REG - Banco Bil.Viz.Argent - 2022 MREL Requirement

Banco Bilbao Vizcaya Argentaria SAAnnouncement

09/03/2022 07:01

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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 requirement in RWAs  Subordination requirement 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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