Q2 Net profit rises 38 to 2.79 bln euros, above forecasts
Q2 NII up 12 to 6.48 bln, in line with analysts39; expectations
Q2 net profit in Spain up 57 yy, in Mexico it rises 7
BBVA says takeover bid for Sabadell progressing positively

MADRID, July 31 Reuters Spain39;s BBVA posted a 38 yearonyear rise in secondquarter on Wednesday, beating estimates, thanks to a solid performance in Spain, where it aims to buy smaller rival Sabadell, and as growth in Mexico slowed down.

The fifthbiggest bank in the euro zone by market value booked a net profit of 2.79 billion euros in AprilJune, above the 2.46 billion euros expected by analysts polled by Reuters.

BBVA shocked Spain when with a hostile 12billioneuro 12.84 billion bid for Sabadell after the board of the country39;s fourthlargest bank rejected the initial offer.

BBVA relies on Mexico for more than half of its profit, and acquiring Sabadell would not only reduce the reliance but also increase BBVA39;s lending to small and mediumsized companies in Sabadell39;s home market of Spain.

The takeover process was progressing positively, in full accordance with the plan, said BBVA CEO Onur Genc.

The acquisition will create a bank with more than 1 trillion euros in total assets and comes as Spanish banks have been looking for ways to increase revenue as a boost from high rates begins to fade.

BBVA39;s net profit in Spain rose 57 yearonyear, while it rose 7 in Mexico, its main market.

At a group level, BBVA39;s net interest…