UPDATE 1-Spain's BBVA says Q2 net profit up 10.2%, resumes dividend policy

(Adds details on dividend policy)

MADRID, July 30 (Reuters) – Spain’s BBVA on Friday said its net profit rose 10.2% in the second quarter compared to the same period a year ago on lower loan loss provisions.

The lender reported a net profit of 701 million euros in the quarter. Analysts polled by Reuters expected the bank to book a net profit of 361 million euros.

Results were also boosted by the sale of its U.S. unit, which had a positive 103 million euros ($122.3 million) contribution during the quarter after the deal was closed in June, and a solid performance in Mexico, its main unit.

After the ECB announced a lifting of restrictions starting on Sep. 30, BBVA also announced its intention to resume its dividend policy in 2021, with a cash payout of 35-40% of the profit.

To also cope with the pandemic, BBVA last year sold its U.S. business, generating more than 8 billion euros, and potentially buying back as much as 10% of its outstanding shares, which it plans to start in the fourth quarter.

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