REG - Banco Bil.Viz.Argent - Implementation of IAS 29 to BBVA Turkey

Banco Bilbao Vizcaya Argentaria SAAnnouncement

29/06/2022 07:01

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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  (#_ftn1) )),
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  (#_ftn2) )) on the BBVA Group's net
attributable profit of approximately -324 million euros.

In 2022, considering the expected annual inflation(( 3  (#_ftn3) )) 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

 

 

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associated PDF document.

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

(( 1  (#_ftnref1) )) IAS 29 does not apply to the operations outside Turkey of
the Türkiye Garanti Bankası A.Ş. 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  (#_ftnref2) )) 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  (#_ftnref3) )) 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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