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.
Today's popular content
- Repsol board sanctions dividend cut
- Spain’s King Gives his Luxury Yacht to the Government
- Export-parity pricing will wipe off refiners’ profitability: analysts
- Queen of Spain to Sue Dating Site over Using Her Image in Offensive Way
- Vodafone records 4.2 per cent fall in organic service revenue
- FTC begins new antitrust probe against Google over display ads
- Dutch Sociologist Saskia Sassen's Awarded Spain's Prince of Asturias Social Sciences Prize
- Repsol’s Board meeting on Jan 15 to vote on Brufau
- Thalidomide Victims Sue Manufacturer Company of Drug for Allegedly Selling Drug in Spain for Six-Months after Ban
- Inaugural Great Ball Run to be Held in Northern Virginia this Summer