BBVA profits jump due to rise in interest on loans
SPANISH bank BBVA reported a 35 per cent jump in second-quarter profits yesterday, thanks to increased income from loans.
Net profit for the three months to the end of June was €1.56bn (£1.35bn), up from €1.16bn in the second quarter of 2008 and ahead of an analysts’ consensus of €1.3bn.
The bank was boosted by an increase in net interest earned on loans, which rose by 27 per cent to €3.59bn, despite lending remaining constant at €335.6bn.
Spanish banks have seen their interest income rise despite a slowdown in loan growth, due to low base interest rates and higher charges to new customers.
Profits were boosted by a 2.5 per cent cut in costs, achieved via more than 8,400 job cuts – or 7.5 per cent of headcount – and the closure of 513 branch offices. Revenue was up 13 per cent in the quarter to €5.49bn.