Spain's Banco Popular 2010 profits slump 23%

4th February 2011, Comments 0 comments

Banco Popular, Spain's third-largest listed bank, on Friday reported a 23 percent drop in net profits for 2010 to 590.2 million euros ($804 million) after making hefty provisions for bad loans.

The bank said in a statement that new banking regulations forced it to make provisions of 1.834 billion euros for the year.

Net banking income for the year fell 13.1 percent to 2.45 billion euros, it said while fourth quarter net profit fell 40.2 percent to 68.8 million euros ande net banking income for the quarter was down 20.8 percent to 557.3 millions euros.

Spain's government has announced new rules requiring stronger balance sheets for the entire banking industry as it fights to dispel market fears over bad debts.

© 2011 AFP

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