BBVA’s Net Profit Declines

On Thursday, the Banco Bilbao Vizcaya Argentaria SA revealed that the net profit of the bank fell 7.6% in the second quarter. The main reason behind the decline was that the income of the bank was hit by economic weakness in the Spanish bank's home market, whereas cost climbed due to expansion abroad.

Net profit fell of the Spanish Bank fell to 2.34 billion Euros from 2.53 billion Euros a year ago, but exceeded 2.226 billion Euros from the forecast.

BBVA's results were supported by the incorporation of Turkey's Turkiye Garanti Bankasi in which the Spanish bank bought a significant stake a few months ago. Garanti is divided into a division BBVA called Eurasia, which reported a profit of EUR251 million in the quarter, up from EUR147 million a year earlier.

At 0800 GMT, BBVA shares gained 1.1% and were traded at EUR7.32, in a slightly higher Spanish market. Profit in South America increased 14% to EUR249 million, on a 13% increase in lending.

The decline in the profits of the bank shows that the euro zone debt crisis has made access to international money markets, which is increasing pressure on Spanish banks.