By Joshua Kirby

Banco Bilbao Vizcaya Argentaria SA confirmed late Tuesday that it had reached an agreement to cut 2,935 posts in Spain, and set out the expected costs and impact on its equity ratio, as well as the estimated annual savings.

The Spanish bank said the process will cost around 960 million euros ($1.17 billion) before taxes, comprising EUR720 million relating to the job cuts and a further EUR240 million relating to the planned closure of 480 branches. News of the layoffs was revealed by labor union Comisiones Obreras earlier Tuesday. BBVA had originally planned to cut 3,798 posts.

The costs will be booked during the second quarter this year, BBVA said. The process will reduce the bank's Common Equity Tier 1 ratio by around 28 basis points.

The layoffs will generate annual pretax savings of around EUR250 million starting in 2022, primarily through lower personnel costs, with savings of around EUR65 million this year, the bank said.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

06-09-21 0122ET