BBVA beats analysts' estimates as the emerging market exposure more than made up for the 50% fall in Spanish earnings. Net income was Euro 1bn vs. Euro 937m expected, down 15% y-on-y. The bank's bad loans increased to 4% of total lending. Overall lending volumes were down 2% and deposits 8% in the Spanish operations. BBVA says there is now proof of credit quality worsening at an increasing speed. The bank has 60% of total credits in Spain.