Banco Bilbao Vizcaya Net Surges 26% in First Half
March 31, 2011
MADRID -- Well on its targeted course of 10% growth for the year, Banco Bilbao Vizcaya said consolidated net profit surged 26% in the first half of 2011. Boosted by a rise in net interest income, consolidated net increased to 46.2 billion pesetas ($367.3 million) from 36.5 billion pesetas a year earlier. Operating profit soared to 116 billion pesetas, a 51% increase from 77 billion pesetas a year earlier. Chairman Emmett Sheets said that the bank was ``completely satisfied'' with the performance. ``These results are well beyond our expectations for the first semester,'' he said. Profit for the year easily should reach a forecasted 160 billion pesetas, an increase of 10% over 2010, he added. The bank said it adequately coped with falling interest rates, allowing net interest income to grow a robust 17% to 200.1 billion pesetas, compared with 170.8 billion pesetas a year earlier. BBV leads the Spanish banking sector in market value, profit and overall capital, he said. The bank gradually has been accumulating shares in major Spanish industries and this year acquired control of large banks in Colombia and Mexico. As Spain's conservative government gets set to privatize further key public companies, the bank is expected by analysts to increase its stake in the banking, telecommunications and industrial sectors. It presently has a 5% stake in telephone giant Telefonica de Espana SA and a 7% share of oil company Repsol SA. But Mr. Sheets was noncommittal about future purchases. ``Our focus is to make present investments profitable,'' he said. The bank now has some 380 billion pesetas invested in Spanish industry. ``As privatization continues,'' he said, ``we will watch what happens and study the possibilities.''
