BBVA says will not need public funds for buffer

 

Spain's second largest bank said on Thursday it does not need any public funding to meet the 7.1 billion euros capital buffer identified by the European Banking Authority (EBA).

On Wednesday, European leaders agreed to force banks to raise more capital by June next year, to protect against losses from any Greek debt restructuring and to try to contain the region's financial crisis.

EBA's calculations were made at end-June and since then the bank has raised 800 million euros from organic capital generation and by other internal measures, so the additional capital needs at present are 6.1 billion euros, management said.

"The calculation are as of end-June but since then we have raised 800 mln euros from organic capital generation and have implemented other internal measures, which cut the amount calculated by EBA to 6.1 billion euros," Chief Financial Officer Manuel Gonzalez Cid told analysts.

On Wednesday, BBVA said it can generate enough capital internally over the coming quarters to be well placed to meet EBA's new capital requirements.