Blogs and advice from Industry leading Specialists
Valuable Opinions, Comments & Gossip
Financial related News & Articles relating to Spain
Latest News, Stories
& Hot Topics
Various Tools & Widgets to help with your financial needs
Tools & Widgets to
help with finances
Polls, Surveys and Opinions featured throughout Tumbit
Featured Polls, Surveys & Stats
Discussions, Advice & Topical Chat
Discussions, Advice & Topical Chat

BBVA's profit falls 14 pct

Source: Reuters - Wed 26th Oct 2011

Profits at BBVA fell more than expected in the first nine months of the year, Spain's second-biggest bank reported on Wednesday, as volatile financial markets depressed trading revenues in the Q3.

Net profits fell 14% to 3.14 billion euros, missing the average market forecast of 3.21 billion euros. Excluding the hit on trading revenues the fall in net profit was 4.98%.

However, net interest income - what a bank earns on loans minus what it pays out on deposits - came in broadly in line with forecasts at 9.68 billion euros, underpinned by an improvement in trend in the Q3.

The euro zone debt crisis has made access to international money markets difficult and expensive for Spanish banks, putting increasing pressure on their margins.

"The decline in trading revenues was a bit more than we expected, but otherwise results look reasonably good," an analyst at a leading Spanish bank said.

BBVA's core capital adequacy ratio stood at 9.1% of assets at the end of September, up from 9.0% at the end of June.

EU finance ministers neared an agreement on Saturday to provide 100 billion euros to European banks which would be obliged to raise their core tier 1 capital ratios to 9% of risk-adjusted assets to help them withstand losses on euro zone sovereign debt.


A decade-long property boom in Spain came to an abrupt end in 2008, leaving the country's banks with billions of euros worth of bad loans.

Bad loans as a percentage of total lending at BBVA's Spanish business grew to 4.9% in Q3 from 4.7% in Q2, although at group level they were contained at 4.1%.

The bank's overseas business once again drove earnings, with Mexico and Latin America continuing to show robust growth. Its Eurasia business, including Turkey and China, accounted for 17.2% of group profits in the first 9 months.

Comment on this Story

Be the first to comment on this Story !!

Related Partners

Recommended Items

Related Articles

Related Blogs