Business Context and Reporting Period
This Form 6-K filing by Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) was submitted on December 11, 2024. The report discloses "Other Relevant Information" regarding the outcome of the European Central Bank's (ECB) Supervisory Review and Evaluation Process (SREP), which established the bank's minimum capital requirements for the year 2025.
Key Financial Metrics
The filing does not provide revenue, profit, cash flow, or liquidity metrics. It focuses exclusively on regulatory capital ratios effective January 1, 2025.
| Requirement Type | BBVA Consolidated CET1 | BBVA Consolidated Total | BBVA S.A. (Individual) CET1 | BBVA S.A. (Individual) Total |
|---|---|---|---|---|
| Pillar 1 | 4.50% | 8.00% | 4.50% | 8.00% |
| Pillar 2 (P2R) | 1.02% | 1.68% | 0.84% | 1.50% |
| Conservation Buffer | 2.50% | 2.50% | 2.50% | 2.50% |
| O-SII Buffer | 1.00% | 1.00% | 0% | 0% |
| Countercyclical Buffer | 0.11% | 0.11% | 0.14% | 0.14% |
| Total Capital Requirements | 9.13% | 13.29% | 7.98% | 12.14% |
Material Changes
The filing establishes new minimum capital thresholds effective January 1, 2025. Notable components include:
- Pillar 2 Requirement: At the consolidated level, the requirement is 1.68%, with 0.18% specifically determined based on the ECB's prudential provisioning expectations.
- CET1 Composition: Of the consolidated Pillar 2 requirement, a minimum of 1.02% must be met with Common Equity Tier 1 (CET1) capital.
- Countercyclical Buffer: Calculated based on data as of September 2024.
Guidance, Outlook, and Risks
The filing serves as a regulatory notification rather than a financial outlook. It confirms that BBVA must maintain the specified capital ratios to comply with ECB mandates. The document does not contain management commentary on future earnings, strategic risks, or contingencies beyond the capital adequacy requirements.
Investor Verification Checklist
- Verify BBVA's current actual capital ratios against the new 2025 minimums (9.13% CET1 and 13.29% Total at consolidated level).
- Confirm the bank's ability to meet the specific CET1 portion of the Pillar 2 requirement (1.02% consolidated).
- Review the impact of the 0.18% prudential provisioning expectation on future loan loss reserves.
- Monitor the countercyclical buffer adjustments based on subsequent economic data post-September 2024.