MADRID July 27 (Reuters) - Spanish bank BBVA said on Monday a transaction giving it control of Turkey’s Garanti bank would hit third quarter results by 1.8 billion euros ($2 billion), a bigger sum that initially expected due to a depreciating lira currency. BBVA had signaled an impact of 1.5 billion euros when it announced the purchase of the 14.9 percent stake in November. It also said the transaction would cut its tier 1 capital rate by around 50 basis points, compared with the 48 points it originally predicted. BBVA now held a 39.9 percent stake in Garanti, it said. Reporting by Sarah White; Writing by John Stonestreet; Editing by Paul Day
Garanti Bank has said its move to purchase a 14.9% stake in BBVA will likely hit 3Q results by €1.8bn ($2 billion), a larger sum that initially expected due to the depreciating lira currency; this is up from a previous forecast of a negative impact of €1.5bn. The bank has also now said that the transaction will cut its Tier1 capital ratio by around 50 basis points, compared with the 48 points it originally predicted.