MADRID - Spanish bank BBVA, said Thursday that its first-quarter profits fell from 7.3% a climate of poor business on its domestic market to offset a net improvement to the Mexico.
The figure of profit for the second Bank of the Spain was euro1.15 billion ($1.71 billion), compared to euro1.24 billion in the first quarter of 2010. Despite the profit fall, the Bank said that first-quarter performance was the best in the last three quarters.
BBVA said the main reason behind the decline of the year on the other is a 33.3% of Spanish profits slide and euro477 million. Some comfort was provided by the Mexican profits rising to euro436 this year to euro347 million.
Alongside the Mexico, South America and Asia has helped also to increase the gross income of the group - in the neighbourhood of euro5.26 billion once again which was the highest in the last three quarters. However, net interest income, which is the difference between interest paid and interest received, was down 6.2% to euro3.18 billion.
"The resilience of our earnings is based on an adequate diversification and a model of commercial success", President Angel Cano of the BBVA said in a news release. "Emerging markets will continue to play a growing role of the income of the group."
The Bank also stated that its capital base ratio fell to 8.9% 9.6% for the quarter in 2010, after completing the purchase of a 25% stake in the Turkish Bank guaranteed in March.
The Bank said loans bad as a proportion of the global loan bank had plunged to 4.1 to 4.3% last year, adding that it was the fifth quarter in a row in which the unproductive active ratio remained in failure.
Spain is struggling to emerge from nearly two years of recession, who left the country with more than 21% of unemployment and a swollen deficit. In turn, the banks in the country have been affected by low demand for credit and increasing bad debts.
Prize of the action of the BBVA decreased by 1.5% to euro8.4 in the morning trade in Madrid.
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