Banesto displays a half-year results were down nearly 7%
The Spanish bank Banesto publishes an interim result down 6.8% due to the recognition of a higher amount of provisions for bad debts, which impacted the margins of the establishment.
The Spanish bank has registered a net profit of 381.7 million euros, while analysts polled by Reuters had expected 376 million euros.
Banesto, majority owned by Spanish bank Santander and the first to publish its interim results, said it recorded $ 85 million of exceptional provisions.
The ratio of Banesto related bad loans to total loans stood at 3.48% against 3.12% at end-March, while analysts at Citi said they expect that this ratio reaches a peak during the year 2011.
The net interest income, or about what a bank earns on loans decreased costs related to its deposit, rose 0.5% to 863.6 million euros against 855 million expected by analysts.
Around 7:15 GMT, gaining 0.8%, while the Stoxx index comprising the major European banking stocks was virtually unchanged at the same moment (-0.05%).