Home truths

28 April 2016 By Fiona Maharg-Bravo

Shares in the Spanish lender dropped after it disclosed weak first-quarter profit. Currencies and lower trading income have hurt, but business in Spain is sagging and provisions grew in the U.S. It’s an inauspicious start to what was supposed to be a strong year.

This content is for Subscribers only

Context News

BBVA on April 28 reported a 54 percent drop in net profit to 709 million euros in the first quarter against the same period a year earlier, below analyst expectations.

Spain’s second-largest bank said net interest income increased 13.3 percent year-on-year in the three months to March to reach 4.2 billion euros, though it was down from the previous quarter. The ratio of non-performing loans fell 10 basis points from the previous quarter to 5.3 percent.

BBVA said the fully loaded core Tier 1 capital ratio was 10.54 percent in the first quarter, up 21 basis points from the level at the end of December.

At 0949 BST on April 28, BBVA shares were trading down 8.25 percent at around 6.2 euros.

Email a friend

Please complete the form below.

Required fields *