Banco Bilbao Vizcaya Argentaria SA MREL requirement

RNS Number : 5756I

Banco Bilbao Vizcaya Argentaria SA

27 March 2024

 

 

Banco Bilbao Vizcaya Argentaria, S.A. ("BBVA"), in accordance 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"), set by the Single Resolution Board ("SRB"), which has been calculated taking into account the financial and supervisory information as of December 31, 2022. This communication repeals and supersedes the previous communication published on June 14, 2023 (with registration number 1887).

 

In accordance with this communication, BBVA must keep, upon receipt of the communication from the Bank of Spain, a volume of own funds and eligible liabilities equal to 22.79% of the total risk-weighted assets ("RWAs") of its resolution group, on a sub consolidated^[1] level (the "MREL in RWAs"), of which 13.50% of the RWAs of its resolution group should be met with subordinated instruments (the "subordination requirement in RWAs").

 

Additionally, BBVA must keep, upon receipt of the communication from the Bank of Spain, a volume of own funds and eligible liabilities in terms of total exposure considered for the purposes of calculating the leverage ratio of the 8.48% (the "MREL in LR"), of which 5.78% in terms of total exposure considered for the purposes of calculating the leverage ratio should be fulfilled 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, in accordance with current regulations and supervisory criteria, would stand at 3.61%.

 

The current structure of own funds and eligible liabilities of the resolution group complies with the MREL in RWAs, with the MREL in LR, with the subordination requirement in RWAs and with the subordination requirement in LR.

 

 

 

Madrid, March 27, 2024

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^[1] In accordance with the MPE resolution strategy ("Multiple Point of Entry") of BBVA Group, as established by the SRB, the resolution group consists of Banco Bilbao Vizcaya Argentaria, S.A. and subsidiaries belonging to the same European resolution group. As of December 31, 2022, the RWAs of the resolution group amounted to 206,987 million euros and the total exposure considered for calculating the leverage ratio amounted to 491,430 million euros.

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