Spain’s BBVA says ‘fully commitment’ to Turkey despite uncertainty
AFP photoSpain’s BBVA said on July 29 the attempted military coup in Turkey had not affected its business in Turkey, where it owns a majority stake in lender Garanti Bank, and it was “fully committed” to the country despite the uncertainty, as Reuters has reported.
BBVA, which has 14 percent of its business in Turkey, reiterated cost of risk guidance for the year of 1.1 percent for Turkey, and said it was fully hedged against a depreciation in the Turkish Lira for 2016.
For its mid-year results, the bank reported a jump in quarterly profit.
Spain’s second largest bank BBVA said its net profits fall 8.2 percent to 1.12 billion euros in the second quarter on adverse exchange rates, as Agence France-Presse has reported.
But shares in the financial giant were still up 4.05 percent at 5.24 euros mid-morning as analysts had expected a bigger plunge.
Net profits in the second quarter of 2015 had been inflated by exceptional gains such as the sale of a 0.8 percent stake in Chinese bank CNCB.
But BBVA’s net interest income, a key profit driver for retail banks, rose to 4.21 billion euros from 3.9 billion euros in the same period last year, as AFP noted.
During the first half of the year, BBVA’s net profit tumbled 33.6 percent to 1.83 billion euros, “due to the impact of exchange rates and the lack of corporate operations.”