Spanish banks reveal decreasing profits

The real-estate sector damaged all Spanish banks and one of the most profitable one reported a massive profit decrease in early 2014. BBVA Bank, the second biggest bank in Spain, that also operates in North and South American and Asia is not doing well.

The first quarter of 2014 brought bad news for Spanish bank. Official figures claim the bank recorded profits in excess of 600 million euros in the first part of 2014. Although the amount is large, it's almost 65 percent lower than what the same period of last year brought.

BBVA was hurt by the downfall of the real-estate sector in 2010. Spain was one of the most affected countries in Europe by this collapse and BBVA can feel the effects even six years later. However, bank officials claim high-risk loans decreased by almost 0.5 percent in the last two quarters and showed signs of improvement.

The situation is similar throughout Spain. Santander Bank and Caixabank revealed similar statistics. Profit decrease in the first quarter of this year, but high-risk loans improvements. Although these stats may not show a healthy improvement in the financial sector, it could be a turning point for a Spain trying to get out of a long recession.