BBVA Raises Net Profit Target After Beating Expectations in First Quarter

By Helena Smolak

BBVA raised its profit target for the year after first-quarter net profit and earnings beat consensus expectations.

The Spanish lender said Monday that it now expects to post double-digit growth in full-year net profit compared with previous expectations of single-digit growth.

Net profit in the first three months of the year rose to 2.2 billion euros ($2.35 billion) from EUR1.85 billion in the year-earlier period, boosted by recurring revenue at its banking business and rising-net interest income.

Net interest income--the difference between what banks earn on loans and what they pay clients for deposits--jumped 15% to EUR6.51 billion, helping drive BBVA's gross income--the bank's top-line figure--up 18% to EUR8.22 billion.

According to a company-compiled consensus, analysts expected the bank to report EUR2 billion in net profit on gross income of EUR7.835 billion, and net interest income of EUR6.34 billion.

The bank's fully-loaded common equity Tier 1 ratio--a measure of financial strength--was 12.82% at the end of the quarter, up from 12.7% as of Dec. 31.

Write to Helena Smolak at helena.smolak@wsj.com

(END) Dow Jones Newswires

April 29, 2024 01:47 ET (05:47 GMT)

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