BBVA reports a 3.3 per cent down in net profit

Spain's second-largest bank BBVA, Banco Bilbao Vizcaya Argentaria, has reported a 3.3 per cent decline in its net profit for the nine-months.

The net revenue has slipped 3.3 per cent to 4.179 billion euros, which is almost equal to the analyst’s predicted value of 4.106 billion.

However, the capital ratio of the bank witnessed an increase and it has reached 8 per cent from 7.1 per cent three months ago.

Nuria Alvarez, analyst Renta 4 bank said that the bank has a solid first nine-month performance but the decline in profits in bank’s two biggest markets, Spain and Mexico, has disgraced the overall performance scenario.

She added that the capital boost was a very positive indication, and it could offer loan provisions to tackle harsh situations in the markets of Spain and Mexico.

Bad loans percentage has climbed up to 3.4 per cent at the end of third quarter as against 3.2 per cent at the end of second quarter in June.