MADRID, June 12 Spanish lender BBVA
said on Wednesday it would lose 35 million euros ($47 million)
in net profit in June, after a court forced it and other banks
to change some mortgage structures which protected them against
interest rate drops.
Changing these Spanish mortgage structures could end up
costing BBVA and two other banks more in lost income in the
Spain's Supreme court ruled in early May that mortgage floor
rates - which prevent interest paid by homeowners from falling
below a certain level as other linked rates such as Euribor
fluctuate - were invalid if they had not been presented to
BBVA said the impact of the changes beyond June, when they
come into effect, would depend on the movements of Euribor, a
reference rate used by many euro zone banks to underpin mortgage
State-owned NCG Banco and savings bank Cajamar Caja Rural
were also affected by the ruling.
BBVA makes the majority of its income outside Spain in
regions such as Latin America, but it has said it wants to grow
its market share in its home country.
Like local peers, a deep recession and a property crash has
hampered its earnings in Spain, with income from loans dropping
in the first quarter.
($1 = 0.7498 euros)
(Reporting by Sarah White; editing by Keiron Henderson)