Banco Pastor H1 net up 18.2 pct, bad loans jump

MADRID, July 31 (Reuters) - Banco Pastor (PAS.MC) said on Thursday that first-half net profit rose 18.2 percent to 124.4 million euros ($193.9 million), just short of analysts' forecasts, while its bad loans rose.

"The slowdown in credit growth and rising bad loans are directly linked to the current economic situation ... Banco Pastor is not immune to this situation," the bank said in a statement.

Non-performing loans rose to 1.83 percent at the end of June from 1.26 percent at the end of the first quarter, with over 100 percent coverage.

All other Spanish banks have reported a spike in bad loans as the economy slows, forcing a slew of property and construction companies into administration.

Analysts are concerned that a jump in unemployment could trigger a sharp rise in mortgage defaults as well.

Banco Pastor's net interest income -- the difference between what a bank earns on loans and pays on deposits -- rose 5.8 percent to 285.7 million euros.

A Reuters poll of six analysts had forecast first half net profit of 197 million euros and net interest income of 284.4 million euros. (Reporting by Paul Day, Editing by Mike Nesbit)