BBVA’s Q3 net profit rises 31% buoyed by Mexico, lending income

Posted on October 28, 2022Comments Off on BBVA’s Q3 net profit rises 31% buoyed by Mexico, lending income

© Reuters. FILE PHOTO: The logo of BBVA bank is seen on the facade of a BBVA bank branch office in Malaga, Spain October 27, 2022. REUTERS/Jon Nazca

MADRID (Reuters) – Spain’s BBVA (BME:) on Friday said its third quarter net profit rose 31.4% from the same quarter in 2021 boosted by strong lending income and a strong performance in Mexico, its main market.

The country’s second biggest lender by market value booked a net profit of 1.84 billion euros ($1.84 billion) in the July to September period, more than the 1.55 billion euros analysts had forecast according to a Reuters poll.

For years, banks across Europe have been under pressure from record low interest rates, but that is changing as rising rates are boosting lenders’ income.

Overall, net interest income, earnings on loans minus deposit costs, rose 40.2% year-on-year in the quarter to 5.26 billion euros, above the 4.83 billion euros forecast by analysts.

The 1.14 billion euros net profit contribution from its Mexican unit lifted up the bank’s earnings in the period. Like its larger Spanish competitor Santander (BME:), BBVA has been expanding in emerging economies as business was too slow in more mature markets. Some analysts, though, have cited risks from its exposure to Turkey.

($1 = 1.0018 euros)

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Comments Off on BBVA’s Q3 net profit rises 31% buoyed by Mexico, lending income