Spanish Bank BBVA Posts Drop in Profit but Beats Analysts' Forecasts
29 July 2016 - 5:30PM
Dow Jones News
MADRID—Banco Bilbao Vizcaya Argentaria SA said Friday that net
profit fell in the second quarter from a year earlier, but it still
beat analysts' estimates on slightly better-than-expected lending
income.
BBVA, Spain's No. 2 bank by market value, said net profit
dropped 8.2% to €1.12 billion ($1.24 billion) in the second quarter
from €1.22 billion a year earlier.
Analysts had expected that a onetime contribution to a European
Union fund—aimed at ending bank bailouts by taxpayers as well as
currency volatility—would lead BBVA to report a net profit of €932
million ($1.03 billion) in the second quarter, according to a poll
by data provider FactSet.
The bank booked dividends from Spanish telecommunications giant
Telefó nica SA and China Citic Bank Corp in the second
quarter.
BBVA, run by Executive Chairman Francisco Gonzalez, said net
interest income in the second quarter was €4.2 billion, compared
with €3.86 billion a year earlier. That was better than the €4.17
billion analysts had expected.
Net interest income, a key profit driver for retail banks, is
the difference between what lenders pay clients for deposits and
charge for loans.
BBVA reported a capital ratio in the second quarter of 10.71%
under international regulations known as "fully loaded" Basel III
criteria, a slight increase from the 10.54% the bank reported in
the first quarter. The bank said it was on track to reach a target
of 11% in 2017.
Write to Jeannette Neumann at jeannette.neumann@wsj.com
(END) Dow Jones Newswires
July 29, 2016 03:15 ET (07:15 GMT)
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