Business Context and Reporting Period
This Form 6-K filing by Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) is dated June 12, 2025. The report discloses "Other Relevant Information" regarding a regulatory update from the Bank of Spain concerning the Minimum Requirement for own funds and Eligible Liabilities (MREL) for the BBVA resolution group.
Key Financial Metrics and Regulatory Requirements
The filing details new MREL targets calculated based on financial and supervisory information as of December 31, 2023. The specific requirements are:
- MREL in Risk-Weighted Assets (RWAs): 23.13% of total RWAs.
- Subordination Requirement (RWAs): 13.50% of total RWAs must be met with subordinated instruments.
- MREL in Leverage Ratio (LR): 8.59% of total exposure.
- Subordination Requirement (LR): 5.66% of total exposure must be met with subordinated instruments.
- Combined Capital Buffer: 3.65% (excluded from the MREL percentages above).
Historical baseline data provided for the resolution group as of December 31, 2023:
- Total Risk-Weighted Assets (RWAs): €214,757 million.
- Total Exposure for Leverage Ratio: €517,470 million.
Material Changes
The new communication repeals and supersedes a previous MREL determination communicated to the market on March 27, 2024 (Inside Information notice registration number 2188). The new requirements are applicable from the date of receipt.
Compliance and Management Commentary
Management confirms that the current structure of own funds and eligible liabilities of the resolution group complies with all newly communicated requirements, including:
- MREL in RWAs.
- MREL in Leverage Ratio.
- Subordination requirement in RWAs.
- Subordination requirement in Leverage Ratio.
The filing notes that the resolution group consists of BBVA and subsidiaries belonging to the same European resolution group, in accordance with the Multiple Point of Entry (MPE) resolution strategy established by the Single Resolution Board (SRB).
Investor Verification Checklist
- Verify the specific numerical changes between the March 27, 2024, MREL notice and the June 12, 2025, update to assess the magnitude of the regulatory shift.
- Confirm the current composition of BBVA's eligible liabilities to ensure ongoing compliance with the 13.50% subordination requirement in RWAs.
- Review the impact of the 3.65% combined capital buffer on total capital adequacy ratios when combined with the new MREL targets.
- Monitor future filings for any updates to the underlying Risk-Weighted Assets (€214.8B) or Leverage Exposure (€517.5B) figures used as the baseline for these calculations.