condition and results of operations, and could harm its reputation. The integrity of the Group’s communications and the security of its digital assets face an unprecedented structural challenge due to the advancement of quantum computing. The emergence of the so-called 'Q-Day'—the point at which a quantum computer becomes capable of breaking current public-key cryptography algorithms—represents a systemic risk to data confidentiality. The Group is exposed to the “Harvest Now, Decrypt Later” threat, wherein malicious actors intercept and store encrypted data with the intent of decrypting it once quantum technology matures. Furthermore, the emergence of quantum computing poses a significant risk regarding the potential breaking and forgery of digital signatures. Despite efforts to implement Quantum-Safe protocols and post-quantum cryptography (PQC) standards, the complexity of migrating legacy systems and the sheer speed of technological advancement could outpace the Group’s response capacity. Failure to ensure a timely transition to a quantum-resilient infrastructure could result in the vulnerability of sensitive historical information, compromising client trust and exposing the entity to significant legal and financial consequences. Customers and other third parties to which the Group is significantly exposed, including the Group’s service providers (such as providers of data processing or cloud computing services to which the Group has outsourced certain services), face similar risks. Any attack, failure or deficiency that may affect such third parties could, among other things, adversely affect the Group’s ability to carry out operations or provide services to its clients or result in the unauthorized disclosure, destruction or use of confidential information or personal data. Furthermore, the Group may not be aware of such attack, failure or deficiency in time, which could limit its ability to react. Moreover, as a result of the increasing consolidation, interdependence and complexity of financial institutions and technological systems, an attack, failure or deficiency that significantly degrades, eliminates or compromises the systems or data of one or more financial institutions could have a significant impact on its counterparts or other market participants, including the Group. Given the increasing consolidation among technology service providers, a systemic adverse event at a key third party could materially impact the Group’s operational continuity and its ability to provide core financial services in the markets where it operates, which could have a material adverse effect on the BBVA Group’s reputational standing or otherwise have a material adverse effect on the Group’s business, financial condition and results of operations. 22

A. History and Development of the Company BBVA’s predecessor bank, BBV (Banco Bilbao Vizcaya), was incorporated as a public limited company (a “sociedad anónima” or S.A.) under the Spanish Corporations Law on October 1, 1988. BBVA was formed following the merger of Argentaria into BBV (Banco Bilbao Vizcaya), which was approved by the shareholders of each entity on December 18, 1999 and registered on January 28, 2000. It conducts its business under the commercial name “BBVA”. BBVA is registered with the Commercial Registry of Vizcaya (Spain). It has its registered office at Plaza de San Nicolás 4, Bilbao, Spain, 48005, and operates out of Calle Azul, 4, 28050, Madrid, Spain (Telephone: +34-91-374-6201). BBVA’s agent in the U.S. for U.S. federal securities law purposes is Banco Bilbao Vizcaya Argentaria, S.A. New York Branch (Two Manhattan West 375 9th Avenue, 8th Floor, New York, New York 10001 (Telephone: +1-212-728-1660)). BBVA is incorporated for an unlimited term. Capital Expenditures Our principal investments are financial investments in our subsidiaries and affiliates. In 2025, 2024 and 2023, there were no significant capital expenditures. Capital Divestitures Our principal divestitures are divestitures in our subsidiaries and affiliates. In 2025, 2024 and 2023, there were no significant capital divestitures. Public Information The SEC maintains an Internet site (www.sec.gov) that contains reports and other information regarding issuers that file electronically with the SEC, including BBVA. See “Item 10. Additional Information—Documents on Display”. Additional information on the Group is also available on our website at https://shareholdersandinvestors.bbva.com. The information contained on such websites does not form part of this Annual Report. B. Business Overview The BBVA Group is a customer-centric global financial services group founded in 1857. Internationally diversified and with strengths in the traditional banking businesses of retail banking, asset management and wholesale banking, the Group is committed to offering a compelling digital proposition focused on customer experience. For this purpose, the Group is focused on increasingly offering products online and through mobile channels, improving the functionality of its digital offerings and refining the customer experience, contributing to the delivery of its strategy in a sustainable and inclusive way. BBVA places sustainability at the core of its strategy. Sustainability is impacting the banking business, affecting not only relations with customers but also internal processes. In 2025, the number of digital and mobile phone customers and the volume of online transactions continued to increase. Operating Segments As of December 31, 2025, the structure of the operating segments used by the BBVA Group for management purposes remained the same as in 2024. Set forth below are the Group’s current five operating segments: • Spain; • Mexico; • Turkey; • South America; and • Rest of Business. 23 In addition to the operating segments referred to above, the Group has a Corporate Center which includes those items that have not been allocated to an operating segment. It includes the Group’s general management functions, including costs from central units that have a corporate function; management of structural exchange rate positions carried out by the ALCO, including currency hedging; certain proprietary portfolios; certain tax assets and liabilities; certain provisions related to commitments with employees; and goodwill and other intangibles, as well as the financing of such asset portfolios. It also includes the results of the Group’s stake in the venture capital fund Propel Venture Partners. Following the publication of our consolidated financial statements as of and for the years ended December 31, 2024, 2023 and 2022 included in our annual report on Form 20-F for the year ended December 31, 2024, 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 segment information as of and for the years ended December 31, 2024 and 2023 comparable with the segment information as of and for the year ended December 31, 2025, segment information as of and for the years ended December 31, 2024 and 2023 has been revised in conformity with these intra-group adjustments. These intra-group adjustments had no impact at the consolidated level. The breakdown of the Group’s total assets by each of BBVA’s operating segments and the Corporate Center as of December 31, 2025, 2024 and 2023 was as follows: As of December 31, 2025 2024 2023 (In Millions of Euros) 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 Segment 894,931 803,404 823,294 Corporate Center and Adjustments (1) (35,355) (31,002) (47,736) Total Assets BBVA Group 859,576 772,402 775,558 (1)Includes balance sheet intra-group adjustments between the Corporate Center and the operating segments (see “Presentation of Financial Information—Changes in Intra-Group Adjustments” for information on such adjustments). The following table sets forth information relating to the profit (loss) attributable to parent company for each of BBVA’s operating segments and the Corporate Center for the years ended December 31, 2025, 2024 and 2023. Such information is presented under management criteria; however, for the years ended December 31, 2025, 2024 and 2023, there are no differences between the sum of the income statements of our operating segments and the Corporate Center (calculated in accordance with management criteria used to report segment financial information) and the consolidated income statement of the Group. For additional information on the profit (loss) attributable to parent company for each of BBVA’s operating segments and the Corporate Center, see “Item 5. Operating and Financial Review and Prospects—Operating Results—Results of Operations by Operating Segment”. Profit / (Loss) Attributable to Parent Company % of Profit / (Loss) Attributable to Parent Company (1) For the year ended December 31, 2025 2024 2023 2025 2024 2023 (In Millions of Euros) (In Percentage) Spain 4,175 3,752 2,690 36 34 28 Mexico 5,264 5,447 5,319 45 50 56 Turkey 805 611 527 7 6 6 South America 726 635 601 6 6 6 Rest of Business 627 511 403 5 5 4 Subtotal operating segments 11,597 10,956 9,541 100 100 100 Corporate Center (1,086) (901) (1,522) Profit attributable to parent company 10,511 10,054 8,019 (1) Based on subtotal from operating segments. 24 The following table sets forth certain summarized information relating to the income of each operating segment and the Corporate Center for the years ended December 31, 2025, 2024 and 2023. Such information is presented under management criteria; however, for the years ended December 31, 2025, 2024 and 2023, there are no differences between the sum of the income statements of our operating segments and the Corporate Center (calculated in accordance with management criteria used to report segment financial information) and the consolidated income statement of the Group. For additional information on the income of each of BBVA’s operating segments and the Corporate Center, see “Item 5. Operating and Financial Review and Prospects—Operating Results—Results of Operations by Operating Segment”. Operating Segments Spain Mexico Turkey South America Rest of Business Corporate Center Total (In Millions of Euros) December 2025 Net interest income / (expense) 6,588 11,424 3,079 4,830 828 (469) 26,280 Gross income 10,027 15,198 5,213 5,363 1,807 (678) 36,931 Operating profit / (loss) before tax 5,933 7,341 1,863 1,758 772 (1,440) 16,227 Profit / (loss) attributable to parent company 4,175 5,264 805 726 627 (1,086) 10,511 December 2024 Net interest income / (expense) 6,384 11,556 1,492 5,589 742 (495) 25,267 Gross income 9,443 15,337 4,212 5,405 1,472 (388) 35,481 Operating profit / (loss) before tax 5,263 7,522 1,741 1,342 648 (1,110) 15,405 Profit / (loss) attributable to parent company 3,752 5,447 611 635 511 (901) 10,054 December 2023 Net interest income / (expense) 5,570 11,054 1,869 4,394 539 (336) 23,089 Gross income 7,848 14,267 2,981 4,331 1,113 (999) 29,542 Operating profit / (loss) before tax 3,855 7,329 1,324 1,189 499 (1,777) 12,419 Profit / (loss) attributable to parent company 2,690 5,319 527 601 403 (1,522) 8,019 25 The following tables set forth summarized information relating to the balance sheet of the operating segments and the Corporate Center and adjustments as of December 31, 2025, 2024 and 2023: As of December 31, 2025 Spain Mexico Turkey South America Rest of Business Total Operating Segments Corporate Center and Adjustments (1) (In Millions of Euros) Total Assets 456,419 182,525 90,702 76,648 88,638 894,931 (35,355) Cash, cash balances at central banks and other demand deposits 19,928 10,417 9,061 8,075 11,564 59,045 (208) Financial assets at fair value (2) 119,919 59,528 5,010 10,499 2,032 196,988 (2,716) Financial assets at amortized cost 263,566 105,972 72,047 54,336 74,448 570,369 (1,477) Loans and advances to customers 192,958 97,259 53,745 51,151 66,502 461,616 (1,216) Of which: Residential mortgages 69,596 18,487 1,906 8,807 872 99,668 Consumer finance 17,596 15,331 7,900 10,297 815 51,940 Other households 5,857 2,242 2,929 900 238 12,166 Credit cards 2,797 11,098 11,033 3,800 26 28,755 Loans to enterprises 79,418 43,426 29,041 25,021 63,770 240,676 Loans to public sector 15,677 7,158 270 1,656 822 25,583 Total Liabilities 441,245 171,511 81,467 69,391 83,421 847,034 (49,256) Financial liabilities held for trading and designated at fair value through profit or loss 82,785 32,406 1,690 2,428 766 120,074 (9,740) Financial liabilities at amortized cost - Customer deposits 251,430 93,855 62,984 53,375 40,932 502,576 (75) Of which: Demand and savings deposits 198,559 77,148 31,340 32,945 20,888 360,881 Time deposits 39,887 16,669 31,194 20,430 20,044 128,224 Total Equity 15,174 11,014 9,235 7,257 5,217 47,897 13,901 Assets under management 119,535 69,533 26,290 8,289 736 224,383 Mutual funds 92,820 62,657 19,436 8,289 — 183,201 Pension funds 26,715 — 6,855 — 736 34,306 Other placements — 6,876 — — — 6,876 (1)Includes balance sheet intra-group adjustments between the Corporate Center and the operating segments (see “Presentation of Financial Information—Changes in Intra-Group Adjustments” for information on such adjustments). (2)Financial assets at fair value includes: “Financial assets held for trading”, “Non-trading financial assets mandatorily at fair value through profit or loss”, “Financial assets designated at fair value through profit or loss” and “Financial assets at fair value through other comprehensive income”. 26 As of December 31, 2024 Spain Mexico Turkey South America Rest of Business Total Operating Segments Corporate Center and Adjustments (1) (In Millions of Euros) Total Assets 411,620 168,470 82,782 73,997 66,534 803,404 (31,002) Cash, cash balances at central banks and other demand deposits 12,734 12,564 8,828 8,906 8,348 51,379 (234) Financial assets at fair value (2) 109,569 54,547 4,503 10,884 1,627 181,130 (1,798) Financial assets at amortized cost 237,279 94,595 64,893 49,983 56,013 502,763 (362) Loans and advances to customers 179,667 88,725 48,299 46,846 50,392 413,930 (1,453) Of which: Residential mortgages 67,975 16,280 1,636 8,011 679 94,580 Consumer finance 15,911 13,087 6,286 9,582 700 45,566 Other households 5,642 2,578 2,306 827 191 11,544 Credit cards 2,798 9,514 10,185 3,557 15 26,070 Loans to enterprises 71,877 40,745 27,605 23,041 48,155 211,423 Loans to public sector 12,516 6,840 225 1,645 654 21,879 Total Liabilities 396,475 156,743 74,537 66,907 61,501 756,163 (43,774) Financial liabilities held for trading and designated at fair value through profit or loss 75,143 30,885 1,943 2,060 642 110,674 (9,131) Financial liabilities at amortized cost - Customer deposits 226,391 84,949 58,095 50,738 27,432 447,605 41 Of which: Demand and savings deposits 192,770 70,091 26,482 31,172 11,295 331,810 Time deposits 27,153 13,871 30,961 19,566 16,137 107,687 Total Equity 15,145 11,727 8,245 7,090 5,033 47,242 12,772 Assets under management 108,694 57,253 18,076 7,936 645 192,604 Mutual funds 82,852 52,528 12,949 7,936 — 156,264 Pension funds 25,841 — 5,128 — 645 31,614 Other placements — 4,726 — — — 4,726 (1)Includes balance sheet intra-group adjustments between the Corporate Center and the operating segments (see “Presentation of Financial Information—Changes in Intra-Group Adjustments” for information on such adjustments). (2)Financial assets at fair value includes: “Financial assets held for trading”, “Non-trading financial assets mandatorily at fair value through profit or loss”, “Financial assets designated at fair value through profit or loss” and “Financial assets at fair value through other comprehensive income”. 27 As of December 31, 2023 Spain Mexico Turkey South America Rest of Business Total Operating Segments Corporate Center and Adjustments (1) (In Millions of Euros) Total Assets 452,423 173,489 68,329 64,779 64,274 823,294 (47,736) Cash, cash balances at central banks and other demand deposits 44,653 10,089 9,700 6,585 4,748 75,776 (359) Financial assets at fair value (2) 141,045 60,379 3,692 10,508 15,475 231,099 (18,159) Financial assets at amortized cost 216,334 96,342 51,543 44,508 43,363 452,089 (357) Loans and advances to customers 173,168 88,112 37,416 41,213 39,322 379,231 (1,588) Of which: Residential mortgages 67,028 17,119 1,041 7,409 766 93,363 Consumer finance 14,949 12,862 4,908 9,335 646 42,699 Other households 5,593 2,613 1,200 833 221 10,460 Credit cards 2,575 9,695 6,734 2,595 13 21,611 Loans to enterprises 66,851 38,689 22,967 19,015 37,035 184,556 Loans to public sector 12,716 7,712 489 1,826 521 23,264 Total Liabilities 437,797 162,271 61,892 58,485 60,083 780,528 (60,235) Financial liabilities held for trading and designated at fair value through profit or loss 111,682 28,492 1,878 3,289 14,831 160,173 (25,158) Financial liabilities at amortized cost - Customer deposits 216,114 92,564 50,651 42,567 13,056 414,952 (1,465) Of which: Demand and savings deposits 187,937 76,156 23,100 26,080 5,170 318,443 Time deposits 28,067 14,770 26,221 16,488 7,885 93,431 Total Equity 14,626 11,218 6,438 6,294 4,191 42,766 12,500 Assets under management 97,253 53,254 7,768 5,525 566 164,366 Mutual funds 72,875 49,062 4,386 5,525 — 131,848 Pension funds 24,378 — 3,382 — 566 28,326 Other placements — 4,192 — — — 4,192 (1)Includes balance sheet intra-group adjustments between the Corporate Center and the operating segments (see “Presentation of Financial Information—Changes in Intra-Group Adjustments” for information on such adjustments). (2)Financial assets at fair value includes: “Financial assets held for trading”, “Non-trading financial assets mandatorily at fair value through profit or loss”, “Financial assets designated at fair value through profit or loss” and “Financial assets at fair value through other comprehensive income”. 28 Spain This operating segment includes all of BBVA’s banking and non-banking businesses in Spain, other than those included in the Corporate Center. The primary business units included in this operating segment are: •Spanish Retail Network: including individual customers, private banking, small companies and businesses in the domestic market; •Corporate and Business Banking: which manages small and medium sized enterprises (“SMEs”), companies and corporations, and public institutions; •Corporate and Investment Banking: responsible for business with large corporations and multinational groups and the trading floor and distribution business in Spain; and •Other units: which includes the insurance business unit in Spain (BBVA Seguros) as well as the Group’s shareholding in Compañía de Seguros y Reaseguros, S.A., the Asset Management unit (which manages Spanish mutual funds and pension funds), lending to real estate developers and foreclosed real estate assets in Spain, as well as certain proprietary portfolios and certain funding and structural interest-rate positions of the euro balance sheet which are not included in the Corporate Center. During 2020, BBVA Seguros transferred to Allianz, Compañía de Seguros y Reaseguros, S.A. (“Allianz”), 50% of the share capital plus one share in BBVA Seguros Generales. Further to the purchase price paid by Allianz at such time, Allianz will need to pay to BBVA up to an additional €100 million if certain business goals and milestones are met. As of December 31, 2025 and 2024, BBVA recorded a portion of the amount corresponding to the earn-out for the respective last five years. As of December 31, 2023, BBVA received the total amount corresponding to the earn-out for the three years 2020 to 2023, which was not material for the consolidated financial statements of the BBVA Group. Cash, cash balances at central banks and other demand deposits as of December 31, 2025 amounted to €19,928 million, a 56.5% increase compared with the €12,734 million recorded as of December 31, 2024, mainly driven by the narrowing of the credit gap (as loans increased less than deposits), the increase in cash balances held at the ECB through repurchase agreements and, to a lesser extent, the proceeds of debt issuances completed during 2025. Financial assets at fair value of this operating segment (which includes the following portfolios: “Financial assets held for trading”, “Non-trading financial assets mandatorily at fair value through profit or loss”, “Financial assets designated at fair value through profit or loss” and “Financial assets at fair value through other comprehensive income”) amounted to €119,919 million as of December 31, 2025, a 9.4% increase from the €109,569 million recorded as of December 31, 2024, mainly as a result of the increase in loans and advances through reverse repurchase agreements in the corporate portfolio, and the increase in holdings of sovereign debt securities of European countries and equity instruments, partially offset by the decrease in derivatives and decreases in loans and advances to credit institutions (through reverse repurchase agreements), all of which were recorded under “Financial assets held for trading”. Financial assets at amortized cost of this operating segment as of December 31, 2025 amounted to €263,566 million, an 11.1% increase compared with the €237,279 million recorded as of December 31, 2024. Within this heading, loans and advances to customers amounted to €192,958 million as of December 31, 2025, a 7.4% increase compared with the €179,667 million recorded as of December 31, 2024, mainly due to the increases in corporate loans, public sector loans and consumer loans. Loans to the public sector included the recognition of an asset under the “Financial assets at amortized cost - General Governments” line item in the balance sheet as of December 31, 2025, as a result of the €295 million payment corresponding to the new tax on the net interest margin and commissions of certain financial entities (the Interest Margin and Commission Tax or “IMIC”) for the year ended December 31, 2024, given that such payment was made but considered undue with respect to such year under the existing legal framework as of December 31, 2025 (see Note 14 to the Consolidated Financial Statements). In addition, within this heading, debt securities of this operating segment as of December 31, 2025 amounted to €55,491 million, a 29.7% increase compared with the €42,791 million recorded as of December 31, 2024, mainly as a result of an increase in holdings of sovereign debt securities of European countries recorded under “Financial assets at amortized cost”. Financial liabilities held for trading and designated at fair value through profit or loss of this operating segment as of December 31, 2025 amounted to €82,785 million, a 10.2% increase compared with the €75,143 million recorded as of December 31, 2024, mainly due to the increase in deposits (through repurchase agreements), supported by higher liquidity in the financial system, partially offset by the decrease in derivatives. 29 Customer deposits at amortized cost of this operating segment as of December 31, 2025 amounted to €251,430 million, an 11.1% increase compared with the €226,391 million recorded as of December 31, 2024, mainly due to the increase in time deposits from public institutions (through repurchase agreements) within the Corporate and Investment Banking portfolio, supported by higher short-term liquidity placements of the public sector within a low interest rate environment, increases in time deposits within the corporate portfolio and the increase in demand deposits from households. Off-balance sheet funds of this operating segment (which includes “Mutual funds” (including customers’ portfolios) and “Pension funds”) as of December 31, 2025 amounted to €119,535 million, a 10.0% increase compared with the €108,694 million recorded as of December 31, 2024, mainly due to the shift towards mutual funds from other instruments, as declining interest rates reduced deposit yields and boosted the performance of fixed-income and equity funds. This operating segment’s non-performing loan ratio (defined as non-performing loans divided by total credit risk and calculated as the sum of impaired loans and advances to customers, impaired guarantees to customers and other impaired commitments divided by the sum of loans and advances to customers, guarantees to customers and other commitments) decreased to 3.0% as of December 31, 2025 from 3.7% as of December 31, 2024. This ratio was positively affected by the sale of non-performing loan portfolios and a decrease in the amount of non-performing retail loans due to improvements in collateralized loans, and increases in corporate loans, loans to the public sector and consumer loans, increasing the overall loans and advances to customers in the ratio’s denominator. This operating segment’s non-performing loan coverage ratio (defined as allowance for credit losses divided by non-performing loans and calculated as loss allowances on loans and advances divided by the sum of impaired loans and advances to customers, impaired guarantees to customers and other impaired commitments) increased to 67% as of December 31, 2025 from 59% as of December 31, 2024. Mexico The Mexico operating segment includes the banking, insurance and asset management business conducted in Mexico by BBVA Mexico. It also includes BBVA Mexico’s agency in Houston. The Mexican peso appreciated 2.0% against the euro as of December 31, 2025 compared with December 31, 2024. See “Item 5. Operating and Financial Review and Prospects―Operating Results―Factors Affecting the Comparability of our Results of Operations and Financial Condition―Trends in Exchange Rates”. Cash, cash balances at central banks and other demand deposits as of December 31, 2025 amounted to €10,417 million, a 17.1% decrease compared with the €12,564 million recorded as of December 31, 2024, mainly driven by the decrease in cash balances at the Mexican Central Bank (“BANXICO”), through repurchase agreements activity, partially offset by the proceeds of debt issuances completed during the year ended December 31, 2025. Financial assets at fair value of this operating segment (which includes the following portfolios: “Financial assets held for trading”, “Non-trading financial assets mandatorily at fair value through profit or loss”, “Financial assets designated at fair value through profit or loss” and “Financial assets at fair value through other comprehensive income”) as of December 31, 2025 amounted to €59,528 million, a 9.1% increase from the €54,547 million recorded as of December 31, 2024, mainly due to the increase in loans and advances through reverse repurchase agreements recorded under “Financial assets held for trading”. Financial assets at amortized cost of this operating segment as of December 31, 2025 amounted to €105,972 million, a 12.0% increase compared with the €94,595 million recorded as of December 31, 2024. Within this heading, loans and advances to customers of this operating segment as of December 31, 2025 amounted to €97,259 million, a 9.6% increase compared with the €88,725 million recorded as of December 31, 2024, mainly as a result of increases in the volume of mortgages and consumer loans within the retail loan portfolio. Financial liabilities held for trading and designated at fair value through profit or loss of this operating segment as of December 31, 2025 amounted to €32,406 million, a 4.9% increase compared with the €30,885 million recorded as of December 31, 2024, mainly as a result of the increase in deposits from financial institutions resulting from repurchase agreements, partially offset by decreases in short positions. Customer deposits at amortized cost of this operating segment as of December 31, 2025 amounted to €93,855 million, a 10.5% increase compared with the €84,949 million recorded as of December 31, 2024, mainly as a result of increases in time deposits from the household and the corporate portfolios. Off-balance sheet funds of this operating segment (which includes “Mutual funds” (including customers’ portfolios) and “Other placements”) as of December 31, 2025 amounted to €69,533 million, a 21.4% increase compared with the €57,253 million as of December 31, 2024, mainly as a result of the continuing search by customers for higher-return investments, which continued to boost mutual funds. 30 This operating segment’s non-performing loan ratio (as defined herein) stood at 2.7% as of December 31, 2025 and 2024. The impact of the increase in the non-performing loan entries in the retail loan portfolio on the ratio was partially offset by decreases in the non-performing wholesale loan portfolio. This operating segment’s non-performing loan coverage ratio (as defined herein) increased to 124% as of December 31, 2025 from 121% as of December 31, 2024, mainly due to the higher coverage requirements in the retail portfolio as a result of the deterioration of the macroeconomic outlook. Turkey This operating segment comprises the activities carried out by Garanti BBVA as an integrated financial services group operating in the banking, insurance and asset management business in Turkey, including corporate, commercial, SME, payment systems, retail, private and investment banking, together with its subsidiaries in pension and life insurance, leasing, factoring, brokerage and asset management, as well as its international subsidiaries in Romania and the Netherlands. The Turkish lira depreciated 27.2% against the euro as of December 31, 2025 compared to December 31, 2024, adversely affecting the business activity of the Turkey operating segment as of December 31, 2025 expressed in euros. See “Item 5. Operating and Financial Review and Prospects―Operating Results―Factors Affecting the Comparability of our Results of Operations and Financial Condition―Trends in Exchange Rates”. Since the first half of 2022, the Turkish economy has been considered to be hyperinflationary as defined by IAS 29 “Financial Reporting in Hyperinflationary Economies”. See “Presentation of Financial Information—Hyperinflationary Economies” and Note 2.2.18 to the Consolidated Financial Statements for information on the impact of hyperinflation accounting. Regulation and monetary policy, including the liraization strategy adopted by the CBRT to protect the Turkish lira, has affected this operating segment. See “Item 4. Information on the Company―Business Overview—Supervision and Regulation—Principal Markets—Turkey” for information on certain regulation that is relevant to our operations. Cash, cash balances at central banks and other demand deposits as of December 31, 2025 amounted to €9,061 million, a 2.6% increase compared with the €8,828 million recorded as of December 31, 2024, mainly driven by the increase in equity, due to retained earnings, the proceeds of debt issuances completed during the year together with foreign currency deposit accumulation partially offset by an increase in the credit gap (loans grew more than deposits) and the depreciation of the Turkish lira against the euro. Financial assets at fair value of this operating segment (which includes the following portfolios: “Financial assets held for trading”, “Non-trading financial assets mandatorily at fair value through profit or loss”, “Financial assets designated at fair value through profit or loss” and “Financial assets at fair value through other comprehensive income”) as of December 31, 2025 amounted to €5,010 million, an 11.2% increase from the €4,503 million recorded as of December 31, 2024, mainly due to the increase in local currency-denominated debt securities, whose valuation increased supported by the decrease in interest reference rates during the year ended December 31, 2025, offset, to a great extent, by the depreciation of the Turkish lira against the euro. Financial assets at amortized cost of this operating segment as of December 31, 2025 amounted to €72,047 million an 11.0% increase compared with the €64,893 million recorded as of December 31, 2024. Within this heading, loans and advances to customers of this operating segment as of December 31, 2025 amounted to €53,745 million, an 11.3% increase compared with the €48,299 million recorded as of December 31, 2024, mainly due to the increase in the volume of Turkish lira-denominated consumer and wholesale loans, due, in part, to the measures adopted by the Turkish authorities (e.g., the lessening of loan reserve requirements) to encourage Turkish lira-denominated loans (see “—Supervision and Regulation—Principal Markets—Turkey”), partially offset by the depreciation of the Turkish lira against the euro. In addition, within this heading, debt securities of this operating segment amounted to €6,299 million, a 15.1% decrease from the €7,417 million recorded as of December 31, 2024, as a result of the depreciation of the Turkish lira against the euro, partially offset by increases in the volume of local currency-denominated bonds as part of our liquidity management measures. Further, loans and advances to central banks increased in the year ended December 31, 2025, as a result of increases in the volume of Turkish lira deposits and the continued existence of reserve ratio requirements applicable to Turkish lira deposits established by the CBRT during the period. See “—Supervision and Regulation—Principal Markets—Turkey”. Financial liabilities held for trading and designated at fair value through profit or loss of this operating segment as of December 31, 2025 amounted to €1,690 million, a 13.1% decrease compared with the €1,943 million recorded as of December 31, 2024, mainly due to the depreciation of the Turkish lira against the euro, partially offset by the increase in debt certificates issued by Garanti BBVA. 31 Customer deposits at amortized cost of this operating segment as of December 31, 2025 amounted to €62,984 million, an 8.4% increase compared with the €58,095 million recorded as of December 31, 2024, mainly due to the increase in Turkish lira-denominated retail and wholesale demand deposits and wholesale time deposits due in part to the phase-out of the foreign currency-protected deposit scheme (“KKM”) scheme resulting in the transfer of foreign currency deposits towards Turkish lira deposits, and certain additional measures adopted by the Turkish authorities to encourage and protect deposits denominated in Turkish lira and prevent further dollarization of deposits, which included the increase —in May 2025— in the reserve requirements applicable to deposits denominated in foreign currencies (see “—Supervision and Regulation—Principal Markets—Turkey”)), partially offset by the depreciation of the Turkish lira against the euro. Off-balance sheet funds of this operating segment (which includes “Mutual funds” and “Pension funds”) as of December 31, 2025 amounted to €26,290 million, a 45.4% increase compared with the €18,076 million as of December 31, 2024, mainly due to increases in mutual funds as a result of the shift towards higher-return investments, partially offset by the depreciation of the Turkish lira against the euro. The non-performing loan ratio (as defined herein) of this operating segment increased to 3.9% as of December 31, 2025 from 3.1% as of December 31, 2024, mainly as a result of the increase in the balance of non-performing retail loans (mainly credit card and consumer loans) due, in part, to a deterioration in credit quality as a result of the lower repayment capacity of retail customers, as interest rates have grown at a greater pace than inflation within the period, partially offset by the increase in the volume of Turkish lira-denominated consumer and wholesale loans. This operating segment’s non-performing loan coverage ratio (as defined herein) decreased to 76% as of December 31, 2025 from 96% as of December 31, 2024, mainly due to new Stage 3 entries and lower requirements from the wholesale portfolio. South America The South America operating segment includes the Group’s banking, finance, insurance and asset management business mainly in Argentina, Chile, Colombia, Peru, Uruguay and Venezuela. The main business units included in the South America operating segment are: •Retail and Corporate Banking: includes banks in Argentina, Chile, Colombia, Peru, Uruguay and Venezuela. •Insurance: includes insurance businesses in Argentina, Colombia and Venezuela. As of December 31, 2025, the Argentine peso and the Peruvian sol depreciated against the euro by 37.4% and 1.2%, respectively, compared to December 31, 2024. On the other hand, the Colombian peso appreciated against the euro by 3.8% compared to December 31, 2024. Overall, changes in exchange rates resulted in a negative exchange rate effect on the business activity of the South America operating segment as of December 31, 2025 expressed in euros. See “Item 5. Operating and Financial Review and Prospects―Operating Results―Factors Affecting the Comparability of our Results of Operations and Financial Condition―Trends in Exchange Rates”. As of and for the years ended December 31, 2025, 2024 and 2023, the Argentine and Venezuelan economies were considered to be hyperinflationary as defined by IAS 29 “Financial Reporting in Hyperinflationary Economies”. See “Presentation of Financial Information—Hyperinflationary Economies” and Note 2.2.18 to the Consolidated Financial Statements for information on the impact of hyperinflation accounting. Cash, cash balances at central banks and other demand deposits as of December 31, 2025 amounted to €8,075 million, a 9.3% decrease compared with the €8,906 million recorded as of December 31, 2024, mainly driven by the credit gap widening (as loans increased more than deposits) in Colombia and Peru and the depreciation of the Argentine peso against the euro. Financial assets at fair value for this operating segment (which includes the following portfolios: “Financial assets held for trading”, “Non-trading financial assets mandatorily at fair value through profit or loss”, “Financial assets designated at fair value through profit or loss” and “Financial assets at fair value through other comprehensive income”) as of December 31, 2025 amounted to €10,499 million, a 3.5% decrease compared with the €10,884 million recorded as of December 31, 2024, mainly due to the depreciation of the Argentine peso against the euro, partially offset by the increase in debt securities in Argentina and the increase in derivatives in Colombia. Financial assets at amortized cost of this operating segment as of December 31, 2025 amounted to €54,336 million, an 8.7% increase compared with the €49,983 million recorded as of December 31, 2024. Within this heading, loans and advances to customers of this operating segment as of December 31, 2025 amounted to €51,151 million, a 9.2% increase compared with the €46,846 million recorded as of December 31, 2024, mainly as a result of increases in corporate loans in Argentina and Colombia and increases in household loans in Argentina and Peru, partially offset by the depreciation of the Argentine peso against the euro. 32 Financial liabilities held for trading and designated at fair value through profit or loss of this operating segment as of December 31, 2025 amounted to €2,428 million, a 17.9% increase compared with the €2,060 million recorded as of December 31, 2024, mainly due to increases in derivatives in Colombia. Customer deposits at amortized cost of this operating segment as of December 31, 2025 amounted to €53,375 million, a 5.2% increase compared with the €50,738 million recorded as of December 31, 2024, mainly as a result of the increase in demand deposits in the household portfolios in Peru and Colombia, and in the wholesale portfolios in Argentina, and the increase in time deposits in the wholesale portfolios in Colombia and Argentina, partially offset by the depreciation of the Argentine peso against the euro. Off-balance sheet funds of this operating segment (which includes “Mutual funds”, including customers’ portfolios, in Argentina, Colombia and Peru) as of December 31, 2025 amounted to €8,289 million, a 4.5% increase compared with the €7,936 million as of December 31, 2024, mainly due to increases in mutual funds in Peru and, to a lesser extent, in Colombia and Argentina, as a result of the shift towards higher-return investments, partially offset by the depreciation of the Argentine peso against the euro. The non-performing loan ratio (as defined herein) of this operating segment as of December 31, 2025 decreased to 4.0% from 4.5% as of December 31, 2024, mainly as a result of the decrease in non-performing loans in the retail portfolios in Peru and Colombia, partially offset by higher impairment requirements in the retail loan portfolio un Argentina. This operating segment’s non-performing loan coverage ratio (as defined herein) increased to 92% as of December 31, 2025, from 88% as of December 31, 2024 as a result of the abovementioned decreases in non-performing loans in the retail portfolios in Peru and Colombia. Rest of Business This operating segment mainly includes the wholesale activity carried out by the Group 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 U.S. dollar depreciated 11.6% against the euro as of December 31, 2025 compared to December 31, 2024, adversely affecting the business activity of the Rest of Business operating segment as of December 31, 2025 expressed in euros. See “Item 5. Operating and Financial Review and Prospects―Operating Results―Factors Affecting the Comparability of our Results of Operations and Financial Condition―Trends in Exchange Rates”. Cash, cash balances at central banks and other demand deposits as of December 31, 2025 amounted to €11,564 million, a 38.5% increase compared with the €8,348 million recorded as of December 31, 2024, mainly driven by the increase in cash balances held at central banks through repurchase agreements within this operating segment, in particular, at the Federal Reserve System, due in part to the shift towards liquid trading assets, which typically offer higher short-term yields and, to a lesser extent increases in other demand deposits, partially offset by the depreciation of the U.S. dollar against the euro. Financial assets at fair value for this operating segment (which includes the following portfolios: “Financial assets held for trading”, “Non-trading financial assets mandatorily at fair value through profit or loss”, “Financial assets designated at fair value through profit or loss” and “Financial assets at fair value through other comprehensive income”) as of December 31, 2025 amounted to €2,032 million, a 24.9% increase compared with the €1,627 million recorded as of December 31, 2024, mainly due to the increase in loans and advances in Europe, partially offset by the depreciation of the U.S. dollar against the euro. Financial assets at amortized cost of this operating segment as of December 31, 2025 amounted to €74,448 million, a 32.9% increase compared with the €56,013 million recorded as of December 31, 2024. Within this heading, loans and advances to customers of this operating segment as of December 31, 2025 amounted to €66,502 million, a 32.0% increase compared with the €50,392 million recorded as of December 31, 2024, mainly due to increased wholesale loans in the branches located in New York, Europe and Asia driven by increased activity amid a lower interest rate environment, partially offset by the depreciation of the U.S. dollar against the euro. Financial liabilities held for trading and designated at fair value through profit or loss of this operating segment as of December 31, 2025 amounted to €766 million, a 19.3% increase compared with the €642 million recorded as of December 31, 2024, mainly due to the increase in deposits (through repurchase agreements) in BBVA Securities Inc., our broker-dealer in the United States, partially offset by the depreciation of the U.S. dollar against the euro. Customer deposits at amortized cost of this operating segment as of December 31, 2025 amounted to €40,932 million, a 49.2% increase compared with the €27,432 million recorded as of December 31, 2024, mainly as a result of the growth in household demand deposits through our digital banking offerings in Europe and the increase in wholesale demand deposits in Asia and Europe. 33 Off-balance sheet funds of this operating segment as of December 31, 2025 amounted to €736 million, a 14.2% increase compared with the €645 million recorded as of December 31, 2024, mainly due to increases in the balance of pension funds in the branches located in Europe, as declining interest rates reduced deposit yields and boosted the performance of fixed-income and equity funds. The non-performing loan ratio (as defined herein) of this operating segment as of December 31, 2025 decreased to 0.2% from 0.3% as of December 31, 2024, mainly due to the increased wholesale loans in the branches located in New York, Europe and Asia (which led to an increase in the denominator) driven by increased activity amid a lower interest rate environment and decreases in non-performing loans. This operating segment’s non-performing loan coverage ratio (as defined herein) increased to 173% as of December 31, 2025 from 102% as of December 31, 2024 mainly as a result of the decrease in non-performing loans, in particular in Europe and increases in the coverage level of certain corporate loans. 34 Insurance Activity The Group has insurance subsidiaries mainly in Spain, Latin America (mostly in Mexico) and Turkey. The insurance entities located in Spain and Mexico together accounted for approximately 95% of total liabilities under insurance and reinsurance contracts as of December 31, 2025. The main products offered by the insurance subsidiaries are life insurance to cover the risk of death and life-savings insurance. Within life 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. The Group offers, in general, two types of savings products: individual insurance, which seeks to provide the customer with savings for retirement or other events, and collective insurance, which is taken out by employers to cover their commitments to their employees. See Note 23 to the Consolidated Financial Statements for additional information on our insurance activity, including its risk management. Monetary Policy The integration of Spain into the European Monetary Union (“EMU”) on January 1, 1999 implied the yielding of monetary policy sovereignty to the Eurosystem. The “Eurosystem” is composed of the ECB and the national central banks of the 20 member countries that form the EMU. The Eurosystem determines and executes the policy for the single monetary union of the 21 member countries of the EMU. The Eurosystem collaborates with the central banks of member countries to take advantage of the experience of the central banks in each of its national markets. The basic tasks carried out by the Eurosystem include: •defining and implementing the single monetary policy of the EMU; •conducting foreign exchange operations in accordance with the set exchange policy; •lending to national monetary financial institutions in collateralized operations; •holding and managing the official foreign reserves of the member states; and •promoting the smooth operation of the payment systems. In addition, the Treaty on the EU (“EU Treaty”) establishes a series of rules designed to safeguard the independence of the system, in its institutional as well as its administrative functions. Supervision and Regulation This section discusses the most significant supervision and regulatory matters applicable to us as a bank organized under the laws of Spain, our principal market, and as a result of activities we undertake in the European Union. Further below, this section also includes information regarding supervision and regulatory matters applicable to our operations in Mexico, Turkey and the United States. The Bank’s “home” supervisor is the ECB at the European level and the Bank of Spain at the national level, both authorities being part of the Single Supervisory Mechanism (“SSM”). The BBVA Group is also subject to supervision by a wide variety of other local authorities given the Bank’s global presence, which are considered to be “host” supervisors given the Bank’s foreign origin. These include authorities in countries such as the United States (the Federal Reserve Bank of New York (“FRBNY”) has the primary supervisory responsibility for the Bank’s New York branch, with input from other Federal and State authorities that have supervisory responsibilities for various BBVA entities operating in the United States), Mexico, Turkey and the whole of BBVA’s footprint in South America. Following the 2008 financial crisis, European politicians took action to stabilize the region’s banking sector, due to a period of turbulence and doubts regarding its sustainability. This action culminated in the launch of the European Banking Union (“EBU”). In 2024, the EU approved the transposition into domestic law of a final set of rules forming part of the Basel III framework Regulation (EU) 2024/1623, which constitutes a reform of the prudential regulatory framework (Capital Requirements Regulation and Directive). These new rules came into force on January 1, 2025, and their main objective is to make capital ratios more comparable among banks by imposing restrictions on banks that use their own internal models to calculate capital requirements. 35 The first pillar of the EBU relates to supervision and includes the SSM, which unified banking supervision in the European Union. This responsibility was placed under the ECB, which follows a strict policy of separation and confidentiality in order to ensure the independence of banking supervision and monetary policy. The SSM works in very close coordination with the national competent authorities (“NCAs”). As a result, the joint supervisory teams (“JSTs”) that are responsible for the daily supervision of the most significant banks (one JST per bank) are composed of employees from the ECB and, in the case of BBVA, mainly from the Bank of Spain, who rotate periodically. The second pillar of the EBU relates to resolution mechanisms and includes the Single Resolution Mechanism (“SRM”), for which the Single Resolution Board (“SRB”) was created. The SRB, located in Brussels, works closely with the National Resolution Authorities (“NRAs”), and, in the case of Spain, the Bank of Spain and the Spanish Executive Resolution Authority (“FROB”), to ensure the orderly resolution of failing banks. The role of the SRB is proactive and focuses on resolution planning and preparation with a forward-looking mindset to avoid the negative impacts of a bank failure on the economy and financial stability of the participating EU member states and other countries. Accordingly, one of the key tasks of the SRB and NRAs is to draft resolution plans for the banks under its remit. These plans are prepared jointly by the SRB and NRAs through internal resolution teams (“IRTs”). The IRTs are composed of staff from the SRB and the NRAs and are headed by coordinators appointed from the SRB’s senior staff. Bank resolution regulation was adopted following the 2008 financial crisis to minimize the extent to which taxpayer funds would be used to rescue failing financial institutions. The idea that underlies bank resolution regulation is that a “bail-in” is preferable to a “bail-out”. A “bail-out” occurs when a government rescues a bank by providing capital and/or liquidity support. On the other hand, a “bail-in” occurs when a bank’s creditors (in addition to its shareholders) are forced to bear some of the burden by having some or all of their debt written off. See “—Capital Requirements, MREL and Resolution” below. Within the framework of the SRM, the Single Resolution Fund (“SRF”) was also developed. This is a fund composed of contributions from credit institutions and certain investment firms in the 21 participating countries within the EBU and may be used only under specific circumstances in banking resolution, such as to guarantee the assets or liabilities of an institution under resolution or make contributions to a bridge institution or asset management vehicle. The SRF can be used only to ensure the effective application of resolution tools but not to absorb the losses of an institution or for a recapitalization. The first and second pillars of the EBU are highly interlinked. Prior to entering into a resolution process, a bank must be considered by the SSM as failing or likely to fail, which occurs when there is no other option to restore its viability (such as applying the bank’s recovery plan) within the available time frame. The third and final pillar of the EBU, which is still under discussion, is the European Deposit Insurance Scheme (“EDIS”). The EDIS would provide the same level of insurance for deposits regardless of the country of origin of the bank, thus creating a fully harmonized banking union. Furthermore, it would enhance risk sharing mechanisms within the EBU. In May 2024, the Committee of Economic and Monetary Affairs (ECON) approved the EDIS Proposal; however, the plenary scheduled vote was postponed indefinitely. At the national level, BBVA is required to make contributions to the Deposit Guarantee Fund of Credit Institutions. Banks in the EBU face increasingly intense supervisory scrutiny, in particular with respect to asset quality and capital and liquidity levels. The Supervisory Review and Examination Process (“SREP”) is an annual exercise that determines a bank’s capital requirements, on a “Pillar 2” basis, as well as the qualitative requirements that the bank must address in the following year. This exercise takes four different elements of a bank into account: (a) business model and profitability, (b) capital, (c) liquidity and (d) governance and risk management. In addition, any work done during the year related to on-site inspections, deep dives, thematic reviews, internal model investigations and other ad hoc requests (e.g., targeted review) feeds into the SREP. The SREP culminates with a supervisory dialogue at the end of the year, where a preliminary review of the bank is presented. In addition, prior to the beginning of each year, the SSM presents a Supervisory Examination Program (“SEP”) which details the inspections, high-level meetings and potential visits to group subsidiaries that are forecasted to occur throughout the year. Another important tool that the SSM possesses to supervise large European banking groups is the Supervisory Colleges. For those banks for which the SSM acts as the consolidated “home” supervisor, the SSM together with the relevant NCA organizes an event where all of the banking group’s “host” supervisors are gathered at a roundtable and where they discuss the current state of affairs of the bank in the different relevant jurisdictions. The SRB follows a similar approach, organizing Resolution Colleges with the banking group’s “host” resolution authorities. 36 Furthermore, the EBA organizes and performs an EU-wide stress test in coordination with the ECB. This test, which occurs every two years, does not confer a pass or fail result but instead contributes to determining “Pillar 2” guidance. While “Pillar 2” guidance is a non-binding capital requirement, the EBA nonetheless expects compliance with it. In those years in which there is no EBA stress test, the SSM organizes a more specific stress test concerning a particular topic, such as the impact of interest rate risk on the banking book or liquidity or cyber resilience. In 2025, the EBA conducted an EU-wide stress test in cooperation with the ECB and the European Systemic Risk Board (“ESRB”). The aim of the EU-wide stress test is to assess EU banks’ resilience to a common set of adverse economic developments in order to identify potential risks, inform supervisory decisions and increase market discipline. The banks participating in the 2025 exercise included the Group. The macro-prudential aspect of supervision is also increasingly gaining relevance, including through specific thematic reviews undertaken by the SSM on certain portfolios (e.g., commercial real estate or non-banking financial institutions) and the creation of new authorities and review boards. At the European level, these include the ESRB, which is responsible for monitoring macro-risks at the European level. The ESRB also develops the adverse scenarios to be used in the EU-wide stress test. In addition, in 2019 the Spanish Government created the Macro-prudential Authority Financial Stability Council, which is chaired by the Minister of Economy and Business and vice-chaired by the Governor of the Bank of Spain. In 2025, the Bank of Spain set a positive neutral counter-cyclical capital buffer of 0.5% (applicable from October 1, 2025) and announced its intention to gradually increase it to 1% if cyclical systemic risk remained at an intermediate level. However, following a public consultation process carried out in July 2025, the Bank of Spain decided to raise the countercyclical capital buffer to 1% effective from October 1, 2026. The foregoing illustrates how much the regulatory and supervisory landscape has changed since the 2008 financial crisis, due in large part to the Basel Committee on Banking Supervision (the “Basel Committee”), an international, standard-setting forum, which established important reforms at a global level. Some of these reforms have been adopted in regulations at the European level. The following is a discussion of certain of these and other regulations that are applicable to BBVA and certain related requirements. Liquidity Requirements – Minimum Reserve Ratio The legal framework for the minimum reserve ratio is set out in Regulation (EU) No. 2021/378 of the ECB of January 2021 on the application of minimum reserves requirements (ECB/2021/1). According to the Delegated Regulation (EU) 2015/61 issued by the European Commission (EC) of October 10, 2014, the liquidity coverage ratio came into force in Europe on October 1, 2015, with an initial 60% minimum requirement, which was progressively increased (phased-in) up to 100% in 2018. Capital Requirements, MREL and Resolution As a Spanish credit institution, the Bank is subject to Directive 2013/36/EU of the European Parliament and of the Council of June 26, 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions, amending Directive 2002/87/EC, and repealing Directives 2006/48/EC and 2006/49/EC (as amended, replaced or supplemented from time to time, the “CRD Directive”). The core regulation regarding the solvency of credit institutions is Regulation (EU) No. 575/2013 of the European Parliament and of the Council of June 26, 2013 on prudential requirements for credit institutions, and amending Regulation (EU) No. 648/2012 (as amended, replaced or supplemented from time to time, the “CRR” and, together with the CRD Directive and any measures implementing the CRD Directive or CRR which may from time to time be applicable in Spain, “CRD”), which is complemented by several binding regulatory technical standards, all of which are directly applicable in all EU Member States, without the need for national implementation measures. The implementation of the CRD Directive into Spanish law has taken place, primarily, through Royal Decree-Law 14/2013, of November 29, Law 10/2014, of June 26, on the organization, supervision and solvency of credit institutions (“Law 10/2014”), Royal Decree 84/2015, of February 13 (“Royal Decree 84/2015”), Bank of Spain Circular 2/2014, of January 31, Bank of Spain Circular 2/2016, of February 2 (“Bank of Spain Circular 2/2016”), Bank of Spain Circular 3/2022, of March 30 and the Bank of Spain Circular 3/2023, of October 31, each as amended, supplemented or otherwise modified from time to time. 37 The final legal texts of Directive (EU) 2024/1619 of the European Parliament and of the Council of May 31, 2024 amending CRD Directive as regards supervisory powers, sanctions, third-country branches, and environmental, social and governance risks (“CRD VI”) and Regulation (EU) 2024/1623 of the European Parliament and of the Council of May 31, 2024 amending the CRR as regards requirements for credit risk, credit valuation adjustment risk, operational risk, market risk and the output floor (“CRR III”) have been published in the Official Journal of the European Union. CRR III became generally applicable from January 1, 2025 (with some exceptions). CRD VI should have been transposed into national law by member states by January 11, 2026, and implementation may vary among Member States. CRD VI and CRR III introduce, among other things, amendments to the output floor in the calculation of capital requirements, amendments to the input floors in respect of the calculation of risk exposure amounts, a revision of the standardized approaches for capital requirements for credit, market and operational risk and strengthened requirements for ESG risks management and reporting. As of the date of this Annual Report, the transposition of CRD VI into Spanish law and the adaptation of the Spanish regulatory framework to CRR III has not taken place within the prescribed deadline. Moreover, no draft bill or other formal legislative initiative has been published or announced to date. Accordingly, there is no certainty as to the timing or content of the transposition of CRD VI into Spanish law, and no such transposition is currently expected to occur in the upcoming months. CRD, among other things, established a “Pillar 1” minimum capital requirement and increased the level of capital required through the “combined capital buffer requirement” that institutions must comply with from 2016 onwards. The “combined capital buffer requirement” introduced five new capital buffers: (i) the capital conservation buffer, (ii) the Global Systemically Important Banks (“G-SIB”) buffer, (iii) the institution-specific countercyclical capital buffer, (iv) the Domestic Systemically Important Banks (“D-SIB”) buffer and (v) the systemic risk buffer (a buffer to prevent systemic or macroprudential risks). The “combined capital buffer requirement” (broadly, the combination of the capital conservation buffer, the institution-specific countercyclical buffer, the systemic risk buffer and the higher of (depending on the institution) the G-SIB buffer and the D-SIB buffer, in each case as applicable to the institution) applies in addition to the minimum “Pillar 1” capital requirements and must be satisfied with additional CET1 capital to that provided to meet the “Pillar 1” minimum capital requirement. As of the date of this Annual Report, the Bank of Spain considers the Bank to be a D-SIB at a consolidated level. The Bank is required to maintain a fully-loaded D-SIB buffer of a CET1 ratio of 1% on a consolidated basis in 2025 and 0.75% on a consolidated basis in 2026. The countercyclical capital buffer applicable to the Group’s credit exposures in Spain is reviewed quarterly by the Bank of Spain. The countercyclical capital buffer applicable to the Group’s credit exposures in Spain stands at 0.25% as from September 30, 2025. On October 1, 2025, the Bank of Spain announced its decision to increase the counter-cyclical capital buffer applicable to credit exposures in Spain to 1% which will be applicable from October 1, 2026 given that, according to their analysis, in the year ended December 31, 2025 the cyclical systemic risk remained at an intermediate level. Additionally, Article 104 of the CRD Directive, as implemented by Article 68 of Law 10/2014, and similarly Article 16 of Council Regulation (EU) No. 1024/2013 of October 15, 2013, conferring specific tasks on the ECB concerning policies relating to the prudential supervision of credit institutions (the “SSM Regulation”), also contemplates the possibility that the supervisory authorities may require credit institutions to meet capital requirements exceeding the “Pillar 1” minimum capital requirements and the “combined capital buffer requirement” by establishing “Pillar 2” capital requirements (which, with respect to other requirements, are above the “Pillar 1” requirements and below the “combined capital buffer requirement”). In response to the COVID-19 pandemic, the ECB announced on March 12, 2020 that it would allow banks to partially use AT1 and Tier 2 instruments to meet the “Pillar 2” requirement, being this measure introduced by Directive 2019/878/EU of the European Parliament and of the Council of May 20, 2019 (as amended, replaced or supplemented from time to time (“CRD V”). In particular, the composition of the capital instruments to meet the “Pillar 2” requirement, shall include 56.25% of CET1 capital and 75% of Tier 1 capital, at a minimum. Consequently, all additional “Pillar 2” own funds requirements that the ECB may impose on the Bank and/or the Group under the SREP will require the Bank and/or the Group to maintain capital levels higher than the “Pillar 1” minimum capital requirement. 38 As a result of the most recent SREP carried out by the ECB, BBVA must maintain, at a consolidated level, from January 1, 2026, a CET1 capital ratio of 8.98% and a total capital ratio of 13.13%. The consolidated total capital requirement includes: (i) the “Pillar 1” capital requirement of 8.00%, of which a minimum of 4.50% must be met with CET1 capital, 1.50% could be met with AT1 instruments and 2.00% could be met with Tier 2 instruments; (ii) the “Pillar 2” capital requirement of 1.62%, of which a minimum of 0.96% must be met with CET1 capital (of which 0.12% is determined on the basis of the ECB’s prudential provisioning expectation), 0.28% could be met with AT1 instruments and 0.38% could be met with Tier 2 instruments; (iii) the capital conservation buffer (2.50% that must be met exclusively with CET1 capital); (iv) the D-SIB capital buffer (0.75% that must be met exclusively with CET1 capital); (v) the capital buffer for Countercyclical Risk (0.25% that must be met exclusively with CET1 capital); and (vi) the capital buffer for Systemic Risk (0.01% that must be met exclusively with CET1 capital). In addition, as from January 1, 2026, BBVA must maintain, at an individual level, a CET1 ratio of 7.47% and a total capital ratio of 10.97%. These ratios include a 0.02% capital buffer for Systemic Risk and 0.45% capital buffer for Countercyclical Risk2 applicable to the Bank at an individual level that shall be met with CET1. For further information on the countercyclical capital buffer and the total capital requirements applicable to the BBVA Group, see Note 32 to the Consolidated Financial Statements. In accordance with Article 48 of Law 10/2014, Article 73 of Royal Decree 84/2015 and Rule 24 of Bank of Spain Circular 2/2016, any institution not meeting its “combined capital buffer requirement” is required to calculate its MDA as stipulated in such legislation. Should that requirement not be met and until the MDA has been calculated and communicated to the Bank of Spain, the relevant institution shall not make any: (i) distributions relating to CET1 capital; (ii) payments related to variable remuneration or discretionary pension benefits; and (iii) distributions linked to AT1 instruments (“discretionary payments”), and once the MDA has been calculated and communicated to the Bank of Spain, the discretionary payments will be subject to the limit of the calculated MDA. Accordingly, restrictions on discretionary payments will be scaled based on the degree of breach of the “combined buffer requirement” and calculated as a percentage of the profit of the institution generated since the last annual decision on the distribution of profit. Such calculation will result in a MDA in each relevant period. As an example, the scaling is such that in the bottom quartile of the “combined buffer requirement”, no discretionary payments will be permitted to be made. Additionally, pursuant to Article 48 of Law 10/2014, the adoption by the Bank of Spain of the measures provided by Articles 68.2.h) and 68.2.i) of Law 10/2014, aimed at strengthening own funds and limiting or prohibiting the distribution of dividends, respectively, will also entail the requirement to determine the MDA and to restrict discretionary payments to such MDA. In accordance with the EU legislative and regulatory framework governing capital, liquidity, loss-absorbing capacity, recovery and resolution of credit institutions and investment firms, including CRD V, CRR II (EU Regulation (EU) 2019/876 amending the Capital Requirements Regulation (CRR), introducing enhanced prudential requirements for EU credit institutions and investment firms), BRRD II (as defined below) and SRM Regulation II (as defined below), each as amended, replaced or supplemented from time to time (the “EU Banking Reforms”), the calculation of the MDA and the restrictions described in the preceding paragraph while such calculation is pending, may also be triggered by a breach of the combined buffer requirement when considered in addition to its MREL requirement (see “Item 3. Key Information—Risk Factors—Regulatory, Tax, Compliance and Reporting Risks—Increasingly onerous capital and liquidity requirements may have a material adverse effect on the Group’s business, financial condition and results of operations”). CRD also distinguishes between “Pillar 2” capital requirements and “Pillar 2” capital guidance, with only the former being regarded as mandatory requirements. Notwithstanding the foregoing, CRD provides that, besides other measures, supervisory authorities are entitled to impose further “Pillar 2” capital requirements when an institution repeatedly fails to follow the “Pillar 2” capital guidance previously imposed. Additionally, CRR sets a binding leverage ratio requirement of 3% of Tier 1 capital that is added to the own funds requirements and to the requirements based on an entity’s RWAs. In particular, any breach of this leverage ratio would also entail the need to determine the MDA and the related consequences. Furthermore, on December 7, 2017 the Basel Committee on Banking Supervision announced the end of the Basel III reforms (informally referred to as Basel IV), which entered into force on January 1, 2025. These reforms mainly include changes to the risk weightings applied to the different assets and measures to enhance the sensitivity to risk in those weightings and impose limits on the use of internal ratings-based approaches to ensure a minimum level of conservatism in the use of such approaches and enhance comparability among banks in which such internal ratings-based approaches are used. 2 The countercyclical buffer is estimated as of December 2025, using the outstanding exposures as of December 2025. 39 Resolution The Directive 2014/59/EU, establishing a framework for the recovery and resolution of credit institutions and investment firms, as amended, replaced or supplemented from time to time (the “BRRD”) (which has been implemented in Spain through Law 11/2015 and Royal Decree 1012/2015, each as amended, replaced or supplemented from time to time) and the Regulation (EU) No. 806/2014 of the European Parliament and of the Council, establishing a framework for the resolution of credit institutions and certain investment firms within the Single Resolution Mechanism, as amended by Regulation (EU) 2019/877, and as further amended, replaced or supplemented from time to time (the “SRM Regulation”), are designed to provide the authorities with mechanisms and instruments to intervene sufficiently early and rapidly in failing or likely to fail credit institutions or investment firms (each, an “Entity”) in order to ensure the continuity of the Entity’s critical financial and economic functions, while minimizing the impact of its non-feasibility on the economic and financial system. The BRRD further provides that a Member State may only use additional financial stabilization instruments to provide extraordinary public financial support as a last resort, once the following resolution instruments have been evaluated and used to the fullest extent possible while maintaining financial stability. In accordance with the provisions of Article 20 of Law 11/2015, an Entity will be considered as failing or likely to fail in any of the following situations: (i) when the Entity significantly fails, or may reasonably be expected to significantly fail in the near future, to comply with the solvency requirements or other requirements necessary to maintain its authorization; (ii) when the Entity’s enforceable liabilities exceeds its assets, or it is reasonably foreseeable that they will exceed them in the near future; (iii) when the Entity is unable, or it is reasonably foreseeable that it will not be able, to meet its enforceable obligations in a timely manner; or (iv) when the Entity needs extraordinary public financial support (except in limited circumstances). The decision as to whether the Entity is failing or likely to fail may depend on a number of factors which may be outside of that Entity’s control. In line with the provisions of the BRRD, Law 11/2015 contains four resolution tools which may be used individually or in any combination, when the Relevant Spanish Resolution Authority considers that (a) an Entity is non-viable or is failing or likely to fail, (b) there is no reasonable prospect of any other measures that would prevent the failure of such Entity within a reasonable period of time and (c) resolution is necessary or advisable, rather than the winding up of the Entity through ordinary insolvency proceedings, for reasons of public interest. The four resolution instruments are (i) the sale of the Entity’s business, which enables the resolution authorities to transfer, under market conditions, all or part of the business of the Entity being resolved; (ii) bridge institution, which enables resolution authorities to transfer all or part of the business of the Entity to a “bridge institution” (an entity created for this purpose that is wholly or partially in public control); (iii) asset separation, which enables resolution authorities to transfer certain categories of assets (normally impaired or otherwise problematic) to one or more asset management vehicles to allow them to be managed with a view to maximizing their value through eventual sale or orderly wind-down (this can be used together with another resolution tool only); and (iv) the “Bail-in Tool”. Any exercise of the Bail-in Tool by the Relevant Spanish Resolution Authority may include the write down and/or conversion into equity or other securities or obligations (which equity, securities and obligations could also be subject to any future application of the Bail-in Tool) of certain unsecured debt claims of an institution. In the event that an Entity is in a resolution situation, the Bail-in Tool is understood to mean any write-down, conversion, transfer, modification, or suspension power existing from time to time under: (i) any law, regulation, rule or requirement applicable from time to time in Spain, relating to the transposition or development of the BRRD (as amended, replaced or supplemented from time to time), including, but not limited to Law 11/2015, RD 1012/2015; and the SRM Regulation, each as amended, replaced or supplemented from time to time; or (ii) any other law, regulation, rule or requirement applicable from time to time in Spain pursuant to which (a) obligations or liabilities of banks, investment firms or other financial institutions or their affiliates can be reduced, cancelled, modified, transferred or converted into shares, other securities, or other obligations of such persons or any other person (or suspended for a temporary period or permanently) or (b) any right in a contract governing such obligations may be deemed to have been exercised. In accordance with the provisions of Article 48 of Law 11/2015 (without prejudice to any exclusions that may be applied by the Relevant Spanish Resolution Authority in accordance with Article 43 of Law 11/2015), in the event of any application of the Bail-in Tool, any resulting write-down or conversion by the Relevant Spanish Resolution Authority will be carried out in the following sequence: (i) CET1 items; (ii) the principal amount of AT1 instruments; (iii) the principal amount of Tier 2 instruments; (iv) the principal amount of other subordinated claims other than AT1 or Tier 2 capital; and (v) the principal or outstanding amount of the remaining eligible liabilities in the order of the hierarchy of claims in normal insolvency proceedings (with senior non-preferred claims (créditos ordinarios no preferentes) subject to the Bail-in Tool after any subordinated claims (créditos subordinados) of the Bank but before the other senior claims of the Bank). 40 In addition to the Bail-in Tool, the BRRD, Law 11/2015 and the SRM Regulation provide for resolution authorities to have the further power to permanently write-down or convert into equity capital instruments (and, pursuant to Directive (EU) 2019/879 of the European Parliament and of the Council, amending Directive 2014/59/EU to establish enhanced requirements for the recovery and resolution of credit institutions and investment firms, as amended, replaced or supplemented from time to time (the “BRRD II”) and the Regulation (EU) 2019/877 of the European Parliament and of the Council, amending Regulation (EU) No. 806/2014 to enhance the loss-absorbing and recapitalization capacity and the resolution framework of credit institutions and certain investment firms within the Single Resolution Mechanism, as amended, replaced or supplemented from time to time (the “SRM Regulation II”), certain internal eligible liabilities and instruments) at the point of non-viability (“Non-Viability Loss Absorption” and, together with the Bail-in Tool, the “Spanish Bail-in Power”) of an Entity. Any write-down or conversion must follow the same insolvency hierarchy as described above. The point of non-viability of an Entity is the point at which the Relevant Spanish Resolution Authority determines that the Entity meets the conditions for resolution or will no longer be viable unless the relevant capital instruments are written down or converted into equity or extraordinary public support is to be provided and without such support the Relevant Spanish Resolution Authority determines that the institution would no longer be viable. The point of non-viability of a group is the point at which the group infringes or there are objective elements to support a determination that the group, in the near future, will infringe its consolidated solvency requirements in a way that would justify action by the Relevant Spanish Resolution Authority in accordance with article 38.3 of Law 11/2015. Non-Viability Loss Absorption may be imposed prior to or in combination with any exercise of the Bail-in Tool or any other resolution tool or power (where the conditions for resolution referred to above are met) or in combination with such exercise in respect of all eligible liabilities. In addition, the EBA has published certain technical regulation standards and technical implementation standards to be adopted by the European Commission, in addition to other guidelines. These standards and guidelines could potentially be relevant in determining when or how a Relevant Spanish Resolution Authority may exercise the Bail-in Tool and/or impose a Non-Viability Loss Absorption. These include guidelines on the treatment of shareholders when applying the Bail-in Tool or Non-Viability Loss Absorption, as well as on the rate for converting debt into shares or other securities or debentures in the application of the Bail-in Tool and/or Non-Viability Loss Absorption. To the extent that any resulting treatment of a holder of the Bank’s securities pursuant to the exercise of the Bail-in Tool is less favorable than would have been the case under such hierarchy in normal insolvency proceedings, a holder of such affected securities would have a right to compensation under the BRRD and the SRM Regulation based on an independent valuation of the institution, in accordance with Article 10 of RD 1012/2015 and the SRM Regulation, together with any other compensation provided for in any Applicable Banking Regulations (as defined below) including, inter alia, compensation in accordance with Article 36.5 of Law 11/2015. However, if the treatment of a creditor following a Non-Viability Loss Absorption is less favorable than it would have been under ordinary insolvency proceedings, it is uncertain whether said creditor would be entitled to the compensation provided for in the BRRD and the SRM Regulation. Finally, on April 18, 2023, the European Commission published a proposal for the further amendment of the BRRD, including, among other things, the amendment of the ranking of claims in insolvency to provide for a general depositor preference, pursuant to which the insolvency laws of Members States would be required by the BRRD to extend the legal preference of claims in respect of deposits relative to ordinary unsecured claims to all deposits, as well as a proposal amending the SRM Regulation as regards early intervention measures, conditions for resolution and funding of resolution actions and the Deposit Guarantee Schemes Directive (Directive 2014/49/EU of the European Parliament and of the European Council of April 16, 2014 on deposit guarantee schemes) as regards the scope of deposit protection, use of deposit guarantee schemes funds, cross-border co-operation, and transparency. The implementation of the BRRD proposal is subject to further legislative procedures but if it is implemented in its current form, this would mean that senior preferred claims (créditos ordinarios preferentes) of the Bank would rank junior to the claims of all depositors, including deposits of large corporates and other deposits that are currently excluded from the above privileged claims. Any such general depositor preference would also affect any application of the Bail-In Tool, as such application is to be carried out in the order of the hierarchy of claims in normal insolvency proceedings. Accordingly, this would mean that following any such amendment of the insolvency laws of Spain to establish a general depositor preference, any resulting write-down or conversion of senior preferred claims (créditos ordinarios preferentes) by the Relevant Spanish Resolution Authority would be carried out before any write-down or conversion of the claims of depositors such as those of large corporates that previously would have been written-down or converted alongside such senior preferred claims (créditos ordinarios preferentes). By removing the requirement for such deposits to be written-down or converted in this manner, one of the stated objectives of this proposed amendment is to reduce the likelihood of deposits generally needing to be included in any such write-down or conversion upon any application of the Bail-In Tool and improve the process for the application of the Bail-In Tool. 41 “Applicable Banking Regulations” means at any time the laws, regulations, requirements, guidelines and policies relating to capital adequacy, resolution and/or solvency then applicable to the Bank and/or the Group including, inter alia, the CRD Directive, CRR, BRRD, the SRM Regulation and those laws, regulations, requirements, guidelines and policies relating to capital adequacy, resolution and/or solvency then in effect in Spain (whether or not such regulations, requirements, guidelines or policies have the force of law and whether or not they are applied generally or specifically to the Bank and/or the Group). “Relevant Spanish Resolution Authority” means the FROB, the SRB, the Bank of Spain, the Spanish Securities Market Commission or any other entity with the authority to exercise any of the resolution tools and powers contained in Law 11/2015 and the SRM Regulation from time to time. “Law 11/2015” means Law 11/2015, of June 18, on the recovery and resolution of credit institutions and investment firms, as amended, replaced or supplemented from time to time, including as amended by Royal Decree Law 7/2021 of 27 April on the transposition of European Union directives in matters of credit institutions, among others. MREL The BRRD prescribes that banks shall hold a minimum level of own funds and eligible liabilities in relation to RWAs known as MREL. According to the Commission Delegated Regulation (EU) 2016/1450 of May 23, 2016, supplementing Directive 2014/59/EU of the European Parliament and of the Council, establishing a framework for the recovery and resolution of credit institutions and investment firms, as amended, replaced or supplemented from time to time (the “BRRD I”) with regard to regulatory technical standards specifying the criteria relating to the methodology for setting the minimum requirement for own funds and eligible liabilities, the level of own funds and eligible liabilities required under MREL will be set by the resolution authority, in agreement with the competent authority, for each bank (and/or group) based on, among other things, the criteria set forth in Article 45 of the BRRD, including the systemic importance of the institution. Eligible liabilities may be senior or subordinated, provided that, among other requirements, they have a remaining maturity of at least one year and, if governed by a non-EU law, they must be able to be written down or converted by the resolution authority of a member state under that law or through contractual provisions. If the Relevant Spanish Resolution Authority considers that there may be any obstacles to resolvability by the Bank and/or the Group, a higher MREL could be imposed. The EU Banking Reforms provide that the breach by a bank of its MREL should be addressed by the competent authorities through their powers to address or remove obstacles to resolution, the exercise of their supervisory powers and their power to impose early intervention measures, administrative sanctions and other administrative measures. If there were a deficit in the level of an entity’s eligible own funds and liabilities, and that entity’s own funds were contributing to meeting the “combined capital buffer requirement,” these own funds would automatically be deemed to count toward meeting the MREL of said entity and would cease to count for purposes of meeting the “combined capital buffer requirement”, which could lead the entity to fail to comply with its “combined capital buffer requirement”. This could result in the need to calculate the MDA and the resolution authority would have the power (but not the obligation) to impose restrictions on the making of discretionary payments. Therefore, the Bank will have to fully comply with its “combined capital buffer requirement”, in addition to its MREL, to ensure that it can make discretionary payments. In addition, in accordance with the EBA guidelines on the assumptions of triggering the use of early intervention measures of May 8, 2015, a significant deterioration in the amount of eligible liabilities and own funds held by an entity in order to comply with its MREL could place an entity in a situation where the conditions for early intervention are met, which could entail the application of early intervention measures by the competent resolution authority, which in the Spanish case are detailed in Articles 9 and 10 of Law 11/2015, including the intervention or provisional replacement of administrators. The EU Banking Reforms further include, as part of MREL, a new subordination requirement of eligible instruments for G-SIBs and “top tier” banks (including the Bank) that is determined according to their systemic importance, involving a minimum “Pillar 1” subordination requirement. This “Pillar 1” subordination requirement must be satisfied with own funds and other eligible MREL instruments (which MREL instruments may not for these purposes be senior debt instruments and only MREL instruments constituting “non-preferred” senior debt and other subordinated liabilities will be eligible for compliance with the subordination requirement). For “top tier” banks such as the Bank, this “Pillar 1” subordination requirement has been determined as the highest of 13.5% of the Bank’s RWAs and 5% of its leverage exposure. Resolution authorities may also impose further “Pillar 2” subordination requirements, which would be determined on a case-by-case basis but at a minimum level equal to the lower of 8% of a bank’s total liabilities and own funds and 27% of its RWAs (both including MREL Pillar 1 and Pillar 2). 42 On June 12, 2025, BBVA announced that it had received a communication from the Bank of Spain regarding its MREL (Minimum Requirement for own funds and Eligible Liabilities) requirement, established by the SRB, which was calculated taking into account the financial and supervisory information as of December 31, 2023, which communication repeals and supersedes the previous MREL requirement communicated in March 2024. In accordance with this MREL communication, BBVA must maintain, as from June 12, 2025, an amount of own funds and eligible liabilities equal to 23.13% of the total RWAs of its resolution group, on a sub-consolidated level (the “MREL in RWAs”) (compared to the MREL in RWAs requirement of at least 22.79% which was applicable from March 27, 2024 which was calculated taking into account the financial and supervisory information as of December 31, 2022). Within this MREL in RWAs, an amount equal to 13.50% of the total RWAs of BBVA’s resolution group must be met with subordinated instruments (the “subordination requirement in RWAs”). The MREL in RWAs and the subordination requirement in RWAs do not include the combined capital buffer requirement which, according to applicable regulations and supervisory criteria, was 3.97% as of December 31, 2025 and 3.65% as of December 31, 2024. In addition, BBVA must maintain, as from June 12, 2025, an amount of own funds and eligible liabilities in terms of the total exposure considered for calculating the leverage ratio equal to 8.59% (the “MREL in LR”) of which 5.66% in terms of the total exposure considered for calculating the leverage ratio shall be satisfied with subordinated instruments (the “subordination requirement in LR”). As of the date of this Annual Report, no MREL Pillar 2 requirement has been imposed on BBVA. Given the own funds and eligible liabilities structure of BBVA’s resolution group as of December 31, 2025, the amount of own funds and eligible liabilities stood at 28.89% of the RWAs of its resolution group, at the sub-consolidated level, complying with the aforementioned MREL in RWAs requirement, and the amount of subordinated instruments was equal to 24.67% of the RWAs of it resolution group, at the sub-consolidated level, complying with the subordination requirement in RWAs. In addition, as of December 31, 2025, the amount of own funds and eligible liabilities of BBVA in terms of the total exposure considered for calculating the leverage ratio stood at 10.21% and the amount of subordination instruments in terms of the total exposure considered for calculating the leverage ratio stood at 8.72%, complying with the MREL in LR and the subordination requirement in LR, respectively. The resolution group consists of BBVA and its subsidiaries belonging to the same European resolution group and, as of December 31, 2023 (the currently applicable reference date), the RWAs of the resolution group amounted to €205,154 million and the total exposure considered for calculating the leverage ratio amounted to €580,788 million. Single Resolution Fund The SRF was established by Regulation (EU) No 806/2014 (“SRM Regulation”) as a key element of the Single Resolution Mechanism (SRM). Where necessary, the SRF may be used to ensure the efficient application of resolution tools and the exercise of the resolution powers conferred to the SRB by the SRM Regulation. As stated above, the SRF is composed of contributions from credit institutions and certain investment firms in the participating Member States within the EBU and was gradually built during the course of eight years (from 2016 to 2023, when the SRF reached its target level of 1% of covered deposits). Within the resolution scheme, the SRF may be used only to the extent necessary to ensure the effective application of the resolution tools, as last resort, in particular: •To guarantee the assets or the liabilities of the institution under resolution; •To make loans to or to purchase assets of the institution under resolution; •To make contributions to a bridge institution and an asset management vehicle; •To make a contribution to the institution under resolution in lieu of the write-down or conversion of liabilities of certain creditors under specific conditions; •To pay compensation to shareholders or creditors who incurred greater losses than under normal insolvency proceedings. The Intergovernmental Agreement (“IGA”) acknowledges that situations may exist where the means available in the SRF are not sufficient to undertake a particular resolution action, and where the ex-post contributions that should be raised in order to cover the necessary additional amounts are not immediately accessible. In December 2013, ECOFIN Ministers agreed to put in place a system by which bridge financing would be available as a last resort. The arrangements for the transitional period should be operational by the time the Fund was established. 43 In this scenario, the Eurogroup decided in 2017 to expand the European Stability Mechanism (“ESM”) role to serve as a backstop for the SRF. While the new features of the expanded role for the ESM were agreed by 2019, it was not until late 2020 that the euro area finance ministers agreed to proceed with the reform of the ESM, and related treaty amendments (the “ESM Treaty amendments”) were later signed by Member States (represented by their ambassadors to the EU) on January 27, 2021. The backstop to the SRF was expected to be operational at the beginning of 2022, but the ratification process was not completed. As of the date of this Annual Report, the ESM Treaty amendments are pending ratification by Italy. On December 21, 2023, the Italian Parliament voted against the ratification of the ESM Treaty amendments. When the ratification process is completed, the ESM will be able to provide support for up to €68 billion (in the form of credit lines). If this financial assistance is requested, the SRF will pay back the ESM loan with funds obtained from banks’ contributions (in a period of three years, with the possibility to extend it to five years). Capital Management Basel Capital Accord - Economic Capital The Group’s capital management is performed at both the regulatory and economic levels. Regulatory capital management is based on the analysis of the capital base and the capital ratios (CET1, Tier 1, etc.) using the BIS Framework rules and the CRR. See Note 32 to the Consolidated Financial Statements. The aim of our capital management is to achieve a capital structure that is as efficient as possible in terms of both cost and compliance with the requirements of regulators, ratings agencies and investors. Active capital management includes securitizations, sales of assets, and preferred and subordinated issues of equity and hybrid instruments. Various actions have been taken during the last years in connection with our capital management and in order to comply with various capital requirements applicable to us related to various actions regarding asset sales. In addition, we may make securities issuances or undertake new asset sales in the future, which could involve outright sales of businesses or reductions in interests held by us, which could be material and could be undertaken at less than their respective book values, resulting in material losses thereon, in connection with our capital management and in order to comply with capital requirements or otherwise. The Bank has obtained the Bank of Spain’s and ECB’s approvals with respect to its internal model of capital estimation concerning certain portfolios. Following the European supervisory and regulatory focus on reducing the variability of own funds requirements (via the TRIM and EBA Repair Programme respectively), the Bank is currently reviewing its IRB models to ensure adherence to the evolving regulatory requirements. Although the final impact of this review is not yet known, it could result in an increase in the capital needs of BBVA. From an economic standpoint, capital management seeks to optimize value creation for the Group and its different business units. The Group allocates economic capital (“CER”) commensurate with the risks incurred by each business. This is based on the concept of unexpected loss at a certain level of statistical confidence, depending on the Group’s targets in terms of capital adequacy. The CER calculation combines credit risk, market risk (including structural risk associated with the balance sheet and equity positions), operational risk, model risk, business risk, reputational risk and technical risks in the case of insurance companies. Shareholders’ equity, as calculated under the BIS Framework rules, is an important metric for the Group. For the purpose of allocating capital to operating segments, the Group focuses on both economic and regulatory capital. The purpose is to ensure that the businesses are run considering both the risk-sensitive perspective and the regulation requirement. These are designed to provide an equitable basis for assigning capital and ensure adequate capital management across the Group. Concentration of Risk In accordance with Article 392 of CRR III, an institution’s exposure to a client or a group of connected clients shall be considered a large exposure where the value of the exposure is equal to or exceeds 10% of the institution’s eligible capital. Additionally, according to Article 395 of CRR III an institution shall not incur an exposure, after taking into account the effect of the credit risk mitigation in accordance with Articles 399 to 403, to a client or a group of connected clients the value of which exceeds 25% of its eligible capital. Where that client is an institution or where a group of connected clients includes one or more institutions, that value shall not exceed 25% of the institution’s eligible capital or €150 million, whichever is higher, provided that the sum of exposure values, after taking into account the effect of the credit risk mitigation in accordance with Articles 399 to 403, to all connected clients that are not institutions does not exceed 25% of the institution’s eligible capital. 44 Where the amount of €150 million is higher than 25% of the institution’s eligible capital, the value of the exposure, after having taken into account the effect of credit risk mitigation in accordance with Articles 399 to 403 of this Regulation, shall not exceed a reasonable limit in terms of that institution’s eligible capital. That limit shall be determined by the institution in accordance with the policies and procedures referred to in Article 81 of Directive 2013/36/EU in order to address and control concentration risk. That limit shall not exceed 100% of the institution’s eligible capital. Legal and Other Restricted Reserves We are subject to the legal and other restricted reserves requirements applicable to Spanish companies. Please see “—Capital Requirements, MREL and Resolution”. Dividends A bank may generally dedicate all of its net profits and its distributable reserves to the payment of dividends. In no event may dividends be paid from non-distributable reserves. For additional information see “Item 8. Financial Information—Consolidated Statements and Other Financial Information—Dividends”. Since January 1, 2016, according to CRD, those credit entities required to calculate their MDA are subject to restrictions on discretionary payments, which include, among others, dividend payments. See “—Capital Requirements, MREL and Resolution”. Although banks are not legally required to seek prior approval from the Bank of Spain or the ECB before declaring dividends (despite distributions from the share premium account, which are subject to prior approval), we inform each of them on a voluntary basis upon the declaration of a dividend. Our Bylaws allow for dividends to be paid in cash or in kind as determined by shareholders’ resolution. Principal Markets The following is a summary of certain additional laws and regulations applicable to BBVA’s operations in Spain, Mexico, Turkey and the United States. Spain BBVA’s operations in Spain are subject to European Union-wide and Spanish national regulations. Spain has a broad regulatory framework designed to ensure consumer protection and enhance transparency. Finance and deposits products are subject to both general consumer and product-specific laws which, in certain circumstances, differentiate between consumers and non-consumers. Payments accounts The provision of payment accounts and services in Spain is subject to various regulations, most of which transpose European legislation, such as Directive (EU) 2015/2366 (“PSD 2”) (transposed by means of Royal Decree-Law 19/2018, of November 23, on Payment Services) and Directive (EU) 2014/92 (transposed by means Royal Decree-Law 19/2017, of November 24, on basic payment accounts, transfer of payment accounts and comparability of fees). Such regulations lay down minimum information requirements for providers of payment accounts and services as well as certain transparency provisions with regard to fees. A significant development in relation to PSD 2 is a requirement to allow third parties access to accounts to provide account information and payment initiation services, provided they have a customer’s consent. Finance Regarding loans, there are separate regulations applying to consumer loans and residential loans which are, in both cases, mainly derived from European legislation, including Directive (EU) 2008/48 (relating to credit agreements for consumers) (transposed by means of Law 16/2011, of June 24, on Consumer Credit Contracts) and Directive (EU) 2014/17 (relating to credit agreements for residential immovable property). In 2019, Law 5/2019, of March 15, regulating real estate credit agreements (“Law 5/2019”) was passed, transposing Directive 2014/17. It applies to individuals, whether or not they are consumers, and sets limits on default interest, early maturity and early repayment fees, and provides a comprehensive framework of pre-contractual information provisions. Law 5/2019 also requires that a notarial act shall be granted prior to signing a residential credit agreement in which the notary verifies that the bank has fulfilled all of its legal pre-contractual information obligations and that the borrower has understood all the clauses. 45 Additionally, specific regulations applicable to mortgage loans for vulnerable consumers are in effect. Royal Decree-Law 6/2012 (“CGP 6/2012”) establishes a Code of Good Practices to support debtors facing severe financial difficulties. Measures include a five-year grace period for principal repayment, reduced interest rates during this period, and loan term extensions of up to 40 years. If refinancing is not viable, debt reduction or dation in payment (handing over) of the mortgaged home to cancel the debt is possible. Royal Decree-Law 19/2022 expanded CGP 6/2012 to include more types of debtors but reduced the grace period to two years and allowed loan term extensions of up to seven years. It also introduced a new Code of Good Practices (“CGP 19/2022”) to mitigate rising interest rates. Eligible debtors can extend the loan term by up to seven years (not exceeding 40 years) with options such as freezing installments for 12 months or converting to a fixed interest rate. CGP 19/2022 was extended until December 31, 2025, nationwide, and until June 30, 2026, for residents in areas affected by the late 2024 floods (DANA). Instant Payments Regulation Regulation (EU) 2024/886 or the European Parliament and of the Council of March 13, 2024 amending Regulations (EU) No 260/2012 and (EU) 2021/1230 and Directives 98/26/EC and (EU) 2015/2366 as regards instant credit transfers in euro requires all payment service providers that offer regular transfer services to offer consumers and businesses in the European Economic Area (EEA)—the 27 EU member states plus Iceland, Liechtenstein, and Norway—the ability to transfer money within a maximum of 10 seconds, at any time of day, every day of the week. Additionally, if there is a fee, such fee cannot be higher than the fee applied to regular transfers. Furthermore, in order to prevent sending money to fraudulent accounts, payment service providers must offer users the possibility of verifying that the IBAN number of the account to which the money is being sent matches the name of the recipient. The Regulation establishes a transitional period for its implementation, granting entities in the eurozone until January 9, 2025 to receive transfers and to apply fees for this service, which must not exceed those for standard transfers. Furthermore, entities will have until October 9, 2025, to implement the capability to send instant transfers, incorporate the verification service to ensure that the beneficiary’s name matches the IBAN, and offer customers the possibility to set limits on transferred amounts. New Draft Bill on Financial Customer Defense Authority The Congress of Deputies is currently debating the draft bill for the creation of the Financial Customer Defense Authority (the “Authority”). The final approval could take place during the year 2025. The below discussion is based on the latest proposal as of the date of this Annual Report, and any final resolution (if passed) may include additional or different provisions. Based on the current proposal, the Authority will have faculties to hear and adopt binding resolutions, with respect to financial entities only, in connection with claims of financial customers or potential customers (i) not exceeding 20,000 euros, regarding breaches of conduct regulations (included voluntary codes of good practices) and abusive clauses; or (ii) with an undetermined amount (this will need to be further developed by subsequent regulation). The Authority’s resolution will not be binding when the amount of the claim is equal to or greater than 20,000 euros or is related to good practices. In relation to abusive clauses, the Authority will decide on the existence of abusive clauses if these have been previously declared as such by the Supreme Court and the Court of Justice of the European Union and a final ruling has been registered with the Spanish registry of general terms and conditions of contracting. The Authority shall resolve complaints from individuals and companies, including potential customers. Resolutions may be appealed, regardless of whether they are binding or not, before the civil courts in Spain. With respect to claims of an economic nature, the resolution may order the refund of amounts determined to be unduly charged, plus interest for late payment. The Authority may impose penalties for non-compliance with its resolutions (from 500,000 to 2,000,000 euros). Additionally, sanctions could be imposed on managers and directors (from 250,000 to 1,000,000 euros). The Authority will be entirely financed by financial entities, which will be required to pay a varying annual fee based on the number of complaints filed against them, and the number of complaints resolved against them, in the preceding year. In particular, 40% of the costs incurred by the Authority in a given year will be distributed among institutions on a pro rata basis based on their respective weight within the absolute number of complaints brought in such year, while 60% of the costs will be distributed on a pro rata basis based on their respective weight within the absolute number of complaints resolved in favor of customers brought in such year. 46 Insolvency Law In 2022 Law 16/2022 of September 5 on the reform of the consolidated text of the Insolvency Law (Law 16/2022) was passed. Law 16/2022 transposes Directive (EU) 2019/1023 of the European Parliament and of the Council of June 20, 2019 on frameworks for preventive restructuring, debt waivers and disqualifications, and on measures to increase the efficiency of restructuring, insolvency and debt waiver procedures. The new insolvency legal framework provides for (i) the creation of a new state of insolvency (“the likelihood of insolvency”), prior to imminent and actual insolvency, which enables access to certain pre-bankruptcy institutions, (ii) the removal of out-of-court payment agreements and refinancing agreements, introducing instead “Restructuring Plans” and (iii) the new “Special procedure for micro-enterprises” applicable to debtors, whether natural or legal persons, that meet certain characteristics. Organic Law 1/2025, of January 2, on Measures to Improve the Efficiency of the Public Justice Service This Law introduces the following changes: (i) New Regime for Late Payment Interest In consumer actions, if companies fail to cooperate in reaching an agreement on disputes related to either clauses that are declared null and void by the Supreme Court, resolutions registered in the General Register of Contract Terms, or judgments of the Court of Justice of the European Union (CJEU), courts may impose compensation for late payment. This compensation will consist of an annual interest equal to the legal interest rate in effect at the time, increased by 50%. If more than two years have passed since the judgment ordering the restitution of amounts, the annual interest shall not be less than 20%. Interest will accrue daily from the date the consumer paid the amounts claimed (e.g., in cases of expenses related to a mortgage loan, from the time of signing of such mortgage loan). (ii) Mandatory Pre-Claim Process Before filing a lawsuit, in most civil disputes, it will be mandatory to attempt to resolve the dispute through alternative dispute resolution mechanisms. For disputes filed by consumers against financial institutions related to unfair terms in mortgages, this requirement will involve submitting a prior claim to the lender, who must respond and include, as the case may be, a calculation of the amount to be reimbursed. If the lender fails to resolve the claim, it cannot introduce new arguments in court beyond those included in its response. In the case of judicial debt claims where no enforcement proceedings are initiated, the financial institution shall also resort to alternative dispute resolution mechanisms. In addition, at any stage of enforcement proceedings, the parties may submit to mediation or any other appropriate dispute resolution mechanisms, in which case the enforcement proceeding shall be suspended. (iii) Modification of the Valuation of Unquantifiable Claims Courts have generally considered that a declaratory claim for the nullity of a clause is of indeterminate value. When the value of a lawsuit is indeterminate, the regulation provides that, for the purposes of cost assessment, claims are estimated at €18,000, unless the complexity of the case dictates otherwise. The new law provides for increasing the valuation of unquantifiable claims from €18,000 to €24,000. If a party is found to have committed a “misuse of judicial resources”, procedural costs and fines of up to €6,000 may be imposed on such a party. This may increase the costs of litigation. Additionally, certain articles of procedural law were amended, including, among others, those related to the judicial auction of assets. Investment Services Several sustainability initiatives within the European Union are expected to significantly impact the asset management and investment services sectors during 2026. 47 •The European Commission, the European Parliament and the European Council have agreed on certain amendments to be made to MIFID II and Regulation (EU) No 600/2014 on markets in financial instruments (MiFIR). The vast majority of the changes relate to MiFIR, where some existing obligations are removed or alleviated. In particular, the pre-transparency obligation is limited to equity products and products subject to the clearing obligation. The systematic internalized figure is also reduced in its scope and, as an alternative, the figure of the designated publishing entity is created to facilitate the buy-side compliance with post-transparency rules. Most of these changes entered into force on March 28, 2024, although (i) a some of them will need to be further developed by level 2 legislation; and (ii) ESMA and the European Commission published two statements to clarify that certain obligations will not enter into force until a later date. •The European Commission has published a regulatory package called Retail Investment Strategy (“RIS”) which aims to increase the participation of retail investors in European capital markets. Directive 2014/65/EU on markets in financial instruments (MiFID) is included among the different EU directives to be reviewed, with relevant changes proposed in retail investor protection. The European Parliament and European Council have recently announced an agreement on the general framework to be included in the RIS. Technical work will now continue to finalize the legal texts. Once published in the EU’s official journal, member states will have to transpose the new rules within 24 months. They will start applying 30 months following their publication, with the exception of the new rules under PRIIPs which would start applying 18 months following their publication. •The regulatory package amending, among others, Regulation (EU) 648/2012 of the European Parliament and Council on over-the-counter derivatives, central counterparties and trade repositories (EMIR 3.0) was published in the Official Journal and most of the changes apply from December 24, 2024. The main changes aim to increase clearing at EU central counterparties and reduce reliance on certain UK central counterparties through the so-called “active accounts”. The European Commission has recently approved some of the level 2 legislation (with the legislation dealing with active accounts being the most relevant) without relevant deviations from the reports issued by ESMA. In addition, as part of the RIS, the European Commission has published a proposal to amend the Regulations for packaged retail investment products (PRIIPs). The proposed changes are mainly focused on providing alternatives for the use of digital channels and the inclusion of a new ESG section within the Key Information Document (KID). The new rules under PRIIPs will start applying 18 months following their publication in the EU’s official journal. The European Union has also been very active in terms of adopting legislation to preserve financial stability. In this regard, the BBVA Group has been subject to initial margin requirements under Regulation (EU) 648/2012, regarding OTC derivatives, central counterparties and trade repositories, since September 2019, as well as similar legislation in other geographical areas. In addition, BBVA Group entities classified as financial counterparties are required to post and receive initial margins when dealing with other in-scope entities. In Spain, the Ministry of Economy has launched a public consultation regarding the regulatory framework for a new Savings and Investment Account and the “Finance Europe” label. Its key points are the creation and design of a simple national regulatory framework for a Savings and Investment Account, aligning with a European Commission Recommendation from September 30, 2025 and the implementation of the “Finance Europe” label in Spain. EU Market Integration Package The European Commission published on December 4, 2025 the so-called Market Integration Package, an initiative seeking to constitute a fundamental pillar of the Savings and Investments Union (SIU) Strategy. Its primary objective is to remove the barriers that fragment the Union’s capital markets in the areas of trading, post-trading, asset management and crypto-asset services, while at the same time strengthening integrated supervision. Overall, the package aims to achieve: (i) greater integration and economies of scale, (ii) more coherent supervision, partly centralized within ESMA, (iii) facilitation of innovation (DLT, tokenization), and (iv) simplification through the removal of redundant rules and the consolidation of the “single rulebook.” On top of that, it proposes a new modification of the UCITS (Undertakings for Collective Investment in Transferable Securities) and AIFM (Alternative Investment Fund Manager) Directive, which affects both the management companies and the funds under management of the BBVA Group, and BBVA as a depositary bank. Transposition of the Consumer Credit Directive into the Spanish market At its meeting on January 7, 2026, the Spanish Council of Ministers initiated the legislative procedure for the transposition of the Consumer Credit Directive 2023/2225, which repeals and updates the former Directive 2008/48/EC, thereby modernizing the European regulatory framework for consumer credit. 48 As part of the transposition process, which is expected to enter into force on November 20, 2026, a law-ranking regulation and an accompanying Royal Decree will be adopted. One of the most relevant aspects is that the aforementioned Royal Decree could introduce certain limitations on the applicable interest rates, as well as mechanisms for monitoring and publishing the interest rates normally applied in the market, under the terms to be set out in the implementing legislation. In general terms, the scope of transactions and entities supervised by the competent authorities will be expanded, measures will be introduced to ensure borrowers’ creditworthiness for the repayment of the loans requested, and transparency in the marketing of credit products will be strengthened. Pension Funds The European Commission has published its regulatory package on supplementary pensions, a key initiative framed within the Savings and Investment Union (SIU). The European Commission’s proposal is designed to supplement public pensions, rather than replace them, and its main objective is to strengthen both the demand and supply of occupational and personal pension plans to improve financial security and mobilize long-term savings towards productive investments across the EU. Sustainability In November 2025, the European Commission published a proposal to amend Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (SFDR), following a comprehensive assessment process initiated in 2023. The review aims to address implementation challenges identified since the SFDR entered into application in 2021, including regulatory complexity, compliance costs and risks of greenwashing, and forms part of the Commission’s broader simplification agenda within the EU sustainable finance framework. The proposal introduces a harmonized categorization system for financial products making sustainability-related claims —sustainable, transition and ESG basics— alongside a significant streamlining of disclosure requirements, notably through the reduction of entity-level obligations and more proportionate product-level disclosures. The revised framework is intended to improve investor understanding and comparability of ESG products, strengthen investor protection and enhance coherence with other EU sustainability legislation, including the EU Taxonomy Regulation, the Corporate Sustainability Reporting Directive and recent ESMA ESG fund naming guidelines. As of the date of this Annual Report, the proposal remains subject to the ordinary legislative procedure and its final content and timing of application remain uncertain. Digital Operational Resilience Act (DORA) Regulation 2022/2554, on digital operational resilience for the financial sector (DORA), is an EU regulation aimed at ensuring the operational resilience of financial entities against digital and cybersecurity risks, which entered into force in January 2025. Enacted as part of the EU’s broader Digital Finance Package, it establishes a uniform framework for financial institutions, including banks, investment firm, and asset managers, to manage and mitigate technological risks. DORA mandates stringent requirements for risk management, incident reporting, oversight of third-party information and communication technology (ICT) service providers and testing of operational resilience. Its impact on financial entities is significant, as it drives the need for enhanced IT systems, stronger governance structures and robust third-party risk management. As a result, DORA is already affecting financial entities and its relationship with counterparties and providers. Interest Margin and Commission Tax (IMIC) 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 margin and commissions of certain financial entities, including Banco Bilbao Vizcaya Argentaria, S.A. The tax is levied on the net interest margin and commissions obtained by credit institutions from the activity they carry out in Spain and is applicable to the first three consecutive tax periods that begin on January 1, 2024. During 2025, the Group made a payment corresponding to the IMIC for the 2024 financial year. However, since this payment was not required under the legal framework in place as of December 31, 2025, an asset for the amount paid (€295 million) was recorded under the heading “General Governments” of the item “Financial assets at amortized cost - Loans and advances to customers” in the balance sheet. In addition, as of December 31, 2025, current tax liabilities include approximately €318 million corresponding to the accrual of the IMIC for the 2025 financial year in respect of certain Group financial entities, and the related expense was recognized under the heading of “Tax expense or income related to profit or loss from continuing operations”. 49 No impact associated with the IMIC has been recorded in the Consolidated Financial Statements for the year ended December 31, 2024. See Note 19.6 to the Consolidated Financial Statements for additional information on certain other contributions and taxes. Temporary Tax on Credit Institutions in Spain On December 28, 2022, the Law for the establishment of the temporary tax on credit entities and financial credit establishments was published in the Official State Gazette. This law established a temporary tax on extraordinary profits applicable to credit institutions operating in Spain during the years 2023 and 2024 whose aggregate interest income and fee and commission income in 2019 was €800 million or more. The amount to be paid under such temporary tax on extraordinary profits was the result of applying the percentage of 4.8% to the sum of the net interest income and fee and commission income and expense derived from the activity carried out in Spain, as shown in the income statement of the tax consolidation group to which the credit institutions belonged, corresponding to the calendar year prior to the year in which the obligation to make such a payment arose. The payment obligation arose on the first day of the calendar year of fiscal years 2023 and 2024. The impact of the payment required to be made by BBVA on account of this temporary tax in 2024 and 2023 amounted to €285 million and €215 million, respectively, which amounts were recorded under “Other operating expense” in the consolidated income statements (see Note 42 to the Consolidated Financial Statements). This temporary tax had no impact on the Consolidated Financial Statements for the year ended December 31, 2025. See Note 19.6 to the Consolidated Financial Statements for additional information on certain other contributions and taxes. Prevention of Money Laundering and Terrorist Financing Directive (EU) 2015/849 of the European Parliament and of the Council of May 20 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing aims to prevent the use of the EU’s financial system for the purposes of money laundering and terrorist financing. Spanish Law 10/2010 of April 28 transposes Directive (EU) 2015/849 and establishes obligations in respect of preventing money laundering and terrorist financing, including applicable due diligence, internal controls and reporting obligations to obliged entities. Credit institutions, including BBVA, are part of the entities that are subject to such regulation. On July 20, 2021, the European Commission presented an ambitious package of legislative proposals to strengthen EU rules against money laundering and terrorist financing. This legislative package consisted of four texts: (i) a regulation governing the creation of an EU Authority for Anti-Money Laundering and Countering the Financing of Terrorism (the “AMLA Regulation”); (ii) a new regulation on the prevention of money laundering and terrorist financing (“AML/CFT” and the “AML/CFT Regulation”, respectively); (iii) the 6th Directive on the prevention of money laundering and terrorist financing (the “6th AML/CFT Directive”); and (iv) the revision of a 2015 regulation on transfers of funds related to tracing transfers of certain crypto-assets (the “Travel Rule Regulation”). The Travel Rule Regulation was adopted in May 2023. The remaining proposals were approved by the Parliament on April 24, 2024 and by the Council on April 30, 2024 (with publication in the Official Journal of the European Union on June 19, 2024). The new Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) will have direct and indirect supervisory powers over high-risk obliged entities in the financial sector and will establish an integrated mechanism with national supervisors to ensure that obliged entities comply with AML/CFT-related obligations. The AMLA Regulation applies since July 1, 2025. The AML/CFT Regulation harmonizes anti-money laundering rules across the EU and extends anti-money laundering rules to new obliged entities. The AML/CFT Regulation also establishes stricter due diligence requirements and regulates beneficial ownership. It will apply from July 10, 2027. The 6th AML/CFT Directive sets out clear rules on how Financial Intelligence Units (“FIUs”) and supervisors work together, requires EU Member States to provide information from centralized bank account registers through a single access point and includes harmonization of the format of bank statements. The deadline for transposition is July 10, 2027. Finally, the Travel Rule Regulation, which regulates measures to detect and manage transfers of funds or crypto-assets, began to apply on December 30, 2024. 50 Data Protection Regulation Regulation (EU) 2016/679 of the European Parliament and of the Council of April 27, 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data (“GDPR”) aims to achieve effective protection of personal data by providing natural persons in all EU member states with the same level of legally enforceable rights and obligations regarding personal data and imposing responsibilities on data controllers and processors to ensure consistent monitoring of the processing of personal data. Organic Law 3/2018, of December 5, on the protection of personal data and guarantee of digital rights implemented the GDPR into law in Spain. The regulatory body primarily responsible for oversight in Spain is the Spanish Data Protection Agency (“AEPD”). The GDPR’s strengthened accountability requirements have led to the revision and improvement of our privacy management processes, including processes to obtain consents from clients, enable clients to exercise their rights, and manage cross-border data transfers. The GDPR introduces a risk-based approach to data processing (the higher the risk associated with the data processing, the higher the standard for the evidence to be submitted in order to prove compliance with the GDPR), including the preparation of Data Protection Impact Assessments for each high-risk data processing activity, “privacy by design” and “privacy by default” requirements (where data protection is integrated in the technology from the outset) and the legitimate interest assessment (to weigh the reasons a business holds personal data against the data rights of an individual). This seeks to ensure appropriate risk-based prioritization of mitigations and controls and a significantly effective data management program based on assessed risk. Furthermore, subsequent guidance from the European Data Protection Board and the AEPD has further refined expectations regarding topics such as lawful bases for processing in marketing and the use of complex profiling techniques. Furthermore, GDPR obligations and requirements to notify breaches to authorities and individuals under different circumstances led BBVA to review and enhance its data security measures and programs and to update its breach response plans and notification procedures, while ensuring continuous staff training and leadership buy-in. In the years following the initial implementation of the GDPR, the focus has shifted from initial compliance efforts to ensuring the maturity and operational embedding of these controls. Mexico BBVA’s operations in Mexico are highly regulated. The Mexican regulatory framework for financial and banking activities aims to ensure the stability of the financial system and combat money laundering, as well as to provide consumer protection and transparency in the provision of financial services. Constitutional and Institutional Reform On September 15, 2024, a constitutional reform regarding the Judiciary System was published in Mexico’s Federal Official Gazette. The reform, which took effect the day after its publication, primarily establishes the popular election of federal judges, including the Supreme Court Justice (“SCJN”). Furthermore, it reduces the number of SCJN justices from 11 to 9. Additionally, on December 20, 2024, a further constitutional reform was published in Mexico’s Federal Official Gazette to eliminate several Constitutionally Autonomous Bodies, transferring their functions to other entities of the federal government. Among others, the reform provides for the redistribution of the responsibilities of the National Institute of Transparency (“INAI”) to government agencies, and the replacement of the Federal Economic Competition Commission (“COFECE”) by a decentralized body stemming from the Federal Executive, which will also be in charge of telecommunications’ antitrust matters. As a result of the aforementioned reform, on March 20, 2025, a decree was published in the Federal Official Gazette enacting new legislation on transparency and personal data protection. The new legal framework includes: (i) the General Law on Transparency and Access to Public Information; (ii) the General Law on Personal Data Protection Held by Obligated Subjects; and (iii) the Federal Law on Personal Data Protection Held by Private Parties. These new laws reassign transparency-related responsibilities from INAI to various entities including the Secretariat of Anti-Corruption and Good Governance and the Federal Judiciary. They also mandate the establishment of the National Information Access System and the creation of specialized courts and tribunals to address these matters. The enactment of secondary regulation is still pending. Furthermore, on July 9, 2025, the Mexican Congress approved a reform to the Federal Economic Competition Law (“LFCE”), which was subsequently published in the Federal Official Gazette on July 16. This amendment introduces significant changes –such as the creation of a new National Antitrust Commission (“CNA”), enhanced enforcement powers, and an expanded sanctions framework–and will affect various sectors, including banking, by increasing scrutiny over market behavior and dominant positions. On October 17, 2025, the new LFCE came into effect, COFECE was officially dissolved and the CNA began operations. 51 COFECE Investigation into Card Payments Market In 2018, the Investigative Authority (IA) of the COFECE launched an investigation into the card payments market. In July 2023, the COFECE’s Board issued a final resolution recommending that regulators implement regulatory changes and mandating clearing houses to establish a compliance program and appoint an antitrust compliance officer. In February 2025, COFECE formally confirmed that BBVA Mexico, as an investor in E-Global, a clearing house, has complied with the resolution. Separately, in October 2022, COFECE announced that it had initiated an investigation in April 2022 into potential collusion in credit card transactions involving deferred monthly payments at zero interest. Although not under investigation, in July 2024, BBVA was requested to assist the authority by providing information related to the case. The request was fulfilled in December 2024. On December 18, 2024, COFECE concluded the investigation phase. In April 2025, the Investigative Authority of COFECE presented its findings to the Board of Commissioners. As a result of the investigation, COFECE issued a Statement of Probable Responsibility and notified the involved parties, thereby initiating the trial-like stage of the proceeding. BBVA is not an involved party and did not receive any notification. Financial, Deposit and Credit Services The provision of financial and deposit products is mainly regulated in the Banking Law and provisions issued by the National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores or “CNBV”) and the Mexican Central Bank (“BANXICO”), where CNBV issues prudential regulation and BANXICO regulates banking transactions, including financial and deposit products. In addition, the Financial Services Transparency and Regulation Law contains provisions regarding transparency and consumer protection. Furthermore, Banking Deposit Insurance Law (IPAB Law) governs the creation, organization, and functions of IPAB, the Mexican bank deposit protection agency. The IPAB provides financial support to banks to safeguard customer deposits. Deposit insurance is paid upon a bank’s liquidation. Finally, the Law for the Protection and Defense of Financial Services Users aims to protect and defend the rights and interests of users of financial services. It establishes the CONDUSEF, an autonomous agency with broad authority to safeguard user rights, including the power to impose fines. Banks are required to maintain an internal unit dedicated to resolving disputes submitted by clients. Capital Markets The regulatory framework for capital markets includes specific regulations designed to develop the stock market in an equitable, efficient and transparent manner, protect the interests of investors and promote competition, and minimize systemic risk. Asset Management Regarding asset management, regulation encourages the creation and development of investment companies and promotes the strengthening and the decentralization of the stock market by facilitating the access of small and medium investors. It also establishes the rules for the organization and operation of investment funds, the intermediation of their shares in the stock market, and the organization and operation of the people who provide asset management services. Anti-Money Laundering (AML) Regulations The primary AML regulations applicable to credit institutions are issued by the Ministry of Finance and Public Credit (Secretaría de Hacienda y Crédito Público or “SHCP”) and are set forth in the general provisions referred to in Article 115 of the Mexican Banking Law. These provisions impose obligations on financial institutions, including customer due diligence, transaction monitoring, suspicious activity reporting, and risk-based compliance programs. The CNBV and SHCP enforce AML regulations and impose severe penalties for non-compliance. On June 26, 2025, the Mexican Congress approved a reform to the Anti-Money Laundering Law (the Federal Law for the Prevention and Identification of Operations with Illicit Proceeds), which was subsequently published in the Federal Official Gazette on July 16, 2025. This amendment introduces expanded definitions (including “beneficial owner” and “politically exposed person”), enhances the Ministry of Finance’s oversight powers, and strengthens coordination with public and national security authorities. It is expected that these changes will have legal and operational impacts, including increased due diligence requirements, stricter reporting obligations, and updates to internal AML systems. 52 Turkey BBVA’s operations in Turkey are subject to substantial regulation. Apart from fundamental legal rules and product/service-specific legal regulations, the most basic regulation for the sector is the Banking Law No. 5411. The purpose of this law is to regulate the principles and procedures for ensuring confidence and stability in financial markets, the efficient functioning of the credit system and the protection of the rights and interests of depositors. In general, the rules applicable to products and services that banks in Turkey offer to consumers are more stringent than rules applicable with respect to commercial and corporate banking customers. Besides general consumer protection regulations, there are specific regulations of the Banking Regulation and Supervision Agency (“BRSA”) on banking consumers. Below is a brief summary of certain regulations that are relevant to our activity. For additional information on certain recent legal and market developments, see “—Competition—Turkey”. Regulation on Loans and Reserve Requirements Since 2020, the BRSA and the CBRT have issued recommendations to protect the value of the Turkish lira by ensuring that customers who are granted cash loans do not use the loan amounts for buying foreign currency or gold, and introduced and regulated the Foreign Currency Protected Turkish Lira Deposit Account, an instrument designed to protect Turkish lira-denominated deposits from volatility in exchange rates. Several Communiqués were issued since then, establishing maximum limits with respect to loan allocation and loan disbursement fees, revising applicable rates, and implementing policies to strengthen the monetary policy transmission mechanisms and to balance domestic demand. On September 23, 2022, the Procedures and Principles Regarding Fees to be Collected by Banks from Commercial Customers entered into force (through Communiqué No. 2020/4 and further amendments), establishing maximum limits with respect to loan allocation and loan disbursement fees. According to such Communiqué, starting on January 4, 2024, monetary limits and maximum fees which are stated as fixed rates will be revised annually at the rate of increase in the annual consumer price index, as announced by the Turkish Statistical Institute at the end of the year. The Communiqué was amended on June 28, 2024 to introduce a change in the calculation method of the prepayment fee for fixed-rate and floating-rate commercial loans and subsequently further amended on November 1, 2025, when a simplified reduced limit of 0.20% was introduced. On the other hand, policies were implemented in 2024 to strengthen the monetary policy transmission mechanism and balance domestic demand. In order to enhance the effectiveness of loan growth limits, a reserve requirement (funds to be held at the CBRT as a percentage of loans or deposits, as the case may be) based on loan growth was introduced in 2024. During 2024, the monthly growth limit was reduced from 2.5% to 2.0% for Turkish lira commercial loans and from 3.0% to 2.0% for general purpose loans. On January 4, 2025, the growth limit was revised to 2.5% for SME loans and 1.5% for commercial loans. These measures were implemented in order to control the growth in Turkish lira denominated loans within a lower interest rate environment. On June 21, 2025, the Communiqué on Deposit and Loan Interest Rates and Participation Account Profit and Loss Participation Rates lowered the additional reserve requirement to 2.5%, from 4.0%. 53 Regulation on Deposits Since 2020, BRSA has issued recommendations to protect the value of the Turkish lira by ensuring that customers who are granted cash loans do not use the loan amounts for buying foreign currency or gold, and introduced the Foreign Currency Protected Deposit Account (KKM). While the scheme initially allowed individuals and legal entities to convert foreign currency and gold into protected Turkish lira-denominated deposits (with eligibility dates updated periodically, such as the September 2024 amendment referencing balances as of August 31, 2024), the CBRT began phasing out the program in 2025. On July 20, 2024, the Communiqué on Amendments to the Communiqué on the Deposit and Participation Scheme for Non-Resident Turkish Citizens was adopted, setting forth certain regulation applicable to time deposit and participation accounts (“YUVAM”) that are the result of converting foreign currency deposit accounts and participation funds of certain non-resident persons that were denominated in foreign currency into Turkish lira deposits or accounts, and which provide additional returns according to the procedures determined by the CBRT. YUVAM accounts are a subset of foreign currency-protected deposit accounts (KKM), specifically tailored for non-resident individuals and legal entities, offering both exchange rate protection and an additional yield. As per the latest amendments, Turkish authorities are to gradually phase out the broader KKM scheme, specifically by excluding domestic legal entities from its scope for new openings and renewals, while maintaining YUVAM accounts as a distinct, regulated mechanism to attract foreign currency from non-resident individuals and legal entities. As of February 15, 2025, account openings and renewals for legal entities were terminated. On August 23, 2025, the opening and renewal of standard KKM accounts for individuals were also terminated, effectively ending the scheme for domestic residents. Pursuant to CBRT legislation, banks are free to determine the interest rates on deposits and loans. However, between 2020 and 2024, the yearly interest rate on current deposit accounts was capped at low levels (around 0.25%), significantly below the annual inflation rate (30.9% as of late 2025). Further amendments introduced an additional reserve requirement, which was set at 5% as of September 2024, and which requires Garanti BBVA to make Turkish lira-denominated deposits with the CBRT in such proportion with respect to all foreign currency-denominated deposits and participation funds (excluding those obtained from banks abroad) held by Garanti BBVA, regardless of their maturities. Further amendments reduced this requirement in November 2024 (4.0%) and June 2025 (2.5%). The reserve requirement framework was significantly revised throughout 2025 to simplify macroprudential tools. While a 5% additional reserve requirement was temporarily in force following the September 2024 amendments, the CBRT overhauled these regulations effective December 2025 (Communiqué No. 2025/61). Under the updated regime in 2025, effective as of January 2, 2026, reserve requirement ratios for foreign currency-denominated deposits and participation funds were unified and set at 30% for short-term (up to 1 month) and 26% for long-term maturities. These amendments also eliminated previous divergences between foreign currency and gold deposit ratios, effectively superseding the specific 5% additional tranche mechanism previously in place. In addition, the reserve requirement for precious metal deposit accounts has been removed. For other liabilities (including foreign bank deposits/participation funds), the reserve requirement ratios have been changed for various maturity profiles. The rates for up to 2 years (including 2 years) decreased from 16% to 10%, for up to 3 years (including 3 years) from 11% to 8%, for up to 5 years (including 5 years) from 7% to 3% and for longer than 5 years from 5% to 0%. The 25% reserve requirement for foreign currency deposits/participation funds from repo transactions with domestic residents, with maturities up to 1 year, remains unchanged. The Regulation on the Maintenance of Securities, pursuant to which each bank in Turkey (including Garanti BBVA) was required to hold certain amounts of Turkish lira-denominated long-term government debt securities and lease certificates issued by the Leasing Company of Under secretariat of Treasury based on their respective balances of foreign currency deposits, participation funds and precious metals held by customers and Turkish lira deposits, among other assets and liabilities, was amended on December 22, 2023. The relevant requirement for foreign currency deposits, participation funds and precious metals accounts held by customers and funds from foreign exchange-denominated repo transactions was set at 4%. The CBRT repealed the Regulation on the Maintenance of Securities on May 9, 2024 with immediate effect and, therefore, the rules requiring banks to hold long-term Turkish lira-denominated securities issued by the Turkish government with the CBRT have been abolished. 54 Pursuant to the Communiqué on Deposit and Loan Interest Rates and Participation Account Profit and Loss Participation Rate of June 21, 2025, the following amendments were implemented with respect to Turkish lira-denominated deposits: (i) new reserve requirement ratios were set for accounts with variable interest rates linked to the consumer price index (CPI), producer price index (PPI), and Turkish lira Overnight Reference Rate (“TLREF”) Index, set at 10%; (ii) for accounts with maturities up to 6 months benefiting from CBRT exchange rate/price protection, the ratio increased from 33% to 40%, while demand deposits/participation funds in foreign banks belonging to parent companies were set at 0%; and (iii) variable interest rates may be applied to Turkish lira deposits with maturities longer than 1 month (previously, 3 months or longer). Other Regulations The Communiqué Regarding Maximum Interest Rates Applicable to Credit Card Transactions, published on and effective as of March 13, 2025, has altered both the amounts of period debt and interest rates applicable to credit card transactions in Turkish lira (excluding cash withdrawals or usage transactions and corporate credit card transactions). The updated period debt rates are calculated by adding 14 basis points (reduced from 39) for credit cards with a period debt below thirty thousand Turkish lira (previously twenty-five thousand); 64 basis points (reduced from 89) for credit cards with a period debt between thirty thousand and one hundred and eighty thousand Turkish lira (previously between twenty five and fifty thousand) 64 basis points (reduced from 89) and 114 basis points (reduced from 139) for credit cards with a period debt above one hundred and eighty thousand (previously above fifty thousand). For corporate credit card transactions in Turkish lira (excluding cash withdrawals or purchase transactions) the monthly maximum contractual interest rate is determined by adding 114 basis points to the monthly reference rate, reduced from 139 basis points. For cash withdrawals or purchase transactions in Turkish lira, the monthly maximum contractual interest rate is determined by adding 114 basis points to the monthly reference rate, reduced from 139 basis points. In addition, in September 2024, the BRSA introduced regulations regarding the restructuring of retail credit card debts, including the possibility of adding the installment amount for each month to the minimum payment of the relevant month, limited to a maximum of 60 months. The credit card limit allocated to the cardholder cannot be increased until 50% of the restructured debt is paid off. If the restructured amount exceeds the credit card limit, the excess amount will not be considered an overdraft (debit). The interest rate applicable to restructured credit card debts must not exceed the reference rate specified in the regulation updates of September 2024, and was amended on November 1, 2025, by establishing a limit of 3.11%. New regulations in Turkey, effective June 2025, have significantly tightened anti-money laundering (AML) protocols for crypto asset service providers (“CSP”). The Financial Crimes Investigation Board (“FCIB”) now requires CSP to conduct remote Know Your Customer (“KYC”) checks, verifying customer identity and address through government databases for ongoing business relationships. This move integrates crypto services into the broader AML framework, aiming to increase transparency and accountability within the digital asset space. Further updates from the FCIB introduce specific restrictions on crypto asset transfers. The CBRT, via the Communiqué Regarding the Determination of Interest Rates to be Applied in Rediscount and Advance Transactions, published on and effective as of 20 December 2025, has set the discount rate applicable to rediscount transactions for bills with a remaining maturity of up to 3 months at 38.75% per annum, and the interest rate applicable to advance transactions at 39.75% per annum. United States BBVA’s activities and operations in the United States are subject to extensive U.S. federal and state supervision and regulation, and in some cases, U.S. requirements may impose restrictions on BBVA’s global activities. U.S. Bank Regulation Because BBVA maintains a branch in the United States, BBVA is a foreign banking organization and a bank holding company within the meaning of the U.S. Bank Holding Company Act of 1956, as amended (the “BHC Act”) and the International Banking Act of 1978, as amended (the “IBA”), and as a result, BBVA is subject to regulation and supervision by the Board of Governors of the Federal Reserve System (the “Federal Reserve”). BBVA has also elected to be treated as a financial holding company. To continue to be treated as a financial holding company, each of BBVA and BBVA Bancomer, S.A. and BBVA Mexico, S.A. must maintain certain regulatory capital ratios above minimum requirements and must be deemed to be “well-managed” for U.S. bank regulatory purposes. 55 As a bank holding company, BBVA’s direct and indirect activities and investments in the United States are limited to banking activities and certain non-banking activities that are “closely related to banking”, as determined by the Federal Reserve, and certain other activities permitted under the BHC Act and IBA. As a bank holding company that has elected to be treated as a financial holding company, BBVA can also engage in direct and indirect activities and investments in the United States that are “financial in nature”, as determined by the Federal Reserve, and certain other activities permitted under the BHC Act and IBA. BBVA is required to obtain the prior approval of the Federal Reserve before acquiring, directly or indirectly, the ownership or control of more than 5% of any class of voting securities of any U.S. bank or bank holding company. BBVA’s non-FDIC insured New York branch is supervised by the Federal Reserve through the Federal Reserve Bank of New York, as well as licensed and supervised by the New York State Department of Financial Services. BBVA’s Houston representative office is supervised by the Federal Reserve through the Federal Reserve Bank of Dallas, as well as licensed and supervised by the Texas Department of Banking. BBVA Mexico, S.A.’s agency office in Houston, Texas is a non-FDIC insured agency office of BBVA Mexico, S.A., an indirect subsidiary of BBVA, which is licensed under the laws of the State of Texas and supervised by the Texas Department of Banking and the Federal Reserve Bank of Dallas. BBVA’s U.S. branch and agency are subject to liquidity requirements. Sections 23A and 23B of Federal Reserve Act and Regulation W place various qualitative and quantitative restrictions on transactions between BBVA’s U.S. branch and agency and BBVA’s U.S. broker-dealer subsidiary with regard to extensions of credit, credit exposures arising from derivative transactions, and securities borrowing and lending transactions or engaging in certain other transactions involving the U.S. branch and agency. Such transactions must be on terms that would ordinarily be offered to unaffiliated entities, must be secured by designated amounts of specified collateral, and are subject to quantitative limitations. BBVA is subject to certain Federal Reserve regulations under Regulation YY related to its compliance with Spanish capital adequacy standards, risk management and governance requirements, and liquidity and capital stress testing requirements based on its worldwide total assets. Because BBVA does not have $100 billion or more in combined U.S. assets, it is not subject to the enhanced prudential standards under Regulation YY applicable to foreign banking organizations with combined U.S. assets of $100 billion or more. BBVA is subject to certain U.S. resolution planning requirements. Under Title I of the Dodd-Frank Act and implementing regulations issued by the Federal Reserve and the FDIC, BBVA must prepare and submit a plan for the orderly resolution of its U.S. subsidiaries and U.S. operations in the event of future material financial distress or failure (the “Title I Resolution Plan”). Based on its worldwide total assets, BBVA is required to file a reduced Title I Resolution Plan once every three years, filing its most recent Title I Resolution Plan in 2025. BBVA is subject to the Volcker Rule. The Volcker Rule prohibits a foreign bank that maintains a branch or agency in the United States, such as BBVA, and its affiliates from (1) engaging in “proprietary trading” and (2) investing in or sponsoring certain types of funds (covered funds) subject to certain limited exceptions. The Volcker Rule regulations contain certain exemptions, including for market-making, hedging, underwriting, trading in U.S. government and agency obligations, and permit certain ownership interests in certain types of funds to be retained. They also permit the offering and sponsoring of funds under certain conditions. In the case of non-U.S. banking entities, such as BBVA, there is also an exemption permitting activities conducted solely outside of the United States, provided that certain criteria are satisfied. While the Volcker Rule regulations impose significant compliance and reporting obligations on banking entities, BBVA is of the view that the impact of the Volcker Rule is not material to its business operations. Derivatives BBVA is registered as a “swap dealer” as defined in the Commodity Exchange Act and the regulations promulgated thereunder with the U.S. Commodity Futures Trading Commission (the “CFTC”), which subjects BBVA to regulation and supervision by the CFTC and the National Futures Association with respect to its activities involving “swaps” (as defined in the Commodity Exchange Act), which include many types of over-the-counter derivatives, such as interest rate swaps and certain foreign exchange derivatives. In general, as a non-U.S. swap dealer, BBVA is not subject to all CFTC requirements applicable to U.S. swap dealers, including certain business conduct standards, when entering into swaps with non-U.S. counterparties. In addition, subject to certain conditions, BBVA may comply with EU OTC derivatives requirements in lieu of certain CFTC requirements, including portfolio reconciliation, portfolio compression and trade confirmation requirements, pursuant to substituted compliance determinations issued by the CFTC. BBVA’s worldwide swap activities are also subject to regulations adopted by the European Commission pursuant to the European Market Infrastructure Regulation (“EMIR”) and the EU’s Markets in Financial Instruments Directive (“MiFID”) and other European regulations and directives. 56 BBVA is conditionally registered as a security-based swap dealer with the SEC, which subjects BBVA to regulation and supervision by the SEC with respect to its activities involving “security-based swaps” (as defined in the Securities Exchange Act of 1934), which include many types of over-the-counter derivatives referencing single securities or loans or narrow-based indexes of securities, such as credit default swaps and equity total return swaps. In general, as a non-U.S. security-based swap dealer, BBVA is not subject to all SEC requirements applicable to U.S. security-based swap dealers, including certain business conduct standards, when entering into security-based swaps with non-U.S. counterparties. In addition, subject to certain conditions, BBVA may comply with EU OTC derivatives requirements in lieu of certain SEC requirements, pursuant to a substituted compliance determination issued by the SEC. Anti-Money Laundering; Office of Foreign Assets Control A major focus of U.S. governmental policy relating to financial institutions in recent years has been aimed at combatting money laundering and terrorist financing. Laws and regulations applicable to BBVA and certain of its affiliates impose obligations to maintain appropriate policies, procedures, and controls to detect, prevent, and report money laundering and terrorist financing. In particular, the Bank Secrecy Act, as amended by Title III of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the “USA PATRIOT Act”), and its implementing regulations require financial institutions operating in the United States to, among other things, (a) conduct due diligence and collect certain information related to correspondent and payable-through bank accounts; (b) implement enhanced due diligence for private banking and correspondent banking relationships; (c) scrutinize the beneficial ownership and activity of certain non-U.S., private banking and other high-risk customers (e.g., senior foreign political figures); and (d) develop and maintain anti-money laundering programs that include a Customer Identification Program; compliance policies, procedures, and internal controls designed to ensure the detection and reporting of money laundering and terrorist financing; the designation of a Bank Secrecy Act compliance officer; as well as training and audit functions. Financial institutions are also expected to maintain compliance programs designed to comply with economic sanctions administered by the United States Department of the Treasury’s Office of Foreign Assets Control. Failure of a financial institution to maintain and implement adequate anti-money laundering and sanctions compliance programs could have serious legal and reputational consequences for the institution. Other Regulated U.S. Entities BBVA’s direct U.S. broker-dealer subsidiary, BBVA Securities Inc. (“BSI”), is subject to regulation and supervision by the Securities and Exchange Commission (“SEC”) and the Financial Industry Regulatory Authority (“FINRA”) with respect to its securities activities, as well as various U.S. state regulatory authorities. In addition, the securities underwriting and dealing activities of BSI are subject to regulation and supervision by the Federal Reserve. The activities of BBVA’s U.S. investment adviser affiliate are regulated and supervised by the SEC. In August 2025, BBVA established an insurance agency subsidiary, BBVA Global Wealth Insurance Agency, Inc., which is subject to regulation and supervision by various U.S. state regulatory authorities pending applications and state regulatory approval of applicable insurance licenses. Disclosure of Iranian Activities under Section 13(r) of the Exchange Act The BBVA Group discloses the following information pursuant to Section 13(r) of the Exchange Act, which requires an issuer to disclose whether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with natural persons or entities designated by the U.S. government under specified executive orders, including activities not prohibited by U.S. law and conducted outside the United States by non-U.S. affiliates in compliance with local law. In order to comply with this requirement, the Company has requested relevant information from its affiliates globally. To the BBVA Group’s knowledge, neither the Company nor any of the Company’s affiliates have knowingly engaged in any activities, transactions, or dealings during the period covered by this Annual Report, that are required to be disclosed under Section 13(r) of the Exchange Act. 57 C. Organizational Structure For information on the composition of the BBVA Group as of December 31, 2025, see Note 1.1 to the Consolidated Financial Statements. The companies comprising the BBVA Group are principally domiciled in the following countries: Argentina, Belgium, Chile, Colombia, France, Germany, Italy, Mexico, Netherlands, Peru, Portugal, Romania, Spain, Switzerland, Turkey, United Kingdom, the United States of America and Uruguay. In addition, BBVA has an active presence in Asia. Below is a simplified organizational chart of BBVA’s most significant subsidiaries as of December 31, 2025. Subsidiary Country of Incorporation Activity BBVA Voting Power BBVA Ownership Total Assets (1) (In Percentages) (In Millions of Euros) BBVA MEXICO MEXICO Bank 100.00 100.00 155,059 GARANTI BBVA TURKEY Bank 85.97 85.97 72,157 BBVA PERÚ PERU Bank 94.26 (2) 47.13 28,019 BBVA COLOMBIA S.A. COLOMBIA Bank 96.35 96.35 23,027 BBVA SEGUROS S.A. DE SEGUROS Y REASEGUROS SPAIN Insurance 99.96 99.96 13,879 BANCO BBVA ARGENTINA S.A. ARGENTINA Bank 67.00 66.55 14,085 BBVA SEGUROS MÉXICO, S.A. DE CV GRUPO FINANCIERO BBVA MEXICO MEXICO Insurance 99.98 100.00 13,366 GARANTIBANK BBVA INTERNATIONAL N.V. (3) THE NETHERLANDS Bank 85.97 100.00 10,746 BBVA PENSIONES MEXICO, S.A. DE C.V., GRUPO FINANCIERO BBVA MEXICO MEXICO Insurance 100.00 100.00 8,754 BANCO BILBAO VIZCAYA ARGENTARIA URUGUAY S.A. URUGUAY Bank 100.00 100.00 4,016 (1)Information for non-EU subsidiaries has been calculated using the prevailing exchange rates on December 31, 2025. (2)Subject to certain exceptions. (3)BBVA owns 85.97% of Garanti BBVA, which in turn owns 100% of GarantiBank BBVA International N.V. D. Property, Plants and Equipment We own or rent a substantial network of properties in Spain and abroad, including 1,871 branch offices in Spain and, principally through our various subsidiaries, 3,771 branch offices abroad as of December 31, 2025 (1,881 and 3,868, respectively, as of December 31, 2024). As of December 31, 2025, approximately 46% of our branches in Spain and 71% of our branches abroad were rented from third parties pursuant to leases that may be renewed by mutual agreement (48% and 72%, respectively, as of December 31, 2024). For additional information on property, plants and equipment, see Note 17 to the Consolidated Financial Statements. 58 E. Selected Statistical Information The following is a presentation of selected statistical information for the periods indicated. Where required under subpart 1400 of Regulation S-K, we have provided such selected statistical information separately for our domestic and foreign activities, pursuant to our determination, where applicable, that our foreign operations are significant according to Rule 9-05 of Regulation S-X. The allocation of assets and liabilities between “domestic” and “foreign” is based on the domicile of the Group entity at which the relevant asset or liability is accounted for, with “domestic” referring to the assets and liabilities of the BBVA Group entities domiciled in Spain. Interest income figures, when used, do not include interest income on non-accruing loans to the extent that cash payments have been received, as a result of the application of the interpretation issued by the International Financial Reporting Interpretations Committee (IFRIC) in its “IFRIC Update” of March 2019 regarding the collection of interest on impaired financial assets under IFRS 9 (Collection of interest on impaired financial assets). Loan fees are included in the computation of interest revenue. Interest income figures include “other income”, which amounted to €233 million, €214 million and €231 million for the years ended December 31, 2025, 2024 and 2023, respectively. For additional information on “interest and other income” see Note 37.1 to the Consolidated Financial Statements. Average Balances and Rates The tables below set forth selected statistical information on our average balance sheets, which are based on the beginning and month-end balances in each year. We do not believe that monthly averages present trends materially different from those that would be presented by daily averages. We have not recalculated tax-exempt income on a tax-equivalent basis because the effect of doing so would not be significant. 59 Average Balance Sheet - Assets and Interest from Interest Earning Assets Year ended December 31, 2025 Year ended December 31, 2024 Year ended December 31, 2023 Average Balance Interest Average Yield Average Balance Interest Average Yield Average Balance Interest Average Yield (In Millions of Euros, Except Percentages) Total Assets (1) 817,040 58,345 7.14 % 777,997 61,659 7.93 % 748,459 47,850 6.39 % Interest-earning assets 753,424 58,345 7.74 % 716,824 61,659 8.60 % 694,361 47,850 6.89 % Cash and balances with central banks and other demand deposits 48,161 1,621 3.36 % 57,589 2,283 3.96 % 70,177 2,482 3.54 % Domestic 12,954 232 1.79 % 28,603 972 3.40 % 42,535 1,394 3.28 % Foreign 35,208 1,389 3.94 % 28,986 1,311 4.52 % 27,642 1,088 3.94 % Financial assets held for trading 87,855 4,525 5.15 % 90,479 5,664 6.26 % 85,279 4,870 5.71 % Domestic 69,448 2,693 3.88 % 68,451 3,092 4.52 % 66,812 2,482 3.72 % Foreign 18,407 1,832 9.95 % 22,029 2,572 11.68 % 18,467 2,387 12.93 % Financial assets at fair value through other comprehensive income 56,559 3,342 5.91 % 59,061 4,108 6.96 % 62,677 3,791 6.05 % Domestic 25,129 710 2.82 % 27,744 805 2.90 % 32,682 777 2.38 % Foreign 31,429 2,632 8.37 % 31,317 3,303 10.55 % 29,995 3,014 10.05 % Financial assets at amortized cost 525,020 47,074 8.97 % 472,827 48,109 10.17 % 434,214 36,063 8.31 % Domestic 251,632 8,608 3.42 % 228,751 9,505 4.16 % 211,019 8,142 3.86 % Foreign 273,388 38,467 14.07 % 244,076 38,604 15.82 % 223,195 27,921 12.51 % Debt securities 65,530 2,277 3.48 % 55,967 2,307 4.12 % 44,609 1,415 3.17 % Domestic 51,166 1,373 2.68 % 40,606 1,096 2.70 % 29,407 748 2.54 % Foreign 14,364 904 6.29 % 15,361 1,210 7.88 % 15,202 667 4.38 % Loans and advances 459,489 44,797 9.75 % 416,861 45,803 10.99 % 389,605 34,648 8.89 % Central banks 8,918 2,164 24.26 % 7,710 2,053 26.62 % 5,720 508 8.88 % Domestic 40 1 2.10 % 15 — 3.00 % 30 1 3.33 % Foreign 8,878 2,163 24.36 % 7,695 2,052 26.67 % 5,690 507 8.91 % Credit institutions 23,616 1,142 4.84 % 20,939 1,568 7.49 % 16,595 1,451 8.75 % Domestic 14,708 638 4.34 % 13,822 916 6.63 % 9,472 828 8.74 % Foreign 8,908 504 5.66 % 7,117 652 9.16 % 7,123 623 8.75 % Government 24,848 1,316 5.30 % 22,665 1,530 6.75 % 22,478 1,427 6.35 % Domestic 14,534 373 2.57 % 12,369 379 3.06 % 12,541 323 2.58 % Foreign 10,314 943 9.15 % 10,295 1,151 11.18 % 9,937 1,104 11.11 % Other financial corporations 19,913 1,434 7.20 % 14,638 1,265 8.64 % 12,822 987 7.70 % Domestic 6,723 307 4.57 % 5,176 411 7.95 % 5,224 375 7.18 % Foreign 13,191 1,127 8.55 % 9,461 854 9.02 % 7,598 612 8.05 % Individuals 184,055 19,458 10.57 % 174,309 19,057 10.93 % 165,941 15,244 9.19 % Domestic 95,736 3,367 3.52 % 93,466 3,774 4.04 % 92,119 3,391 3.68 % Mortgages 71,776 1,995 2.78 % 70,678 2,488 3.52 % 70,392 2,217 3.15 % Other 23,960 1,372 5.73 % 22,788 1,287 5.65 % 21,727 1,174 5.40 % Foreign 88,318 16,091 18.22 % 80,842 15,283 18.90 % 73,822 11,852 16.05 % Mortgages 29,806 2,992 10.04 % 26,356 2,845 10.80 % 25,835 2,440 9.45 % Other 58,512 13,099 22.39 % 54,487 12,437 22.83 % 47,987 9,412 19.61 % Non-financial corporations 198,139 19,283 9.73 % 176,601 20,330 11.51 % 166,049 15,032 9.05 % Domestic 68,725 2,549 3.71 % 63,296 2,928 4.63 % 62,226 2,475 3.98 % Foreign 129,414 16,733 12.93 % 113,304 17,402 15.36 % 103,824 12,556 12.09 % Derivatives and other financial assets (2) 35,830 1,784 4.98 % 36,868 1,494 4.05 % 42,014 645 1.53 % Domestic 28,573 432 1.51 % 28,199 429 1.52 % 30,670 (121) (0.39) % Foreign 7,256 1,353 18.64 % 8,669 1,066 12.29 % 11,344 765 6.75 % Non interest earning assets (3) 63,616 — — 61,172 — — 54,098 — — (1)Foreign activity represented 48.57% of the average total assets for the year ended December 31, 2025, 47.03% for the year ended December 31, 2024 and 44.12% for the year ended December 31, 2023. (2)Includes “Derivatives - Hedge accounting”, “Derivatives - Held for trading” and “Financial assets designated at fair value through profit or loss”. (3)Includes “Insurance and reinsurance assets”, “Joint ventures and associates”, “Tangible assets”, “Intangible assets”, “Tax assets”, “Non-current assets and disposal groups classified as held for sale”, “Non-trading financial assets mandatorily at fair value through profit or loss” and “Other assets”. 60 Average Balance Sheet - Liabilities and Interest Paid on Interest Bearing Liabilities Year ended December 31, 2025 Year ended December 31, 2024 Year ended December 31, 2023 Average Balance Interest Average Rate Paid Average Balance Interest Average Rate Paid Average Balance Interest Average Rate Paid (In Millions of Euros, Except Percentages) Total Liabilities (1) 817,040 32,065 3.92 % 777,997 36,392 4.68 % 748,459 24,761 3.31 % Interest-bearing liabilities 715,347 32,065 4.48 % 684,200 36,392 5.32 % 662,856 24,761 3.74 % Financial liabilities held for trading 70,915 3,054 4.31 % 73,448 4,104 5.59 % 76,280 3,424 4.49 % Domestic 61,017 2,297 3.76 % 56,326 2,529 4.49 % 60,308 2,087 3.46 % Foreign 9,897 757 7.65 % 17,122 1,575 9.20 % 15,972 1,337 8.37 % Financial liabilities at amortized cost 590,520 26,107 4.42 % 555,981 28,429 5.11 % 526,650 19,215 3.65 % Domestic 315,958 4,777 1.51 % 306,852 6,115 1.99 % 304,574 5,209 1.71 % Foreign 274,562 21,330 7.77 % 249,130 22,314 8.96 % 222,076 14,007 6.31 % Debt certificates 74,870 3,373 4.51 % 69,098 3,114 4.51 % 61,289 2,349 3.83 % Domestic 46,367 1,481 3.19 % 46,700 1,616 3.46 % 43,453 1,248 2.87 % Foreign 28,502 1,892 6.64 % 22,398 1,499 6.69 % 17,836 1,101 6.17 % Deposits 515,650 22,734 4.41 % 486,884 25,315 5.20 % 465,360 16,867 3.62 % Central banks 16,809 896 5.33 % 17,756 1,264 7.12 % 26,864 1,574 5.86 % Domestic 8,296 337 4.07 % 8,163 399 4.89 % 16,215 600 3.70 % Foreign 8,513 558 6.56 % 9,593 865 9.02 % 10,649 973 9.14 % Credit institutions 34,354 2,854 8.31 % 34,614 2,923 8.44 % 39,695 2,424 6.11 % Domestic 24,416 950 3.89 % 26,230 1,436 5.47 % 32,493 1,610 4.95 % Foreign 9,937 1,903 19.15 % 8,384 1,487 17.74 % 7,202 814 11.31 % Government 48,970 1,376 2.81 % 44,245 1,750 3.96 % 26,919 1,027 3.82 % Domestic 33,684 606 1.80 % 30,554 932 3.05 % 14,836 277 1.87 % Foreign 15,285 769 5.03 % 13,691 818 5.98 % 12,083 750 6.21 % Other financial corporations 33,499 1,858 5.55 % 28,928 1,749 6.05 % 26,665 1,418 5.32 % Domestic 12,278 483 3.93 % 11,473 624 5.44 % 13,192 716 5.43 % Foreign 21,220 1,376 6.48 % 17,455 1,125 6.44 % 13,473 703 5.21 % Individuals 252,020 8,773 3.48 % 242,236 10,509 4.34 % 236,151 5,461 2.31 % Domestic 145,559 459 0.32 % 142,664 524 0.37 % 143,506 294 0.20 % Foreign 106,461 8,314 7.81 % 99,572 9,984 10.03 % 92,645 5,168 5.58 % Non-financial corporations 129,998 6,976 5.37 % 119,105 7,120 5.98 % 109,066 4,962 4.55 % Domestic 45,356 460 1.02 % 41,068 584 1.42 % 40,880 464 1.13 % Foreign 84,642 6,516 7.70 % 78,037 6,536 8.38 % 68,187 4,498 6.60 % Provisions 2,264 234 10.35 % 2,422 228 9.40 % 2,494 174 6.97 % Domestic 1,810 67 3.68 % 2,066 81 3.91 % 2,217 100 4.51 % Foreign 454 168 36.94 % 356 147 41.32 % 277 74 26.63 % Derivatives and other financial liabilities (2) 51,649 2,670 5.17 % 52,348 3,631 6.94 % 57,433 1,948 3.39 % Domestic 32,476 200 0.62 % 32,424 1,041 3.21 % 36,007 844 2.34 % Foreign 19,173 2,470 12.88 % 19,924 2,591 13.00 % 21,425 1,104 5.15 % Non-interest bearing liabilities and Equity (3) 101,692 — — 93,797 — — 85,602 — — (1)Foreign activity represented 43.20% of the total average liabilities for the year ended December 31, 2025, 42.63% for the year ended December 31, 2024 and 40.05% for the year ended December 31, 2023. (2)Includes “Insurance and reinsurance liabilities”, “Derivatives - Hedge accounting”, “Financial liabilities held for trading” and “Financial liabilities designated at fair value through profit or loss”. (3)Includes “Tax liabilities”, “Liabilities included in disposal groups classified as held for sale” and “Other liabilities”. Changes in Net Interest Income-Volume and Rate Analysis The following tables allocate changes in our net interest income between changes in volume and changes in rate for the year ended December 31, 2025 compared with the year ended December 31, 2024, and the year ended December 31, 2024 compared with the year ended December 31, 2023. Volume and rate variance have been calculated based on movements in average balances over the period and changes in interest rates on average interest-earning assets and average interest-bearing liabilities. The only out-of-period items and adjustments excluded from such table are interest payments on loans which are made in a period other than the period in which they are due. 61 2025/2024 Increase (Decrease) Due to Changes in Volume (1) Rate (2) Net Change (In Millions of Euros) Interest income Cash and balances with central banks and other demand deposits (374) (289) (663) Domestic (532) (208) (740) Foreign 281 (204) 77 Financial assets held for trading (164) (975) (1,139) Domestic 45 (444) (399) Foreign (423) (317) (740) Financial assets at fair value through other comprehensive income (174) (593) (767) Domestic (76) (20) (96) Foreign 12 (683) (671) Financial assets at amortized cost 5,311 (6,346) (1,035) Domestic 951 (1,848) (897) Foreign 4,636 (4,774) (138) Debt securities 394 (423) (29) Domestic 285 (8) 277 Foreign (79) (228) (306) Loans and advances 4,684 (5,690) (1,006) Central banks 322 (211) 111 Domestic 1 — — Foreign 316 (205) 111 Credit institutions 200 (626) (426) Domestic 59 (337) (279) Foreign 164 (311) (147) Government 147 (361) (214) Domestic 66 (72) (6) Foreign 2 (210) (208) Other financial corporations 456 (287) 169 Domestic 123 (227) (104) Foreign 337 (63) 273 Individuals 1,066 (665) 400 Domestic 92 (499) (408) Mortgages 39 (532) (493) Other 66 19 85 Foreign 1,413 (605) 808 Mortgages 373 (226) 147 Other 919 (258) 661 Non-financial corporations 2,479 (3,527) (1,047) Domestic 251 (630) (378) Foreign 2,474 (3,143) (669) Derivatives and other financial assets (42) 332 290 Domestic 6 (3) 3 Foreign (174) 461 287 Total income 3,094 (6,408) (3,314) (1)The volume effect is calculated as the result of the average interest rate of the earlier period multiplied by the difference between the average balances of both periods. (2)The rate effect is calculated as the result of the average balance of the earlier period multiplied by the difference between the average interest rates of both periods. 62 2025/2024 Increase (Decrease) Due to Changes in Volume (1) Rate (2) Net Change (In Millions of Euros) Interest expense Financial liabilities held for trading (142) (909) (1,050) Domestic 211 (443) (233) Foreign (665) (153) (818) Financial liabilities at amortized cost 1,766 (4,088) (2,322) Domestic 181 (1,519) (1,338) Foreign 2,278 (3,262) (984) Debt certificates 260 (1) 259 Domestic (11) (123) (135) Foreign 408 (15) 394 Deposits 1,496 (4,077) (2,581) Central banks (67) (301) (368) Domestic 7 (68) (62) Foreign (97) (209) (307) Credit institutions (22) (47) (69) Domestic (99) (386) (485) Foreign 276 140 416 Government 187 (561) (374) Domestic 95 (421) (325) Foreign 95 (144) (49) Other financial corporations 276 (167) 110 Domestic 44 (186) (142) Foreign 243 9 251 Individuals 424 (2,160) (1,735) Domestic 11 (76) (65) Foreign 691 (2,361) (1,670) Non-financial corporations 651 (795) (143) Domestic 61 (185) (124) Foreign 553 (573) (20) Provisions (15) 22 7 Domestic (10) (4) (14) Foreign 41 (20) 21 Derivatives and other financial liabilities (3) (48) (913) (962) Domestic 2 (842) (841) Foreign (98) (23) (121) Total expense 1,826 (6,153) (4,327) Net interest income 1,013 (1)The volume effect is calculated as the result of the average interest rate of the earlier period multiplied by the difference between the average balances of both periods. (2)The rate effect is calculated as the result of the average balance of the earlier period multiplied by the difference between the average interest rates of both periods. (3)Includes “Insurance and reinsurance liabilities”, “Derivatives - Hedge accounting”, “Financial liabilities held for trading” and “Financial liabilities designated at fair value through profit or loss”. 63 2024/2023 Increase (Decrease) Due to Changes in Volume (1) Rate (2) Net Change (In Millions of Euros) Interest income Cash and balances with central banks and other demand deposits (445) 247 (198) Domestic (457) 35 (422) Foreign 53 171 224 Financial assets held for trading 297 497 794 Domestic 61 549 609 Foreign 460 (276) 185 Financial assets at fair value through other comprehensive income (219) 536 318 Domestic (117) 146 28 Foreign 133 157 289 Financial assets at amortized cost 3,207 8,839 12,046 Domestic 684 679 1,363 Foreign 2,612 8,071 10,683 Debt securities 360 531 892 Domestic 285 63 348 Foreign 7 537 544 Loans and advances 2,424 8,731 11,155 Central banks 177 1,368 1,545 Domestic — — — Foreign 179 1,366 1,545 Credit institutions 380 (263) 117 Domestic 380 (292) 89 Foreign (1) 29 28 Government 12 92 103 Domestic (4) 60 56 Foreign 40 8 48 Other financial corporations 140 138 278 Domestic (3) 40 36 Foreign 150 92 242 Individuals 769 3,045 3,814 Domestic 50 333 383 Mortgages 9 261 270 Other 57 55 112 Foreign 1,127 2,304 3,431 Mortgages 49 356 405 Other 1,275 1,751 3,026 Non-financial corporations 955 4,343 5,298 Domestic 43 410 453 Foreign 1,147 3,699 4,846 Derivatives and other financial assets (79) 929 850 Domestic 10 539 549 Foreign (180) 481 300 Total income 1,888 11,921 13,809 (1)The volume effect is calculated as the result of the average interest rate of the earlier period multiplied by the difference between the average balances of both periods. (2)The rate effect is calculated as the result of the average balance of the earlier period multiplied by the difference between the average interest rates of both periods. 64 2024/2023 Increase (Decrease) Due to Changes in Volume (1) Rate (2) Net Change (In Millions of Euros) Interest expense Financial liabilities held for trading (127) 808 680 Domestic (138) 580 442 Foreign 96 142 238 Financial liabilities at amortized cost 1,070 8,143 9,214 Domestic 39 867 906 Foreign 1,706 6,601 8,307 Debt certificates 299 466 766 Domestic 93 274 368 Foreign 282 116 398 Deposits 780 7,668 8,448 Central banks (534) 224 (309) Domestic (298) 97 (201) Foreign (97) (12) (108) Credit institutions (310) 809 498 Domestic (310) 136 (174) Foreign 134 539 673 Government 661 62 723 Domestic 294 361 655 Foreign 100 (32) 68 Other financial corporations 120 210 331 Domestic (93) 2 (91) Foreign 208 214 422 Individuals 141 4,907 5,048 Domestic (2) 233 231 Foreign 386 4,430 4,817 Non-financial corporations 457 1,701 2,158 Domestic 2 118 120 Foreign 650 1,388 2,038 Provisions (5) 59 54 Domestic (7) (13) (19) Foreign 21 52 73 Derivatives and other financial liabilities (3) (172) 1,856 1,684 Domestic (84) 280 196 Foreign (77) 1,564 1,487 Total expense 977 10,654 11,631 Net interest income 2,178 (1)The volume effect is calculated as the result of the average interest rate of the earlier period multiplied by the difference between the average balances of both periods. (2)The rate effect is calculated as the result of the average balance of the earlier period multiplied by the difference between the average interest rates of both periods. (3)Includes “Insurance and reinsurance liabilities”, “Derivatives - Hedge accounting”, “Financial liabilities held for trading” and “Financial liabilities designated at fair value through profit or loss”. 65 Interest Earning Assets—Margin and Spread The following table analyzes the levels of our average interest earning assets and illustrates the comparative gross and net yields and spread obtained for each of the years indicated. December 31, 2025 2024 2023 (In Millions of Euros, Except Percentages) Average interest earning assets 753,424 716,824 694,361 Gross yield (1) 7.7% 8.6% 6.9% Net yield (2) 3.5% 3.5% 3.3% Average effective rate paid on interest-bearing liabilities 4.5% 5.3% 3.7% Spread (3) 3.3% 3.3% 3.2% (1)“Gross yield” represents interest income divided by average interest-earning assets. (2)“Net yield” represents net interest income divided by average interest-earning assets. (3)“Spread” is the difference between “Gross yield” and the “Average effective rate paid on interest-bearing liabilities”. 66 ASSETS Interest-Bearing Deposits in Other Banks As of December 31, 2025, interbank deposits (excluding deposits with central banks) (which are recorded under “Loans and advances to credit institutions” in the “Financial assets held for trading”, “Financial assets at amortized cost” and “Financial assets at fair value through other comprehensive income” portfolios), represented 4.9% of our total assets (compared to 5.7% of our total assets as of December 31, 2024). Of such interbank deposits, 14.8% were held outside of Spain and 85.2% in Spain. We believe that our deposits are generally placed with highly rated banks and have a lower risk than many loans we could make in Spain. However, such deposits are subject to the risk that the deposit banks may fail or that such banks or the banking system of certain of the countries in which a portion of our deposits are made may face liquidity or other problems. Securities Portfolio As of December 31, 2025, our securities portfolio, consisting of investment securities and loans and advances recorded under “Financial assets held for trading” and “Financial assets at fair value through other comprehensive income” portfolios, was carried on our consolidated balance sheet at a carrying amount (equivalent to its market or appraised value as of such date) of €149,443 million, representing 17.4% of our total assets, a 13.3% increase compared to our securities portfolio as of December 31, 2024, mainly due to increases in the trading portfolio in Spain, as a result of the increase in loans and advances through reverse repurchase agreements in the corporate portfolio in Spain, the increase in holdings of sovereign debt securities of European countries and equity instruments in Spain and the increase in loans and advances through reverse repurchase agreements in Mexico, partially offset by the decrease in derivatives in Spain. €14,047 million, or 9.4%, of our securities portfolio as of December 31, 2025 consisted of Spanish Treasury bonds and Treasury bills. The average yield during 2025 on the investment securities that BBVA held was 6.2%, compared with an average yield of approximately 4.5% earned on loans and advances in the portfolios “Financial assets held for trading” and “Financial assets at fair value through other comprehensive income” during 2025. See Notes 10 and 13 to the Consolidated Financial Statements for additional information. The tables in Note 8.1 and the first table in Note 13.3 to the Consolidated Financial Statements set forth the fair value and the book value of our debt securities and equity instruments recorded under “Financial assets at fair value through other comprehensive income” as of December 31, 2025, 2024 and 2023. Notes 8.2 and 14.2 to the Consolidated Financial Statements set forth the fair value and the book value of our debt securities recorded under “Financial assets at amortized cost” as of December 31, 2025, 2024 and 2023. This information is not provided for debt securities recorded under “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” since the amortized costs and fair values of these items are the same. See Note 8 to the Consolidated Financial Statements. The second table in Note 13.3 to the Consolidated Financial Statements shows the fair value of debt securities recorded, as of December 31, 2025, 2024 and 2023, under “Financial assets at fair value through other comprehensive income” by rating categories. The second table in Note 14.2 to the Consolidated Financial Statements shows the fair value of debt securities recorded, as of December 31, 2025, 2024 and 2023, under “Financial assets at amortized cost”, by rating categories. Readers are directed to the tables and Notes referred to above for information regarding our securities portfolio. For a discussion of our investments in joint ventures and associates, see Note 16 to the Consolidated Financial Statements. For a discussion of the manner in which we value our securities, see Notes 2.2.1 and 8 to the Consolidated Financial Statements. The following table analyzes the maturities of our debt securities recorded under “Financial assets at fair value through other comprehensive income” and “Financial assets at amortized cost”, by type and geographical area, as of December 31, 2025. 67 Maturity at One Year or Less Maturity After One Year to Five Years Maturity after Five Years to Ten Years Maturity after Ten Years Total Amount Yield % (1) Amount Yield % (1) Amount Yield % (1) Amount Yield % (1) Amount (Millions of Euros, Except Percentages) DEBT SECURITIES AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME PORTFOLIO Domestic Spanish government and other government agencies debt securities 838 2.98 2,703 4.02 3,975 1.27 2,573 3.82 10,090 Other debt securities 391 2.52 326 3.68 157 3.29 33 5.16 907 Total Domestic 1,230 2.83 3,029 3.99 4,132 1.35 2,606 3.84 10,997 Foreign — — — — — — — — — Mexico 1,443 5.55 7,278 4.87 5,427 5.50 6,848 4.74 20,995 Mexican government and other government agency debt securities 1,343 5.50 6,970 4.89 4,941 5.43 6,499 4.78 19,752 Other debt securities 100 6.22 307 4.25 486 6.18 349 4.05 1,243 The United States 2,434 3.20 1,487 3.22 1,547 2.57 746 2.90 6,214 U.S. Treasury and other government agencies debt securities 2,299 3.28 577 3.12 746 1.32 — — 3,621 Other debt securities 136 1.92 910 3.28 801 3.74 746 2.90 2,593 Turkey 376 32.58 1,793 35.61 738 20.44 — — 2,907 Turkey government and other government agencies debt securities 376 32.58 1,793 35.61 738 20.44 — — 2,907 Other debt securities — — — — — — — — — Other countries 4,919 13.81 4,809 3.73 4,356 3.03 1,803 3.94 15,888 Securities of other foreign governments (2) 3,251 18.92 2,979 3.71 3,560 2.87 507 4.78 10,298 Other debt securities of other countries 1,668 3.84 1,830 3.77 796 3.78 1,296 3.61 5,590 Total Foreign 9,173 10.46 15,366 7.94 12,068 5.15 9,397 4.44 46,004 TOTAL AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME PORTFOLIO 10,402 9.56 18,396 7.29 16,200 4.18 12,004 4.31 57,001 AT AMORTIZED COST PORTFOLIO Domestic Spanish government and other government agencies debt securities 10,349 2.19 19,395 2.03 9,404 1.98 104 3.40 39,252 Other debt securities 693 3.18 630 2.47 177 3.60 13 2.26 1,512 Total Domestic 11,042 2.25 20,025 2.04 9,581 2.01 117 3.27 40,764 Foreign — — — — — — — — — Mexico 1,093 4.38 2,104 3.89 3,462 5.36 42 4.00 6,701 Mexican government and other government agency debt securities 1,093 4.38 2,064 3.78 1,943 4.06 42 4.00 5,142 Other debt securities — — 40 9.45 1,519 7.03 — — 1,559 The United States 1,849 4.59 432 4.24 — — — — 2,282 U.S. Treasury and other government agencies debt securities 1,849 4.59 395 4.20 — — — — 2,244 Other debt securities — — 38 4.66 — — — — 38 Turkey 553 23.34 2,719 24.29 1,990 23.37 — — 5,262 Turkey government and other government agencies debt securities 524 21.87 2,719 24.29 1,990 23.37 — — 5,233 Other debt securities 29 49.72 — — — — — — 29 Other countries 3,086 8.36 5,344 2.62 9,870 1.84 71 4.84 18,370 Securities of other foreign governments (2) 1,967 11.21 3,142 2.68 8,841 1.73 47 5.28 13,997 Other debt securities of other countries 1,118 3.34 2,202 2.53 1,029 2.77 23 3.95 4,373 Total Foreign 6,581 7.90 10,599 8.50 15,323 5.43 112 4.53 32,615 TOTAL AT AMORTIZED COST PORTFOLIO 17,623 4.36 30,624 4.28 24,904 4.12 229 3.89 73,379 TOTAL DEBT SECURITIES 28,025 6.29 49,019 5.41 41,103 4.14 12,233 4.30 130,380 (1)The weighted average yield for each range of maturity is calculated by dividing the annual interest income by the book value of the debt securities. Yields on tax-exempts obligations have not been computed on a tax-equivalent basis. (2)Securities of other foreign governments mainly include investments made by our subsidiaries in securities issued by the governments of the countries where they operate. 68 Loans and Advances Diversification in our loan portfolio is our principal means of reducing the risk of loan losses. We also carefully monitor our loans to borrowers in sectors or countries experiencing liquidity problems. Our exposure to our five largest borrowers as of December 31, 2025 excluding government-related loans amounted to €5,497 million or approximately 1.1% of our total outstanding loans and advances to customers. During the year ended December 31, 2025, the Group’s loan activity has been affected by geopolitical and other challenges and uncertainties globally. See “Item 5. Operating and Financial Review and Prospects―Operating Results―Factors Affecting the Comparability of our Results of Operations and Financial Condition―Macroeconomic and geopolitical conditions” and Note 7.2 to the Consolidated Financial Statements for information on the impact of these challenges and uncertainties on our financial condition and results of operations. Loans and Advances to Customers As of December 31, 2025, our total loans and advances to customers amounted to €504,876 million, or 58.7% of total assets. Net of our loss allowances, total loans and advances to customers amounted to €492,514 million as of December 31, 2025, or 57.3% of our total assets, an increase from 55.6% of our total assets as of December 31, 2024. As of December 31, 2025 our total loans and advances to customers in Spain amounted to €187,039 million, up from €174,854 million as of December 31, 2024, mainly due to the increases in corporate loans, public sector loans and consumer loans. Our total loans and advances to customers outside Spain amounted to €317,837 million as of December 31, 2025, up from €266,288 million as of December 31, 2024, mainly as a result of increases in the volume of mortgages and consumer loans within the retail loan portfolio in Mexico, the increase in the volume of Turkish lira-denominated consumer and wholesale loans, due, in part, to the measures adopted by the Turkish authorities (e.g., the lessening of loan reserve requirements) to encourage Turkish lira-denominated loans in Turkey, and increased wholesale loans in the branches located in New York, Europe and Asia driven by increased activity amid a lower interest rate environment, partially offset by the depreciation of the Turkish lira and the U.S. dollar against the euro. Loans by Geographical Area The following table shows our loans and advances to customers by geographical area as of the dates indicated: As of December 31, 2025 2024 2023 (In Millions of Euros) Domestic 187,039 174,854 169,140 Foreign Western Europe 51,515 41,907 36,978 Mexico 104,358 93,016 92,802 Turkey 49,269 45,314 34,876 South America 60,203 54,544 48,150 Other (1) 52,491 31,507 21,439 Total foreign 317,837 266,288 234,244 Total loans and advances (2) 504,876 441,142 403,384 Loss allowances (12,362) (11,611) (11,269) Total net lending (2) 492,514 429,532 392,115 (1)Balances correspond, in part, to the entities in the United States that were not included within the scope of the USA Sale. (2)Includes loans and advances to customers included in the following headings: “Financial assets held for trading”, “Non-trading financial assets mandatorily at fair value through profit or loss”, “Financial assets designated at fair value through profit or loss” and “Financial assets at amortized cost”, net of loss allowances. Loans and Advances to Credit Institutions and Central Banks As of December 31, 2025, our total loans and advances to credit institutions and central banks amounted to €53,850 million, or 6.3% of total assets (compared to €52,467 million, or 6.8% of total assets as of December 31, 2024), of which total loans and advances to credit institutions and central banks at amortized cost amounted to €35,113 million, or 4.1% of total assets. Loans and advances to credit institutions as of December 31, 2025 decreased by 3.0% compared to December 31, 2024, mainly as a result of decreases in loans and advances to credit institutions (through reverse repurchase agreements) in Spain. 69 Loans and Advances to Spanish Government and its Agencies Loans and advances outstanding to the Spanish government and its agencies amounted to €14,490 million, or 3.1% of our total loans and advances to customers as of December 31, 2025, compared with the €12,001 million, or 2.8% of our total loans and advances to customers as of December 31, 2024, in each case, excluding loans to companies controlled by the Spanish government. Loans to Associates and Jointly Controlled Companies As of December 31, 2025, total loans and advances by BBVA and its subsidiaries to associates and jointly controlled companies amounted to €632 million, a 1.1% decrease compared with €639 million as of December 31, 2024. 70 Maturity and Interest Sensitivity The following table sets forth a breakdown by maturity of our total loans and advances to customers, including their fixed and variable rates, by type of customer as of December 31, 2025. The determination of maturities is based on contract terms. Maturity Maturity After One Year Due In One Year or Less Due After One Year Through Five Years Due After Five Years Through Fifteen Years Due After Fifteen Years Total Fixed Rate Variable Rate (In Millions of Euros) Domestic Agriculture, forestry and fishing 670 668 177 12 1,526 460 396 Manufacturing, mining and quarrying, and other industrial activities 9,144 7,015 1,243 150 17,551 3,195 5,212 Of which: manufacturing 7,926 5,397 729 123 14,175 2,902 3,347 Construction 2,257 1,801 1,161 134 5,354 724 2,373 Wholesale and retail trade, transportation and storage, accommodation and food service activities 10,285 8,301 2,884 316 21,787 5,352 6,150 Information and communication 1,561 929 207 12 2,708 239 909 Financial and insurance activities 3,371 4,979 693 224 9,266 2,363 3,532 Real estate activities 858 2,666 1,319 63 4,905 1,607 2,441 Professional, scientific, technical, administrative and support service activities 2,008 2,482 649 47 5,186 1,448 1,730 Public administration and defense, education, human health and social work activities 4,074 5,165 6,413 56 15,707 7,070 4,563 Other service activities 13,703 25,412 35,865 25,416 100,395 54,413 32,279 Of which: Households 13,089 24,988 35,756 25,409 99,243 54,085 32,069 For House Purchase 3,736 14,131 29,887 25,140 72,894 38,330 30,829 Credit for consumption 5,726 8,523 4,499 36 18,784 12,876 182 Other purposes 3,628 2,333 1,371 233 7,565 2,879 1,058 Total Domestic 47,932 59,416 50,610 26,428 184,386 76,871 59,584 Foreign Agriculture, forestry and fishing 2,031 1,484 528 13 4,057 1,363 662 Manufacturing, mining and quarrying, and other industrial activities 30,748 22,652 5,074 778 59,252 7,861 20,642 Of which: manufacturing 22,711 13,873 2,285 116 38,984 5,569 10,704 Construction 2,845 2,800 596 4 6,246 825 2,576 Wholesale and retail trade, transportation and storage, accommodation and food service activities 22,072 16,824 4,592 221 43,708 10,021 11,616 Information and communication 4,939 5,558 193 12 10,702 1,316 4,447 Financial and insurance activities 15,194 9,920 837 59 26,011 2,573 8,243 Real estate activities 1,381 5,341 1,675 1 8,399 1,093 5,925 Professional, scientific, technical, administrative and support service activities 2,053 3,522 706 4 6,286 1,868 2,364 Public administration and defense, education, human health and social work activities 1,445 3,657 7,406 3,102 15,610 2,092 12,074 Other service activities 28,311 41,859 19,884 18,453 108,507 66,794 13,403 Of which: Households 23,428 41,010 19,651 18,392 102,480 65,890 13,162 For House Purchase 125 2,234 13,545 16,092 31,996 30,487 1,384 Credit for consumption 18,694 34,978 5,659 2,205 61,536 31,705 11,136 Other purposes 4,609 3,798 448 95 8,949 3,698 642 Total Foreign 111,019 113,618 41,492 22,647 288,776 95,806 81,950 Total loans and advances (1) 158,951 173,034 92,102 49,075 473,162 172,677 141,534 (1)Includes mainly loans and advances to customers included in “Financial assets at amortized cost”. 71 Loss Allowances on Loans and Advances The following table provides information regarding the ratios of allowances for credit losses to total loans and net charge-offs to average loans for the periods indicated, in each case. For a discussion of accounting standards related to loss allowances on financial assets, see Note 2.2.1 to the Consolidated Financial Statements. As of and for the year ended December 31, 2025 2024 2023 (In Millions of Euros) Allowance for credit losses to total loans and advances at amortized cost outstanding 2.43 % 2.56 % 2.75 % Allowance for credit losses 12,329 11,630 11,356 Domestic 4,490 4,495 4,373 Foreign 7,839 7,135 6,983 Total loans outstanding 508,023 455,016 412,916 Domestic 211,332 197,937 186,938 Foreign 296,691 257,079 225,978 Net loan charge-offs as a percentage of average loans and advances at amortized cost during the period Domestic 0.15 % 0.18 % 0.26 % Non-financial corporations 0.14 % 0.18 % 0.37 % Net charge-offs during the period 151 177 334 Average loans outstanding 109,935 95,956 90,520 Individuals 0.23 % 0.26 % 0.24 % Net charge-offs during the period 225 248 226 Average loans outstanding 97,377 94,984 93,737 Other — % 0.01 % 0.01 % Foreign 1.87 % 1.72 % 1.70 % Non-financial corporations 0.45 % 0.49 % 0.52 % Net charge-offs during the period 394 392 391 Average loans outstanding 88,204 80,645 75,530 Individuals 3.91 % 3.52 % 3.49 % Net charge-offs during the period 3,387 2,793 2,520 Average loans outstanding 86,678 79,325 72,204 Other — — — Total loan charge-offs as a percentage of average loans and advances at amortized cost during the period 0.91 % 0.87 % 0.89 % Net charge-offs during the period 4,158 3,612 3,473 Average total loans and advances at amortized cost outstanding 459,497 416,861 389,605 When the recovery of any recognized amount is considered to be remote, this amount is removed from the consolidated balance sheet, without prejudice to any actions taken by the consolidated entities in order to collect the amount until their rights extinguish in full through expiry, forgiveness or for other reasons. Our total net charge-offs to average loans at amortized cost ratio increased to 0.91% for the year ended December 31, 2025, compared with 0.87% for the year ended December 31, 2024 mainly as a result of the increase in charge-offs in “Individuals” in Mexico, in a context of growing retail lending activity and, to a lesser extent, the increase in charge-offs in Argentina. The increase was partially offset by decreases in charge-offs in the non-financial corporations portfolio in Spain and in the retail portfolio in Peru. Total net loan charge-offs increased during 2025, while average loans and advances at amortized cost also grew across all geographies. However, charge-offs increased at a faster pace than the average loan portfolio, resulting in a higher ratio. 72 Our allowance for credit losses to total loans and advances at amortized cost decreased to 2.43% as of December 31, 2025 compared with 2.56% as of December 31, 2024, mainly as a result of the increase in total loans outstanding, in particular, the increases in corporate loans, public sector loans and consumer loans in Spain, and the increase in the volume of Turkish lira-denominated consumer and wholesale loans, due, in part, to the measures adopted by the Turkish authorities (e.g., the lessening of loan reserve requirements) to encourage Turkish lira-denominated loans in Turkey, and increased wholesale loans in the branches located in New York, Europe and Asia driven by increased activity amid a lower interest rate environment, partially offset by the depreciation of the Turkish lira and the U.S. dollar against the euro. Impaired Loans Loans are considered to be credit-impaired under IFRS 9 if one or more events have occurred and they have a detrimental impact on the estimated future cash flows of the loan. Amounts collected in relation to impaired financial assets at amortized cost are first applied to the outstanding interest and any excess amount is used to reduce the unpaid principal. The approximate amount of interest on our impaired loans which was included in profit attributable to parent company in 2025, 2024 and 2023 was €560.4 million, €415.6 million, €314.7 million, respectively. The following table provides information regarding our impaired loans to customers, central banks and credit institutions as of the dates indicated: As of December 31, 2025 2024 2023 (In Millions of Euros) Impaired loans Domestic 6,431 7,319 7,682 Public sector 9 15 24 Other resident sector 6,423 7,304 7,658 Foreign 7,914 6,894 6,764 Public sector 10 11 1 Other non-resident sector 7,905 6,883 6,763 Total impaired loans 14,346 14,213 14,446 Allowance for credit losses (12,394) (11,630) (11,316) Impaired loans net of allowance 1,952 2,583 3,130 Impaired loans as a percentage of loans and advances at amortized cost 2.82 % 3.12 % 3.49 % Impaired loans (net of allowance) as a percentage of loans and advances at amortized cost 0.38 % 0.57 % 0.76 % Our total impaired loans amounted to €14,346 million as of December 31, 2025, a 0.9% increase compared with €14,213 million as of December 31, 2024. Our allowance for credit losses includes loss reserve for impaired assets and loss reserve for unimpaired assets which present an expected credit loss. As of December 31, 2025, the allowance for credit losses amounted to €12,394 million, a 6.6% increase compared with the €11,630 million recorded as of December 31, 2024. The allowance for credit losses increased year-on-year due to certain non-performing loan entries in the retail loan portfolio in Mexico, partially offset by higher write-offs in Mexico. 73 LIABILITIES Deposits The principal components of our customer deposits recorded under “Financial liabilities at amortized cost” are domestic demand and time deposits and foreign demand and time deposits. The following tables provide information regarding the average amount of the following deposit categories recorded under “Financial liabilities at amortized cost” for the periods indicated: Average Balance for the Year Ended December 31, 2025 2024 2023 (In Millions of Euros) Demand deposits 341,196 323,940 318,212 Domestic 196,761 191,782 196,496 Foreign 144,436 132,157 121,716 Time deposits 139,021 122,951 115,889 Domestic 48,553 42,364 45,184 Foreign 90,468 80,586 70,706 Other 35,432 39,994 31,259 Domestic 24,277 26,006 19,441 Foreign 11,156 13,988 11,818 Total Domestic 269,590 260,152 261,121 Total Foreign 246,060 226,732 204,240 Total 515,650 486,884 465,360 The amount of uninsured deposits recorded under “Financial liabilities at amortized cost” as of December 31, 2025, 2024 and 2023 amounted to €292,540 million, €255,129 million and €226,832 million, respectively. Uninsured deposits are the portion of deposit accounts that exceed each local deposit insurance limit and amounts in any other uninsured investment or deposit accounts that are classified as deposits and are not subject to any state deposit insurance regimes. As of December 31, 2025, the maturity of our time deposits in uninsured accounts recorded under “Financial liabilities at amortized cost” was as follows: As of December 31, 2025 Domestic Foreign Total (In Millions of Euros) Portion in excess of local deposit insurance limit 15,708 50,936 66,644 Other uninsured time deposits 30,759 23,035 53,793 3 months or under 19,848 20,505 40,353 Over 3 to 6 months 3,776 1,071 4,847 Over 6 to 12 months 2,771 1,015 3,785 Over 12 months 4,363 444 4,807 Total 46,466 73,970 120,437 Large denomination deposits may be a less stable source of funds than demand and savings deposits because they are more sensitive to variations in interest rates and changes in perceptions of the credit or liquidity profile of the Bank. For additional information on our deposits recorded under “Financial liabilities at amortized cost” as of December 31, 2025, 2024 and 2023, see Note 22 to the Consolidated Financial Statements. 74 Short-term Borrowings Securities sold under agreements to repurchase and promissory notes issued by us constituted the only categories of short-term borrowings that equaled or exceeded 30% of stockholders’ equity as of December 31, 2025, 2024 and 2023. The following table provides information about our total short-term borrowings for the years ended December 31, 2025, 2024 and 2023: As of and for the year ended December 31, 2025 As of and for the year ended December 31, 2024 As of and for the year ended December 31, 2023 Amount Average rate Amount Average rate Amount Average rate (In Millions of Euros, Except Percentages) Securities sold under agreements to repurchase: As of end of period 77,506 2.7 % 67,517 4.1 % 91,844 4.0 % Average during period 69,274 2.8 % 83,001 4.1 % 90,329 3.9 % Bank promissory notes: As of end of period 8,145 2.8 % 4,267 4.4 % 5,567 4.2 % Average during period 6,622 3.0 % 3,932 4.4 % 3,680 3.8 % Bonds and subordinated debt: As of end of period 18,741 3.1 % 12,969 3.3 % 15,361 3.2 % Average during period 15,696 3.4 % 14,309 3.7 % 12,265 2.7 % Total short-term borrowings as of end of period (1) 104,392 2.8 % 84,753 4.0 % 112,772 3.8 % (1)Includes all repurchase agreements recorded under “Financial liabilities at amortized cost” and “Financial liabilities held for trading”. As of December 31, 2025, 2024 and 2023, the securities sold under agreements to repurchase were mainly Mexican and Spanish treasury bills and such agreements were entered into with credit and other financial institutions. Certain Ratios The following table sets out certain ratios as of and for the years ended December 31, 2025, 2024 and 2023: As of and for the year ended December 31, 2025 2024 2023 (In Percentages) Net interest margin (1) 3.22 % 3.30 % 3.08 % Return on average total assets (2) 1.4 % 1.4 % 1.1 % Return on average shareholders’ funds (3) 18.4 % 18.9 % 16.2 % Equity to assets ratio (4) 7.5 % 7.4 % 7.1 % (1)Represents net interest income as a percentage of average total assets. (2)Represents profit as a percentage of average total assets. (3)Represents profit for the year as a percentage of average shareholders’ funds for the year. (4)Represents average total equity (net assets) over average total assets. 75 EQUITY The majority of the balance not explained in the subsections below is related to the conversion to euros of the financial statements balances from consolidated entities whose functional currency is not the euro. Total equity As of December 31, 2025, total equity amounted to €61,798 million, a 3.0% increase compared to the €60,014 million recorded as of December 31, 2024, mainly as a result of the increase in shareholders’ funds, partially offset by higher negative 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, recorded under the line item “Foreign currency translation”. Shareholders’ funds As of December 31, 2025, shareholders’ funds amounted to €76,228 million, a 4.6% increase compared to the €72,875 million recorded as of December 31, 2024, primary due to the annual increase in profit, partially offset by the distribution of dividends and the share buyback programs. Accumulated other comprehensive income (loss) As of December 31, 2025, the accumulated other comprehensive loss amounted to €18,871 million, a 9.6% increase compared to the €17,220 million loss recorded as of December 31, 2024, mainly due to the depreciation of certain currencies against the euro, in particular, the Argentine peso and the Turkish lira. Non-controlling interest As of December 31, 2025, non-controlling interest amounted to €4,441 million, a 1.9% increase compared to the €4,359 million recorded as of December 31, 2024 mainly due to greater profit in Peru. F. Competition In recent years, the global financial services sector has undergone significant transformation in relation to the development of the Internet and mobile and other exponential technologies and the entrance of new players into activities previously provided by financial institutions. Whereas commercial banks were previously almost the sole providers of the whole range of financial products, from credit to deposits, or payments and investment services, today, a set of non-bank digital providers compete (and cooperate) among each other and with banks in the provision of financial services. These new fintech providers can be startup firms that are specialized in a specific service or niche of the financial services market, or large digital players (known as BigTechs). BigTech companies such as Amazon, Facebook and Apple have also started to offer financial services (mainly, in relation to payments and credit) ancillary to their core business. In this new competitive environment, banks and other players are calling for a level playing field that ensures fair competition among the different financial services providers. Regulations on consumer protection and the integrity of the financial system (such as anti-money laundering regulations or regulations for combating the financing of terrorism) are generally activity-specific and, therefore, meet the principle of a level playing field. However, with regards to financial stability, banking groups are subject to prudential regulations that have implications for most of their activities, including those in which they compete with non-bank players that are only subject to activity-specific regulations, at best, or not regulated at all. Therefore, the scope of the perimeter of prudential consolidation to which the prudential regulation and supervision in the European Union and elsewhere applies compromises the level playing field principle by requiring banking groups to apply banking-level controls to all subsidiaries, no matter their activities and actual risks involved. Restrictions on the activity of bank players, for instance as regards internal governance requirements, leave EU banks at a competitive disadvantage as regards cost, time-to-market or talent attraction compared to their competitors. Existing loopholes in the regulatory framework are another cause of an uneven playing field between banks and non-bank players. Some new services or business models are not yet subject to existing regulations. In such cases, not only are potential risks to financial stability, consumer protection and the integrity of the financial system unaddressed, but asymmetries may arise between players since regulated providers often face obstacles that unregulated providers do not. See also “Item 3. Key Information—Risk Factors—Business Risks—The Group faces increasing competition and is exposed to a changing business model”. Another trend in the market is consolidation. Following the 2008 financial crisis, a number of banks disappeared or were absorbed by other banks. Going forward, there may be additional consolidation in the regions where the Group operates. 76 Additional information on certain market dynamics affecting the three main countries where we operate is provided below. Spain The commercial banking sector in Spain has undergone significant consolidation since the 2008 financial crisis. Following the merger of Caixabank and Bankia in 2021, Caixabank is the largest bank in Spain in terms of total assets. In addition, the merger between Unicaja and Liberbank, completed in June 2021, created the sixth largest bank in terms of loans in Spain as of December 2022. Caixabank and Banco Santander are BBVA’s main competitors in the Spanish market. The aggregate market share in terms of loans of the five largest banks in Spain is approximately 75% according to the latest available data. We face strong competition in all of our principal areas of operations. After the protracted period of low interest rates, which adversely impacted interest income, the sharp rise in official and market interest rates in 2022 and 2023 has resulted in a superior pricing environment for banks. However, Spanish banks have been generally cautious in increasing borrowing rates in order not to prompt any surge in default rates. Such an approach and the fact that Spain has a mature credit market contribute to the strong competitive environment in the Spanish banking system. In particular, in recent years, competition has been acutely intense in the credit market for lending to SMEs, where new credit interest rates fell from a weighted average of 5.5% between January 2012 and May 2014 to around 2.1% in 2021. Although interest rates on new loans to SMEs increased to approximately 6.0% as of December 2023 due to the sharp rise in official interest rates, they subsequently declined to around 4.3% as of October 2025 (latest available data). Regarding the mortgage segment, the pandemic triggered changes in household preferences (larger houses, outside space, second houses) driving an increase in the demand for mortgages. As a result, after the long period of deleveraging that preceded the pandemic, the portfolio of mortgages in Spain grew by 1.1% in 2021, though the volume of mortgages declined by 0.1% and 3.2% in 2022 and 2023, respectively, in response to higher interest rates. Subsequently, mortgages loans grew by 0.3% in 2024 and 3.1% year-on-year in November 2025, supported by the stronger evolution of lending in recent years in Spain. Competition has become increasingly asymmetric in the credit business. In addition to traditional banks, alternative financing providers—particularly private credit firms—have significantly increased their presence, competing with banks in the provision of credit to households and, above all, to corporates and SMEs. These players have gained market share due to their speed of execution, flexible structuring capabilities, and tailored solutions, especially in mid-market corporate lending and complex financing transactions. This trend has contributed to a partial disintermediation of traditional bank lending and has pushed banks toward greater specialization, traditional lending with origination, structuring, and risk distribution roles. With respect to deposits, in the aftermath of the 2008 financial crisis, the necessity for a more balanced funding structure led to increased competition for deposits in Spain. Until 2022, the low interest rate environment depressed remuneration on deposits; however, there was an effective “zero lower bound” interest rate floor on deposit rates, which never entered negative territory, despite the Euribor being below 0% between 2016 and April 2022. As interest rates have risen, competition among Spanish entities and from other alternative savings financial products has led to higher deposit rates, especially time deposit rates. However, the excess liquidity of the Spanish banking system (as shown by the system’s loans-to-deposits ratio, which was approximately 82% as of October 2025), and the strong competition in the loan market, caused deposit rates in Spain to increase less than in other European countries. The entry of “fintech companies” and online banks into the Spanish market for financial services has further increased competition, particularly in payment services. Insurance companies and other financial service firms also compete for customer funds. Insurance companies and other financial service firms are also expanding the services they offer to consumers in Spain, which have traditionally been the domain of commercial banks. We face competition from other commercial banks, former savings banks and, to a lesser extent, credit cooperatives across all types of loans and deposits. 77 In Spain and in Europe, changes in banking regulation could have a significant potential impact on competition in the near future. The EU Directive on Investment Services permits all brokerage houses authorized to operate in other member states of the European Union to carry out investment services in Spain. Although the EU Directive is not specifically addressed to banks, it affects the activities of banks operating in Spain. Certain initiatives have also been implemented in order to facilitate the creation of a Pan-European financial market, such as the Single Euro Payments Area, which is a payment-integration initiative for the harmonization of payment services (bank transfers, direct debits and payment cards) mainly within the European Union, and MiFID, complemented with the introduction of MiFID II in January 2018, which aims to create a European framework for investment services. In addition, further steps have been taken towards achieving a banking and capital markets union in Europe, such as the Retail Investment Strategy (RIS). The ECB assumed responsibility as the unique supervisor of the Eurozone banking sector in November 2014, responsible for the supervision of over 100 entities (including BBVA). Moreover, the foundations of a single resolution mechanism were laid with, among others, the appointment of the SRB and the adoption of the Bail-in Tool. The year 2025 marks the operational launch of the Anti-Money Laundering and Counter-Terrorist Financing Authority (AMLA). The creation of this new authority is part of a broader regulatory package, known as the AML (Anti Money-Laundering) package, which was published in 2024 and includes the creation of AMLA, the publication of the new European AML Regulation, and the 6th AML Directive. For additional information, see “―Business Overview―Supervision and Regulation”. Mexico As of December 31, 2025, the Mexican banking sector comprised 50 institutions, one fewer than the 51 banks that operated at the beginning of 2025. In addition, eight other entities are either waiting for the approval of their license or ready to start operations within the banking sector: Revolut, Nu Bank, Klar, Masari Casa de Bolsa, Finsus, Konfío, and Plata Card. The seven largest banks of the system (the “G7 group”, that comprises BBVA Mexico, Santander, Banorte, Banamex, HSBC, Scotiabank and Inbursa) held 70.6% of the total assets of banks in Mexico as of October 30, 2025, less than the 71.1% in December 2024. All but two members of the G7 group decreased their share in total assets and BBVA Mexico led the way with a 0.6% drop. The two institutions with gains were Banamex (+0.3%) and Santander (+0.1%). Regarding credit balances, the G7 group market share increased marginally from 77.45% in December 2024 to 77.47% in October 2025. In particular, BBVA Mexico increased its participation in total credit balances from 25.4% to 25.6% during such period. Banamex, Santander and Banorte also experienced an increase in their market share (0.4%, 0.2% and 0.1% respectively), while HSBC, Scotiabank and Inbursa lost market share. The pace of expansion of credit balances in 2026 is expected to remain weak as the recovery in employment and private investment is expected to take time to make an impact. As for deposits, the G7 group market share declined marginally between December 2024 and October 2025 (from 73.16% to 73.04%), with four of the G7 banks losing share. BBVA Mexico was the institution with the greatest gain (+0.4%), while Scotiabank was the bank with the largest drop (-0.3%). A slow recovery of formal employment and the ongoing rate cutting cycle are expected to hinder the growth of deposits in 2026. For information on COFECE’s investigation regarding competition in the card payments’ market, see “―Business Overview―Supervision and Regulation—Principal Markets—Mexico”. Turkey In Turkey, where we operate through Garanti BBVA, the three public banks that operate in the country accounted for 37% of the total loans of financial institutions as of December 26, 2025, whereas private deposit banks (including Garanti BBVA) accounted for 48%. Development banks and participation banks (banks that operate under the ethos of Islamic banking) together accounted for 15% of the total. The CBRT cut the policy rate by a total of 500 basis points between January and March 2025, bringing it down to 42.5%. At the interim Monetary Policy Committee (MPC) meeting held on March 20, 2025, in order to contain the risks that financial market developments could pose to the inflation outlook, the MPC decided to raise the overnight lending rate to 46.0%, while keeping the policy rate and the overnight borrowing rate unchanged. Additionally, the CBRT suspended the one-week repo auctions temporarily, and provided funding at the overnight lending rate. In April 2025, in response to the effects of financial market developments on underlying inflation, the CBRT raised the policy rate, the overnight lending rate, and the overnight borrowing rate to 46%, 49%, and 44.5%, respectively, and also announced the resumption of the one-week repo auctions. The CBRT kept the policy rate unchanged in June 2025, and reduced it by a total amount of 800 basis points in the remainder of the year, eventually bringing it down to 38% by December 2025. 78 The CBRT continued to implement macroprudential policies to support disinflation. In this regard, the CBRT started to publish interim targets in its Inflation Report which are defined as the headline inflation levels intended to be achieved in the short term, while progressing towards the medium-term inflation target. The CBRT also continued simplifying its monetary policy measures, in line with the path started in 2024. The most significant decision in this respect was the termination of the opening and renewal of KKM accounts and, accordingly, the abolition of all targets related to the renewal of KKM accounts and their transition to Turkish lira. The increase in the share of Turkish lira deposits within total deposits and the measures to phase out KKM accounts continued to reinforce the monetary policy stance in 2025. The introduction of limits on the share of Turkish-lira deposits held by companies, together with the revision of the existing limits on the share of Turkish-lira deposits held by households, strengthened the monetary policy transmission mechanism. KKM accounts balance declined to USD 0.2 billion as of December 26, 2025, and Turkish lira deposits accounted for 61% of the total. Policies for loan growth continued to be implemented to strengthen the monetary policy transmission mechanism and rebalance domestic demand in 2025. With respect to the reserve requirement for loan growth, the 2% monthly growth limit for Turkish lira commercial loans was replaced with two limits: 2.5% for SME loans, and 1.5% for other commercial loans. Moreover, the monthly growth limit of 1.5% for FX loans was reduced to 1% and then 0.5%. The scope of loans exempted from growth limit for FX loans was narrowed. The calculation period for loan growth rates was later extended to eight weeks from four weeks, to provide greater flexibility in the management of loan growth limits. To restrain borrowing behavior and contribute to the moderation of domestic demand, there continues to be different maximum interest rates for personal credit card loans based on the amount of debt. This policy framework is expected to be maintained throughout 2026 to ensure that loan growth and loan composition will be supportive of the disinflation process and the monetary transmission mechanism. The limits for loan growth and exceptions to be provided are expected to be revised throughout the year. The CBRT is also expected to maintain the policy framework designed to prioritize Turkish lira-denominated deposits and a long-term maturity structure for external funding. Banks’ profitability, which had remained flat in the first half of 2025, recovered during the remainder of 2025 due to the policy rate cuts. Interest rates are expected to continue their downward trend in 2026. The pace of the downward trend in inflation and the associated change in the interest rate outlook is expected to affect banks’ net interest margin. The positive impact of the improving net interest margin on return on equity (“ROE”) is expected to be more pronounced in 2026. Furthermore, the strong course of banking fees, commissions and service revenues is expected to continue to support profitability, while the rise in credit risk costs will likely limit further improvement.

Overview The BBVA Group is a customer-centric global financial services group founded in 1857. Internationally diversified and with strengths in the traditional banking businesses of retail banking, asset management and wholesale banking, the Group is committed to offering a compelling digital proposition focused on customer experience. BBVA has a leadership position in the Spanish market, it is the largest financial institution in Mexico in terms of assets, it has leading franchises in South America and it is the majority shareholder in Garanti BBVA, Turkey’s largest bank in terms of market capitalization. BBVA also has considerable corporate and investment banking activity in the United States. On May 18, 2022, BBVA closed its voluntary takeover bid for the entire share capital of Garanti BBVA, which resulted in BBVA increasing its stake in Garanti BBVA from 49.85% to 85.97%. The BBVA Group operates in Spain through Banco Bilbao Vizcaya Argentaria, S.A., 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. In addition to the transactions it carries out directly, Banco Bilbao Vizcaya Argentaria, S.A. is the parent company of the BBVA Group, which includes a group of subsidiaries, joint ventures and associates performing a wide range of activities. 79 Critical Accounting Policies The Consolidated Financial Statements as of and for the years ended December 31, 2025, 2024 and 2023 were prepared by the Bank’s directors in compliance with IFRS-IASB and in accordance with EU-IFRS required to be applied under the Bank of Spain’s Circular 4/2017, and by applying the basis of consolidation, accounting policies and measurement bases described in Note 2 to the Consolidated Financial Statements, so that they present fairly the Group’s total equity and financial position as of December 31, 2025, 2024 and 2023, and its results of operations and consolidated cash flows for the years ended December 31, 2025, 2024 and 2023. The Consolidated Financial Statements were prepared on the basis of the accounting records kept by the Bank and by each of the other Group companies and include the adjustments and reclassifications required to unify the accounting policies and measurement bases used by the Group. See Note 2.2 to the Consolidated Financial Statements. In preparing the Consolidated Financial Statements, estimates were made by the Group and the consolidated companies in order to quantify certain of the assets, liabilities, income, expense and commitments reported herein. These estimates relate mainly to the following: •The loss allowance of certain financial assets. •The assumptions used in the valuation of insurance and reinsurance contracts, to quantify certain provisions and the actuarial calculation of the post-employment benefit liabilities and commitments. •The useful life and impairment losses of tangible and intangible assets and impairment losses on non-current assets held for sale. •The valuation of goodwill and price allocation of business combinations. •The fair value of certain unlisted financial assets and liabilities. •The recoverability of deferred tax assets and the estimate for the corporate income tax. Although these estimates were made on the basis of the best information available as of December 31, 2025, 2024 and 2023, respectively, events that take place in the future might make it necessary to revise these estimates (upwards or downwards), which revisions would be carried out prospectively in coming years. Any such changes would be recorded prospectively, recognizing the effects of the change in estimation in the corresponding consolidated financial statements. The BBVA Group is working on its estimation models so that they consider and reflect how climate risk and other climate-related matters can affect the consolidated financial statements, cash flows and financial performance of the Group. The relevant estimates and judgments are being taking into account when preparing the consolidated financial statements of the BBVA Group and, where relevant, they are mentioned in the corresponding Notes to the Consolidated Financial Statements. Further, recent greater macroeconomic and geopolitical uncertainties have resulted in greater complexity in developing reliable estimates and applying judgment. During 2025 there have been no other significant changes in the estimates made as of December 31, 2024 and 2023, with the exception of those indicated in the Consolidated Financial Statements. Note 2 to the Consolidated Financial Statements contains a summary of our significant accounting policies. We consider certain of our critical accounting policies to be particularly important due to their effect on the financial reporting of our financial condition and results of operations and because they require management to make difficult, complex or subjective judgments, some of which may relate to matters that are inherently uncertain. Our reported financial condition and results of operations are sensitive to accounting methods, assumptions and estimates that underlie the preparation of the Consolidated Financial Statements. The nature of critical accounting policies, the judgments and other uncertainties affecting application of those policies and the sensitivity of reported results to changes in conditions and assumptions are factors to be considered when reviewing the Consolidated Financial Statements and the discussion below. For information on the estimates made by the Group in preparing the Consolidated Financial Statements, see Note 1.4 to the Consolidated Financial Statements. We have identified the accounting policies enumerated below as critical to the understanding of our financial condition and results of operations, since the application of these policies requires significant management assumptions and estimates that could result in materially different amounts to be reported if the assumptions used or underlying circumstances were to change. See Note 2.3 to the Consolidated Financial Statements for information on changes to IFRS or their interpretation that were not yet effective as of December 31, 2025. 80 Financial instruments Loss allowance of certain financial assets The “expected losses” impairment model is applied to financial assets valued at amortized cost, debt instruments valued at fair value with changes in accumulated other comprehensive income, financial guarantee contracts and other commitments. All financial instruments valued at fair value through profit or loss are excluded from the impairment model. The standard classifies financial instruments into three categories, which depend on the evolution of their credit risk from the moment of initial recognition and which establish the calculation of the credit risk allowance. –Stage 1 – without significant increase in credit risk Financial assets which are not considered to have significantly increased in credit risk have loss allowances measured at an amount equal to the expected credit loss that arises from all possible default events within 12 months following the presentation date of the financial statements (12 month expected credit losses). –Stage 2 – significant increases in credit risk When the credit risk of a financial asset has increased significantly since the initial recognition, the loss allowances of that financial instrument is calculated as the expected credit loss during the entire life of the asset. That is, they are the expected credit losses that result from all possible default events during the expected life of the financial instrument. During 2024, the criteria for identifying significant increases in credit risk were reviewed and updated. As part of this update, certain short-term portfolio transactions as well as those meeting the expanded definition of the low credit risk exception (see Note 2.2.1 to the Consolidated Financial Statements) were exempted from transfer to Stage 2 based on certain quantitative criteria. These changes led to 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 Banco Bilbao Vizcaya Argentaria, S.A. –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. Fair value of financial instruments The fair value of an asset or a liability on a given date is taken to be the price that would be received upon the sale of an asset, or paid, upon the transfer of a liability in an orderly transaction between market participants at the measurement date. The most objective and common reference for the fair value of an asset or a liability is the price that would be paid for it on an organized, transparent and deep market (“quoted price” or “market price”). If there is no market price for a given asset or liability, its fair value is estimated on the basis of the price established in recent transactions involving similar instruments and, in the absence thereof, by using mathematical measurement models sufficiently tried and trusted by the international financial community. Such estimates would take into consideration the specific features of the asset or liability to be measured and, in particular, the various types of risk associated with the asset or liability. However, the limitations inherent to the measurement models developed and the possible inaccuracies of the assumptions required by these models may signify that the fair value of an asset or liability thus estimated does not coincide exactly with the price for which the asset or liability could be purchased or sold on the date of its measurement. See Notes 2.2.1 and 8 to the Consolidated Financial Statements, which contain a summary of our significant accounting policies. Derivatives and other future transactions These instruments include outstanding foreign currency purchase and sale transactions, outstanding securities purchase and sale transactions, futures transactions relating to securities, exchange rates or interest rates, forward interest rate agreements, options relating to exchange rates, securities or interest rates and various types of financial swaps. 81 All derivatives are recognized on the balance sheet at fair value from the date of arrangement. If the fair value of a derivative is positive, it is recorded as an asset and if it is negative, it is recorded as a liability. Unless there is evidence to the contrary, it is understood that on the date of arrangement, the fair value of the derivatives is equal to the transaction price. Changes in the fair value of derivatives after the date of arrangement are recognized in the heading “Gains (losses) on financial assets and liabilities designated at fair value through profit or loss, net” in the consolidated income statement. Specifically, the fair value of the standard financial derivatives included in the held for trading portfolios is equal to their daily quoted price. If, under exceptional circumstances, their quoted price cannot be established on a given date, these derivatives are measured using methods similar to those used to measure over-the-counter (“OTC”) derivatives. The fair value of OTC derivatives is equal to the sum of the future cash flows arising from the instruments discounted at the measurement date (“present value” or “theoretical value”). These derivatives are measured using methods recognized by the financial markets, including the net present value method and option price calculation models. Financial derivatives that have equity instruments as their underlying, whose fair value cannot be determined in a sufficiently objective manner and are settled by delivery of those instruments, are measured at cost, although the amortized cost criteria is not used when accounting for these instruments. Financial derivatives designated as hedging items are included in the heading of the balance sheet “Derivatives - Hedge accounting”. These financial derivatives are valued at fair value. See Note 2.2.1 to the Consolidated Financial Statements, which contains a summary of our significant accounting policies with respect to these instruments. Goodwill in consolidation Pursuant to IFRS 3, if the difference on the date of a business combination between the sum of the consideration transferred, the amount of all the non-controlling interests and the fair value of equity interest previously held in the acquired entity, on one hand, and the fair value of the assets acquired and liabilities assumed, on the other hand, is positive, it is recorded as goodwill on the asset side of the balance sheet. 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 cash-generating units (CGUs), that will benefit from the synergies arising from business combinations. CGUs represent the smallest identifiable groups of assets that generate cash flows for the Group. Goodwill is not amortized and is subject periodically to an impairment analysis, 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. If the difference is negative, it is recognized directly in the income statement under the heading “Negative goodwill recognized in profit or loss”. 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. See Notes 2.1 and 2.2.7 to the Consolidated Financial Statements, which contain a summary of our significant accounting policies related to goodwill. 82 The recoverable amounts of all the CGUs were in excess of their carrying value as of December 31, 2025, December 31, 2024 and December 31, 2023. Mexico CGU Most of the Group’s goodwill balance corresponds to the CGU in Mexico. The impairment test used the cash flow projections estimated by the Group’s management, based on the latest budgets available for the next five years. As of December 31, 2025, the Group used a growth rate of 5.2% (5.5% as of December 31, 2024 and 5.6% as of December 31, 2023) to extrapolate the cash flows in perpetuity starting in the fifth year, based on the real GDP growth rate of Mexico, expected inflation and the potential growth of the banking sector in Mexico. The rate used to discount cash flows is the cost of capital assigned to the CGU, 16.7% as of December 31, 2025 (18.3% as of December 31, 2024 and 12.4% as of December 31, 2023). As of December 31, 2025, if the discount rate had increased or decreased by 50 basis points, the recoverable amount would have decreased or increased by 3% and 4%, respectively (3% and 3%, respectively, as of December 31, 2024, and 6% and 7%, respectively, as of December 31, 2023). If, as of December 31, 2025, the growth rate had increased or decreased by 50 basis points, the recoverable amount would have increased or decreased by 2% and 2%, respectively (2% and 2%, respectively, as of December 31, 2024, and 5% and 4%, respectively, as of December 31, 2023). The Group concluded there was no evidence of indicators of impairment that required recognizing significant impairment losses in the Mexico CGU. Insurance contracts For the years ended December 31, 2025, 2024 and 2023, the valuation method used by default for all insurance and reinsurance contracts was the General Model (Building Block Approach) based on IFRS 17, except in respect of contracts eligible to be valued under 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 and the contractual service margin (CSM), each as further described in Note 2.2.8 to the Consolidated Financial Statements. 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. See Notes 2.2.8 and 23 to the Consolidated Financial Statements, which contain a summary of our significant accounting policies and assumptions about our most significant insurance contracts. Post-employment benefits and other long-term commitments to employees Pension and post-retirement benefit costs and credits are based on actuarial calculations. Inherent in these calculations are assumptions including discount rates, rate of salary increase and expected return on plan assets. Changes in pension and post-retirement costs may occur in the future as a consequence of changes in interest rates, expected return on assets or other assumptions. See Notes 2.2.13 and 25 to the Consolidated Financial Statements, which contain a summary of our significant accounting policies about pension and post-retirement benefit costs and credits. 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 Notes 2.2.9 and 19 to the Consolidated Financial Statements, which contain a summary of our significant accounting policies about tax assets and liabilities. 83 A. Operating Results Factors Affecting the Comparability of our Results of Operations and Financial Condition Set forth below are the main factors that affect the comparability of the Group’s results of operations and financial condition as of and for the years ended December 31, 2025, 2024 and 2023. Trends in Exchange Rates We are exposed to foreign exchange rate risk in that our reporting currency is the euro, whereas certain of our subsidiaries and investees have different functional and accounting currencies, principally the Mexican peso, Turkish lira, Argentine peso, Colombian peso, Peruvian sol and U.S. dollar. For example, if these currencies depreciate against the euro, when the results of operations of our subsidiaries in the countries using these currencies are included in our consolidated financial statements, the euro value of their results declines, even if, in local currency terms, their results of operations and financial condition have remained the same. By contrast, the appreciation of these currencies against the euro would have a positive impact on the results of operations of our subsidiaries in the countries using these currencies when their results of operations are included in our consolidated financial statements. Accordingly, changes in exchange rates may limit the ability of our results of operations, stated in euro, to fully show the performance in local currency terms of our subsidiaries. Except with respect to hyperinflationary economies, where all the components of the financial statements (including income statement items) of the relevant subsidiaries (in each case, for any period in which the economy was considered to be hyperinflationary) are converted at the period-end exchange rate, the assets and liabilities of our subsidiaries which maintain their accounts in currencies other than the euro have been converted to the euro at the period-end exchange rates for inclusion in the Consolidated Financial Statements, and income statement items have been converted at the average exchange rates for the period. See Note 2.2.18 to the Consolidated Financial Statements for information on the application of IAS 29 “Financial Reporting in Hyperinflationary Economies”. The following table sets forth the exchange rates of the currencies of the main non-euro regions where we operate against the euro, expressed in local currency per €1.00 as averages for the years ended December 31, 2025, 2024 and 2023 and as period-end exchange rates as of December 31, 2025, 2024 and 2023 according to the ECB. Average Exchange Rates Period-End Exchange Rates Year ended December 31, 2025 Year ended December 31, 2024 Year ended December 31, 2023 As of December 31, 2025 As of December 31, 2024 As of December 31, 2023 Mexican peso 21.6743 19.8220 19.1866 21.1180 21.5504 18.7231 Turkish lira 50.4838 36.7372 32.6531 U.S. dollar 1.1302 1.0822 1.0815 1.1750 1.0389 1.1050 Argentine peso 1,714.8146 1,072.6642 892.8124 Colombian peso 4,575.5520 4,405.4736 4,679.2170 4,414.5690 4,580.6659 4,223.3653 Peruvian sol 4.0249 4.0546 4.0404 3.9486 3.9027 4.1042 During 2025, the Mexican peso and, to a lesser extent, the U.S. dollar and the Colombian peso depreciated against the euro in average terms compared with the prior year. On the other hand, the Peruvian sol appreciated slightly against the euro in average terms compared with the average exchange rates for the prior year. In terms of period-end exchange rates, the Turkish lira, the Argentine peso, the U.S. dollar and, to a lesser extent, the Peruvian sol depreciated against the euro. On the other hand, the Mexican peso and the Colombian peso appreciated against the euro in terms of period-end exchange rates. The overall effect of changes in exchange rates was negative for the period-on-period comparison of the Group’s income statement (mainly due to the depreciation of the Mexican peso in average terms and the depreciation of the period-end exchange rates of the Turkish lira and the Argentine peso used to convert income statement items pursuant to IAS 21) and balance sheet. During 2024, the Mexican peso and, to a lesser extent, the U.S. dollar and the Peruvian sol depreciated against the euro in average terms compared with the prior year. On the other hand, the Colombian peso appreciated against the euro in average terms compared with the average exchange rates for the prior year. The income statement of BBVA Argentina for the year ended December 31, 2024 was significantly impacted by the decline of the Argentine peso during the year, including, in particular, the extraordinary devaluation of the Argentine peso against the euro in December 2023, as a result of the economic measures adopted by the new government. In terms of period-end exchange rates, the Mexican peso, the Turkish lira, the Argentine peso and the Colombian peso depreciated against the euro. On the other hand, the U.S. dollar and the Peruvian sol appreciated against the euro in terms of period-end exchange rates. The overall effect of changes in exchange rates was negative for the period-on-period comparison of the Group’s income statement (mainly due to the depreciation of the Mexican peso in average terms and the depreciation of the period-end exchange rates of the Turkish lira and the Argentine peso used to convert income statement items pursuant to IAS 21) and balance sheet. 84 When comparing two dates or periods in this Annual Report on Form 20-F we have sometimes excluded, where specifically indicated, the impact of changes in exchange rates by assuming constant exchange rates. In doing this, with respect to income statement amounts, we have used the average exchange rate for the more recent period for both periods (except with respect to hyperinflationary economies, where we have used the period-end exchange rate of the more recent period for both periods) and, with respect to balance sheet amounts, we have used the period-end exchange rate of the more recent period for both period ends. Macroeconomic and geopolitical conditions The Group is vulnerable to deteriorating economic conditions and changes in the institutional environment in the countries in which it operates, and is exposed to sovereign debt, particularly in Spain, Mexico and Turkey. The global economy is facing significant changes, due in part to the policies of the U.S. administration. Uncertainty about the 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. The level and duration of these tariffs, and uncertainty in connection therewith, could negatively impact the global economy, worsening the prospects for the macroeconomic environment. As a result of the tariffs already adopted or announced, global growth could slow significantly. While fiscal stimulus and monetary easing measures could partially offset the impact of trade protectionism, particularly 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, weakening confidence levels and financial volatility, among other factors. Increased tariffs also raise the risk of inflation in the United States and the Eurozone, which could further slow private demand and constrain the Federal Reserve’s and ECB’s ability to lower rates if warranted by activity. Beyond import tariffs, tighter controls on migration flows in the United States could also affect the labor market, add to inflationary pressures and weigh on economic growth. The U.S. administration’s fiscal, monetary, regulatory, industrial and foreign policies, among others, 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 heightened uncertainty over U.S. policies and large fiscal deficits, the U.S. risk premium has increased, pushing up long-term sovereign yields and weakening the U.S. dollar. These developments could also spark episodes of volatility, especially given the high public debt levels in both developed and emerging economies. The relatively high valuations of assets linked to artificial intelligence also represent a source of uncertainty, with potential implications in the financial markets. Rising trade protectionism and the U.S.-China rivalry could further heighten 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 the changes in the foreign policy of the U.S. administration, the European Union has adopted measures to increase military spending, which could support growth but, to some extent, add pressure on inflation and interest rates in the region. Overall, rising global geopolitical tensions increase uncertainty around the outlook for the world economy and the likelihood of economic and financial disruptions, including an economic recession. For additional information on the deteriorating economic environment, see “—Operating Environment”. The Group’s results of operations have also been affected in recent years by the high inflation in all countries in which BBVA operates, especially Turkey and Argentina. In particular, the Turkish economy has been considered hyperinflationary since the first half of 2022. See “Presentation of Financial Information—Hyperinflationary Economies”. 85 The Group is exposed, among others, to the following general risks related to the economic and institutional environment in the countries where it operates: changes in economic activity, including potential recession scenarios; inflationary pressures that could lead to tightening of monetary conditions; stagflation triggered by intense or prolonged supply shocks, including as a result of a protectionist escalation or a sharp rise 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 defaults or debt restructurings; the impact of policies adopted by the current U.S. administration, about which significant uncertainty remains; and episodes of financial market volatility, such as those seen recently, that could result in significant losses for the Group. In Spain, political, regulatory, and economic conditions may have a negative impact on activity. In Mexico, there is considerable uncertainty regarding the impact of recently approved constitutional and institutional reforms, and the policies of the U.S. administration and the outcome of the review of the USMCA have already adversely affected the country’s economy and deteriorated its prospects. 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 and the geopolitical situation in the Middle East could also trigger new episodes of financial volatility and macroeconomic risks. Further, our activities in Turkey have been affected by the regulation and monetary policy adopted by the CBRT in recent years. For additional information on measures adopted by the CBRT, see “Item 4. Information on the Company―Business Overview—Supervision and Regulation—Principal Markets—Turkey”. 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 amid heightened political uncertainty. 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 effect on the Group’s business, financial condition and results of operations. Operating Environment The below discussion of BBVA’s operating environment includes the current expectations, estimates and beliefs of BBVA Research, based on internal and third-party sources, with respect to the future evolution of macroeconomic conditions. These expectations, estimates and beliefs are subject to uncertainty, and the actual evolution of macroeconomic conditions could differ materially from any expected evolution described below. Our results of operations are dependent, to a large extent, on the level of demand for our products and services (primarily loans and deposits but also intermediation of financial products such as sovereign or corporate debt) in the countries in which we operate. Demand for our products and services in those countries is affected by the performance of their respective economies in terms of Gross Domestic Product (“GDP”), as well as prevailing levels of employment, inflation and, particularly, interest rates. Typically, the demand for loans and saving products correlates positively with income, which correlates in turn with GDP, employment and the evolution of corporate earnings. Interest rates have a direct impact on bank results as banking activity mainly relies on the generation of positive interest margins by paying lower interest on liabilities, primarily deposits, than the interest received on assets, primarily loans. However, it should be noted that higher interest rates, all else being equal, also reduce the demand for banking loans and increase the cost of funding and also typically lead to unrealized losses on fixed income securities and higher default rates. The global economy has exhibited greater resilience than expected throughout 2025, despite elevated levels of uncertainty, trade and geopolitical tensions, and the tightening of migration policies by the U.S. administration. The adverse effects of protectionist measures appear to have been mitigated by lower effective tariffs than initially announced, an expansion of fiscal stimulus, and a sharp increase in investment in artificial intelligence, particularly in the United States. Low financial market volatility—supported by the Federal Reserve’s (Fed) accommodative monetary policy stance—and contained energy prices have also provided support to global economic activity. Against this backdrop, BBVA Research expects global growth to have reached 3.2% in 2025, only slightly below the rate recorded in 2024. This outcome has been driven in part by stronger-than-expected economic performance in both the United States and China. In the United States, the resilience of private consumption and the momentum of technology-related investment are estimated to have lifted GDP growth in 2025 to 2.0%. In China, robust external sector performance has helped offset weaker consumption and private investment, raising the estimated GDP growth rate to 5.0%, in line with 2024. The euro area has also shown a gradual recovery path, albeit at more moderate rates. Fiscal stimulus measures and renewed spending on infrastructure and defense have supported domestic demand, resulting in an estimated GDP growth rate of 1.4% in 2025. 86 Regarding price dynamics, tariff policies and the strength of domestic demand have been the main drivers of inflation developments in 2025. In the United States, the impact of tariffs has kept inflation around 3%, a level at which it is expected to have closed the year. This has constrained the Fed’s scope for interest rate cuts, with the policy rate standing at 3.75% in December 2025, down from 4.5% at the end of 2024. In contrast, in the European Union, inflation stability (near the 2% mark) and the gradual pace of the recovery have allowed the ECB to maintain an accommodative monetary stance, reducing the deposit facility rate to 2.0%. China has also adopted an accommodative monetary policy posture in light of its low-inflation environment, with headline inflation expected to have closed 2025 at 0.3%. Looking ahead to 2026, global growth is projected by BBVA Research at 3.1% amid a mild deceleration across major economies. U.S. GDP growth is expected to reach 1.9%, while economic activity in the euro area is projected to expand by 1.1%, and China’s economy is forecast to grow by 4.5%. Inflation is likely to remain close to 3% in the United States due to tariff effects (with a projected year-end rate of 2.9%), stabilize around the ECB’s 2% target in the euro area (1.9% in December 2025), and rise gradually in China to approximately 1% by the end of the year. Under this growth and inflation outlook, the Fed could continue to lower interest rates at a gradual pace, reaching 3.25% by end-2026. A similarly accommodative stance is expected from the People’s Bank of China, while policy rates in the euro area are projected to remain unchanged. Overall, the balance of risks to the global economy remains tilted to the downside, although it is somewhat more balanced than previously expected. In addition to protectionist measures in trade and immigration and the structural challenges facing Europe and China, downside risks include heightened geopolitical tensions—such as ongoing and potential U.S. interventions in Latin America and the Middle East, or the Greenland crisis—and uncertainty surrounding the independence of the Fed and its implications for financial markets. On the upside, increased investment in artificial intelligence and its medium-term impact on productivity in economies that actively promote its adoption stand out as a key positive factor. In Spain, economic growth has remained robust throughout 2025, and near-term prospects continue to be relatively favorable. Activity has been supported by the resilience of services exports, a recovery in construction investment, and rising private consumption, amid accommodative monetary conditions and wage growth. The acceleration in the deployment of European recovery funds and increased defense spending could further support domestic demand and economic growth in the coming months. According to BBVA Research, GDP growth is most likely to have reached 2.9% in 2025. For 2026, growth is expected to gradually moderate to 2.4%, reflecting factors such as global protectionism, reduced fiscal support, limited productivity gains, and supply constraints in sectors such as housing. Headline inflation remained around 3% throughout 2025, closing the year at 2.9%, and is projected to ease slightly to 2.6% by the end of 2026. In Mexico, weak investment and industrial activity constrained economic growth in 2025, with machinery exports and services acting as the main drivers of activity. BBVA Research maintains its 2025 growth estimation at 0.7% and projects GDP growth of 1.2% in 2026 amid looser monetary conditions, less fiscal consolidation, and ongoing uncertainty related to the review of the USMCA. Inflation fluctuated between 3.5% and 4.0% during 2025, closing the year at 3.7%, and is expected to remain at similar levels in 2026 (3.8% year-end). The expected inflation and growth environment point to a gradual pace of further interest rate cuts following the reductions implemented in 2025, with the policy rate projected to reach 6.5% by the end of 2026, 50 basis points below its current level. In Turkey, economic activity maintained strong momentum throughout 2025, supported by robust domestic demand. Together with more accommodative monetary conditions, a relatively more favorable global environment, and a neutral fiscal stance, this has underpinned positive growth expectations for the coming quarters. According to BBVA Research, GDP growth is estimated to have reached 3.7% in 2025 and is expected to rise to 4.0% in 2026. Inflation continued on a path of gradual moderation during 2025 reaching 30.9% in December 2025. This has allowed the CBRT to continue gradually cutting interest rates, which stood at 38% at year-end. For 2026, both inflation and interest rates are expected to continue declining, potentially reaching 25% and 32%, respectively, by year-end. In Argentina, 2025 concluded with a recovery in economic activity amid a gradual reduction in political instability and lower exchange rate pressures. BBVA Research maintains its GDP growth estimate for 2025 at 4.5% and expects growth to moderate gradually to 3.0% in 2026. Inflation continued its downward trend throughout 2025, reaching 31.5% in December 2025. For 2026, inflationary pressures are expected to ease further, with headline inflation declining to approximately 20% by year-end. In Colombia, private consumption and fiscal spending have continued to support economic activity. BBVA Research estimates GDP growth for 2025 at 2.7%, with a similar expansion of 2.8% expected in 2026. Strong domestic demand has limited the disinflation process, with inflation closing December 2025 at 5.1%, prompting the central bank to keep policy rates unchanged at 9.25%. The announced increase in the minimum wage is expected to generate additional inflationary pressures in 2026, with headline inflation potentially reaching 6.5%, and could lead the central bank to tighten monetary policy, raising interest rates to as high as 12.25%. 87 In Peru, economic activity performed favorably in 2025, supported by private consumption, withdrawals from private pension funds, and relatively favorable terms of trade. According to BBVA Research, GDP growth could have reached 3.3% in 2025 and is expected to moderate slightly to 3.1% in 2026 amid rising domestic political uncertainty and upcoming elections. Inflation remained well contained, closing December 2025 at 1.5%, and is projected to rise gradually to 2.5% by the end of 2026, while low interest rates—expected to remain unchanged at the current 4.25%—continue to support the growth outlook. 88 BBVA Group results of operations for 2025 compared to 2024 The table below shows the Group’s consolidated income statements for 2025 and 2024. Year ended December 31, 2025 2024 Change (In Millions of Euros) (In %) Interest and other income 58,345 61,659 (5.4) Interest expense (32,065) (36,392) (11.9) Net interest income 26,280 25,267 4.0 Dividend income 123 120 2.7 Share of profit or loss of entities accounted for using the equity method 62 40 54.6 Fee and commission income 13,743 13,036 5.4 Fee and commission expense (5,528) (5,048) 9.5 Net gains (losses) on financial assets and liabilities (1) 2,941 3,218 (8.6) Exchange differences, net (285) 695 n.m. (2) Other operating income 688 623 10.5 Other operating expense (2,614) (3,951) (33.8) Income on insurance and reinsurance contracts 3,890 3,720 4.6 Expense on insurance and reinsurance contracts (2,370) (2,238) 5.9 Gross income 36,931 35,481 4.1 Administration costs (12,811) (12,660) 1.2 Personnel expense (7,773) (7,659) 1.5 Other administrative expense (5,038) (5,001) 0.7 Depreciation and amortization (1,521) (1,533) (0.8) Net margin before provisions (3) 22,599 21,288 6.2 Provisions or reversal of provisions (373) (198) 88.8 Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification (6,073) (5,745) 5.7 Impairment or reversal of impairment on non-financial assets (13) 1 n.m. (2) Gains (losses) on derecognition of non-financial assets and subsidiaries, net and Impairment or reversal of impairment of investments in joint ventures and associates 68 77 (11.2) Gains (losses) from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations 18 (17) n.m. (2) Operating profit / (loss) before tax 16,227 15,405 5.3 Tax expense or income related to profit or loss from continuing operations (5,100) (4,830) 5.6 Profit / (loss) from continuing operations 11,126 10,575 5.2 Profit / (loss) from discontinued operations, net — — — Profit / (loss) 11,126 10,575 5.2 Profit / (loss) attributable to parent company 10,511 10,054 4.5 Profit / (loss) attributable to non-controlling interests 615 521 18.1 (1)Comprises the following income statement line items contained in the Consolidated Financial Statements: “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” and “Gains (losses) from hedge accounting, net”. (2)Not meaningful. (3)Calculated as “Gross income” less “Administration costs” and “Depreciation and amortization”. 89 The changes in the Group’s consolidated income statements for the years ended December 31, 2025 and 2024 were as follows: Net interest income The following table summarizes net interest income for the years ended December 31, 2025 and 2024. Year ended December 31, 2025 2024 Change (In Millions of Euros) (In %) Interest and other income 58,345 61,659 (5.4) Interest expense (32,065) (36,392) (11.9) Net interest income 26,280 25,267 4.0 Net interest income for the year ended December 31, 2025 amounted to €26,280 million, a 4.0% increase compared with the €25,267 million recorded for the year ended December 31, 2024, as interest expense decreased by 11.9% partially offset by the 5.4% decrease in interest and other income, both primarily driven by lower interest rates, as repricing dynamics affected interest-earning assets more than funding costs, and credit quality deteriorated. Further, the depreciation in average terms of the currencies of the main countries where the Group operates, except for the Peruvian sol, affected interest and other income to a greater extent than interest expense, especially in Turkey, Mexico and South America, due to asymmetric exposure to changes in exchange rates. The decrease in interest and other income was partially offset by the higher volume of Turkish lira-denominated loans supported by the lessening of the loan reserve requirements by the CBRT throughout 2025, the higher customer spread in Turkey, and the higher contribution from the securities portfolio and the ALCO portfolio in Spain. At constant exchange rates, net interest income increased by 13.9%, driven by an increase in interest and other income and a decrease in interest expense. Dividend income Dividend income for the year ended December 31, 2025 amounted to €123 million, a 2.7% increase compared with the €120 million recorded for the year ended December 31, 2024. Share of profit or loss of entities accounted for using the equity method Share of profit or loss of entities accounted for using the equity method for the year ended December 31, 2025 amounted to income of €62 million, a 54.6% increase compared with the income of €40 million recorded for the year ended December 31, 2024. Fee and commission income The table below provides a breakdown of fee and commission income for the years ended December 31, 2025 and 2024: Year ended December 31, 2025 2024 Change (In Millions of Euros) (In %) Bills receivables 19 21 (5.8) Demand accounts 298 300 (0.5) Credit and debit cards and POS (1) 7,308 7,106 2.8 Checks 134 166 (19.4) Transfers and other payment orders 970 961 0.9 Insurance product commissions 524 461 13.7 Loan commitments given 371 322 15.3 Other commitments and financial guarantees given 548 530 3.3 Asset management 1,845 1,685 9.5 Securities fees 401 360 11.4 Custody securities 219 221 (0.9) Other fees and commissions 1,105 902 22.5 Fee and commission income 13,743 13,036 5.4 (1) Points of Sale. 90 Fee and commission income increased by 5.4% to €13,743 million for the year ended December 31, 2025 from the €13,036 million recorded for the year ended December 31, 2024, primarily due to the higher fees paid to BBVA in connection with the debt issuances in which BBVA Securities Inc., our broker-dealer in the United States, acted as underwriter, and the increase in payment systems fees (fees related to credit and debit cards and POS (points of sale)),as shown in Note 40 to the Consolidated Financial Statements supported by the increase in the maximum credit card fees banks may charge in Turkey pursuant to the regulation established by the CBRT and the increase in the volume of asset management activities in Spain, Turkey and Mexico, partially offset by the depreciation against the euro, in average terms, of the currencies of the main countries where the Group operates, except for the Peruvian sol. Fee and commission expense The breakdown of fee and commission expense for the years ended December 31, 2025 and 2024 is as follows: Year ended December 31, 2025 2024 Change (In Millions of Euros) (In %) Demand accounts 9 7 24.2 Credit and debit cards 3,654 3,534 3.4 Transfers and other payment orders 192 153 25.7 Commissions for selling insurance 44 47 (7.5) Custody securities 96 101 (4.9) Other fees and commissions 1,533 1,206 27.1 Fee and commission expense 5,528 5,048 9.5 Fee and commission expense increased by 9.5% to €5,528 million for the year ended December 31, 2025 from the €5,048 million recorded for the year ended December 31, 2024, primarily due to the increase in fees paid to third parties driven by the increase in payment systems fee income in Turkey and Mexico and, to a lesser extent, the higher fees paid to third parties related to the increase in volume of asset management activities in Spain, partially offset by the depreciation in average terms of the currencies of the main countries where the Group operates, except for the Peruvian sol. Net gains (losses) on financial assets and liabilities Net gains on financial assets and liabilities amounted to €2,941 million for the year ended December 31, 2025, an 8.6% decrease compared to the net gain of €3,218 million recorded for the year ended December 31, 2024, mainly due to the depreciation in average terms of the currencies of the main countries where the Group operates, except for the Peruvian sol, and lower gains from the Global Markets unit in Spain recorded under “Gains (losses) on financial assets and liabilities designated at fair value through profit or loss, net”, partially offset by higher trading gains in the Global Markets unit in Colombia, the higher gains from the ALCO portfolio resulting from the repurchase of bonds in Mexico, the higher gains in the trading portfolio from the Global Markets unit in Turkey and the sale of certain securities portfolios in Turkey. 91 The table below provides a breakdown of net gains (losses) on financial assets and liabilities for the years ended December 31, 2025 and 2024: Year ended December 31, 2025 2024 Change (In Millions of Euros) (In %) Gains (losses) on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 423 327 29.2 Financial assets at fair value through other comprehensive income 400 306 30.9 Financial assets at amortized cost 24 20 19.9 Other financial assets and liabilities (2) 1 n.m. (1) Gains (losses) on financial assets and liabilities held for trading, net 2,255 2,458 (8.2) Gains (losses) on non-trading financial assets mandatorily at fair value through profit or loss, net 236 179 31.7 Gains (losses) on financial assets and liabilities designated at fair value through profit or loss, net 28 249 (88.7) Gains (losses) from hedge accounting, net (1) 5 n.m. (1) Net gains (losses) on financial assets and liabilities 2,941 3,218 (8.6) (1)Not meaningful. Exchange differences, net Exchange differences amounted to a €285 million loss for the year ended December 31, 2025 compared with a €695 million gain for the year ended December 31, 2024, mainly driven by negative exchange differences in Turkey and the Corporate Center, in particular, with respect to the Mexican peso, and the lower gains on certain U.S. bonds driven by the depreciation of the U.S. dollar. Other operating income and other operating expense Other operating income for the year ended December 31, 2025 increased by 10.5% to €688 million compared with the €623 million recorded for the year ended December 31, 2024, mainly due to higher sales of non-financial assets in Turkey, partially offset by the depreciation in average terms of the currencies of the main countries where the Group operates, except for the Peruvian sol. Other operating expense for the year ended December 31, 2025 amounted to €2,614 million, a 33.8% decrease compared with the €3,951 million recorded for the year ended December 31, 2024, mainly driven by the lower aggregate expense attributable to the loss on the net monetary position resulting from the adjustment for hyperinflation in Argentina (€356 million in 2025 compared to €1,419 million in 2024) and in Turkey (€878 million in 2025 compared to €1,512 million in 2024), and the depreciation of the Mexican peso, the Turkish lira and the Argentine peso, partially offset by the lower gain from the revaluation of bonds linked to inflation in Turkey (€674 million, compared to €1,164 million for the year ended December 31, 2024) and the higher loss on the net monetary position resulting from the adjustment for hyperinflation in Venezuela (€183 million in 2025). In addition, the year-on-year decrease was driven in part by the fact that the other operating expense for the year ended December 31, 2024, included the impact of the temporary tax on credit institutions and financial credit establishments in Spain amounting to €285 million (which was paid in 2024), whereas the 2025 expense related to the IMIC was recorded under “Tax expense or income related to profit or loss from continuing operations”. Income and expense on insurance and reinsurance contracts Income on insurance and reinsurance contracts for the year ended December 31, 2025 was €3,890 million, a 4.6% increase compared with the €3,720 million of income recorded for the year ended December 31, 2024, mainly due to the increase in insurance premiums, attributable in part to a higher volume of insurance sales in Mexico, and the higher insurance sales by the insurance companies in Turkey, partially offset by the depreciation in average terms of the currencies of the main countries where the Group operates, except for the Peruvian sol. Expense on insurance and reinsurance contracts for the year ended December 31, 2025 was €2,370 million, a 5.9% increase compared with the €2,238 million expense recorded for the year ended December 31, 2024, mainly as a result of increased insurance sales, in particular, in Mexico, partially offset by the depreciation in average terms of the currencies of the main countries where the Group operates, except for the Peruvian sol. 92 Administration costs Administration costs, which include personnel expense and other administrative expense, for the year ended December 31, 2025 amounted to €12,811 million, a 1.2% increase compared with the €12,660 million recorded for the year ended December 31, 2024, mainly as a result of the increase in personnel expenses, driven by the increase in salaries (mainly driven by inflation) and, to a lesser extent, the number of employees, the increase in administrative expense in Spain related to advertising and the increase in general expenses (technology, outsourced services and maintenance), in particular, in Turkey and, to a lesser extent, Mexico, driven to a great extent by the higher average inflation rates, partially offset by the depreciation in average terms of the currencies of the main countries where the Group operates, except for the Peruvian sol. The table below provides a breakdown of personnel expense for the years ended December 31, 2025 and 2024: Year ended December 31, 2025 2024 Change (In Millions of Euros) (In %) Wages and salaries 6,088 5,937 2.5 Social security costs 1,070 1,007 6.2 Defined contribution plan expense 152 158 (3.9) Defined benefit plan expense 43 51 (15.3) Other personnel expense 420 506 (17.0) Personnel expense 7,773 7,659 1.5 The table below provides a breakdown of other administrative expense for the years ended December 31, 2025 and 2024: Year ended December 31, 2025 2024 Change (In Millions of Euros) (In %) Technology and systems 1,778 1,732 2.6 Communications 247 261 (5.5) Advertising 564 441 27.8 Property, fixtures and materials 561 577 (2.8) Taxes other than income tax 322 481 (33.1) Surveillance and cash courier services 244 255 (4.5) Other expense 1,323 1,253 5.6 Other administrative expense 5,038 5,001 0.7 Depreciation and amortization Depreciation and amortization for the year ended December 31, 2025 was €1,521 million, a 0.8% decrease compared with the €1,533 million recorded for the year ended December 31, 2024. Provisions or reversal of provisions Provisions or reversal of provisions for the year ended December 31, 2025 amounted to an expense of €373 million, an 88.8% increase compared with the €198 million expense recorded for the year ended December 31, 2024, mainly due to higher provisions for contingent risks in Turkey and, to a lesser extent, in Mexico. Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification for the year ended December 31, 2025 was an expense of €6,073 million, a 5.7% increase compared with the €5,745 million expense recorded for the year ended December 31, 2024, mainly due to the increase in the expected losses related to the retail portfolio (mainly related to consumer and credit card loans, which volumes increased and also required higher credit impairments) in Turkey and, to a lesser extent, higher credit impairment requirements in Mexico as a result of the worsening of the macroeconomic scenario. 93 The table below provides a breakdown of impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification for the years ended December 31, 2025 and 2024: Year ended December 31, 2025 2024 Change Impairment or reversal of impairment on: (In Millions of Euros) (In %) Financial assets at fair value through other comprehensive income (28) 58 n.m. (2) Financial assets at amortized cost 6,101 5,687 7.3 Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification 6,073 5,745 5.7 Impairment or reversal of impairment on non-financial assets Impairment or reversal of impairment on non-financial assets for the year ended December 31, 2025 amounted to a €13 million expense, compared with the €1 million income recorded for the year ended December 31, 2024. Gains (losses) on derecognition of non-financial assets and subsidiaries, net and Impairment or reversal of impairment of investments in joint ventures and associates Gains on derecognition of non-financial assets and subsidiaries, net and Impairment or reversal of impairment of investments in joint ventures and associates for the year ended December 31, 2025 amounted to €68 million, an 11.2% decrease compared with the €77 million gain recorded for the year ended December 31, 2024, mainly due to the reversal of impairment of certain investments in joint ventures and associates. Gains (losses) from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations Gains from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations for the year ended December 31, 2025 amounted to €18 million, compared with the €17 million loss recorded for the year ended December 31, 2024. Operating profit / (loss) before tax As a result of the foregoing, operating profit before tax for the year ended December 31, 2025 amounted to €16,227 million, a 5.3% increase compared with the €15,405 million operating profit before tax recorded for the year ended December 31, 2024. Tax expense or income related to profit or loss from continuing operations Tax expense related to profit from continuing operations for the year ended December 31, 2025 amounted to €5,100 million, a 5.6% increase compared with the €4,830 million expense recorded for the year ended December 31, 2024, mainly due to the higher operating profit before tax in Spain and, to a lesser extent, South America and Turkey, and the approximately €318 million expense recorded in connection with the accrual of the estimated amount of the IMIC for the year ended December 31, 2025 in Spain (see Note 19 to the Consolidated Financial Statements and “Item 4. Information on the Company—Business Overview—Supervision and Regulation—Principal Markets—Spain—Temporary Tax on Credit Institutions in Spain”). The year-on-year increase was partially offset by an adjustment in the estimate of the annual tax rate for the BBVA Group, which reflects the Group’s reassessment of the coverage needs for the identified tax risks and certain deferred tax assets corresponding to the Group in Spain, which had not previously been recorded and were first recognized in 2025 (see Note 19 to the Consolidated Financial Statements), and the depreciation in average terms of the currencies of the main countries where the Group operates, except for the Peruvian sol. Amounts paid by BBVA under the temporary tax on credit institutions and financial credit establishments and the IMIC in Spain are a non-deductible expense for tax purposes. Profit / (loss) As a result of the foregoing, profit for the year ended December 31, 2025 amounted to €11,126 million, a 5.2% increase compared with the €10,575 million recorded for the year ended December 31, 2024. Profit / (loss) attributable to parent company As a result of the foregoing, profit attributable to parent company for the year ended December 31, 2025 amounted to €10,511 million, a 4.5% increase compared with the €10,054 million recorded for the year ended December 31, 2024. 94 Profit / (loss) attributable to non-controlling interests Profit attributable to non-controlling interests for the year ended December 31, 2025 amounted to €615 million, an 18.1% increase compared with the €521 million profit attributable to non-controlling interests recorded for the year ended December 31, 2024, mainly attributable to Peru. 95 BBVA Group results of operations for 2024 compared to 2023 The table below shows the Group’s consolidated income statements for 2024 and 2023. Year ended December 31, 2024 2023 Change (In Millions of Euros) (In %) Interest and other income 61,659 47,850 28.9 Interest expense (36,392) (24,761) 47.0 Net interest income 25,267 23,089 9.4 Dividend income 120 118 1.4 Share of profit or loss of entities accounted for using the equity method 40 26 52.5 Fee and commission income 13,036 9,899 31.7 Fee and commission expense (5,048) (3,611) 39.8 Net gains (losses) on financial assets and liabilities (1) 3,218 1,844 74.5 Exchange differences, net 695 339 105.0 Other operating income 623 619 0.7 Other operating expense (3,951) (4,042) (2.3) Income on insurance and reinsurance contracts 3,720 3,081 20.7 Expense on insurance and reinsurance contracts (2,238) (1,821) 22.9 Gross income 35,481 29,542 20.1 Administration costs (12,660) (10,905) 16.1 Personnel expense (7,659) (6,530) 17.3 Other administrative expense (5,001) (4,375) 14.3 Depreciation and amortization (1,533) (1,403) 9.3 Net margin before provisions (2) 21,288 17,233 23.5 Provisions or reversal of provisions (198) (373) (47.1) Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification (5,745) (4,428) 29.7 Impairment or reversal of impairment on non-financial assets 1 (54) n.m. (3) Gains (losses) on derecognition of non-financial assets and subsidiaries, net and Impairment or reversal of impairment of investments in joint ventures and associates 77 19 n.m. (3) Gains (losses) from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations (17) 22 n.m. (3) Operating profit / (loss) before tax 15,405 12,419 24.0 Tax expense or income related to profit or loss from continuing operations (4,830) (4,003) 20.7 Profit / (loss) from continuing operations 10,575 8,416 25.7 Profit / (loss) from discontinued operations, net — — — Profit / (loss) 10,575 8,416 25.7 Profit / (loss) attributable to parent company 10,054 8,019 25.4 Profit / (loss) attributable to non-controlling interests 521 397 31.2 (1)Comprises the following income statement line items contained in the Consolidated Financial Statements: “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” and “Gains (losses) from hedge accounting, net”. (2)Calculated as “Gross income” less “Administration costs” and “Depreciation and amortization”. (3)Not meaningful. 96 The changes in the Group’s consolidated income statements for the years ended December 31, 2024 and 2023 were as follows: Net interest income The following table summarizes net interest income for the years ended December 31, 2024 and 2023. Year ended December 31, 2024 2023 Change (In Millions of Euros) (In %) Interest and other income 61,659 47,850 28.9 Interest expense (36,392) (24,761) 47.0 Net interest income 25,267 23,089 9.4 Net interest income for the year ended December 31, 2024 amounted to €25,267 million, a 9.4% increase compared with the €23,089 million recorded for the year ended December 31, 2023, as interest and other income increased by 28.9% due mainly to the increase in yields and volumes (see “Item 4. Information on the Company—Selected Statistical Information—Average Balances and Rates”), particularly of loans to enterprises and consumer loans, partially offset by an increase in interest expense of 47.0%, mainly driven by higher overall funding costs due to interest rate increases, and the depreciation of the Argentine peso and the Mexican peso against the euro. At constant exchange rates, net interest income increased by 12.9%. The following factors, set out by region, were the main contributors to the 9.4% increase in net interest income: •South America: there was a 27.2% increase mainly as a result of increases in the volume and yield of credit card loans and the commercial loan portfolios in Argentina and Colombia. •Spain: there was a 14.6% increase mainly as a result of the higher yield of the loans to enterprises and consumer loans, which led to an increase in the customer spread (calculated as the average rate at which assets are remunerated, less the equivalent average rate for deposits), as a result of the impact of the increase in interest rates in 2023 up to the cuts beginning in the second half of 2024 and, to a lesser extent, an increase in the average volume of loan portfolios. •Mexico: there was a 4.5% increase mainly as a result of the higher contribution from the wholesale and retail loan portfolios (attributable to increases in volume), and the higher contribution from the securities portfolio. The period-on-period increase was offset in substantial part by the overall higher funding costs in all regions due to the interest rate increases, the higher interest expense on Turkish lira-denominated deposits (due to the higher volume of deposits and the higher interest rates paid on them), the higher wholesale and swap funding costs in Turkey, the impact of interest rates cuts implemented by the ECB since the second half of 2024 on consumer and household loan portfolios in Spain, which are mostly referenced to variable interest rates, and the depreciation of the Turkish lira, the Argentine peso and the Mexican peso against the euro. As a result, interest expense grew significantly more rapidly than interest and other income, negatively affecting net interest income. Dividend income Dividend income for the year ended December 31, 2024 amounted to €120 million, a 1.4% increase compared with the €118 million recorded for the year ended December 31, 2023. Share of profit or loss of entities accounted for using the equity method Share of profit or loss of entities accounted for using the equity method for the year ended December 31, 2024 amounted to income of €40 million, a 52.5% increase compared with the income of €26 million recorded for the year ended December 31, 2023. 97 Fee and commission income The table below provides a breakdown of fee and commission income for the years ended December 31, 2024 and 2023: Year ended December 31, 2024 2023 Change (In Millions of Euros) (In %) Bills receivables 21 24 (13.8) Demand accounts 300 300 (0.1) Credit and debit cards and POS (1) 7,106 4,665 52.3 Checks 166 175 (5.2) Transfers and other payment orders 961 862 11.5 Insurance product commissions 461 384 19.9 Loan commitments given 322 307 4.8 Other commitments and financial guarantees given 530 471 12.7 Asset management 1,685 1,407 19.8 Securities fees 360 345 4.4 Custody securities 221 207 6.8 Other fees and commissions 902 751 20.1 Fee and commission income 13,036 9,899 31.7 (1) Points of Sale. Fee and commission income increased by 31.7% to €13,036 million for the year ended December 31, 2024 from the €9,899 million recorded for the year ended December 31, 2023, primarily due to the increase in payment systems fees (fees related to credit and debit cards and POS (points of sale), as shown in Note 40 to the Consolidated Financial Statements) supported by the increase in the maximum credit card fees banks may charge in Turkey pursuant to the regulation established by the CBRT and, to a lesser extent, the increased volume of transactions by credit card customers and of asset management activities in Mexico, the increase in the volume of asset management activities and the higher credit card fees in Spain and increases in payment systems-related fees (in particular, related to credit cards), as a result of increases in the volume of transactions and commission rates in Argentina, partially offset by the depreciation of the Turkish lira, the Mexican peso and the Argentine peso against the euro. Fee and commission expense The breakdown of fee and commission expense for the years ended December 31, 2024 and 2023 is as follows: Year ended December 31, 2024 2023 Change (In Millions of Euros) (In %) Demand accounts 7 6 9.7 Credit and debit cards 3,534 2,337 51.3 Transfers and other payment orders 153 156 (1.9) Commissions for selling insurance 47 40 16.8 Custody securities 101 111 (8.5) Other fees and commissions 1,206 961 25.4 Fee and commission expense 5,048 3,611 39.8 Fee and commission expense increased by 39.8% to €5,048 million for the year ended December 31, 2024 from the €3,611 million recorded for the year ended December 31, 2023, primarily due to the increase in fees paid by the Group in connection with the increase in payment systems fees in Turkey (in particular, due to an increase in the volume of transactions by credit card customers), partially offset by the depreciation of the Turkish lira, the Mexican peso and the Argentine peso against the euro. 98 Net gains (losses) on financial assets and liabilities Net gains on financial assets and liabilities increased to €3,218 million for the year ended December 31, 2024, a 74.5% increase compared to the net gain of €1,844 million recorded for the year ended December 31, 2023, mainly due to the gains from foreign currency hedges in Turkey, the gains from certain foreign currency hedges (recorded in the ALCO portfolio of the Corporate Center) on the estimated results of the operating segments resulting from the impact of the depreciation of the Mexican peso and, to a lesser extent, the higher gains from the Global Markets units in Mexico and Spain, recorded under “Gains (losses) on financial assets and liabilities held for trading, net”, partially offset by the depreciation of the Turkish lira and the Argentine peso against the euro. The table below provides a breakdown of net gains (losses) on financial assets and liabilities for the years ended December 31, 2024 and 2023: Year ended December 31, 2024 2023 Change (In Millions of Euros) (In %) Gains (losses) on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net 327 76 n.m. (1) Financial assets at fair value through other comprehensive income 306 42 n.m. (1) Financial assets at amortized cost 20 41 (50.7) Other financial assets and liabilities 1 (7) n.m. (1) Gains (losses) on financial assets and liabilities held for trading, net 2,458 1,352 81.8 Gains (losses) on non-trading financial assets mandatorily at fair value through profit or loss, net 179 337 (46.8) Gains (losses) on financial assets and liabilities designated at fair value through profit or loss, net 249 96 158.8 Gains (losses) from hedge accounting, net 5 (17) n.m. (1) Net gains (losses) on financial assets and liabilities 3,218 1,844 74.5 (1)Not meaningful. Exchange differences, net Exchange differences increased to a €695 million gain for the year ended December 31, 2024 from a €339 million gain for the year ended December 31, 2023, mainly as a result of the positive exchange differences recognized in the Corporate Center, partially offset by the lower positive exchange differences in Turkey compared to 2023. Other operating income and other operating expense Other operating income for the year ended December 31, 2024 increased by 0.7% to €623 million compared with the €619 million recorded for the year ended December 31, 2023. Other operating expense for the year ended December 31, 2024 amounted to €3,951 million, a 2.3% decrease compared with the €4,042 million recorded for the year ended December 31, 2023, mainly driven by the lower aggregate expense attributable to the loss on the net monetary position resulting from the adjustment for hyperinflation in Turkey (€1,512 million in 2024 compared to €2,118 million in 2023) and the depreciation of the Mexican peso, the Turkish lira and the Argentine peso, partially offset by the higher loss on the net monetary position resulting from the adjustment for hyperinflation in Argentina (€1,419 million in 2024 compared to €1,062 million in 2023), the lower gain from the revaluation of bonds linked to inflation in Turkey (€1,164 million, compared to €1,202 million for the year ended December 31, 2023) and the higher expense recorded in connection with the temporary tax on credit institutions and financial credit establishments in Spain (totaling €285 million in the year ended December 31, 2024, compared to €215 million in the year ended December 31, 2023). As of December 31, 2023, BBVA had satisfied in full the amount to be paid by it at a global level under the ECB’s Single Resolution Fund. Income and expense on insurance and reinsurance contracts Income on insurance and reinsurance contracts for the year ended December 31, 2024 was €3,720 million, a 20.7% increase compared with the €3,081 million of income recorded for the year ended December 31, 2023, mainly due to increased insurance activity in Spain and the increase in insurance premiums, attributable in part to higher insurance sales in Mexico. 99 Expense on insurance and reinsurance contracts for the year ended December 31, 2024 was €2,238 million, a 22.9% increase compared with the €1,821 million expense recorded for the year ended December 31, 2023, mainly as a result of higher insurance-related expenses in Spain, due in part to the increased activity. Administration costs Administration costs, which include personnel expense and other administrative expense, for the year ended December 31, 2024 amounted to €12,660 million, a 16.1% increase compared with the €10,905 million recorded for the year ended December 31, 2023, mainly as a result of the increase in personnel expenses, driven by the increase in salaries (mainly driven by inflation) and, to a lesser extent, the number of employees and the increase in general expenses (technology, outsourced services and maintenance), in particular, in Turkey and Argentina, driven to a great extent by the higher average inflation rates, partially offset by the depreciation of the Turkish lira, the Mexican peso and the Argentine peso against the euro. The table below provides a breakdown of personnel expense for the years ended December 31, 2024 and 2023: Year ended December 31, 2024 2023 Change (In Millions of Euros) (In %) Wages and salaries 5,937 5,068 17.1 Social security costs 1,007 834 20.7 Defined contribution plan expense 158 139 14.0 Defined benefit plan expense 51 49 3.5 Other personnel expense 506 440 15.0 Personnel expense 7,659 6,530 17.3 The table below provides a breakdown of other administrative expense for the years ended December 31, 2024 and 2023: Year ended December 31, 2024 2023 Change (In Millions of Euros) (In %) Technology and systems 1,732 1,512 14.5 Communications 261 219 19.6 Advertising 441 349 26.4 Property, fixtures and materials 577 520 10.9 Taxes other than income tax 481 451 6.6 Surveillance and cash courier services 255 234 9.2 Other expense 1,253 1,090 15.0 Other administrative expense 5,001 4,375 14.3 Depreciation and amortization Depreciation and amortization for the year ended December 31, 2024 was €1,533 million, a 9.3% increase compared with the €1,403 million recorded for the year ended December 31, 2023, mainly due to the increase in the depreciation expense related to IT equipment especially, in Turkey and Argentina, partially offset by the depreciation of the Turkish lira and the Argentine peso against the euro. Provisions or reversal of provisions Provisions or reversal of provisions for the year ended December 31, 2024 amounted to an expense of €198 million, a 47.1% decrease compared with the €373 million expense recorded for the year ended December 31, 2023, mainly due to the impact, in 2023, of the provisions recorded in connection with the February 2023 earthquakes. Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification for the year ended December 31, 2024 was an expense of €5,745 million, a 29.7% increase compared with the €4,428 million expense recorded for the year ended December 31, 2023, mainly due to the higher impairment entries in the retail loan portfolios in Mexico and Turkey and, to a lesser extent, in South America, as further explained in “—Results of Operations by Operating Segment”. In addition, the deterioration of macroeconomic conditions and forecast led to higher impairments in Mexico. 100 The table below provides a breakdown of impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification for the years ended December 31, 2024 and 2023: Year ended December 31, 2024 2023 Change Impairment or reversal of impairment on: (In Millions of Euros) (In %) Financial assets at fair value through other comprehensive income 58 42 38.2 Financial assets at amortized cost 5,687 4,386 29.7 Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification 5,745 4,428 29.7 Impairment or reversal of impairment on non-financial assets Impairment or reversal of impairment on non-financial assets for the year ended December 31, 2024 amounted to €1 million of income, compared with the €54 million expense recorded for the year ended December 31, 2023. Gains (losses) on derecognition of non-financial assets and subsidiaries, net and Impairment or reversal of impairment of investments in joint ventures and associates Gains on derecognition of non-financial assets and subsidiaries, net and Impairment or reversal of impairment of investments in joint ventures and associates for the year ended December 31, 2024 amounted to €77 million, compared with the €19 million gain recorded for the year ended December 31, 2023, mainly due to the reversal of impairment of certain investments in joint ventures and associates. Gains (losses) from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations Losses from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations for the year ended December 31, 2024 amounted to €17 million, compared with the €22 million gains recorded for the year ended December 31, 2023. Operating profit / (loss) before tax As a result of the foregoing, operating profit before tax for the year ended December 31, 2024 amounted to €15,405 million, a 24.0% increase compared with the €12,419 million operating profit before tax recorded for the year ended December 31, 2023. Tax expense or income related to profit or loss from continuing operations Tax expense related to profit from continuing operations for the year ended December 31, 2024 amounted to €4,830 million, a 20.7% increase compared with the €4,003 million expense recorded for the year ended December 31, 2023, mainly due to the higher operating profit before tax in Mexico and Spain. Amounts paid by BBVA under the temporary tax on credit institutions and financial credit establishments in Spain are a non-deductible expense for tax purposes. Profit / (loss) As a result of the foregoing, profit for the year ended December 31, 2024 amounted to €10,575 million, a 25.7% increase compared with the €8,416 million recorded for the year ended December 31, 2023. Profit / (loss) attributable to parent company As a result of the foregoing, profit attributable to parent company for the year ended December 31, 2024 amounted to €10,054 million, a 25.4% increase compared with the €8,019 million recorded for the year ended December 31, 2023. Profit / (loss) attributable to non-controlling interests Profit attributable to non-controlling interests for the year ended December 31, 2024 amounted to €521 million, a 31.2% increase compared with the €397 million profit attributable to non-controlling interests recorded for the year ended December 31, 2023. 101 Results of Operations by Operating Segment The information contained in this section is presented under management criteria; however, for the years ended December 31, 2025, 2024 and 2023, there are no differences between the sum of the income statements of our operating segments and the Corporate Center (calculated in accordance with management criteria used to report segment financial information) and the consolidated income statement of the Group. Following the publication of our consolidated financial statements as of and for the years ended December 31, 2024, 2023 and 2022 included in our annual report on Form 20-F for the year ended December 31, 2024, 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. For certain relevant information concerning the preparation and presentation of the financial information included in this Annual Report, see “Presentation of Financial Information”. For the year ended December 31, 2025 Spain Mexico Turkey South America Rest of Business Corporate Center Group (In Millions of Euros) Net interest income / (expense) 6,588 11,424 3,079 4,830 828 (469) 26,280 Net fees and commissions 2,364 2,367 2,123 897 591 (127) 8,215 Net gains (losses) on financial assets and liabilities and Exchange differences, net (1) 723 788 394 568 382 (200) 2,656 Other operating income and expense, net (2) 351 619 (384) (932) 7 118 (221) Gross income 10,027 15,198 5,213 5,363 1,807 (678) 36,931 Administration costs (2,937) (4,182) (2,084) (2,146) (889) (573) (12,811) Depreciation and amortization (386) (440) (231) (210) (40) (213) (1,521) Net margin before provisions (3) 6,704 10,576 2,898 3,007 878 (1,464) 22,599 Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification (649) (3,130) (1,000) (1,208) (85) (1) (6,073) Provisions or reversal of provisions and other results (121) (105) (34) (42) (22) 25 (299) Operating profit / (loss) before tax 5,933 7,341 1,863 1,758 772 (1,440) 16,227 Tax expense or income related to profit or loss from continuing operations (1,755) (2,076) (904) (582) (145) 361 (5,100) Profit / (loss) from continuing operations 4,178 5,265 959 1,176 627 (1,079) 11,126 Profit / (loss) from discontinued operations, net and Other — — — — — — — Profit / (loss) 4,178 5,265 959 1,176 627 (1,079) 11,126 Profit / (loss) attributable to non-controlling interests (3) (1) (154) (450) — (7) (615) Profit / (loss) attributable to parent company 4,175 5,264 805 726 627 (1,086) 10,511 (1)Includes “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” and “Exchange differences, net”. (2)Includes “Dividend income”, “Share of profit or loss of entities accounted for using the equity method”, “Income from insurance and reinsurance contracts”, “Expense from insurance and reinsurance contracts”, “Other operating income” and “Other operating expense”. (3)“Net margin before provisions” is calculated as “Gross income” less “Administration costs” and “Depreciation and amortization”. 102 For the year ended December 31, 2024 Spain Mexico Turkey South America Rest of Business Corporate Center Group (In Millions of Euros) Net interest income / (expense) 6,384 11,556 1,492 5,589 742 (495) 25,267 Net fees and commissions 2,281 2,443 2,111 834 390 (71) 7,988 Net gains (losses) on financial assets and liabilities and Exchange differences, net (1) 728 767 1,145 798 337 138 3,913 Other operating income and expense, net (2) 50 571 (535) (1,815) 4 39 (1,686) Gross income 9,443 15,337 4,212 5,405 1,472 (388) 35,481 Administration costs (2,980) (4,170) (1,895) (2,341) (710) (564) (12,660) Depreciation and amortization (366) (477) (216) (226) (33) (215) (1,533) Net margin before provisions (3) 6,097 10,689 2,101 2,838 730 (1,168) 21,288 Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification (684) (3,098) (526) (1,369) (71) 3 (5,745) Provisions or reversal of provisions and other results (150) (69) 165 (127) (11) 54 (137) Operating profit / (loss) before tax 5,263 7,522 1,741 1,342 648 (1,110) 15,405 Tax expense or income related to profit or loss from continuing operations (1,508) (2,074) (1,014) (313) (138) 215 (4,830) Profit / (loss) from continuing operations 3,755 5,448 727 1,029 511 (895) 10,575 Profit / (loss) 3,755 5,448 727 1,029 511 (895) 10,575 Profit / (loss) attributable to non-controlling interests (3) (1) (116) (394) — (7) (521) Profit / (loss) attributable to parent company 3,752 5,447 611 635 511 (901) 10,054 (1)Includes “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” and “Exchange differences, net”. (2)Includes “Dividend income”, “Share of profit or loss of entities accounted for using the equity method”, “Income from insurance and reinsurance contracts”, “Expense from insurance and reinsurance contracts”, “Other operating income” and “Other operating expense”. (3)“Net margin before provisions” is calculated as “Gross income” less “Administration costs” and “Depreciation and amortization”. 103 For the year ended December 31, 2023 Spain Mexico Turkey South America Rest of Business Corporate Center Group (In Millions of Euros) Net interest income / (expense) 5,570 11,054 1,869 4,394 539 (336) 23,089 Net fees and commissions 2,124 2,226 998 700 309 (69) 6,288 Net gains (losses) on financial assets and liabilities and Exchange differences, net (1) 460 572 937 633 261 (681) 2,183 Other operating income and expense, net (2) (305) 415 (824) (1,395) 3 87 (2,018) Gross income 7,848 14,267 2,981 4,331 1,113 (999) 29,542 Administration costs (2,809) (3,946) (1,252) (1,785) (560) (553) (10,905) Depreciation and amortization (383) (469) (150) (165) (26) (210) (1,403) Net margin before provisions (3) 4,656 9,853 1,579 2,381 527 (1,762) 17,233 Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification (656) (2,499) (118) (1,134) (28) 6 (4,428) Provisions or reversal of provisions and other results (145) (25) (137) (58) (1) (21) (386) Operating profit / (loss) before tax 3,855 7,329 1,324 1,189 499 (1,777) 12,419 Tax expense or income related to profit or loss from continuing operations (1,162) (2,009) (702) (286) (96) 252 (4,003) Profit / (loss) from continuing operations 2,693 5,320 622 903 403 (1,525) 8,416 Profit / (loss) 2,693 5,320 622 903 403 (1,525) 8,416 Profit / (loss) attributable to non-controlling interests (2) (1) (95) (302) — 3 (397) Profit / (loss) attributable to parent company 2,690 5,319 527 601 403 (1,522) 8,019 (1)Includes “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” and “Exchange differences, net”. (2)Includes “Dividend income”, “Share of profit or loss of entities accounted for using the equity method”, “Income from insurance and reinsurance contracts”, “Expense from insurance and reinsurance contracts”, “Other operating income” and “Other operating expense”. (3)“Net margin before provisions” is calculated as “Gross income” less “Administration costs” and “Depreciation and amortization”. 104 Results of Operations by Operating Segment for 2025 Compared with 2024 SPAIN For the year ended December 31, 2025 2024 Change (In Millions of Euros) (In %) Net interest income 6,588 6,384 3.2 Net fees and commissions 2,364 2,281 3.7 Net gains (losses) on financial assets and liabilities and Exchange differences, net (1) 723 728 (0.7) Other operating income and expense, net (36) (329) (89.0) Income and expense on insurance and reinsurance contracts 387 379 2.1 Gross income 10,027 9,443 6.2 Administration costs (2,937) (2,980) (1.4) Depreciation and amortization (386) (366) 5.4 Net margin before provisions (2) 6,704 6,097 10.0 Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification (649) (684) (5.1) Provisions or reversal of provisions and other results (121) (150) (19.0) Operating profit / (loss) before tax 5,933 5,263 12.7 Tax expense or income related to profit or loss from continuing operations (1,755) (1,508) 16.4 Profit from continuing operations 4,178 3,755 11.3 Profit / (loss) from discontinued operations, net and Other — — — Profit 4,178 3,755 11.3 Profit attributable to non-controlling interests (3) (3) — Profit attributable to parent company 4,175 3,752 11.3 (1)Includes “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” and “Exchange differences, net”. (2)Calculated as “Gross income” less “Administration costs” and “Depreciation and amortization”. (3)Not meaningful. Net interest income Net interest income of this operating segment for the year ended December 31, 2025 amounted to €6,588 million, a 3.2% increase compared with the €6,384 million recorded for the year ended December 31, 2024, mainly as a result of the higher contribution from the securities portfolio and the ALCO portfolio, and the lower funding costs in the wholesale portfolios, partially offset by the impact of interest rates cuts implemented by the ECB since the second half of 2024 on the consumer and household loan portfolios, which are mostly referenced to variable interest rates. The net interest margin over average total assets of this operating segment amounted to 1.49% for the year ended December 31, 2025, compared with 1.47% for the year ended December 31, 2024. Net fees and commissions Net fees and commissions of this operating segment for the year ended December 31, 2025 amounted to €2,364 million, a 3.7% increase compared with the €2,281 million recorded for the year ended December 31, 2024, mainly due to the increase in the volume of asset management activities and, to a lesser extent, payment systems fees (driven in part by increases in the volume of credit card loans), partially offset by the higher fees paid to third parties related to the increase in volume of asset management activities. Net gains (losses) on financial assets and liabilities and Exchange differences, net Net gains on financial assets and liabilities and exchange differences of this operating segment for the year ended December 31, 2025 was a net gain of €723 million, a 0.7% decrease compared with the €728 million net gain recorded for the year ended December 31, 2024, mainly as a result of the lower gains from the Global Markets unit, partially offset by the gains from certain ALCO portfolio sales and positive exchange differences. 105 Other operating income and expense, net Other operating income and expense, net of this operating segment for the year ended December 31, 2025 amounted to a €36 million expense, an 89.0% decrease compared with the €329 million expense recorded for the year ended December 31, 2024. Other operating expense for the year ended December 31, 2024 included the impact of the temporary tax on credit institutions and financial credit establishments in Spain amounting to €285 million (which was paid in 2024), whereas the accrual of the IMIC for the year ended December 31, 2025 was recorded under “Tax expense or income related to profit or loss from continuing operations”. Further, during 2025, the Group made the payment corresponding to the IMIC for the 2024 financial year (€295 million). However, since this payment is not required under the legal framework in place as of December 31, 2025, an asset for the amount paid (€295 million) has been recorded under the heading “General Governments” of the item “Financial assets at amortized cost - Loans and advances to customers” in the balance sheet. Therefore, the IMIC payment for the 2024 financial year was not recorded as an operating expense for the year ended December 31, 2025. Income and expense on insurance and reinsurance contracts Net income on insurance and reinsurance contracts of this operating segment for the year ended December 31, 2025 was €387 million, a 2.1% increase compared with the €379 million income recorded for the year ended December 31, 2024, as a result of increased insurance activity. Administration costs Administration costs of this operating segment for the year ended December 31, 2025 amounted to €2,937 million, a 1.4% decrease compared with the €2,980 million recorded for the year ended December 31, 2024. Depreciation and amortization Depreciation and amortization for the year ended December 31, 2025 was €386 million, a 5.4% increase compared with the €366 million recorded for the year ended December 31, 2024 mainly due to the increase in the depreciation expense related to IT equipment. Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification of this operating segment for the year ended December 31, 2025 amounted to a €649 million expense, a 5.1% decrease compared with the €684 million expense recorded for the year ended December 31, 2024, mainly due to the lower credit impairment requirements in the mortgage loan portfolio. Provisions or reversal of provisions and other results Provisions or reversal of provisions and other results of this operating segment for the year ended December 31, 2025 were a €121 million expense, a 19.0% decrease compared with the €150 million expense recorded for the year ended December 31, 2024, mainly due to higher gains from the sale of certain investments recorded under other results. Operating profit / (loss) before tax As a result of the foregoing, operating profit before tax of this operating segment for the year ended December 31, 2025 was €5,933 million, a 12.7% increase compared with the €5,263 million profit recorded for the year ended December 31, 2024. Tax expense or income related to profit or loss from continuing operations Tax expense related to profit from continuing operations of this operating segment for the year ended December 31, 2025 was €1,755 million, a 16.4% increase compared with the €1,508 million expense recorded for the year ended December 31, 2024, mainly as a result of the approximately €318 million expense recorded in connection with the accrual of the estimated amount of the IMIC for the year ended December 31, 2025 (see Note 19 to the Consolidated Financial Statements and “Item 4. Information on the Company—Business Overview—Supervision and Regulation—Principal Markets—Spain—Temporary Tax on Credit Institutions in Spain”), and the higher operating profit before tax recorded for the year ended December 31, 2025. The effective tax rate increased to 29.6% for the year ended December 31, 2025 from 28.7% for the year ended December 31, 2024. 106 Profit attributable to parent company As a result of the foregoing, profit attributable to parent company of this operating segment for the year ended December 31, 2025 amounted to €4,175 million, an 11.3% increase compared with the €3,752 million profit recorded for the year ended December 31, 2024. 107 MEXICO For the year ended December 31, 2025 2024 Change (In Millions of Euros) (In %) Net interest income 11,424 11,556 (1.1) Net fees and commissions 2,367 2,443 (3.1) Net gains (losses) on financial assets and liabilities and Exchange differences, net (1) 788 767 2.7 Other operating income and expense, net (346) (342) 1.0 Income and expense on insurance and reinsurance contracts 965 913 5.7 Gross income 15,198 15,337 (0.9) Administration costs (4,182) (4,170) 0.3 Depreciation and amortization (440) (477) (7.7) Net margin before provisions (2) 10,576 10,689 (1.1) Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification (3,130) (3,098) 1.0 Provisions or reversal of provisions and other results (105) (69) 52.6 Operating profit / (loss) before tax 7,341 7,522 (2.4) Tax expense or income related to profit or loss from continuing operations (2,076) (2,074) 0.1 Profit 5,265 5,448 (3.4) Profit attributable to non-controlling interests (1) (1) — Profit attributable to parent company 5,264 5,447 (3.4) (1)Includes “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” and “Exchange differences, net”. (2)“Net margin before provisions” is calculated as “Gross income” less “Administration costs” and “Depreciation and amortization”. In the year ended December 31, 2025, the Mexican peso depreciated by 8.5% against the euro in average terms compared with the year ended December 31, 2024, adversely affecting the results of operations of the Mexico operating segment for the year ended December 31, 2025 expressed in euros. See “―Factors Affecting the Comparability of our Results of Operations and Financial Condition―Trends in Exchange Rates”. Net interest income Net interest income of this operating segment for the year ended December 31, 2025 amounted to €11,424 million, a 1.1% decrease compared with the €11,556 million recorded for the year ended December 31, 2024, mainly as a result of the depreciation of the Mexican peso against the euro, partially offset by increases in the volume of the mortgage and consumer loan portfolios and lower wholesale funding costs. At constant exchange rates, there was an 8.1% increase in net interest income. The net interest margin over average total assets of this operating segment amounted to 6.74% for the year ended December 31, 2025, compared with 6.73% for the year ended December 31, 2024. Net fees and commissions Net fees and commissions of this operating segment for the year ended December 31, 2025 amounted to €2,367 million, a 3.1% decrease compared with the €2,443 million recorded for the year ended December 31, 2024, mainly due to the depreciation of the Mexican peso against the euro and the increase in commissions paid to third parties in relation to payment systems fees, offset, to a great extent, by the increase in payment systems fees and, to a lesser extent, the increase in fees received related to asset management activities (mutual and pension funds), as a result of the increase in the volume of such funds. At constant exchange rates, there was a 6.0% increase in net fees and commissions. Net gains (losses) on financial assets and liabilities and Exchange differences, net Net gains on financial assets and liabilities and exchange differences of this operating segment for the year ended December 31, 2025 were €788 million, a 2.7% increase compared with the €767 million gain recorded for the year ended December 31, 2024, mainly as a result of the higher gains from the ALCO portfolio resulting from the repurchase of bonds, partially offset by the depreciation of the Mexican peso against the euro. At constant exchange rates, there was a 12.3% increase in net gains on financial assets and liabilities and exchange differences. 108 Other operating income and expense, net Other operating income and expense, net of this operating segment for the year ended December 31, 2025 was a net expense of €346 million, a 1.0% increase compared with the €342 million net expense recorded for the year ended December 31, 2024, mainly as a result of the higher contributions made to the Deposit Guarantee Fund, partially offset by the depreciation of the Mexican peso against the euro. At constant exchange rates, there was a 10.5% increase in net expense. Income and expense on insurance and reinsurance contracts Net income on insurance and reinsurance contracts of this operating segment for the year ended December 31, 2025 was €965 million, a 5.7% increase compared with the €913 million net income recorded for the year ended December 31, 2024, due mainly to the increase in insurance premiums, attributable in part to a higher volume of insurance sales, partially offset by the depreciation of the Mexican peso against the euro. At constant exchange rates, there was a 15.6% increase in income on insurance and reinsurance contracts. Administration costs Administration costs of this operating segment for the year ended December 31, 2025 were €4,182 million, a 0.3% increase compared with the €4,170 million recorded for the year ended December 31, 2024, mainly as a result of the higher general expenses related mainly to IT and the higher personnel expenses driven by the higher salaries and the increase in the number of employees, partially offset by the depreciation of the Mexican peso against the euro. At constant exchange rates, administration costs increased by 9.6%. Depreciation and amortization Depreciation and amortization for the year ended December 31, 2025 was €440 million, a 7.7% decrease compared with the €477 million recorded for the year ended December 31, 2024. At constant exchange rates, there was a 0.9% increase in depreciation and amortization. Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification of this operating segment for the year ended December 31, 2025 was a €3,130 million expense, a 1.0% increase compared with the €3,098 million expense recorded for the year ended December 31, 2024, mainly due to higher credit impairment requirements, in particular, in the retail portfolio as a result of the worsening of the macroeconomic scenario in Mexico (see “—Factors Affecting the Comparability of our Results of Operations and Financial Condition—Macroeconomic and geopolitical conditions”), as well as higher credit impairment requirements in retail loans, driven by the increase in the volume of such loans, partially offset by the depreciation of the Mexican peso against the euro. At constant exchange rates, there was a 10.5% increase in impairment on financial assets not measured at fair value through profit or loss or net gains by modification. Provisions or reversal of provisions and other results Provisions or reversal of provisions and other results of this operating segment for the year ended December 31, 2025 were a €105 million expense, a 52.6% increase compared with the €69 million expense recorded for the year ended December 31, 2024, mainly due to the higher provisions related to contingent and legal risks. At constant exchange rates, there was a 66.8% decrease in provisions and other results. Operating profit / (loss) before tax As a result of the foregoing, operating profit before tax of this operating segment for the year ended December 31, 2025 was €7,341 million, a 2.4% decrease compared with the €7,522 million of operating profit before tax recorded for the year ended December 31, 2024. At constant exchange rates, there was a 6.7% increase in operating profit before tax. Tax expense or income related to profit or loss from continuing operations Tax expense related to profit from continuing operations of this operating segment for the year ended December 31, 2025 was €2,076 million, a 0.1% increase compared with the €2,074 million expense recorded for the year ended December 31, 2024. The effective tax rate amounted to 28.3% of operating profit before tax for the year ended December 31, 2025, and 27.6% for the year ended December 31, 2024. At constant exchange rates, there was a 9.5% increase in tax expense related to profit from continuing operations. 109 Profit attributable to parent company As a result of the foregoing, profit attributable to parent company of this operating segment for the year ended December 31, 2025 amounted to €5,264 million, a 3.4% decrease compared with the €5,447 million recorded for the year ended December 31, 2024. At constant exchange rates, there was a 5.7% increase in profit attributable to parent company. 110 TURKEY For the year ended December 31, 2025 2024 Change (In Millions of Euros) (In %) Net interest income 3,079 1,492 106.4 Net fees and commissions 2,123 2,111 0.6 Net gains (losses) on financial assets and liabilities and Exchange differences, net (1) 394 1,145 (65.6) Other operating income and expense, net (478) (595) (19.8) Income and expense on insurance and reinsurance contracts 94 60 55.7 Gross income 5,213 4,212 23.8 Administration costs (2,084) (1,895) 10.0 Depreciation and amortization (231) (216) 7.1 Net margin before provisions (2) 2,898 2,101 37.9 Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification (1,000) (526) 90.1 Provisions or reversal of provisions and other results (34) 165 n.m. (2) Operating profit / (loss) before tax 1,863 1,741 7.1 Tax expense or income related to profit or loss from continuing operations (904) (1,014) (10.8) Profit 959 727 31.9 Profit attributable to non-controlling interests (154) (116) 32.5 Profit attributable to parent company 805 611 31.8 (1)Includes “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” and “Exchange differences, net”. (2)“Net margin before provisions” is calculated as “Gross income” less “Administration costs” and “Depreciation and amortization”. (3)Not meaningful. As of December 31, 2025, the Turkish lira depreciated by 27.2% against the euro compared to December 31, 2024, adversely affecting the results of operations of the Turkey operating segment for the year ended December 31, 2025 expressed in euros (as the period-end exchange rates of the Turkish lira are used to convert income statement items pursuant to IAS 21 for the years ended December 31, 2025 and 2024, respectively). See “―Factors Affecting the Comparability of our Results of Operations and Financial Condition―Trends in Exchange Rates”. Since the first half of 2022, the Turkish economy has been considered to be hyperinflationary as defined by IAS 29 “Financial Reporting in Hyperinflationary Economies”. See “Presentation of Financial Information—Hyperinflationary Economies” and Note 2.2.18 to the Consolidated Financial Statements for information on the impact of hyperinflation accounting. Regulation and monetary policy, including the liraization strategy adopted by the CBRT to protect the Turkish lira, has affected this operating segment. See “Item 4. Information on the Company―Business Overview—Supervision and Regulation—Principal Markets—Turkey”. Net interest income Net interest income of this operating segment for the year ended December 31, 2025 amounted to €3,079 million compared with the €1,492 million recorded for the year ended December 31, 2024, as a result mainly of the higher volume of Turkish lira-denominated loans supported by the lessening of the loan reserve requirements by the CBRT throughout 2025, and the higher customer spread (calculated as the average rate at which assets are remunerated, less the equivalent average rate for deposits), partially offset by the depreciation of the Turkish lira against the euro, and, to a lesser extent, the higher cost of wholesale funding. The year-on-year comparison was positively affected by changes in the reserve requirement for foreign currency deposits, which was set at 8.0% as of February 2024 and reduced in September 2024 (5.0%), November 2024 (4.0%) and June 2025 (2.5%) (see “Item 4. Information on the Company―Business Overview—Supervision and Regulation—Principal Markets—Turkey”), and which requires Garanti BBVA to make Turkish lira-denominated deposits with the CBRT in such proportion with respect to all foreign currency-denominated deposits and participation funds, excluding those obtained from banks abroad, regardless of their maturities. The net interest margin over average total assets of this operating segment amounted to 3.56% for the year ended December 31, 2025, compared with 1.98% for the year ended December 31, 2024. 111 Net fees and commissions Net fees and commissions of this operating segment for the year ended December 31, 2025 amounted to €2,123 million, a 0.6% increase compared with the €2,111 million recorded for the year ended December 31, 2024, mainly as a result of the increase in payment systems fees supported by the increase in the maximum credit card fees banks may charge in Turkey pursuant to the regulation established by the CBRT in November 2024 and the increase in the volume of asset management activities, partially offset by the depreciation of the Turkish lira against the euro and the increase in fees paid to third parties driven by the increase in payment systems fee income. At constant exchange rates, there was a 32.3% increase in net fees and commissions. Net gains (losses) on financial assets and liabilities and Exchange differences, net Net gains on financial assets and liabilities and exchange differences of this operating segment for the year ended December 31, 2025 amounted to €394 million, a 65.6% decrease compared with the €1,145 million gain recorded for the year ended December 31, 2024, mainly driven by a negative foreign currency position and, to a lesser extent, the depreciation of the Turkish lira against the euro, partially offset by higher gains in the trading portfolio from the Global Markets unit and the sale of certain securities portfolios. At constant exchange rates, net gains on financial assets and liabilities and exchange differences decreased by 55.4%. Other operating income and expense, net Other operating income and expense, net of this operating segment for the year ended December 31, 2025 was a €478 million net expense, a 19.8% decrease compared with the €595 million net expense recorded for the year ended December 31, 2024. In the year ended December 31, 2025, other operating income and expense, net, was positively affected by the lower loss on the net monetary position resulting from the adjustment for hyperinflation (€878 million and €1,512 million in the years ended December 31, 2025 and 2024, respectively) and negatively affected by the lower positive impact of the revaluation of bonds linked to inflation in the period (€674 million and €1,164 million, respectively, in the years ended December 31, 2025 and 2024) and the depreciation of the Turkish lira against the euro. At constant exchange rates, there was a 48.3% decrease in net expense. See “Presentation of Financial Information—Hyperinflationary Economies” and Note 2.2.18 to the Consolidated Financial Statements for information on the impact of hyperinflation accounting. Income and expense on insurance and reinsurance contracts Net income on insurance and reinsurance contracts of this operating segment for the year ended December 31, 2025 was €94 million, a 55.7% increase compared with the €60 million income recorded for the year ended December 31, 2024, mainly due to the higher insurance sales by the insurance companies. Administration costs Administration costs of this operating segment for the year ended December 31, 2025 amounted to €2,084 million, a 10.0% increase compared with the €1,895 million recorded for the year ended December 31, 2024, mainly as a result of the increase in personnel expenses, driven by the increase in the number of employees and salary updates, and the increase in general expenses (technology and marketing) driven to a great extent by the high average inflation rates, partially offset by the depreciation of the Turkish lira. At constant exchange rates, administration costs increased by 44.3%, which was above Turkey’s inflation rate for the year. Depreciation and amortization Depreciation and amortization for the year ended December 31, 2025 was €231 million, a 7.1% increase compared with the €216 million recorded for the year ended December 31, 2024, mainly as a result of the increase in the depreciation expense related to IT equipment, offset in part by the depreciation of the Turkish lira. At constant exchange rates, there was a 22.5% increase in depreciation and amortization. Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification of this operating segment for the year ended December 31, 2025 was a €1,000 million expense, a 90.1% increase compared with the €526 million expense recorded for the year ended December 31, 2024, mainly as a result of the increase in the expected losses related to the retail portfolio (mainly related to consumer and credit card loans, which volumes increased and also required higher credit impairments), partially offset by lower expected losses in the corporate loan portfolio and the depreciation of the Turkish lira against the euro. 112 Provisions or reversal of provisions and other results Provisions or reversal of provisions and other results of this operating segment for the year ended December 31, 2025 were a €34 million expense compared with the €165 million income recorded for the year ended December 31, 2024, mainly due to higher provisions for contingent risks. Operating profit / (loss) before tax As a result of the foregoing, operating profit before tax of this operating segment for the year ended December 31, 2025 was €1,863 million, a 7.1% increase compared with the €1,741 million recorded for the year ended December 31, 2024. Tax expense or income related to profit or loss from continuing operations Tax expense related to profit from continuing operations of this operating segment for the year ended December 31, 2025 was €904 million, a 10.8% decrease compared with the €1,014 million expense recorded for the year ended December 31, 2024. The tax expense for the year ended December 31, 2025 was lower than for the year ended December 31, 2024 notwithstanding the year-on-year increase in operating profit before tax, mainly as a result of the application of hyperinflationary accounting in assessing the tax burden in Turkey (with lower inflation and lower loss from the net monetary position, the effective tax rate is also lower). At constant exchange rates, there was an 18.5% increase in tax expense related to profit or loss from continuing operations. Profit attributable to non-controlling interests Profit attributable to non-controlling interests of this operating segment for the year ended December 31, 2025 amounted to €154 million, a 32.5% increase compared with the €116 million recorded for the year ended December 31, 2024, as a result, in part, of the increase in profit. Profit attributable to parent company As a result of the foregoing, profit attributable to parent company of this operating segment for the year ended December 31, 2025 amounted to €805 million, a 31.8% increase compared with the €611 million recorded for the year ended December 31, 2024. 113 SOUTH AMERICA For the year ended December 31, 2025 2024 Change (In Millions of Euros) (In %) Net interest income 4,830 5,589 (13.6) Net fees and commissions 897 834 7.6 Net gains (losses) on financial assets and liabilities and Exchange differences, net (1) 568 798 (28.8) Other operating income and expense, net (1,008) (1,935) (47.9) Income and expense on insurance and reinsurance contracts 76 120 (36.7) Gross income 5,363 5,405 (0.8) Administration costs (2,146) (2,341) (8.3) Depreciation and amortization (210) (226) (7.2) Net margin before provisions (2) 3,007 2,838 6.0 Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification (1,208) (1,369) (11.8) Provisions or reversal of provisions and other results (42) (127) (67.1) Operating profit / (loss) before tax 1,758 1,342 31.0 Tax expense or income related to profit or loss from continuing operations (582) (313) 86.1 Profit 1,176 1,029 14.3 Profit attributable to non-controlling interests (450) (394) 14.2 Profit attributable to parent company 726 635 14.3 (1)Includes “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” and “Exchange differences, net”. (2)“Net margin before provisions” is calculated as “Gross income” less “Administration costs” and “Depreciation and amortization”. In the year ended December 31, 2025, the Argentine peso depreciated by 37.4% against the euro (considering the period-end exchange rates used to convert income statement items for the years ended December 31, 2025 and 2024, respectively, pursuant to IAS 21) and the Colombian peso depreciated by 3.7% against the euro in average terms compared with the year ended December 31, 2024. On the other hand, the Peruvian sol appreciated by 0.7% against the euro in average terms compared with the year ended December 31, 2024. Overall, changes in exchange rates adversely affected the results of operations of the South America operating segment for the year ended December 31, 2025 expressed in euros. See “―Factors Affecting the Comparability of our Results of Operations and Financial Condition―Trends in Exchange Rates”. As of and for the years ended December 31, 2025 and 2024, the Argentine and Venezuelan economies were considered to be hyperinflationary as defined by IAS 29 “Financial Reporting in Hyperinflationary Economies” (see “Presentation of Financial Information—Hyperinflationary Economies” and Note 2.2.18 to the Consolidated Financial Statements for information on the impact of hyperinflation accounting). Net interest income Net interest income of this operating segment for the year ended December 31, 2025 amounted to €4,830 million, a 13.6% decrease compared with the €5,589 million recorded for the year ended December 31, 2024, mainly as a result of the depreciation of the Argentine peso against the euro and lower yields in the loan portfolio driven in part by the decline in the monetary policy rate in Argentina. At constant exchange rates, there was a 1.6% increase in net interest income. The net interest margin over average total assets of this operating segment amounted to 6.59% for the year ended December 31, 2025, compared with 8.18% for the year ended December 31, 2024. Net fees and commissions Net fees and commissions of this operating segment for the year ended December 31, 2025 amounted to €897 million of income, a 7.6% increase compared with the €834 million of income recorded for the year ended December 31, 2024, mainly due to increases in payment systems fees (in particular, related to credit cards), as a result of increases in the volume of transactions and commission rates in Argentina, partially offset by the depreciation of the Argentine peso against the euro, and increased commissions paid to third parties as a result of higher activity. At constant exchange rates, there was a 20.7% increase in net fees and commissions. 114 Net gains (losses) on financial assets and liabilities and Exchange differences, net Net gains on financial assets and liabilities and exchange differences of this operating segment for the year ended December 31, 2025 were €568 million, a 28.8% decrease compared with the €798 million gain recorded for the year ended December 31, 2024, mainly due to the lower gains on exchange differences from the Global Markets unit in Colombia and, to a lesser extent, lower gains on exchange differences in the ALCO portfolio in Argentina, partially offset by higher trading gains in the Global Markets unit in Colombia. At constant exchange rates, there was a 20.4% decrease in net gains on financial assets and liabilities and exchange differences. Other operating income and expense, net Other operating income and expense, net of this operating segment for the year ended December 31, 2025 was a €1,008 million expense, a 47.9% decrease compared with the €1,935 million expense recorded for the year ended December 31, 2024, mainly driven by the lower loss on the net monetary position resulting from the adjustment for hyperinflation in Argentina, which resulted in a monetary loss of €356 million in the year ended December 31, 2025, compared to the €1,419 million monetary loss recorded for the year ended December 31, 2024, partially offset by the higher loss on the net monetary position in Venezuela, which resulted in a monetary loss of €183 million in the year ended December 31, 2025 compared to the €9 million monetary loss recorded in the year ended December 31, 2024. At constant exchange rates, there was a 44.7% decrease in net other operating expense. Income and expense on insurance and reinsurance contracts Net income on insurance and reinsurance contracts of this operating segment for the year ended December 31, 2025 was €76 million, a 36.7% decrease compared with the €120 million income recorded for the year ended December 31, 2024. At constant exchange rates, there was a 29.5% decrease in net income on insurance and reinsurance contracts. Administration costs Administration costs of this operating segment for the year ended December 31, 2025 amounted to €2,146 million, an 8.3% decrease compared with the €2,341 million recorded for the year ended December 31, 2024, mainly as a result of the depreciation of the Argentine peso against the euro, partially offset by increases in personnel expenses, mainly driven by salary updates (aimed at compensating the loss of purchasing power due to inflation) and certain general expenses in Peru and Argentina (mainly related to marketing and IT). At constant exchange rates, there was a 5.9% increase in administration costs. Depreciation and amortization Depreciation and amortization for the year ended December 31, 2025 was €210 million, a 7.2% decrease compared with the €226 million recorded for the year ended December 31, 2024, mainly due to the decrease in the depreciation expense related to IT equipment in Argentina. At constant exchange rates, there was a 3.7% decrease in depreciation and amortization. Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification of this operating segment for the year ended December 31, 2025 was a €1,208 million expense, an 11.8% decrease compared with the €1,369 million expense recorded for the year ended December 31, 2024, mainly as a result of lower credit impairment requirements in the retail loan portfolios in Peru and Colombia and the depreciation of the Argentine peso against the euro, partially offset by the higher credit impairment requirements in the retail loan portfolio in Argentina, as a result in part of the greater credit activity (as we increased private lending as a result of lower government borrowings). At constant exchange rates, there was a 5.2% decrease in impairment on financial assets not measured at fair value through profit or loss or net gains by modification. Provisions or reversal of provisions and other results Provisions or reversal of provisions and other results of this operating segment for the year ended December 31, 2025 were a €42 million expense, a 67.1% decrease compared with the €127 million expense recorded for the year ended December 31, 2024, attributable mainly due to higher gains on non-financial assets in Argentina recorded under other results and lower provisions in Peru and Argentina. At constant exchange rates, there was a 64.4% decrease in provisions and other results. 115 Operating profit / (loss) before tax As a result of the foregoing, operating profit before tax of this operating segment for the year ended December 31, 2025 was €1,758 million, a 31.0% increase compared with the €1,342 million recorded for the year ended December 31, 2024. Tax expense or income related to profit or loss from continuing operations Tax expense related to profit from continuing operations of this operating segment for the year ended December 31, 2025 was €582 million, an 86.1% increase compared with the €313 million expense recorded for the year ended December 31, 2024, as a result mainly of the higher operating profit before tax and the impact of the hyperinflation-related adjustments in Argentina. The effective tax rate amounted to 33.1% of operating profit before tax for the year ended December 31, 2025, and 23.3% for the year ended December 31, 2024. Profit attributable to non-controlling interests Profit attributable to non-controlling interests of this operating segment for the year ended December 31, 2025 amounted to €450 million, a 14.2% increase compared with the €394 million recorded for the year ended December 31, 2024, mainly due to the higher operating profit before tax. At constant exchange rates, there was a 54.4% increase in profit attributable to non-controlling interests. Profit attributable to parent company As a result of the foregoing, profit attributable to parent company of this operating segment for the year ended December 31, 2025 amounted to €726 million, a 14.3% increase compared with the €635 million recorded for the year ended December 31, 2024. At constant exchange rates, there was a 71.5% increase in profit attributable to parent company. 116 REST OF BUSINESS For the year ended December 31, 2025 2024 Change (In Millions of Euros) (In %) Net interest income 828 742 11.6 Net fees and commissions 591 390 51.3 Net gains (losses) on financial assets and liabilities and Exchange differences, net (1) 382 337 13.6 Other operating income and expense, net 4 2 107.8 Income and expense on insurance and reinsurance contracts 3 2 62.2 Gross income 1,807 1,472 22.8 Administration costs (889) (710) 25.3 Depreciation and amortization (40) (33) 22.2 Net margin before provisions (2) 878 730 20.3 Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification (85) (71) 19.5 Provisions or reversal of provisions and other results (22) (11) 98.3 Operating profit / (loss) before tax 772 648 19.1 Tax expense or income related to profit or loss from continuing operations (145) (138) 5.2 Profit 627 511 22.9 Profit attributable to non-controlling interests — — — Profit attributable to parent company 627 511 22.9 (1)Includes “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” and “Exchange differences, net”. (2)“Net margin before provisions” is calculated as “Gross income” less “Administration costs” and “Depreciation and amortization”. (3)Not meaningful. In the year ended December 31, 2025, the U.S. dollar depreciated by 4.3% against the euro in average terms compared with the year ended December 31, 2024, adversely affecting the results of operations of the Rest of Business operating segment for the year ended December 31, 2025 expressed in euros. See “―Factors Affecting the Comparability of our Results of Operations and Financial Condition―Trends in Exchange Rates”. Net interest income Net interest income of this operating segment for the year ended December 31, 2025 amounted to €828 million, an 11.6% increase compared with the €742 million recorded for the year ended December 31, 2024, mainly due to the increase in the corporate and investment banking activity of the New York branch, supported by the increase in loan activity, in particular, in the wholesale portfolio, and careful price management, partially offset by the depreciation of the U.S. dollar against the euro and decreased activity in Europe. At constant exchange rates, there was a 15.9% increase in net interest income. The net interest margin over average total assets of this operating segment amounted to 1.16% for the year ended December 31, 2025 compared with 1.24% for the year ended December 31, 2024. Net fees and commissions Net fees and commissions of this operating segment for the year ended December 31, 2025 amounted to €591 million, a 51.3% increase compared with the €390 million recorded for the year ended December 31, 2024 mainly due to the higher fees paid to BBVA in connection with the debt issuances in which BBVA Securities Inc., our broker-dealer in the United States, acted as underwriter and higher commissions charged to transactional banking clients, partially offset by the depreciation of the U.S. dollar against the euro. At constant exchange rates, there was a 56.0% increase in net fees and commissions. Net gains (losses) on financial assets and liabilities and Exchange differences, net Net gains on financial assets and liabilities and exchange differences of this operating segment for the year ended December 31, 2025 was €382 million, a 13.6% increase compared with the €337 million net gain recorded for the year ended December 31, 2024, mainly due to the higher positive exchange differences in Asia and the higher trading gains in the New York branch and in BBVA Securities Inc. mainly related to equity brokerage activity, partially offset by the depreciation of the U.S. dollar against the euro and lower trading gains in Europe. At constant exchange rates, there was a 19.4% increase in net gains on financial assets and liabilities and exchange differences. 117 Other operating income and expense, net Other operating income and expense, net of this operating segment for the year ended December 31, 2025 was €4 million income, compared with the €2 million income for the year ended December 31, 2024. Income and expense on insurance and reinsurance contracts Income on insurance and reinsurance contracts for the year ended December 31, 2025 was €3 million, compared with the €2 million of income recorded for the year ended December 31, 2024. Administration costs Administration costs of this operating segment for the year ended December 31, 2025 amounted to €889 million, a 25.3% increase compared with the €710 million recorded for the year ended December 31, 2024, mainly due to increases in personnel expenses in the branches located in Europe and New York, due to new hires and investment in strategic projects, partially offset by the depreciation of the U.S. dollar against the euro. At constant exchange rates, there was a 29.7% increase in administration costs. Depreciation and amortization Depreciation and amortization for the year ended December 31, 2025 was €40 million, a 22.2% increase compared with the €33 million recorded for the year ended December 31, 2024. At constant exchange rates, there was a 26.2% increase in depreciation and amortization. Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification of this operating segment for the year ended December 31, 2025 was a €85 million expense, a 19.5% increase compared with the €71 million expense recorded for the year ended December 31, 2024, mainly as a result of the higher credit impairment requirements in the corporate and investment banking loan portfolios in the United States, partially offset by the lower credit impairments in the household portfolio in Europe. Provisions or reversal of provisions and other results Provisions or reversal of provisions and other results of this operating segment for the year ended December 31, 2025 were a €22 million expense, a 98.3% increase compared with the €11 million expense recorded for the year ended December 31, 2024. Operating profit / (loss) before tax As a result of the foregoing, operating profit before tax of this operating segment for the year ended December 31, 2025 was €772 million, a 19.1% increase compared with the €648 million recorded for the year ended December 31, 2024. At constant exchange rates, there was a 25.2% increase in operating profit before tax. Tax expense or income related to profit or loss from continuing operations Tax expense related to profit from continuing operations of this operating segment for the year ended December 31, 2025 was €145 million, a 5.2% increase compared with the €138 million expense recorded for the year ended December 31, 2024. At constant exchange rates, there was a 9.6% increase in tax expense related to profit from continuing operations. Profit attributable to parent company As a result of the foregoing, profit attributable to parent company of this operating segment for the year ended December 31, 2025 amounted to €627 million, a 22.9% increase compared with the €511 million recorded for the year ended December 31, 2024. At constant exchange rates, there was a 29.4% increase in profit attributable to parent company. 118 CORPORATE CENTER For the year ended December 31, 2025 2024 Change (In Millions of Euros) (In %) Net interest income / (expense) (469) (495) (5.3) Net fees and commissions (127) (71) 80.4 Net gains (losses) on financial assets and liabilities and Exchange differences, net (1) (200) 138 n.m. (2) Other operating income and expense, net 116 37 212.7 Income and expense on insurance and reinsurance contracts 2 2 — Gross income (678) (388) 74.5 Administration costs (573) (564) 1.6 Depreciation and amortization (213) (215) (0.9) Net margin before provisions (3) (1,464) (1,168) 25.4 Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification (1) 3 n.m. (2) Provisions or reversal of provisions and other results 25 54 (54.3) Operating profit / (loss) before tax (1,440) (1,110) 29.8 Tax expense or income related to profit or loss from continuing operations 361 215 68.1 Profit / (loss) (1,079) (895) 20.6 Profit / (loss) attributable to non-controlling interests (7) (7) — Profit / (loss) attributable to parent company (1,086) (901) 20.5 (1)Includes “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” and “Exchange differences, net”. (2)Not meaningful. (3)“Net margin before provisions” is calculated as “Gross income” less “Administration costs” and “Depreciation and amortization”. Net interest income / (expense) Net interest expense of the Corporate Center for the year ended December 31, 2025 was €469 million, a 5.3% decrease compared with the €495 million net expense recorded for the year ended December 31, 2024, mainly due to lower funding costs of investments. Net fees and commissions Net fees and commissions of the Corporate Center for the year ended December 31, 2025 amounted to a €127 million expense, an 80.4% increase compared with the €71 million expense recorded for the year ended December 31, 2024, mainly as a result of the higher fees paid by BBVA in connection with the debt issuances carried out by Banco Bilbao Vizcaya Argentaria, S.A. (the parent company of the Group). Net gains (losses) on financial assets and liabilities and Exchange differences, net Net losses on financial assets and liabilities and exchange differences of the Corporate Center for the year ended December 31, 2025 were €200 million compared with the €138 million net gains recorded for the year ended December 31, 2024, mainly as a result of losses from foreign exchange hedging, in particular, with respect to the Mexican peso, the lower gains on certain U.S. bonds driven by the depreciation of the U.S. dollar and the lower gains in the ALCO portfolio, partially offset by higher gains in the non-trading portfolio from the revaluation of certain venture capital investments. Other operating income and expense, net Other operating income and expense, net of the Corporate Center for the year ended December 31, 2025 was €116 million of net income, compared with the €37 million net income recorded for the year ended December 31, 2024. Administration costs Administration costs of the Corporate Center for the year ended December 31, 2025 amounted to €573 million, a 1.6% increase compared with the €564 million recorded for the year ended December 31, 2024. 119 Depreciation and amortization Depreciation and amortization of the Corporate Center for the year ended December 31, 2025 was €213 million, a 0.9% decrease compared with the €215 million recorded for the year ended December 31, 2024. Provisions or reversal of provisions and other results Provisions or reversal of provisions and other results of the Corporate Center for the year ended December 31, 2025 was €25 million income, a 54.3% decrease compared with the €54 million income recorded for the year ended December 31, 2024, mainly due to losses from certain investments in associates. Operating profit / (loss) before tax As a result of the foregoing, operating loss before tax of the Corporate Center for the year ended December 31, 2025 was €1,440 million, a 29.8% increase compared with the €1,110 million loss recorded for the year ended December 31, 2024. Tax expense or income related to profit or loss from continuing operations Tax income related to loss from continuing operations of the Corporate Center for the year ended December 31, 2025 amounted to €361 million, a 68.1% increase compared with the €215 million income recorded for the year ended December 31, 2024 mainly due to the higher operating loss before tax and the adjustment in the estimate of the annual tax rate for the BBVA Group, which reflects the Group’s reassessment of the coverage needs for the identified tax risks and certain deferred tax assets corresponding to the Group in Spain, which had not previously been recorded and were first recognized in the current period (see Note 19 to the Consolidated Financial Statements). Profit / (loss) attributable to parent company As a result of the foregoing, loss attributable to parent company of the Corporate Center for the year ended December 31, 2025 was €1,086 million, a 20.5% increase compared with the €901 million loss recorded for the year ended December 31, 2024. 120 Results of Operations by Operating Segment for 2024 Compared with 2023 SPAIN For the year ended December 31, 2024 2023 Change (In Millions of Euros) (In %) Net interest income 6,384 5,570 14.6 Net fees and commissions 2,281 2,124 7.4 Net gains (losses) on financial assets and liabilities and Exchange differences, net (1) 728 460 58.3 Other operating income and expense, net (329) (658) (50.0) Income and expense on insurance and reinsurance contracts 379 353 7.6 Gross income 9,443 7,848 20.3 Administration costs (2,980) (2,809) 6.1 Depreciation and amortization (366) (383) (4.4) Net margin before provisions (2) 6,097 4,656 30.9 Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification (684) (656) 4.3 Provisions or reversal of provisions and other results (150) (145) 3.2 Operating profit / (loss) before tax 5,263 3,855 36.5 Tax expense or income related to profit or loss from continuing operations (1,508) (1,162) 29.7 Profit from continuing operations 3,755 2,693 39.4 Profit / (loss) from discontinued operations, net and Other — — — Profit 3,755 2,693 39.4 Profit attributable to non-controlling interests (3) (2) 31.7 Profit attributable to parent company 3,752 2,690 39.4 (1)Includes “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” and “Exchange differences, net”. (2)Calculated as “Gross income” less “Administration costs” and “Depreciation and amortization”. (3)Not meaningful. Net interest income Net interest income of this operating segment for the year ended December 31, 2024 amounted to €6,384 million, a 14.6% increase compared with the €5,570 million recorded for the year ended December 31, 2023, mainly as a result of the higher yield of the loans to enterprises and consumer loans, which led to an increase in the customer spread (calculated as the average rate at which assets are remunerated, less the equivalent average rate for deposits), as a result of the impact of the increase in interest rates in 2023 up to the cuts beginning in the second half of 2024 and, to a lesser extent, an increase in the average volume of loan portfolios, partially offset by higher funding costs and the impact of interest rates cuts implemented by the ECB since the second half of 2024 on consumer and household loan portfolios, which are mostly referenced to variable interest rates. The net interest margin over average total assets of this operating segment amounted to 1.47% for the year ended December 31, 2024, compared with 1.33% for the year ended December 31, 2023. Net fees and commissions Net fees and commissions of this operating segment for the year ended December 31, 2024 amounted to €2,281 million, a 7.4% increase compared with the €2,124 million recorded for the year ended December 31, 2023, mainly due to the increase in the volume of asset management activities and the higher credit card fees. Net gains (losses) on financial assets and liabilities and Exchange differences, net Net gains on financial assets and liabilities and exchange differences of this operating segment for the year ended December 31, 2024 was a net gain of €728 million, a 58.3% increase compared with the €460 million net gain recorded for the year ended December 31, 2023, mainly as a result of the positive performance of the Global Markets unit and, to a lesser extent, certain ALCO portfolio sales and positive exchange differences. The ALCO portfolio is used to manage the risk of changes in interest rates. 121 Other operating income and expense, net Other operating income and expense, net of this operating segment for the year ended December 31, 2024 amounted to a €329 million expense, a 50.0% decrease compared with the €658 million expense recorded for the year ended December 31, 2023. The decrease was driven in part by the fact that BBVA was not required to make any contributions to the ECB’s Single Resolution Fund in the year ended December 31, 2024, since its constitution was completed in 2023, and the lower contribution to the Deposit Guarantee Fund. The decrease was offset in part by the higher expense recorded in connection with the temporary tax on credit institutions and financial credit establishments in Spain (totaling €285 million in the year ended December 31, 2024, compared to €215 million in the year ended December 31, 2023). No impact associated with IMIC was recorded in the Consolidated Financial Statements for the year ended December 31, 2024. See Note 19.6 to the Consolidated Financial Statements for additional information on certain contributions and taxes. Income and expense on insurance and reinsurance contracts Net income on insurance and reinsurance contracts of this operating segment for the year ended December 31, 2024 was €379 million, a 7.6% increase compared with the €353 million income recorded for the year ended December 31, 2023, as a result of increased insurance activity. Administration costs Administration costs of this operating segment for the year ended December 31, 2024 amounted to €2,980 million, a 6.1% increase compared with the €2,809 million recorded for the year ended December 31, 2023, mainly as a result of the increase in general expenses related to IT equipment (driven by inflation), and, to a lesser extent, personnel expenses (driven by salary updates). Depreciation and amortization Depreciation and amortization for the year ended December 31, 2024 was €366 million, a 4.4% decrease compared with the €383 million recorded for the year ended December 31, 2023. Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification of this operating segment for the year ended December 31, 2024 amounted to a €684 million expense, a 4.3% increase compared with the €656 million expense recorded for the year ended December 31, 2023, mainly due to higher credit impairment requirements in the wholesale loan portfolio. Provisions or reversal of provisions and other results Provisions or reversal of provisions and other results of this operating segment for the year ended December 31, 2024 were a €150 million expense, a 3.2% increase compared with the €145 million expense recorded for the year ended December 31, 2023. Operating profit / (loss) before tax As a result of the foregoing, operating profit before tax of this operating segment for the year ended December 31, 2024 was €5,263 million, a 36.5% increase compared with the €3,855 million profit recorded for the year ended December 31, 2023. Tax expense or income related to profit or loss from continuing operations Tax expense related to profit from continuing operations of this operating segment for the year ended December 31, 2024 was €1,508 million, a 29.7% increase compared with the €1,162 million expense recorded for the year ended December 31, 2023, as a result of the higher operating profit before tax recorded for the year ended December 31, 2024. The effective tax rate decreased to 28.7% for the year ended December 31, 2024 from 30.1% for the year ended December 31, 2023. Amounts paid by BBVA under the temporary tax on credit institutions and financial credit establishments in Spain are a non-deductible expense for tax purposes. Profit attributable to parent company As a result of the foregoing, profit attributable to parent company of this operating segment for the year ended December 31, 2024 amounted to €3,752 million, a 39.4% increase compared with the €2,690 million profit recorded for the year ended December 31, 2023. 122 MEXICO For the year ended December 31, 2024 2023 Change (In Millions of Euros) (In %) Net interest income 11,556 11,054 4.5 Net fees and commissions 2,443 2,226 9.7 Net gains (losses) on financial assets and liabilities and Exchange differences, net (1) 767 572 34.0 Other operating income and expense, net (342) (332) 3.0 Income and expense on insurance and reinsurance contracts 913 748 22.1 Gross income 15,337 14,267 7.5 Administration costs (4,170) (3,946) 5.7 Depreciation and amortization (477) (469) 1.8 Net margin before provisions (2) 10,689 9,853 8.5 Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification (3,098) (2,499) 24.0 Provisions or reversal of provisions and other results (69) (25) 175.0 Operating profit / (loss) before tax 7,522 7,329 2.6 Tax expense or income related to profit or loss from continuing operations (2,074) (2,009) 3.2 Profit 5,448 5,320 2.4 Profit attributable to non-controlling interests (1) (1) — Profit attributable to parent company 5,447 5,319 2.4 (1)Includes “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” and “Exchange differences, net”. (2)“Net margin before provisions” is calculated as “Gross income” less “Administration costs” and “Depreciation and amortization”. In the year ended December 31, 2024, the Mexican peso depreciated 3.2% against the euro in average terms compared with the year ended December 31, 2023, resulting in a negative exchange rate effect on the consolidated income statement for the year ended December 31, 2024 and in the results of operations of the Mexico operating segment for such period expressed in euros. See “―Factors Affecting the Comparability of our Results of Operations and Financial Condition―Trends in Exchange Rates”. Net interest income Net interest income of this operating segment for the year ended December 31, 2024 amounted to €11,556 million, a 4.5% increase compared with the €11,054 million recorded for the year ended December 31, 2023, mainly as a result of the higher contribution from the wholesale and retail loan portfolios (attributable to increases in volume), and the higher contribution from the securities portfolio, partially offset by higher wholesale funding costs and the depreciation of the Mexican peso against the euro. At constant exchange rates, there was an 8.0% increase in net interest income. The net interest margin over average total assets of this operating segment amounted to 6.73% for the year ended December 31, 2024, compared with 7.09% for the year ended December 31, 2023. Net fees and commissions Net fees and commissions of this operating segment for the year ended December 31, 2024 amounted to €2,443 million, a 9.7% increase compared with the €2,226 million recorded for the year ended December 31, 2023, mainly due to the increased volume of transactions by credit card customers and of asset management activities, offset in part by the depreciation of the Mexican peso against the euro. At constant exchange rates, there was a 13.4% increase in net fees and commissions. Net gains (losses) on financial assets and liabilities and Exchange differences, net Net gains on financial assets and liabilities and exchange differences of this operating segment for the year ended December 31, 2024 were €767 million, a 34.0% increase compared with the €572 million gain recorded for the year ended December 31, 2023, mainly as a result of the higher gains from the Global Markets unit, resulting from foreign currency hedges, and, to a lesser extent, the higher gains from the ALCO portfolio, offset in part by the depreciation of the Mexican peso against the euro. At constant exchange rates, there was a 38.5% increase in net gains on financial assets and liabilities and exchange differences. 123 Other operating income and expense, net Other operating income and expense, net of this operating segment for the year ended December 31, 2024 was a net expense of €342 million, a 3.0% increase compared with the €332 million net expense recorded for the year ended December 31, 2023, mainly due to the higher contributions made to the Deposit Guarantee Fund, offset in part by the depreciation of the Mexican peso against the euro. At constant exchange rates, there was a 6.4% increase in net expense. Income and expense on insurance and reinsurance contracts Net income on insurance and reinsurance contracts of this operating segment for the year ended December 31, 2024 was €913 million, a 22.1% increase compared with the €748 million net income recorded for the year ended December 31, 2023, due mainly to the increase in insurance premiums, attributable in part to higher insurance sales, partially offset mainly by the higher insurance premiums paid to third parties. Administration costs Administration costs of this operating segment for the year ended December 31, 2024 were €4,170 million, a 5.7% increase compared with the €3,946 million recorded for the year ended December 31, 2023, mainly as a result of the higher personnel expenses driven by the increase in the number of employees and the higher salaries, and the higher general expenses related to value added tax, partially offset by the depreciation of the Mexican peso against the euro. At constant exchange rates, administration costs increased by 9.2%. Depreciation and amortization Depreciation and amortization for the year ended December 31, 2024 was €477 million, a 1.8% increase compared with the €469 million recorded for the year ended December 31, 2023. Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification of this operating segment for the year ended December 31, 2024 was a €3,098 million expense, a 24.0% increase compared with the €2,499 million expense recorded for the year ended December 31, 2023, mainly due to higher impairment entries in the retail loan portfolio (in particular, credit cards and consumer loans, which are loans that generally entail greater profitability but also carry a greater default risk), within a context of deteriorating macroeconomic conditions and forecast. Provisions or reversal of provisions and other results Provisions or reversal of provisions and other results of this operating segment for the year ended December 31, 2024 were a €69 million expense compared with the €25 million expense recorded for the year ended December 31, 2023, mainly due to the impairment of a guarantee on a leasing transaction. Operating profit / (loss) before tax As a result of the foregoing, operating profit before tax of this operating segment for the year ended December 31, 2024 was €7,522 million, a 2.6% increase compared with the €7,329 million of operating profit before tax recorded for the year ended December 31, 2023. Tax expense or income related to profit or loss from continuing operations Tax expense related to profit from continuing operations of this operating segment for the year ended December 31, 2024 was €2,074 million, a 3.2% increase compared with the €2,009 million expense recorded for the year ended December 31, 2023, mainly as a result of the higher operating profit before tax. The effective tax rate amounted to 27.6% of operating profit before tax for the year ended December 31, 2024, and 27.4% for the year ended December 31, 2023. Profit attributable to parent company As a result of the foregoing, profit attributable to parent company of this operating segment for the year ended December 31, 2024 amounted to €5,447 million, a 2.4% increase compared with the €5,319 million recorded for the year ended December 31, 2023. 124 TURKEY For the year ended December 31, 2024 2023 Change (In Millions of Euros) (In %) Net interest income 1,492 1,869 (20.2) Net fees and commissions 2,111 998 111.5 Net gains (losses) on financial assets and liabilities and Exchange differences, net (1) 1,145 937 22.1 Other operating income and expense, net (595) (887) (32.9) Income and expense on insurance and reinsurance contracts 60 63 (4.3) Gross income 4,212 2,981 41.3 Administration costs (1,895) (1,252) 51.3 Depreciation and amortization (216) (150) 44.3 Net margin before provisions (2) 2,101 1,579 33.1 Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification (526) (118) n.m. (3) Provisions or reversal of provisions and other results 165 (137) n.m. (3) Operating profit / (loss) before tax 1,741 1,324 31.5 Tax expense or income related to profit or loss from continuing operations (1,014) (702) 44.4 Profit 727 622 16.9 Profit attributable to non-controlling interests (116) (95) 22.6 Profit attributable to parent company 611 527 15.9 (1)Includes “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” and “Exchange differences, net”. (2)“Net margin before provisions” is calculated as “Gross income” less “Administration costs” and “Depreciation and amortization”. (3)Not meaningful. As of December 31, 2024, the Turkish lira depreciated by 11.1% against the euro compared to December 31, 2023 (i.e., the year-end exchange rates of the Turkish lira used by the Group to convert income statement items pursuant to IAS 21 for the years ended December 31, 2024 and 2023, respectively), adversely affecting the results of operations of the Turkey operating segment for the year ended December 31, 2024 expressed in euros. See “―Factors Affecting the Comparability of our Results of Operations and Financial Condition―Trends in Exchange Rates”. Since the first half of 2022, the Turkish economy has been considered to be hyperinflationary as defined by IAS 29 “Financial Reporting in Hyperinflationary Economies”. See “Presentation of Financial Information—Hyperinflationary Economies” and Note 2.2.18 to the Consolidated Financial Statements for information on the impact of hyperinflation accounting. Net interest income Net interest income of this operating segment for the year ended December 31, 2024 amounted to €1,492 million, a 20.2% decrease compared with the €1,869 million recorded for the year ended December 31, 2023, as a result mainly of the depreciation of the Turkish lira against the euro, higher interest expense on Turkish lira-denominated deposits (due to the higher volume of deposits and the higher interest rates paid on them) and the higher wholesale and swap funding costs (which were affected by the reserve requirement for foreign currency deposits, which was set at 8% as of February 2024 and amended in September 2024 and November 2024 to 5% and 4%, respectively; and which requires Garanti BBVA to make Turkish lira-denominated deposits with the CBRT in such proportion with respect to all foreign currency-denominated deposits and participation funds, excluding those obtained from banks abroad, regardless of their maturities). The year-on-year decrease was partially offset by the higher volume and yield of Turkish lira-denominated loans and the increase in volume and yield of sovereign debt securities, as a result in part –with respect to the increases in the volumes of Turkish lira-denominated loans and sovereign debt securities- of the measures adopted by the CBRT (see “Item 4. Information on the Company―Business Overview—Supervision and Regulation—Principal Markets—Turkey”). At constant exchange rates, there was a 10.4% decrease in net interest income. The net interest margin over average total assets of this operating segment amounted to 1.98% for the year ended December 31, 2024, compared with 2.83% for the year ended December 31, 2023. 125 Net fees and commissions Net fees and commissions of this operating segment for the year ended December 31, 2024 amounted to €2,111 million compared with the €998 million recorded for the year ended December 31, 2023, mainly as a result of the increase in payment systems fees (fees related to credit and debit cards and POS) supported by the increase in the maximum credit card fees banks may charge in Turkey pursuant to the regulation established by the CBRT, partially offset by the depreciation of the Turkish lira against the euro. Net gains (losses) on financial assets and liabilities and Exchange differences, net Net gains on financial assets and liabilities and exchange differences of this operating segment for the year ended December 31, 2024 amounted to €1,145 million, a 22.1% increase compared with the €937 million gain recorded for the year ended December 31, 2023, mainly driven by gains from foreign currency hedges, offset in part by lower positive exchange differences compared to 2023, the depreciation of the Turkish lira and, to a lesser extent, lower gains from the Global Markets unit due to lower sales. At constant exchange rates, net gains on financial assets and liabilities and exchange differences increased by 34.5%. Other operating income and expense, net Other operating income and expense, net of this operating segment for the year ended December 31, 2024 was a €595 million net expense, a 32.9% decrease compared with the €887 million net expense recorded for the year ended December 31, 2023, mainly due to the lower loss on the net monetary position resulting from the adjustment for hyperinflation (€1,512 million and €2,118 million in the years ended December 31, 2024 and 2023, respectively) and, to a lesser extent, the depreciation of the Turkish lira against the euro, partially offset by certain sales of non-financial services and the lower positive impact of the revaluation of bonds linked to inflation in the period (€1,164 million and €1,202 million, respectively, in the years ended December 31, 2024 and 2023). At constant exchange rates, there was a 42.1% decrease in net expense. See “Presentation of Financial Information—Hyperinflationary Economies” and Note 2.2.18 to the Consolidated Financial Statements for information on the impact of hyperinflation accounting. Income and expense on insurance and reinsurance contracts Net income on insurance and reinsurance contracts of this operating segment for the year ended December 31, 2024 was €60 million, a 4.3% decrease compared with the €63 million income recorded for the year ended December 31, 2023. At constant exchange rates, there was a 5.2% increase. Administration costs Administration costs of this operating segment for the year ended December 31, 2024 amounted to €1,895 million, a 51.3% increase compared with the €1,252 million recorded for the year ended December 31, 2023, mainly as a result of the increase in personnel expenses, driven by the increase in salaries (mainly driven by inflation) and, to a lesser extent, the number of employees, and the increase in general expenses (technology, outsourced services and maintenance) driven to a great extent by the higher average inflation rates, partially offset by the depreciation of the Turkish lira. At constant exchange rates, administration costs increased by 69.4%, which was above Turkey’s inflation rate for the year. Depreciation and amortization Depreciation and amortization for the year ended December 31, 2024 was €216 million, a 44.3% increase compared with the €150 million recorded for the year ended December 31, 2023, mainly as a result of the increase in the depreciation expense related to IT equipment, offset in part by the depreciation of the Turkish lira. At constant exchange rates, there was a 55.0% increase. Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification of this operating segment for the year ended December 31, 2024 was a €526 million expense compared with the €118 million expense recorded for the year ended December 31, 2023, mainly as a result of the increase in the expected losses related to the retail portfolio (mainly credit card and consumer loans, which volumes increased and also experienced greater deterioration), partially offset by the depreciation of the Turkish lira and the higher reversal of impairment on the wholesale portfolio compared to 2023. The year ended December 31, 2023 was affected by the change in the staging of certain loans from Stage 1 to Stage 2, due to the impact of the earthquakes in February 2023 and certain significant Stage 3 entries in the retail and wholesale portfolios. 126 Provisions or reversal of provisions and other results Provisions or reversal of provisions and other results of this operating segment for the year ended December 31, 2024 were a €165 million income compared with the €137 million expense recorded for the year ended December 31, 2023, mainly due to the impact, in 2023, of the provisions recorded in connection with the February 2023 earthquakes, and increases in the value of certain real estate assets in 2024. Operating profit / (loss) before tax As a result of the foregoing, operating profit before tax of this operating segment for the year ended December 31, 2024 was €1,741 million, a 31.5% increase compared with the €1,324 million recorded for the year ended December 31, 2023. At constant exchange rates, operating profit before tax increased by 83.3%. Tax expense or income related to profit or loss from continuing operations Tax expense related to profit from continuing operations of this operating segment for the year ended December 31, 2024 was €1,014 million, a 44.4% increase compared with the €702 million expense recorded for the year ended December 31, 2023, mainly as a result of the increase in operating profit before tax recorded for the year ended December 31, 2024. Current tax regulation in Turkey does not include a provision to reduce tax expense upon the existence of a loss linked to the net monetary position. The effective tax rate amounted to 58.2% of operating profit before tax of this operating segment for the year ended December 31, 2024 and 53.0% for the year ended December 31, 2023. Profit attributable to non-controlling interests Profit attributable to non-controlling interests of this operating segment for the year ended December 31, 2024 amounted to €116 million, a 22.6% increase compared with the €95 million recorded for the year ended December 31, 2023, as a result, in part, of the increase in profit. Profit attributable to parent company As a result of the foregoing, profit attributable to parent company of this operating segment for the year ended December 31, 2024 amounted to €611 million, a 15.9% increase compared with the €527 million recorded for the year ended December 31, 2023. 127 SOUTH AMERICA For the year ended December 31, 2024 2023 Change (In Millions of Euros) (In %) Net interest income 5,589 4,394 27.2 Net fees and commissions 834 700 19.1 Net gains (losses) on financial assets and liabilities and Exchange differences, net (1) 798 633 26.0 Other operating income and expense, net (1,935) (1,491) 29.7 Income and expense on insurance and reinsurance contracts 120 96 24.9 Gross income 5,405 4,331 24.8 Administration costs (2,341) (1,785) 31.2 Depreciation and amortization (226) (165) 36.4 Net margin before provisions (2) 2,838 2,381 19.2 Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification (1,369) (1,134) 20.7 Provisions or reversal of provisions and other results (127) (58) 120.5 Operating profit / (loss) before tax 1,342 1,189 12.8 Tax expense or income related to profit or loss from continuing operations (313) (286) 9.3 Profit 1,029 903 14.0 Profit attributable to non-controlling interests (394) (302) 30.5 Profit attributable to parent company 635 601 5.6 (1)Includes “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” and “Exchange differences, net”. (2)“Net margin before provisions” is calculated as “Gross income” less “Administration costs” and “Depreciation and amortization”. In the year ended December 31, 2024, the Argentine peso depreciated by 16.8% against the euro (considering the period-end exchange rates used to convert income statement items for the years ended December 31, 2024 and 2023, respectively, pursuant to IAS 21). On the other hand, the Colombian peso appreciated by 6.2% against the euro in average terms compared with the year ended December 31, 2023. The Peruvian sol remained practically unchanged against the euro in average terms compared with the year ended December 31, 2023. Overall, changes in exchange rates resulted in a negative exchange rate effect on the consolidated income statement for the year ended December 31, 2024 and in the results of operations of the South America operating segment for such period expressed in euros. See “―Factors Affecting the Comparability of our Results of Operations and Financial Condition―Trends in Exchange Rates”. As of and for the years ended December 31, 2024 and 2023, the Argentine and Venezuelan economies were considered to be hyperinflationary as defined by IAS 29 “Financial Reporting in Hyperinflationary Economies” (see “Presentation of Financial Information—Hyperinflationary Economies”). Net interest income Net interest income of this operating segment for the year ended December 31, 2024 amounted to €5,589 million, a 27.2% increase compared with the €4,394 million recorded for the year ended December 31, 2023, mainly as a result of increases in the volume and yield of credit card loans and the commercial loan portfolios in Argentina and Colombia, partially offset by higher funding costs, particularly in Argentina as a result of increases in interest rates, and the depreciation of the Argentine peso against the euro. At constant exchange rates, there was a 31.9% increase in net interest income. The net interest margin over average total assets of this operating segment amounted to 8.18% for the year ended December 31, 2024, compared with 6.99% for the year ended December 31, 2023. Net fees and commissions Net fees and commissions of this operating segment for the year ended December 31, 2024 amounted to €834 million of income, a 19.1% increase compared with the €700 million of income recorded for the year ended December 31, 2023, mainly due to increases in payment systems-related fees (in particular, related to credit cards), as a result of increases in the volume of transactions and commission rates, especially in Argentina, partially offset by the depreciation of the Argentine peso against the euro. At constant exchange rates, there was a 21.5% increase. 128 Net gains (losses) on financial assets and liabilities and Exchange differences, net Net gains on financial assets and liabilities and exchange differences of this operating segment for the year ended December 31, 2024 were €798 million, a 26.0% increase compared with the €633 million gain recorded for the year ended December 31, 2023, mainly due to the higher gains from the ALCO portfolio in Argentina, partially offset by the depreciation of the Argentine peso against the euro. At constant exchange rates, net gains on financial assets and liabilities and exchange differences, net, increased by 33.3%. Other operating income and expense, net Other operating income and expense, net of this operating segment for the year ended December 31, 2024 was a €1,935 million expense, a 29.7% increase compared with the €1,491 million expense recorded for the year ended December 31, 2023, mainly driven by the higher loss on the net monetary position resulting from the adjustment for hyperinflation in Argentina, which resulted in a monetary loss of €1,419 million in the year ended December 31, 2024, compared to the €1,062 million monetary loss recorded for the year ended December 31, 2023, partially offset by the depreciation of the Argentine peso against the euro. At constant exchange rates, the net expense increased by 31.8%. Income and expense on insurance and reinsurance contracts Net income on insurance and reinsurance contracts of this operating segment for the year ended December 31, 2024 was €120 million, a 24.9% increase compared with the €96 million income recorded for the year ended December 31, 2023, mainly as a result of higher income related to life insurance in Colombia and, to a lesser extent, Argentina, partially offset by the depreciation of the Argentine peso against the euro. Administration costs Administration costs of this operating segment for the year ended December 31, 2024 amounted to €2,341 million, a 31.2% increase compared with the €1,785 million recorded for the year ended December 31, 2023, mainly as a result of increases in personnel expenses, mainly driven by salary updates (aimed at compensating the loss of purchasing power due to inflation) and certain general expenses related to technology (affected by the high inflation) in Argentina, partially offset by the depreciation of the Argentine peso against the euro. At constant exchange rates, administration costs increased by 33.8%. Depreciation and amortization Depreciation and amortization for the year ended December 31, 2024 was €226 million, a 36.4% increase compared with the €165 million recorded for the year ended December 31, 2023, mainly due to the increase in the depreciation expense related to IT equipment in Argentina. At constant exchange rates, depreciation and amortization increased by 36.5%. Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification of this operating segment for the year ended December 31, 2024 was a €1,369 million expense, a 20.7% increase compared with the €1,134 million expense recorded for the year ended December 31, 2023, mainly as a result of higher credit impairment requirements in retail loans, within an inflationary and high interest environment, in Colombia and Peru (where default rates are starting to increase), and the larger loan portfolio. At constant exchange rates, impairment on financial assets not measured at fair value through profit or loss or net gains by modification increased by 21.0%. Provisions or reversal of provisions and other results Provisions or reversal of provisions and other results of this operating segment for the year ended December 31, 2024 were a €127 million expense compared with the €58 million expense recorded for the year ended December 31, 2023, attributable mainly to the higher provisions for property, plant and equipment in Argentina, partially offset by the depreciation of the Argentine peso against the euro. Operating profit / (loss) before tax As a result of the foregoing, operating profit before tax of this operating segment for the year ended December 31, 2024 was €1,342 million, a 12.8% increase compared with the €1,189 million recorded for the year ended December 31, 2023. At constant exchange rates, there was a 28.1% increase. 129 Tax expense or income related to profit or loss from continuing operations Tax expense related to profit from continuing operations of this operating segment for the year ended December 31, 2024 was €313 million, a 9.3% increase compared with the €286 million expense recorded for the year ended December 31, 2023, as a result mainly of the higher operating profit before tax, partially offset by the impact of hyperinflation-related adjustments in Argentina. At constant exchange rates (and excluding the impact of the hyperinflation-related adjustments in Argentina), tax expense or income related to profit or loss from continuing operations increased by 32.5%. The effective tax rate amounted to 23.3% of operating profit before tax for the year ended December 31, 2024, and 24.1% for the year ended December 31, 2023. Profit attributable to non-controlling interests Profit attributable to non-controlling interests of this operating segment for the year ended December 31, 2024 amounted to €394 million, a 30.5% increase compared with the €302 million recorded for the year ended December 31, 2023, mainly due to the higher operating profit before tax. At constant exchange rates, there was a 46.3% increase. Profit attributable to parent company As a result of the foregoing, profit attributable to parent company of this operating segment for the year ended December 31, 2024 amounted to €635 million, a 5.6% increase compared with the €601 million recorded for the year ended December 31, 2023. At constant exchange rates, there was a 17.1% increase. 130 REST OF BUSINESS For the year ended December 31, 2024 2023 Change (In Millions of Euros) (In %) Net interest income 742 539 37.6 Net fees and commissions 390 309 26.3 Net gains (losses) on financial assets and liabilities and Exchange differences, net (1) 337 261 28.8 Other operating income and expense, net 2 — n.m. (3) Income and expense on insurance and reinsurance contracts 2 3 (51.3) Gross income 1,472 1,113 32.3 Administration costs (710) (560) 26.8 Depreciation and amortization (33) (26) 25.5 Net margin before provisions (2) 730 527 38.5 Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification (71) (28) 155.9 Provisions or reversal of provisions and other results (11) (1) n.m. (3) Operating profit / (loss) before tax 648 499 30.0 Tax expense or income related to profit or loss from continuing operations (138) (96) 44.0 Profit 511 403 26.7 Profit attributable to non-controlling interests — — — Profit attributable to parent company 511 403 26.7 (1)Includes “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” and “Exchange differences, net”. (2)“Net margin before provisions” is calculated as “Gross income” less “Administration costs” and “Depreciation and amortization”. (3)Not meaningful. In the year ended December 31, 2024, the U.S. dollar remained practically unchanged against the euro in average terms compared with the year ended December 31, 2023. See “―Factors Affecting the Comparability of our Results of Operations and Financial Condition―Trends in Exchange Rates”. Net interest income Net interest income of this operating segment for the year ended December 31, 2024 amounted to €742 million, a 37.6% increase compared with the €539 million recorded for the year ended December 31, 2023, mainly due to increase in the corporate and investment banking activity of the branches located in Europe and New York, supported by the increase in loan activity and an adequate price management. The net interest margin over average total assets of this operating segment amounted to 1.24% for the year ended December 31, 2024 compared with 1.05% for the year ended December 31, 2023. Net fees and commissions Net fees and commissions of this operating segment for the year ended December 31, 2024 amounted to €390 million, a 26.3% increase compared with the €309 million recorded for the year ended December 31, 2023 as a result of increased investment banking activity. Net gains (losses) on financial assets and liabilities and Exchange differences, net Net gains on financial assets and liabilities and exchange differences of this operating segment for the year ended December 31, 2024 was €337 million, a 28.8% increase compared with the €261 million net gain recorded for the year ended December 31, 2023, mainly due to the higher gains from the Global Markets units in Europe and the higher gains from the broker-dealer BBVA Securities Inc., partially offset by negative exchange differences. Other operating income and expense, net Other operating income and expense, net of this operating segment for the year ended December 31, 2024 was €2 million income, compared with nil for the year ended December 31, 2023. 131 Income and expense on insurance and reinsurance contracts Income on insurance and reinsurance contracts for the year ended December 31, 2024 was €2 million, compared with the €3 million of income recorded for the year ended December 31, 2023. Administration costs Administration costs of this operating segment for the year ended December 31, 2024 amounted to €710 million, a 26.8% increase compared with the €560 million recorded for the year ended December 31, 2023, mainly due to increases in personnel expenses, due to the increase in the number of employees, and in marketing expenses in the branches located in New York and Europe. Depreciation and amortization Depreciation and amortization for the year ended December 31, 2024 was €33 million, a 25.5% increase compared with the €26 million recorded for the year ended December 31, 2023. Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification of this operating segment for the year ended December 31, 2024 was a €71 million expense compared with the €28 million expense recorded for the year ended December 31, 2023, mainly as a result of the higher credit impairment requirements related to certain new impairment entries in the wholesale loans portfolio in Europe. Provisions or reversal of provisions and other results Provisions or reversal of provisions and other results of this operating segment for the year ended December 31, 2024 were an €11 million expense compared with the €1 million expense recorded for the year ended December 31, 2023. Operating profit / (loss) before tax As a result of the foregoing, operating profit before tax of this operating segment for the year ended December 31, 2024 was €648 million, a 30.0% increase compared with the €499 million recorded for the year ended December 31, 2023. Tax expense or income related to profit or loss from continuing operations Tax expense related to profit from continuing operations of this operating segment for the year ended December 31, 2024 was €138 million, a 44.0% increase compared with the €96 million expense recorded for the year ended December 31, 2023 due, mainly, to the increase in operating profit. Profit attributable to parent company As a result of the foregoing, profit attributable to parent company of this operating segment for the year ended December 31, 2024 amounted to €511 million, a 26.7% increase compared with the €403 million recorded for the year ended December 31, 2023. 132 CORPORATE CENTER For the year ended December 31, 2024 2023 Change (In Millions of Euros) (In %) Net interest income / (expense) (495) (336) 47.5 Net fees and commissions (71) (69) 2.3 Net gains (losses) on financial assets and liabilities and Exchange differences, net (1) 138 (681) n.m. (2) Other operating income and expense, net 37 89 (58.3) Income and expense on insurance and reinsurance contracts 2 (2) n.m. (2) Gross income (388) (999) (61.1) Administration costs (564) (553) 2.0 Depreciation and amortization (215) (210) 2.5 Net margin before provisions (3) (1,168) (1,762) (33.7) Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss or net gains by modification 3 6 (48.2) Provisions or reversal of provisions and other results 54 (21) n.m. (2) Operating profit / (loss) before tax (1,110) (1,777) (37.5) Tax expense or income related to profit or loss from continuing operations 215 252 (14.6) Profit / (loss) (895) (1,525) (41.3) Profit / (loss) attributable to non-controlling interests (7) 3 n.m. (2) Profit / (loss) attributable to parent company (901) (1,522) (40.8) (1)Includes “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” and “Exchange differences, net”. (2)Not meaningful. (3)“Net margin before provisions” is calculated as “Gross income” less “Administration costs” and “Depreciation and amortization”. Net interest income / (expense) Net interest expense of the Corporate Center for the year ended December 31, 2024 was €495 million, a 47.5% increase compared with the €336 million net expense recorded for the year ended December 31, 2023, mainly due to higher funding costs of investments as a result of higher interest rates. Net fees and commissions Net fees and commissions of the Corporate Center for the year ended December 31, 2024 amounted to a €71 million expense, a 2.3% increase compared with the €69 million expense recorded for the year ended December 31, 2023. Net gains (losses) on financial assets and liabilities and Exchange differences, net Net gains on financial assets and liabilities and exchange differences of the Corporate Center for the year ended December 31, 2024 were €138 million compared with the €681 million net losses recorded for the year ended December 31, 2023, mainly as a result of the gains from certain foreign currency hedges (recorded in the ALCO portfolio of the Corporate Center) on the estimated results of the operating segments resulting from the impact of the depreciation of the Mexican peso and positive exchange differences. Other operating income and expense, net Other operating income and expense, net of the Corporate Center for the year ended December 31, 2024 was €37 million of net income, a 58.3% decrease compared with the €89 million net income recorded for the year ended December 31, 2023, mainly due to the expenses on the subscription of bonds issued by the Central Bank of Argentina. Administration costs Administration costs of the Corporate Center for the year ended December 31, 2024 amounted to €564 million, a 2.0% increase compared with the €553 million recorded for the year ended December 31, 2023. Depreciation and amortization Depreciation and amortization of the Corporate Center for the year ended December 31, 2024 was €215 million, a 2.5% increase compared with the €210 million recorded for the year ended December 31, 2023. 133 Provisions or reversal of provisions and other results Provisions or reversal of provisions and other results of the Corporate Center for the year ended December 31, 2024 were €54 million income, compared with the €21 million expense recorded for the year ended December 31, 2023, mainly due to the reversal of provisions related to certain investments in associates. Operating profit / (loss) before tax As a result of the foregoing, operating loss before tax of the Corporate Center for the year ended December 31, 2024 was €1,110 million, a 37.5% decrease compared with the €1,777 million loss recorded for the year ended December 31, 2023. Tax expense or income related to profit or loss from continuing operations Tax income related to profit or loss from continuing operations of the Corporate Center for the year ended December 31, 2024 amounted to €215 million, a 14.6% decrease compared with the €252 million income recorded for the year ended December 31, 2023, mainly due to the lower operating loss before tax. Profit / (loss) attributable to parent company As a result of the foregoing, loss attributable to parent company of the Corporate Center for the year ended December 31, 2024 was €901 million, a 40.8% decrease compared with the €1,522 million loss recorded for the year ended December 31, 2023. 134 B. Liquidity and Capital Resources BBVA’s principal source of funds is its customer deposit base, which consists primarily of demand, savings and time deposits. In addition to relying on customer deposits, BBVA also accesses the interbank market (overnight and time deposits) and domestic and international capital markets for its additional liquidity requirements. To access the capital markets, BBVA has in place a series of domestic and international programs for the issuance of commercial paper and medium- and long-term debt. Another source of liquidity is the generation of cash flow from operations. Finally, BBVA may supplement its funding sources with borrowings from the ECB or the respective central banks of the countries where its subsidiaries are located. For additional information on the financing structure of the BBVA Group, see Note 7.5.3 to the Consolidated Financial Statements. During 2025, liquidity conditions remained adequate in all the countries where the BBVA Group operates. The following table shows the balances as of December 31, 2025, 2024 and 2023 of our principal sources of funds (including accrued interest, hedge transactions and issue expenses): As of December 31, 2025 2024 2023 (In Millions of Euros) Deposits from central banks 20,879 18,028 26,707 Deposits from credit institutions 54,909 50,690 83,376 Customer deposits 530,079 468,590 437,405 Debt certificates 87,839 74,464 72,685 Other financial liabilities 31,782 27,173 23,650 Total 725,488 638,945 643,823 Liquidity and Funding Risk Management of the BBVA Group aims, in the short term, to prevent any Group entity from having difficulties in meeting its payment commitments and from having to resort –in order to meet them– to obtaining funds on burdensome conditions and, in the medium term, to support the suitability of the Group’s financial structure and its evolution, within the prevailing economic, market and regulatory conditions. One of the key elements in the BBVA Group’s Liquidity and Financing Risk Management is the maintenance of large, high quality liquidity buffers in all its bank subsidiaries. Due, in part, to the Group’s decision to follow a Multiple Point of Entry strategy, in accordance with the framework for the resolution of financial entities designed by the Financial Stability Board (FSB), the Group’s subsidiaries are self-sufficient and each subsidiary is responsible for managing its own capital and liquidity, without fund transfers or financing between either the parent company and the subsidiaries or between the different subsidiaries. This strategy aims to limit the spread of a liquidity crisis among the Group’s different areas, and supports that the cost of liquidity and financing is correctly reflected in the price formation process. As part of this strategy, the BBVA Group is organized into eight Liquidity Management Units (“LMUs”) composed of the parent company and the bank subsidiaries in each of Spain, Mexico, Turkey, South America (Argentina, Colombia, Peru, Uruguay) and Switzerland, plus the branches that depend on them. Regarding liquidity and funding performance, the BBVA Group seeks to maintain an adequate and dynamic funding structure consistent with the existing Risk Appetite Framework, through liquidity and funding planning. In this regard, the Liquidity and Funding Management model evaluates liquid resources needed and the ability to maintain the liquidity profile over the planning horizon, including in the face of unexpected stress conditions. The Group’s funding structure is predominantly of a retail nature, as customer deposits represent the main source of funding. 135 Throughout 2025, BBVA has maintained its objective of preserving the strength of the funding structure of the different Group entities by focusing on strengthening self-funding from customer funds, maintaining a buffer of fully available liquid assets, diversifying sources of funding and generating and optimizing collateral available to deal with the withdrawal of central banks’ monetary stimulus and/or stress situations in the markets. During 2025, 2024 and 2023, all LMUs held self-funding levels deemed by the Group to be sufficient, mainly satisfied by customer deposits. The Liquidity Coverage Ratio (LCR), a liquidity buffer, at both a consolidated and individual level, was 143% as of December 31, 2025 (in excess of the required 100%) and 134% as of December 31, 2024 (in excess of the required 100%). The net stable funding ratio (NSFR) of the BBVA Group was 126% as of December 31, 2025 (in excess of the required 100%) and 127% as of December 31, 2024 (in excess of the required 100%). The NSFR ratio is the result of the division 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. The Group has pension commitments with its employees, which are due on retirement, death and long term disability. The Group maintains insurance contracts contracted with insurance companies owned by the Group, which use derivatives to mitigate the interest rate risk arising from such commitments. See Notes 23 and 25 to the Consolidated Financial Statements for additional information on the Group’s contractual obligations with respect to its insurance activity and the post-employment benefits of the Group, respectively. See also “Item 3. Key Information—Risk Factors—Financial Risks—The Group has a substantial amount of commitments with personnel considered wholly unfunded due to the absence of qualifying plan assets”. Furthermore, the BBVA Group holds loan commitments and financial guarantees which are in turn possible obligations of the entity that arise from past events and whose existence depends on the occurrence or non-occurrence of one or more future events independent of the entity’s will and that could lead to the recognition of financial assets. For information on loan commitments, financial guarantees and other commitments given by the Group, see Note 33 to the Consolidated Financial Statements. We believe that our working capital is sufficient for our present requirements and to pursue our planned business strategies. Please see Notes 51 and 7.5 to the Consolidated Financial Statements for additional information on the BBVA Group’s liquidity and capital resources. Potential structural limitations affecting Banco Bilbao Vizcaya Argentaria, S.A.’s funding As some of the Group’s operations are conducted through subsidiaries, Banco Bilbao Vizcaya Argentaria, S.A.’s results depend in part on the ability of its subsidiaries to generate earnings. The Group operates in Spain, Mexico, Turkey and over 25 other countries, mainly in Europe, South America, the United States and Asia. Our banking subsidiaries around the world are subject to supervision and regulation by a variety of regulatory bodies relating to, among other things, the satisfaction of different solvency, resolution and/or governance requirements. The obligation to satisfy such requirements may affect the ability of our banking subsidiaries to transfer funds to Banco Bilbao Vizcaya Argentaria, S.A. in the form of cash dividends, loans or advances. In addition, under the laws of the various jurisdictions where our subsidiaries are incorporated, dividends may only be paid out of funds legally available and, in certain cases, subject to the prior approval of the competent regulatory or supervisory authorities. Even where any applicable requirements are met and funds are legally available, the relevant regulator could advise against the transfer of funds to Banco Bilbao Vizcaya Argentaria, S.A. in the form of cash dividends, loans or advances, for prudence reasons or otherwise. For example, the repatriation of dividends from BBVA’s Turkish, Argentinian and Venezuelan subsidiaries is subject to certain restrictions and there is no assurance that further restrictions will not be imposed. The geographic diversification of the Group’s businesses, however, may help to limit the effect of any restrictions that could be adopted in any given country. 136 Customer deposits Customer deposits (including “Financial liabilities at amortized cost - Customer deposits”, “Financial liabilities designated at fair value through profit or loss – Customer deposits” and “Financial liabilities held for trading – Customer deposits”) amounted to €530,079 million as of December 31, 2025 compared with €468,590 million as of December 31, 2024 (€437,405 million as of December 31, 2023), a 13.1% increase, mainly due to: (i) the increase in time deposits from public institutions (through repurchase agreements) within the Corporate and Investment Banking portfolio, supported by higher short-term liquidity placements of the public sector within a low interest rate environment, increases in time deposits within the corporate portfolio and the increase in demand deposits from households in Spain; (ii) the growth in household demand deposits through our digital banking offerings in Europe and the increase in wholesale demand deposits in Asia and Europe; and (iii) the increase in Turkish lira-denominated retail and wholesale demand deposits and wholesale time deposits, partially offset by the depreciation of the Turkish lira against the euro. Our customer deposits, excluding repurchase agreements, amounted to €489,057 million as of December 31, 2025, an 11.3% increase compared with €439,469 million as of December 31, 2024 (€410,044 million as of December 31, 2023). Short-term customer deposits at amortized cost amounted to €473,799 million as of December 31, 2025, or 89.4% of our total customer deposits, compared to €426,174 million and 90.9% of our total customer deposits as of December 31, 2024 (see Note 22.3 to the Consolidated Financial Statements). Deposits from credit institutions and central banks The following table shows amounts due to credit institutions and central banks as of December 31, 2025, 2024 and 2023: As of December 31, 2025 2024 2023 (In Millions of Euros) Deposits from credit institutions 54,909 50,690 83,376 Deposits from central banks 20,879 18,028 26,707 Total 75,789 68,719 110,083 Deposits from credit institutions and central banks amounted to €75,789 million as of December 31, 2025 compared with €68,719 million as of December 31, 2024 (€110,083 million as of December 31, 2023). The increase as of December 31, 2025 compared to December 31, 2024 was mainly attributable to an increase in time deposits from central banks and deposits from credit institutions (through repurchase agreements) in the amortized cost and trading portfolios in Spain, partially offset by decreases in deposits from central banks (through repurchase agreements) in Mexico. Capital markets We make debt issuances in the domestic and international capital markets in order to finance our activities. As of December 31, 2025 we had €60,894 million of debt certificates outstanding, comprising €52,734 million in bonds and debentures and €8,160 million in promissory notes and other securities, compared with €50,310 million, €45,988 million and €4,322 million outstanding, respectively, as of December 31, 2024, and €52,875 million, €47,124 million and €5,752 million outstanding, respectively, as of December 31, 2023 (see Note 22.4 to the Consolidated Financial Statements). In addition, we had a total of €21,052 million in subordinated debt and subordinated deposits and €1 million preferred securities outstanding as of December 31, 2025 compared with €19,611 million and €1 million, respectively, as of December 31, 2024 (€15,867 million and nil, respectively, as of December 31, 2023). The following is a breakdown as of December 31, 2025 of the maturities of our debt certificates (including bonds), subordinated debt, subordinated deposits and preferred securities. Regulatory equity instruments have been classified according to their contractual maturity: Demand Up to 1 Month 1 to 3 Months 3 to 12 Months 1 to 5 Years Over 5 Years Total (In Millions of Euros) Debt certificates (including bonds) — 3,348 3,902 16,876 25,792 10,976 60,894 Subordinated debt, subordinated deposits and preferred securities — 3 — 35 2,105 18,910 21,053 Total — 3,351 3,902 16,911 27,897 29,886 81,947 137 Capital As of December 31, 2025, 2024 and 2023, equity is calculated in accordance with current regulations on minimum capital base requirements for Spanish credit institutions on both an individual and consolidated basis. These regulations dictate how to calculate equity levels, as well as the various internal capital adequacy assessment processes they should have in place and the information such institutions should disclose to the market. The minimum capital base requirements established by the current regulations are calculated according to the Group’s exposure to credit and dilution risk, counterparty and liquidity risk relating to the trading portfolio, exchange-rate risk and operational risk. In addition, the Group must fulfill the risk concentration limits established in these regulations and internal corporate governance obligations. For information on our SREP requirements, the consolidated capital ratios as of December 31, 2025, 2024 and 2023, our RWAs, our MREL requirements, the capital issuances of Banco Bilbao Vizcaya Argentaria, S.A. and the impact on BBVA’s CET1 arising from certain singular effects, see “Item 4. Information on the Company—Business Overview—Supervision and Regulation” and Note 32 to the Consolidated Financial Statements. C. Research and Development, Patents and Licenses, etc. In 2025, we continued to foster the use of new technologies as a key component of our global development strategy. We explored new business and growth opportunities, focusing on three major areas: emerging technologies, digital banking and data driven initiatives, in each case with the customer as the focal point of our banking business. The BBVA Group is not materially dependent on the issuance of patents, licenses and industrial, mercantile or financial contracts or on new manufacturing processes in carrying out its business purpose. D. Trend Information The European financial services sector is expected to remain competitive in the current challenging environment. See “Item 4. Information on the Company―Competition”. See also “Item 3. Key Information—Risk Factors—Business Risks—The Group faces increasing competition and is exposed to a changing business model”. Trends expected to shape the sector’s profitability in the future include the following: •positive interest rates, especially in Spain, after the protracted period of low (or even negative) interest rates ended in 2022. Changes in interest rates may be particularly significant in countries like Spain, where mortgages account for a significant proportion of credit (more than 40%) and approximately two-thirds of mortgage loans are estimated to have floating rates. Although interest rates are declining from the peak reached in June 2024, the persistence of relatively high and positive interest rates may lead to higher interest revenue, but also to an increase in non-performing loans and a decrease in the demand for loans, in addition to resulting in higher funding costs; •a more challenging competitive environment with the entry of non-bank digital financial services providers, which are growing very fast in line with technological advances and becoming a very important competitor for the banking industry. These entities do not have to comply with a regulation scheme as strict as that applicable to banks. For additional information, see “Item 4. Information on the Company―Competition”; •the completion and the implementation of the ongoing financial regulatory reforms. On one hand, when such reforms are applied locally, inconsistently and heterogeneously, regulatory fragmentation and the implementation by some countries of more flexible or stricter rules or regulations may put certain banks at a disadvantage. Conversely, it is possible that, in the framework of the banking union and in the capital markets union, regulatory changes and enhanced institutional architecture might contribute to a less fragmented, but more competitive, landscape. Moreover, regulatory changes, adopted or proposed, as well as their interpretation or application, have increased and may continue to increase operating expenses and decrease margins. For information on certain significant supervision and regulatory matters which affect the Group, see “Item 4. Information on the Company—Business Overview—Supervision and Regulation”; •the increasing tax burden in certain regions such as the tax on net interest revenue and net fees and commissions applicable to credit institutions operating in Spain and the proposed Tax Directive of the European Commission for the Financial Transactions Tax (which would tax the acquisitions of certain securities, negotiated in markets where the Group operates); 138 •the adoption of novel pro-consumer regulation and measures, such as the proposed creation of a new administrative authority in Spain, which shall resolve complaints against banks from customers and potential customers and be financed by financial institutions, and the amendments introduced in the Code of Good Practices in recent years, easing the impact of interest rate hikes on mortgage loans agreements related to primary residences, among others (see “Item 4. Information on the Company—Business Overview—Supervision and Regulation—Principal Markets—Spain” for additional information); and •the relevance of ESG and climate change matters, albeit milder than in previous years, which may result, among others, in changes in consumer preferences and additional legislation and regulatory requirements. For example, several of the European Union’s sustainability initiatives are expected to significantly impact asset management activities in coming years, as asset managers need to include sustainability as part of their financial advice. Further, climate-related disasters could result in market volatility, negatively impact customers’ ability to pay outstanding loans, result in the deterioration of the value of collateral or insurance shortfalls or otherwise disrupt the operations of banks or the operations of their customers or third parties on which they rely. See “Item 3. Key Information—Risk Factors—Business Risks—Environmental, social and governance (ESG) risks may adversely impact the Group”. E. Critical Accounting Estimates Not Applicable. 139