TIDMBVA

RNS Number : 1040E

Banco Bilbao Vizcaya Argentaria SA

08 March 2022

Banco Bilbao Vizcaya Argentaria, S.A. ("BBVA"), in compliance with the Securities Market legislation, hereby communicates the following:

INSIDE INFORMATION

BBVA has received a new communication from the Bank of Spain regarding the determination of its minimum requirement for own funds and eligible liabilities ("MREL"), as determined by the Single Resolution Board ("SRB"), that has been calculated taking into account the financial and supervisory information as of June 30, 2021 ([1]) , and which repeals and supersedes the previous communication published on May 31, 2021.

In accordance with this new communication, BBVA has to reach, by January 1, 2022, an amount of own funds and eligible liabilities equal to 21.46% of the total risk weighted assets ("RWAs") of its resolution group, on sub-consolidated level ([2]) (the "MREL in RWAs") of which 13.50% of the RWAs of its resolution group shall be met with subordinated instruments (the "subordination requirement in RWAs").

In addition, BBVA has to reach, by January 1, 2022, an amount of own funds and eligible liabilities in terms of the total exposure considered for calculating the leverage ratio equal to 7.50% (the "MREL in LR") of which 5.84% ([3]) in terms of the total exposure considered for calculating the leverage ratio shall be met with subordinated instruments (the "subordination requirement in LR").

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, would currently be 3.26%.

The current own funds and eligible liabilities structure of the resolution group meets the MREL in RWAs, the MREL in LR, the subordination requirement in RWAs and the subordination requirement in LR.

MREL

 
                                       MREL in RWAs   MREL in LR 
 Applicable requirement                   21.46%        7.50% 
                                      -------------  ----------- 
 Requirement including combined 
  buffer requirement                      24.72%        7.50% 
                                      -------------  ----------- 
 Own funds and eligible liabilities 
  as of December 31, 2021                 28.24%        11.31% 
                                      -------------  -----------

Subordination requirement

 
                                    Subordination    Subordination 
                                    requirement in    requirement 
                                         RWAs            in LR 
 Applicable requirement                13.50%          5.84%(3) 
                                  ----------------  -------------- 
 Requirement including combined 
  buffer requirement                   16.76%          5.84%(3) 
                                  ----------------  -------------- 
 Own funds and subordinated 
  eligible liabilities as of 
  December 31, 2021                    24.65%            9.88% 
                                  ----------------  --------------

Madrid, March 8, 2022

([1]) The new communication effectively reflects the sale of BBVA Group's subsidiary, BBVA USA Bancshares, Inc, which was communicated on June 1, 2021.

([2]) Pursuant to BBVA Group's MPE (Multiple Point of Entry) resolution strategy, as established by the SRB, the resolution group consists of Banco Bilbao Vizcaya Argentaria S.A. and the subsidiaries that belong to the same European resolution group. As of June 30, 2021, the RWAs of the resolution group amounted to 190,377 million euros and the total exposure considered for calculating the leverage ratio amounted to 452,275 million euros.

([3]) From January 1, 2024, the subordination requirement in LR will be 5.91%.

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END

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