BBVA reports drop in quarterly profit on rise in provisions

28th July 2010, Comments 0 comments

BBVA, Spain's second-biggest bank, reported on Wednesday a 17.6-percent drop in net profits during the second quarter over the equivalent figure last year owing to higher provisions for bad loans.

Net profits in the April-June period reached 1.29 billion euros (1.67 billion dollars) compared to 1.56 billion euros in the year-ago period, it said in a regulatory filing.

A survey of 12 analysts polled by Dow Jones Newswires had expected an average second-quarter net profit of 1.2 billion euros.

BBVA, which last week passed a stress test of European banks, booked provisions during the period of 250 million euros.

Operating income rose to 3.32 billion euros from 3.47 billion euros in the year-ago period.

During the first half of the year BBVA posted a net profit of 2.53 billion euros, a 9.7 percent drop over the same time last year.

© 2010 AFP

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