BBVA earnings hit by charge over Chinese bank

|By:, SA News Editor

Banco Bilbao Vizcaya Argentaria (BBVA) Q4 net loss €849M ($1.15B) vs profit of €20M a year earlier; consensus was for loss of €946M.

The loss was due to BBVA triggering a €2.3B charge for cutting its stake in China Citic Bank to under 10% to soften the effect of Basel III capital rules.

Operating income €2.47B vs €2.835B.

Net profit from continuing operations €568M vs loss of €158M a year earlier.

Net interest income -3.8% to €3.76B.

Gross loans -4.7%.

Bad loans 6.8% vs 5.1% a year earlier.

"The outlook for 2014 has improved significantly and at BBVA we are in an excellent position to respond to the growth of the solvent demand for credit," BBVA chairman Francisco Gonzalez said.

Shares +0.8% in Madrid. (PR)