Banco Popular's Net Profit Down 9% As Bad Loans Rise
May 04 2011 - 2:17AM
Dow Jones News
Banco Popular Espanol SA (POP.MC) said Wednesday its
first-quarter net profit fell 9%, as the bank's financing costs and
bad loans rose in Spain's lengthy economic downturn.
MAIN FACTS:
-Net profit for the three months stood at EUR185.7 million,
compared with EUR204 million a year earlier.
-Analysts were expecting net profit of EUR154 million, according
to a Dow Jones Newswires survey of 9 brokerages.
-First-quarter net interest income fell 22% to EUR515.5 million
from EUR663.4 million.
-Popular's earnings included a EUR497 million capital gain from
the sale of a majority of the bank's asset manager to Germany's
Allianz SE (ALV.XE). The proceeds of the sale were used to cover
souring loans and writedowns.
-Total provisions rose to EUR835.6 million from EUR395.9 million
a year earlier.
-The non-performing loan ratio grew to 5.44% of total loans at
the end of March, up from 5.27% in December.
-Popular's core Tier 1 capital ratio rose to 9.93%, from 8.74% a
year earlier.
-By Christopher Bjork; Dow Jones Newswires; +34913958123;
christopher.bjork@dowjones.com