BBVA 1Q Net Profit Rose Ahead of Views, Driven by Higher Net Interest Income

By Adria Calatayud

Banco Bilbao Vizcaya Argentaria SA said Thursday that net profit rose in the first quarter, beating consensus expectations, as higher rates boosted net interest income.

The Spanish bank said net profit was 1.85 billion euros ($2.04 billion) compared with EUR1.325 billion in the year-earlier period. The lender attributed the rise to the performance of its banking business and net interest income in particular.

Net interest income--the difference between what banks earn on loans and what they pay clients for deposits--jumped 43% to EUR5.64 billion, helping BBVA's gross income--the bank's top-line figure--reach EUR6.96 billion for the first quarter, up 29% on year.

Analysts expected BBVA to report a net profit of EUR1.67 billion, net interest income of EUR5.57 billion and gross income of EUR6.79 billion in the quarter, according to consensus estimates compiled by the bank.

The bank's fully-loaded common equity Tier 1 ratio--a measure of financial strength--was 13.13% at the end of the quarter, up from 12.61% as of Dec. 31.

Write to Adria Calatayud at adria.calatayud@dowjones.com

(END) Dow Jones Newswires

April 27, 2023 01:20 ET (05:20 GMT)

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