* BBVA, Caixabank and Popular to report 2013 results
* BBVA seen posting Q4 loss after Chinese stake sale
* But 2013 profit to leap as property charges fall
* Caixabank, Popular profit also seen rising
MADRID, Jan 31 Spain's second-biggest bank BBVA
and two smaller peers are expected to post jumps in
2013 profit on Friday, largely thanks to lower provisions on
soured property loans.
Investors will be looking for signs that their core lending
businesses are on the mend, however, and BBVA, Caixabank
and Banco Popular should show improved
earnings from loans in the fourth quarter.
Spain's economy grew for a second straight quarter in the
final three months of 2013, data on Thursday showed, and that
recovery should start feeding through to the country's banks
even though unemployment remains high.
A drop in deposit rates throughout 2013 is also beginning to
help banks' net interest income, which tracks earnings from
loans minus funding costs, though the turnaround will likely
only be notable in the fourth quarter of the year.
BBVA, which makes the bulk of its profit abroad, will like
its peers benefit from lower charges in 2013 against rotten real
estate loans and foreclosed property.
Spain forced its banks to make hefty provisions on these
assets in 2012, gutting earnings and pushing the weakest into
But BBVA also took a hit in the fourth quarter from the sale
of a 5 percent stake in China's CITIC Bank Corp at a
loss, although the deal bolstered its core capital ratio under
stricter new international rules.
BBVA is forecast to make a loss of 1.05 billion euros in the
fourth quarter of 2013, according to the averaged estimates of
analysts polled by Reuters.
For the whole of 2013, its net profit is seen growing 22.5
percent to 2.05 billion euros.
BBVA's business in Mexico, its biggest market, will also be
in the spotlight after Spanish rival Santander said on
Thursday its annual Mexican profit was down nearly 30 percent.
Popular, the country's fifth biggest bank by market value,
should show a notable recovery from 2012 losses of 2.46 billion
euros. Its 2013 net profit is forecast to come in at 261 million
euros, according to analysts polled.
Barcelona-based Caixabank, the country's third
biggest lender, is forecast to more than double 2013 net profit
to 543 million euros, according to the Reuters poll.
(Reporting by Sarah White, editing by David Evans)