BBVA reports 18 percent drop in Q2 profits

Spanish bank BBVA reported today that its second-quarter net profit fell 18% 1.29 billion Euros compared to the same period last year, as it set aside 250 million Euros in provision against insolvencies.

Spain's second largest bank behind Banco Santander said gross income for the April-June period increased 2 percent to hit a record 5.58 billion Euros.

BBVA said the second quarter profit figure marked a 3.8 percent rise from the first quarter of this year. It attributed this in part to a recovery in business activity in Spain's troubled economy, with lending up 4 percent.

Profits for the first six months of the year were down 9.7 percent to 2.5 billion Euros, the bank said.

BBVA shares were down 0.24 percent at 10.55 Euros in early trading in Madrid.