- Q2 Net profit rises 38% to 2.79 bln euros, above forecasts
- Q2 NII up 12% to 6.48 bln, in line with analysts' expectations
- Q2 net profit in Spain up 57% y/y, in Mexico it rises 7%
- BBVA says takeover bid for Sabadell "progressing positively"
MADRID, July 31 (Reuters) - Spain's BBVA posted a 38% year-on-year rise in second-quarter on Wednesday, beating estimates, thanks to a solid performance in Spain, where it aims to buy smaller rival Sabadell, and as growth in Mexico slowed down.
The fifth-biggest bank in the euro zone by market value booked a net profit of 2.79 billion euros in April-June, above the 2.46 billion euros expected by analysts polled by Reuters.
BBVA shocked Spain when with a hostile 12-billion-euro ($12.84 billion) bid for Sabadell after the board of the country's fourth-largest bank rejected the initial offer.
BBVA relies on Mexico for more than half of its profit, and acquiring Sabadell would not only reduce the reliance but also increase BBVA's lending to small and medium-sized companies in Sabadell's home market of Spain.
The takeover process was "progressing positively, in full accordance" with the plan, said BBVA CEO Onur Genc.
The acquisition will create a bank with more than 1 trillion euros in total assets and comes as Spanish banks have been looking for ways to increase revenue as a boost from high rates begins to fade.
BBVA's net profit in Spain rose 57% year-on-year, while it rose 7% in Mexico, its main market.
At a group level, BBVA's net interest income (NII), or earnings on loans minus deposit costs, rose 12% year-on-year to 6.48 billion euros in the quarter, in line with analysts' forecasts.
($1 = 0.9320 euros)
Reporting by Jesús Aguado; Editing by Inti Landauro and Janane Venkatraman
Source: Reuters