By Xavier Fontdegloria

 

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.

 

Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com

 

(END) Dow Jones Newswires

October 28, 2022 01:22 ET (05:22 GMT)

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