Spain's BBVA reports 3.48-bln-euro profits in 2016

Spain's second-biggest bank BBVA reported 3.48 billion euros (3.76 billion U.S. dollars) of profits in 2016, according to data published on Wednesday by the Bank.

The figure was 31.5 percent higher than in 2015, which, according to the Bank, was due to a "solid performance of recurring revenues, moderation in operating expenses, and a drop in impairment losses on financial assets."

The results were affected by the depreciation of exchange rates, the incorporation of Catalunya Banc in 2015 and the acquisition of an additional 14.9 percent stake in Turkish bank Garanti, BBVA added.

Meanwhile, the bank's bad loan ratio stood at 4.9 percent in December, which meant 48 basis points below the December 2015 figure.

The Bank reported a negative impact of 404 million euros related to a provision of 577 million euros booked in the fourth quarter in 2016 aimed at covering potential losses derived from mortgage floor clauses.

The European Court of Justice had ruled Spanish lenders must pay back customers affected by mortgage floor clauses, which imposed a minimum interest rate on floating-rate mortgages setting a limit on how far mortgages rate could fall. (1 euro=1.08 U.S. dollar) Endit