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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of March, 2017

Commission file number: 1-10110

BANCO BILBAO VIZCAYA ARGENTARIA, S.A.

(Exact name of Registrant as specified in its charter)

BANK BILBAO VIZCAYA ARGENTARIA, S.A.

(Translation of Registrant’s name into English)

Calle Azul 4,

28050 Madrid

Spain

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

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		“Prudential Relevance Report”   Basel Accord Pillar III   2016

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Glossary

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Mapping between the sections of Pillar III and the Group’s Annual Consolidated Financial Statements

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Index of tables

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EBA Implementing Technical Standards:

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Index of charts

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Mapping of the Pillar III tables to the Basel templates

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Executive Summary

Banco Bilbao Vizcaya Argentaria Group (the “Group” or “BBVA Group”) is a global financial services group founded in 1857, with a customer-centric vision. Present in 35 countries, it is a solid leader in Spain, and the biggest financial institution in Mexico; it has leading franchises in South America and the Sunbelt region of the United States; and is the largest shareholder in the Turkish bank Garanti.

The Group has a significant presence in traditional retail banking, wholesale banking, asset management and private banking. It also operates in the sectors of insurance, real estate, operating leases, and various others.

Its diversified business is biased on high-growth markets and it sees technology as a key sustainable competitive advantage.

Strategy

BBVA Group is immersed in a transformation process necessary to adapt to the new environment for the financial industry and preserve its leadership. Success in this new environment requires redefining the value proposition and adapting the universal banking business model to one that is more selective.

In this context, the goal of BBVA Group’s transformation strategy is to strengthen its relationship with its customers. This strategy is structured around a Purpose and six Strategic Priorities, which are the pillars buttressing not only the strategic plans across all the Group’s regions and areas but also the culture of the Organization as a whole.

In 2016 BBVA Group has made significant progress on its Transformation Journey: The Entity’s new strategy has been reinforced with particular focus on digitalization and customer experience, and the organizational structure has been simplified.

Our vision. A new environment for the financial industry

a) Digitalization

Digitalization is making an impact on the financial industry, as it can satisfy the new customer demands in a variety of ways.

Firstly, the advent of mobile devices has led to changes in the distribution model. They have become the main channel of contact.

In addition, new developments in technology (big data, artificial intelligence, Blockchain, the cloud, data processing, biometry, etc.) represent a major advance in customer experience.

New technologies foster the democratization of financial services: everyone will be able to gain access to better and more sophisticated services that were up to now only available for high-value segments.

Additionally, new, specialized players are entering the financial industry and successfully tackling parts of the value chain (payments, financing, asset management, insurance, etc.). Their disruptive proposals are primarily based on enhanced customer experience and greater specialization in certain products. These players include FinTech companies and large digital corporations (Google, Amazon, etc.), which are now competing with banks in the new environment.

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To sum up, traditional banking has to respond by becoming more competitive and providing value-added solutions, with greater focus on customer experience and the development of its digital offering.

b) Shift in consumer behavior

Customers are asking for a new type of banking relationship and have begun demanding new services based on their new needs. We are faced with an environment in which consumers are permanently connected, accustomed to digital experiences and use multiple devices and applications. They also demand greater transparency and trust in their banking relationship, in addition to enhanced customization, accessibility and convenience in financial services in order to achieve their own goals in life.

Another aspect to be considered is the socio-demographic shift that is underway. The Millennial Generation is clearly digital and is becoming a new consumer segment requiring services. Digitalization is also reaching the adult population, and the middle classes in emerging countries are increasing their digital potential.

Our aspiration

In this context, the main objective of BBVA Group’s transformation strategy, is to strengthen the relationship with our customers. We want to help our customers make the best decisions (banking and non-banking) by offering an attractive experience (clear, simple, transparent, and based on fair conditions, prudence and integrity) and appropriate help and advice that cover all their financial needs.

We have taken great strides in 2016 to fulfill our Purpose: “To bring the age of opportunity to everyone.” We want to help our customers achieve their goals in life. We want to go beyond being a bank and become a vehicle for opportunities with a positive impact on the lives of people and on the business of companies.

Significant steps have also been taken to develop the Group’s six Strategic Priorities in line with our Purpose, and thus make headway in our transformation process.

For more information about the Group’s Strategic Priorities, please see the Management Report which is attached to BBVA Group’s Consolidated Financial Statements.

Highlights

In 2016 the year-on-year rates of variation in earnings have been impacted mainly by two factors: changes in the Group’s scope of consolidation in the second and third quarters of 2015 (Catalunya Banc - CX and Garanti, respectively); and the negative effect of the general depreciation in exchange rates against the euro (except for the dollar).

Taking into account the stake in Garanti in comparable terms (including it as if it had been incorporated by the global integration method since January 1, 2015), excluding the impact of corporate operations in 2015 and isolating for the exchange-rate impact, the earnings figures for 2016 continue the positive trend in more recurring revenues and moderation in operating expenses, with an improved efficiency ratio, thus strengthening its solvency position in the markets.

With respect to liquidity and funding, the Group’s target performance is measured through the Liquidity Coverage Ratio (LCR) and the Loan-to-Stable Customer Deposits (LtSCD) ratio. In 2016 BBVA Group has maintained LCR levels of over 100% and a LtSCD of 113% (weighted average).

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Thus the LCR and LtSCD figures reflect that BBVA Group maintains a robust and diversified funding structure, clearly retail in nature, in which customer funds represent the main source of funding; and all the Liquidity Management Units (UGLs) formed by the parent and banking subsidiaries in each geographic area, in addition to the branches that depend on them, maintain levels of self-funding with stable customer funds above requirements.

The Group’s performance with respect to credit risk management has been very favorable, with non-performing loans and the NPL ratio continuing to decline.

As regards solvency, BBVA Group closed 2016 with capital levels above the minimum required both in phased-in (12.18%) and fully-loaded (10.90%) terms, and a phased-in leverage ratio of 6.70% (6.49% fully loaded). This continues to compare very favorably with the rest of its peer group, thanks once more to the Group’s recurring generation of earnings and efficient capital management and allocation, in line with its strategic objectives.

On the regulatory front, BBVA Group has published its prudential capital requirements applicable to the Entity following the Supervisory Review and Evaluation Process (SREP), which establishes that BBVA must maintain a phased-in core capital ratio of 7.625% at consolidated level and 7.25% at individual level, and a total phased-in capital ratio of 11.125% at consolidated level and 10.75% at individual level.

The following sections present details related to the Group’s solvency. The Management Report, which is attached to the BBVA Group Consolidated Financial Statements, presents the main indicators of the Group’s activity and profitability.

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Introduction

Regulatory environment in 2016

Regulatory environment in 2016

Legislative Framework

As a Spanish credit institution, BBVA is subject to Directive 2013/36/EU of the European Parliament and of the Council dated June 26 2013 on access to the activity of credit institutions and investment firms (“Directive CRD IV”) amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC by means of which the EU began, as of January 1 2014, to implement the capital reforms agreed within the framework of Basel III, thus establishing a period of gradual implementation for certain requirements until January 1 2019. The major regulation governing the solvency of credit institutions is Regulation (EU) No 575/2013 of the European Parliament and of the Council dated June 26 2013 on prudential requirements for credit institutions and investment firms amending Regulation (EU) No 648/2012 (“CRR” and, jointly with Directive CRD IV and any other CRD IV implementation measure, “CRD IV”), which is complemented by several binding Regulatory Technical Standards that apply directly to EU member states, there being no need to implement national measures. Directive CRD IV was transposed to Spanish national law by means of Royal Decree-Law 14/2013 dated November 29 (“RD-L 14/2013”), Law 10/2014, Royal Decree 84/2015 dated February 13 (“RD 84/2015”), Bank of Spain Circular 2/2014 dated January 31 and Circular 2/2016 dated February 2 (“Bank of Spain Circular 2/2016”).

In order to strike a balance between risk sensitivity, simplicity and comparability, the Basel Committee is reforming the Basel III framework. The main amendments are focused on internal models, the standard credit risk method, the market risk framework, operational risk and capital floors in the advanced measurement approach based on the standardized approach. This reform is expected to be completed in the coming months.

In Europe, on November 23, 2016 the European Commission published a new reform package amending both the prudential banking regime (CRR) and the resolution regime (Bank Recovery and Resolution Directive, “BRRD”). This revision includes the implementation of international standards in European legislation (regulation later than 2010 adopted by the Basel Committee and the total loss absorbing capacity “TLAC”), the final design of the Minimum Requirement for own funds and Eligible Liabilities (“MREL”) along with a package of technical improvements. At the same time, a proposal has also been put forward to harmonize the hierarchy of senior debt creditors within the European Union. Publication of this proposal is just the first step in the European legislative process.

As regards Pillar 3, in January 2015 the Basel Committee approved a revision of the framework (“Revised Pillar 3 Disclosure Requirements”, hereinafter, “RPDR”) In order for all European institutions to implement the Basel revision in such a way as to meet CRR requirements on this matter, on December 14 2016 the European Banking Authority (“EBA”) published its final guidelines on regulatory disclosure (“Guidelines on Revised Pillar 3 Disclosures Requirements”, hereinafter “GRPDR”). The implementation date for these guidelines is the close of the financial year 2017. However, it is recommended that global systemically important banks (“G-SIB”) should undertake a partial implementation at the close of the financial year 2016.

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Following this recommendation, BBVA Group, committed to transparency and aiming to improve comparability between banks and information consistency, has decided to implement in the Prudential Relevance Report, the guidelines included in the RPDR.

Additionally, as of December 31, 2016, BBVA Group has adopted the GRPDR recommendation in which EBA modifies and/or supplements the Basel framework, adapting ten standard disclosure templates about credit risk, counterparty credit risk and market risk.

The index of charts and the index of tables contain the list of standard templates issued by Basel and EBA.

Capital Composition

The new regulations require institutions to have a higher and better quality capital level, increase capital deductions and review the requirements associated with certain assets. Unlike the previous framework, the minimum capital requirements are complemented with requirements for capital buffers and others relating to liquidity and leverage. Own funds under CRD IV mainly comprises of the elements described in section 2.1 herein.

The main features of the elements making up the capital requirements and risk-weighted assets are detailed in greater depth in section 2.4 of this document.

In this regard, article 92 of CRR establishes that credit institutions must maintain at all times, at both individual and consolidated level, a total capital ratio of 8% of their risk-weighted assets (commonly referred to as the Pillar 1 requirement). At least 6% of the total capital ratio must comprise Tier 1 capital, of which 4.5% must in any case comprise Common Equity Tier 1 (CET1), and the remaining 2% may be completed with Tier 2 capital instruments.

Notwithstanding the application of the Pillar 1 requirement, CRD IV contemplates the possibility that competent authorities may require that credit institutions maintain more shareholders’ equity than the requirements set out in the Pillar 1 requirements to cover risks other than those already covered by the Pillar 1 requirement (this power of the competent authority is commonly known as Pillar 2).

Furthermore, in accordance with CRD IV, credit institutions must comply with the “combined requirement of capital buffers” as of 2016. The “combined requirement of capital buffers” has incorporated five new capital buffers: (i) the capital conservation buffer, (ii) the buffer for global systemically important banks (the “G-SIB buffer”), (iii) the countercyclical capital buffer peculiar to each bank, (iv) the buffer for other systemically important financial institutions (the “D-SIB buffer”) and (v) the buffer against systemic risks. The “combined requirement of capital buffers” must be met with Common Equity Tier 1 capital (“CET1”) in addition to that which is provided to meet the minimum capital required by “Pillar 1”.

Both the capital conservation buffer as well as the EISM buffer (where appropriate) will apply to credit institutions as it establishes a percentage over 0%.

The buffer for global systemically important banks applies to those institutions on the list of global systemically important banks (“G-SIBs”), which is updated annually by the Financial Stability Board (“FSB”). Given that BBVA has been excluded from the list of global systemically important financial institutions in 2016, as of January 1, 2017, the G-SIB buffer will not apply to BBVA in 2017 (notwithstanding the possibility that the FSB or the supervisor may in the future include BBVA on that list).

The Bank of Spain has extensive discretionary powers as regards the countercyclical capital buffer peculiar to each bank, the buffer for other systemically important financial institutions (which are those institutions considered to be systemically important local

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financial institutions “D-SIB”) and the buffer against systemic risks (to prevent or avoid systemic or macroprudential risks). The European Central Bank (“ECB”) can issue recommendations in this respect pursuant to the entry into force on November 4 2014 of the Single Supervisory Mechanism (“SSM”).

In December 2015, the Bank of Spain agreed to set the countercyclical capital buffer that applies to credit exposures in Spain at 0% as of January 1 2016. These percentages will be reviewed every quarter, as the Bank of Spain has decided to keep the countercyclical capital buffer at 0% for the first quarter of 2017.

As far as BBVA is concerned, after the supervisory review and evaluation process (“SREP”) conducted in 2016, the ECB has required that BBVA, as of January 1 2017 maintain (i) a CET1 phased-in ratio of 7.625% at consolidated level and 7.25% at individual level; and (ii) a phased-in total capital adequacy ratio of 11.125% at consolidated level and 10.75% at individual level.

The ECB’s decision establishes that the total capital adequacy ratio of 11.125% at consolidated level includes: (i) the minimum CET1 ratio required by Pillar 1 (4.5%); (ii) the minimum Tier 1 additional capital adequacy ratio (“AT1”) level required by Pillar 1 (1.5%) (iii) the minimum Tier 2 ratio required by Pillar 1 (2%) (iv) the CET 1 ratio required by Pillar 2 (1.5%) (v) the capital conservation buffer (which is 1.25% in phased-in CET 1) and (vi) the D-SIB buffer (which is 0.375 in phased-in CET 1 terms and 0.75%).

BBVA maintains a fully loaded CET 1 ratio of 10.90% at consolidated level to December 31 2016, strengthening the Group’s capital position, with a phased-in ratio of 12.18%.

Leverage ratio

In order to provide the financial system with a metric that serves as a backstop to capital levels, irrespective of the credit risk, a measure complementing all the other capital indicators has been incorporated into Basel III and transposed to the Solvency Regulations. This measure, the leverage ratio, can be used to estimate the percentage of the assets financed with Tier 1 capital.

Although the book value of the assets used in this ratio is adjusted to reflect the bank’s current or potential leverage with a given balance-sheet position, the leverage ratio is intended to be an objective measure that may be reconciled with the financial statements.

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1. General informational requirements

1.1. Company name and differences in the consolidated group for the purposes of the solvency regulations and accounting criteria

1.1. Company name and differences in the consolidated group for the purposes of the solvency regulations and accounting criteria

Banco Bilbao Vizcaya Argentaria, S.A. (hereinafter “the Bank” or “BBVA”) is a private-law entity subject to the laws and regulations governing banking entities operating in Spain. It carries out its activity through branches and agencies across the country and abroad.

The Bylaws and other public information are available for consultation at its registered address (Plaza San Nicolás, 4 Bilbao) and on its corporate website (www.bbva.com).

The Solvency Regulations are applicable at the consolidated level for the whole Group.

BBVA Group’s Consolidated Financial Statements are presented in accordance with the International Financial Reporting Standards as adopted by the European Union (“EU-IFRS”) in effect as of December 31 2016, taking into consideration Bank of Spain Circular 4/2004, dated December 22, and its successive amendments, and other provisions of the regulatory financial reporting framework applicable to the Group in Spain.

The BBVA Group Annual Consolidated Financial Statements for 2016 are posted according to the models included in Circular 5/2015 of the Spanish Securities and Investment Board, with the aim of adapting the content of public financial information of credit institutions to the terminology and formats of financial statements established as mandatory by the European Union for credit institutions.

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On the basis of accounting criteria, companies are considered to form part of a consolidated group when the controlling institution holds or can hold, directly or indirectly, control of them. An institution is understood to control another entity when it is exposed, or is entitled to variable returns as a result of its involvement in the investee and has the capacity to influence those returns through the power it exercises on the investee. For such control to exist, the following aspects must be fulfilled:

a) Power: An investor has power over an investee when it has current rights that provide it with the capacity to direct its relevant activities, i.e. those that significantly affect the returns of the investee.

b) Returns: An investor is exposed, or is entitled to variable returns as a result of its involvement in the investee when the returns obtained by the investor for such involvement may vary based on the economic performance of the investee. Investor returns may be positive only, negative only or both positive and negative.

c) Relationship between power and returns: An investor has control over an investee if the investor not only has power over the investee and is exposed, or is entitled to variable returns for its involvement in the investee, but also has the capacity to use its power to influence the returns it obtains due to its involvement in the investee.

Therefore, in drawing up the Group’s consolidated Financial Statements, all dependent companies and consolidated structured entities have been consolidated by applying the full consolidation method.

Associates as well as joint ventures (those over which joint control arrangements are in place), are valued using the equity method.

The list of all the companies of BBVA Group is included in the appendices to the Group’s Annual Consolidated Financial Statements.

For purposes of the solvency regulation, the consolidated group comprises the following subsidiaries:

Likewise, the special-purpose entities whose main activity implies an extension of the business of any of the institutions included in the consolidation, or includes the rendering of back-office services to these, will also form part of the consolidated group.

However, according to the solvency regulation, insurance entities and some service firms do not form part of consolidated groups of credit institutions.

Therefore, for the purposes of solvency requirements, and hence the drawing up of this Information of Prudential Relevance, the scope of consolidated entities is different from the scope defined for the purposes of drawing up the Group’s Consolidated Financial Statements.

The effect of the difference between the two regulations is basically due to:

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As explained in Note 32 of the Group’s Annual Consolidated Financial Statements, this section includes an exercise in transparency aimed at offering a clear view of the process of reconciliation between the account balances reported in the Public Balance Sheet (attached to the Group’s Annual Consolidated Financial Statements) and the account balances as per this report (regulatory scope), revealing the main differences between both scopes.

TABLE 1: Reconciliation of the Public Balance Sheet from the accounting perimeter to the regulatory perimeter

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Furthermore, and in line with the RPDR, the following table shows the risks to which each one of the items in the regulatory balance sheet is exposed:

TABLE 2: LI1 - Differences between the accounting and regulatory scopes of consolidation and the mapping of the financial statements categories with regulatory risk categories