SPANISH bank BBVA yesterday posted a 35 per cent fall in net profit for 2011, as it was hit by provisions for bad property loans at home and a one-off charge on its US business.
BBVA’s 2011 net profit fell to €3.0bn. Its bad debts ratio declined to four per cent of total loans, versus 4.1 per cent in September.
The bank has borrowed €11bn from the ECB’s new 3-year lending facility at the December auction.
The results came as the Spanish economy ministry ordered banks in the country to raise an extra €50bn to compensate for foreclosed loans and bad loans to housebuilders on their balance sheets.
Banks must make a specific provision from results totalling about €25bn across the entire sector, economy minister Luis de Guindos said.
In addition, banks must put aside capital equal to 20 per cent of the book value of undeveloped lots and 15 per cent for unfinished developments.
