*
Net profit rises 39% to 1.85 bln euros, above forecasts
*
NII jumps 43% to 5.6 bln in line with analysts'
expectations
*
Deposits stable at BBVA, slightly down at Sabadell
*
Net profit at Sabadell falls 4% but beats market forecast
*
Shares rise more than 2% at BBVA and Sabadell
(Adds results from Sabadell, market reaction)
By Jesús Aguado
MADRID, April 27 (Reuters) - Spain's BBVA on
Thursday posted a 39% rise in first-quarter net profit that beat
forecasts due to a solid performance in its main market Mexico,
and reported stable customer deposits despite banking sector
turmoil.
BBVA's profit of 1.85 billion euros ($2.04 billion) for the
January to March period was above the 1.66 billion euros
forecast by analysts polled by Reuters, even though it paid a
225 million euros Spanish banking levy.
The result came as Spanish competitor Sabadell reported a 4% fall in net profit to 205 million euros, which was
well above the 138 million euros expected.
Shares in BBVA and Sabadell rose around 2% at 0752 GMT.
As with other European banks, both benefited from a rise
in lending income thanks to higher interest rates.
At BBVA, net interest income (NII), or earnings on loans
minus deposit costs, rose 43% year-on-year to 5.6 billion euros
in the quarter, while NII at Sabadell rose 28% to 1.1 billion
euros. Both were in line with forecasts.
The focus has recently shifted towards cash ratios at
lenders after the last month's collapse of Silicon Valley Bank
and shotgun merger between UBS and Credit Suisse, the biggest
turmoil to hit the sector since 2008.
At BBVA, customer deposits rose 0.4% compared to the end of
the previous year, but were down 1.5% at Sabadell.
BBVA finished March with a liquidity coverage ratio (LCR) of
184% compared to 159% at the end of December, while Sabadell's
was at 220%, down from 234%.
Like larger rival Santander , BBVA has been
expanding in emerging economies to boost income.
In Mexico, BBVA's net profit rose 65%, while income from
lending increased by 48%. NII rose 38% in Spain.
In Turkey, where BBVA shifted to hyperinflation accounting
in 2022, the lender booked profit of 277 million euros compared
to a loss of 76 million euros in the same quarter last year due
to positive business dynamics and lower taxes.
However, net interest income in Turkey fell 3.7% in the
quarter following new regulations that weighed on banks' books.
($1 = 0.9048 euros)
(Reporting by Jesús Aguado; additional reporting by Emma
Pinedo; editing by Inti Landauro and Jamie Freed)
