LONDON (ShareCast) - There is no doubt that investors are talking about provisions and core capital when it comes to analysing bank earnings presentations. This morning, Spanish bank Banco Popular announced that it set aside €1.69bn for bad loan provisions. As a result, its annual net income fell 18.7% to €479.6m in 2011 but still topped the market consensus estimate of €477m. The bank explained that the provisions are part of its prudent policy and allow it to anticipate new regulations. It says that it was possible thanks to greater revenue generation than its rivals. "Since the start of the crisis, Banco Popular has set aside €8bn for provisions," the bank's statement read. "This effort makes Popular (Berlin: PP4.BE - news) one of the most solid Spanish banks and gives it an advantage in the current restructuring process of the Spanish banking system." Core (Berlin: LJ1.BE - news) capital came in at 10.04% and the bad loan rate at 5.99%. The interest margin fell by 14.2% to €2.086bn but also topped the consensus estimate of €2.076bn. M.G.
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