BBVA: profit hit by pandemic charges
(CercleFinance.com) - Banco Bilbao Vizcaya Argentaria, Spain's number 2 bank by market capitalisation, on Thursday reported a 62% fall in second-quarter net profit, as the lender had to make provisions and other impairments totaling 644 million euros to face the impact of the pandemic.
BBVA reported a net profit of 636 million euros for the three months to 30 June after it booked 576 million euros in impairments and 68 million euros in provisions.
While net interest income rose 2% year-on-year at constant exchange rates to 4.1 billion euros, the group's operating expenses dropped sharply to less than 2.6 billion euros.
However, including the US goodwill adjustment recorded in the first quarter, the Spanish bank swung to a loss of 1.2 billion euros between January and June.
The figure seemed to shake investors' confidence, as BBVA shares fell over 7% on Thursday, the sharpest faller on the Eurozone benchmark Euro STOXX index.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
BBVA reported a net profit of 636 million euros for the three months to 30 June after it booked 576 million euros in impairments and 68 million euros in provisions.
While net interest income rose 2% year-on-year at constant exchange rates to 4.1 billion euros, the group's operating expenses dropped sharply to less than 2.6 billion euros.
However, including the US goodwill adjustment recorded in the first quarter, the Spanish bank swung to a loss of 1.2 billion euros between January and June.
The figure seemed to shake investors' confidence, as BBVA shares fell over 7% on Thursday, the sharpest faller on the Eurozone benchmark Euro STOXX index.
Copyright (c) 2020 CercleFinance.com. All rights reserved.