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The Spanish bank BBVA reported Friday that its net profit rose 18.3% in the second quarter compared to the same period last year, due to the performance of its main market, Mexico compensated for a depreciation of the currency in Turkey.
Both markets were responsible for almost half of the bank's profits. The company, based in Bilbao, also saw an increase in demand for credit cards and consumer credit in Spain, as well as a decrease in provisions.
BBVA, the second largest bank of Spain announced a net profit of one thousand 310 million euros (one thousand five hundred million dollars) over the period from April to June, higher than the average forecast of 180 million euros in a Reuters poll.
"BBVA has reported decent numbers this quarter," said Daragh Quinn, an badyst at Keefe, Bruyette & Woods, in a note to investors. "Despite the elections in Mexico, activity levels in business loans have improved this quarter."
The bank's risk management and a portfolio mix with a high proportion of inflation-indexed bonds limited the impact of the depreciation of the lira in its capital ratio to negative 1.9 percentage points during the quarter, explained the company.
In its main market in Mexico, the company 's net profit rose by 15.4% to 637 million euros, supported by strong operating trends despite the fact that the company' s share of net profit rose 15.4%. uncertainty surrounding the negotiations of the North American Free Trade Agreement (NAFTA).
Uncertainty
"We had excellent results in the second quarter, despite the uncertainty in some of the markets we operate on," said the head of the bank, Carlos Torres in a statement.
Results in both markets indicate that the underlying gain of BBVA's two main foreign badets remains robust. loans increased by 9% and net interest income increased by 8% in Mexico.
Loans growth was even more dynamic in Turkey, where they increased by 15% in the first half, compared with the same period of the previous year, while deposits grew by 20%. However, there has also been an increase in provisions in Turkey.
A rebound in the Spanish economy has reduced the need for banks to make more provisions, and the increase in confidence has led to an increase in consumer loans and mortgages.
With information from Bloomberg.
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