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BBVA posts first earnings
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January 25, 2000: 6:15 a.m. ET
Pro forma 1999 profit up 23% at bank formed by Spain's BBV and Argentaria
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LONDON (CNNfn) - Banco Bilbao Vizcaya Argentaria posted a jump of nearly 23 percent in pro forma 1999 profit Tuesday in the bank's first earnings report since BBV and Argentaria united last October, forming Spain's second-largest financial institution.
BBV and Argentaria announced their $14 billion stock swap in October with an eye on creating a viable rival to Spain's largest bank, BSCH - itself the product of the merger last January of Banco Santander and Banco Central Hispanoamericano.
The BBV-Argentaria tie-up got regulatory approval in December and the new entity is expected to begin trading as a single stock at the end of this month.
Tuesday's financial results represented an amalgamation of each bank's financial performance in 1999 - including the months before the merger was formally announced.
BBVA said net profit rose by 22.6 percent to 1.75 billion euros ($1.75 billion) in 1999, in line with analysts' forecasts, while net interest income climbed 4.4 percent to 5.76 billion euros, slightly higher than expected.
Operating profit rose 10.8 percent to 3.457 billion euros.
In a separate development, BBVA chief executive Pedro Luis Uriarte said Tuesday he is optimistic about the likelihood of an alliance with Italy's UniCredito, though he declined to specify any timetable for a possible merger.
Referring to discussions on an alliance with Italy's UniCredito, BBVA chairman Emilio Ybarra told Reuters some changes were still needed before the talks could be concluded. He said the Bank of Italy had adopted a "neutral stance" on the talks.
Unicredito is reportedly intent on shoring up its merger with Italian compatriot bank BNL before tying up an alliance with BBVA. The talks come against the backdrop of continuing consolidation in the European financial sector. 
--from staff and wire reports
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