BBVA says Q1 profit down 36 percent

Banco Bilbao Vizcaya Argentaria on Thursday said net profit for the first quarter of 2009 fell to 1.24 billion euros ($1.63 billion), 36.6 percent less than for the same period a year ago as the crisis hit its markets in Spain, Mexico and the United States.

"Recurrent earnings, prudent risk management and the sustainability of its business model are the key factors behind BBVA's results in the first quarter of 2009," the bank said in a statement.

Spain's second-largest bank by market capitalization, BBVA said net profit fell 14.2 percent year on year if one-time items were excluded, however.

"During the first quarter of 2009, a period in which the financial and economic crisis continued to gather force, BBVA once again demonstrated the recurrent nature and strength of its income with net interest income as the main driver," the bank said.

BBVA said that "despite the slowdown in banking activity, which especially affects Spain, the United States and Mexico," it was able to increase the volume of its business with gross lending to customers was up 5.5 percent year-on-year to 340 billion euros ($446.25 billion).

However, bad loans as a proportion of lending soared to 2.8 percent from 1.1 percent a year earlier with dubious assets almost tripling to 10.5 billion ($13.78 billion).

Shares were down 3.9 percent at 7.62 euros ($10).

(cg)