Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) Q3 2023 Earnings Call Transcript

Patricia Bueno: Thank you, Ignacio. Next question please.

Operator: The next question today comes from the line of Fernando Gil from Bestinver. Please go ahead. Your line is now open.

Fernando Gil: Hi. Thank you very much for taking my question. The first one is on the ALCO portfolio and a follow-up. Can you please comment on the evolution of the unrealized losses in the quarter from nearly 1% of TNAV to less than 2.5%. That is one. The second one is, can you please provide your view on the single resolution fund [ph] going into 2024? And finally, on capital requirements, I see the REP 1 basis point up in the quarter. Can you please comment on the capital requirements going forward and remind us of the headwinds, if there are headwinds going forward? Thank you very much.

Onur Genc: Okay. On the whole-to-market, I think Fernando, you were referring to whole-to-market – mark-to-market losses. It is true. It’s now – we say less than 2.5%, around 2.4% actually. The reason for that is mainly Turkey. The rate situation has changed a lot. It includes the euro bond, it includes every single entity. But the losses is basically – or the mark-to-market is mainly euro, which is more or less the same, although there has been some curve changes in Europe also, but that change is relatively small, but the situation in Turkey, the other peak components within that is basically the same euro and the Turkish impact on the mark-to-market. The Turkey situation has deteriorated in that sense. But still, it’s – as you can imagine, it was published in the stress test period as well.

We have one of the lowest mark-to-market positions that you can imagine there. On the 2024 deposit guarantee fund and the single resolution fund in 2024, the single resolution is expected to disappear and DGF is expected to come down significantly. But we have to see it on how they evolve. On the SREP requirement, Luisa?

Luisa Gomez Bravo: Yes. Well, what we can share now is the increase of 25 basis points on the OC requirement, which we published already, yes. So, right now, we have a requirement in CET1 of 8.77. So, it will go up to 9.01 because of this SREP requirement. And then, of course, we will wait for the SREP in December to provide you with the requirements for next year.

Patricia Bueno: So, this was the last question. Thank you very much for all your questions and your interest. As always, the IR team is available for any further questions you may have. So, thank you very much.