Banco Bilbao Vizcaya Argentaria SA Implementation of IAS 29 to BBVA Turkey (5460Q)

TIDMBVA

RNS Number : 5460Q

Banco Bilbao Vizcaya Argentaria SA

28 June 2022

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

INSIDE INFORMATION

BBVA will implement the IAS29 accounting standards "Financial Reporting in Hyperinflationary Economies" to its Group entities in Turkey ([1]) , with effects from 1st January 2022. The impacts of such implementation will be reflected in the second quarter of 2022 BBVA Group financial statements.

In order to facilitate monitoring the quarterly information of the BBVA Group, attached is a presentation which includes the BBVA Group pro-forma simplified balance sheet and income statement for the first quarter of 2022 applying IAS29 accounting standards. Such presentation also describes the details of the adjustments to the BBVA Group's financial statements as a result of the implementation of the referred IAS29 standards.

The main impacts calculated on the BBVA Group's financial statements as of 31 March 2022 are as follows:

-- A positive impact on the Common Equity Tier 1 (fully loaded) ratio of approximately 19 basis points.

-- A negative impact ([2]) on the BBVA Group's net attributable profit of approximately -324 million euros.

In 2022, considering the expected annual inflation ([3]) in Turkey, it is envisaged that (i) the earnings contribution of the Group's entities in Turkey to the BBVA Group's results will be non-material and (ii) capital and tangible book value will be positively impacted in the coming quarters.

Madrid, June 28, 2022

Click on, or paste the following link into your web browser, to view the associated PDF document.

http://www.rns-pdf.londonstockexchange.com/rns/5460Q_1-2022-6-28.pdf

([1]) IAS 29 does not apply to the operations outside Turkey of the Türkiye Garanti Bankası A. . group of companies, and in particular to the financial statements of Garanti Bank S.A. in Romania and GarantiBank International N.V. in the Netherlands.

([2]) For the calculation of this impact, the exchange rate of 16.28 Turkish Lira per Euro (applicable on 31 March 2022) and the cumulative inflation rate in Turkey in the first quarter of 2022 of 22.8% (published by the Turkish Statistical Institute) have been used.

([3]) According to BBVA Research estimates, Turkey's annual inflation rate will be around 60% in 2022, which implies a moderation in the quarterly inflation rate in the coming quarters.

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