MADRID -- Banco Bilbao Vizcaya Argentaria SA said third-quarter net profit edged up, as robust lending offset a jump in higher provisions for bad loans.
BBVA, Spain's second-largest bank by assets after Banco Santander SA, said Wednesday that net profit for the three months ended Sept. 30 increased 0.7% to €1.39 billion ($1.77 billion) from €1.38 billion a year earlier.
Nonperforming loans at the end of the third quarter rose to 1.54% of total loans, up from 1.22% in June and 0.88% in September 2007.
BBVA provisioned €931 million to cover potential loan losses, more than double what it booked a year earlier.
While overall growth eased in the quarter, BBVA remained largely untouched by the credit crunch that has brought havoc to the banking sector.
Chief Operating Officer José Ignacio Goirigolzarri rejected suggestions that BBVA may need to shore up its capital ratios in order to catch up with other European banks that have gotten cash injections in recent weeks. Mr. Goirigolzarri said BBVA would continue to generate capital from earnings without having to cut its dividend.
BBVA's core Tier 1 ratio, a key measure of a bank's financial strength, rose to 6.4% in the third quarter, compared with 6.25% in the second quarter and 5.8% a year earlier.
BBVA, based in Bilbao, northern Spain, said net interest income jumped 30% to €3.13 billion from €2.41 billion a year earlier.
Total net lending was up 11%, backed by strong growth at the bank's Latin American operations, offsetting a sharp slowdown in lending growth in Spain.
Source:http://online.wsj.com/article/SB122530943378581175.html?mod=googlenews_wsj