MADRID—Banco Bilbao Vizcaya Argentaria SA said Friday that net profit fell in the second quarter from a year earlier, but it still beat analysts' estimates on slightly better-than-expected lending income.

BBVA, Spain's No. 2 bank by market value, said net profit dropped 8.2% to €1.12 billion ($1.24 billion) in the second quarter from €1.22 billion a year earlier.

Analysts had expected that a onetime contribution to a European Union fund—aimed at ending bank bailouts by taxpayers as well as currency volatility—would lead BBVA to report a net profit of €932 million ($1.03 billion) in the second quarter, according to a poll by data provider FactSet.

The bank booked dividends from Spanish telecommunications giant Telefó nica SA and China Citic Bank Corp in the second quarter.

BBVA, run by Executive Chairman Francisco Gonzalez, said net interest income in the second quarter was €4.2 billion, compared with €3.86 billion a year earlier. That was better than the €4.17 billion analysts had expected.

Net interest income, a key profit driver for retail banks, is the difference between what lenders pay clients for deposits and charge for loans.

BBVA reported a capital ratio in the second quarter of 10.71% under international regulations known as "fully loaded" Basel III criteria, a slight increase from the 10.54% the bank reported in the first quarter. The bank said it was on track to reach a target of 11% in 2017.

Write to Jeannette Neumann at jeannette.neumann@wsj.com

(END) Dow Jones Newswires

July 29, 2016 03:15 ET (07:15 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
Telefonica (NYSE:TEF)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Telefonica Charts.
Telefonica (NYSE:TEF)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Telefonica Charts.