By Xavier Fontdegloria
Banco Bilbao Vizcaya Argentaria SA said Friday that it will start a share buyback program of up to 10% of its capital in the fourth quarter after registering better-than-expected profits from April to June.
The Spanish bank's net profit grew 10% compared with the same period last year to 701 million euros ($833.4 million). Analysts expected the lender to post a profit of EUR379 million.
BBVA said net interest income--the difference between what lenders earn from loans and pay for deposits, a key profit driver for retail banks--was EUR3.50 billion compared with EUR3.54 billion a year earlier.
Impairments on financial assets and provisions fell to EUR656 million in the second quarter from EUR1.41 billion for the same period a year earlier, when activity was hit by the coronavirus pandemic.
The lender's fully-loaded CET1 ratio, a key measure of capital strength, increased to 14.17% in June from 11.88% in March.
The pro forma fully-loaded CET1 ratio, including the share repurchase program, stands at 12.89%, the bank said.
Write to Pietro Lombardi at firstname.lastname@example.org
(END) Dow Jones Newswires