Spain's Banesto says H1 net down 8.9 pct yr/yr

MADRID, July 8 (Reuters) - Spanish bank Banesto (BTO.MC) recorded an 8.9 percent year-on-year fall in first-half net profit on Wednesday, just ahead of expectations, as credit quality deteriorated because of a recession.

Banesto, 88 percent owned by the euro zone's largest bank Santander (SAN.MC), made net profit of 409.5 million euros ($572.4 million).

Banesto said it had made an extraordinary provision of 57 million euros in the second quarter because of the economic slowdown.

Its non-performing loans ratio rose to 2.32 percent at the end of June from 1.97 percent at end-March.

A Reuters survey of six analysts had forecast Banesto would make net profit of 403 million euros and net interest income of 834 million. (Reporting by Elisabeth O'Leary and Jesus Aguado; Editing by Jason Webb)