FILE PHOTO: BBVA bank logo is pictured in Bogota, Colombia February 14, 2020. REUTERS/Luisa Gonzalez
MADRID (Reuters) – Spain’s BBVA (BBVA.MC) reported on Thursday a quarterly loss of 1.79 billion euros ($1.94 billion) after booking a writedown of 2.08 billion euros on its unit in the United States, it said on Thursday.
BBVA said the impairment in the U.S. was “mainly due to the negative impact of the update of the macroeconomic scenario affected by the COVID-19 pandemic” though it did not affect its capital or the liquidity.
Separately, the lender had also set aside 1.43 billion euros in provisions to anticipate the coronavirus pandemic impact.
Without taking into account the impairment on its U.S. business, BBVA’s profit fell 75.3%, the lender said.
BBVA also announced it would not pay any dividend against 2020 results until the uncertainties caused by the coronavirus disappear.
BBVA was the only major Spanish bank that had so far not modified or cancelled its shareholder remuneration policy, a move also widely followed by other European lenders after the European Central Bank had told lenders to skip dividend payments and share buy backs until October at the earliest to use profits to support the economy.
Reporting by Jesús Aguado, editing by Inti Landauro and Kim Coghill