Banco Popular's Net Profit Rose 5.7% in the First Half
March 29, 2011
MADRID -- Banco Popular Espanol said net profit grew 5.7% in the first six months of 2011 despite a steady drop in interest rates and weak demand for credit. Earnings rose to 32.25 billion pesetas ($252 million) from 30.52 billion pesetas a year earlier. Operating profit increased by 9.7% to 60.54 billion pesetas from 55.18 billion pesetas. Since late December, the Bank of Spain has cut interest rates by two percentage points, reducing interest rates on loans. Banco Popular said weak demand for credit led to increased competition from other banks. Even so, the bank was able to boost net interest income by 6.8% to 89.35 billion pesetas from 83.66 billion pesetas. Consistently profitable, Banco Popular is the smallest of Spain's major banks and maintains a conservative and primarily domestic operating strategy.
