Banco Bilbao Vizcaya Argentaria SA’s net profit increased by more than expected in the third quarter as higher revenue from interest-rate increases in its main markets outweighed rising costs and provisions.
The Spanish bank
said Friday that it posted a net profit of 1.84 billion euros ($1.83 billion) from July to September, up 31% from the EUR1.4 billion net profit it made in the third quarter of 2021.
The figure beat analysts’ expectations of profit at EUR1.55 billion, according to a consensus provided by the bank.
BBVA’s gross income stood at EUR6.86 billion, up from EUR5.33 billion a year earlier. Net interest income–the difference between what banks earn on loans and what they pay clients for deposits–rose 40% to EUR5.26 billion, beating expectations, driven by gains in Mexico and Spain.
The bank increased the amount of funds it puts aside to offset potential losses from nonperforming loans, with loan-loss provisions rising 51% to EUR940 million. It also saw an 18% on-year increase in operating expenses amid broadening inflation pressures.
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