BBVA Posts Profit Beat on Higher Lending Volumes

By Elena Vardon

Banco Bilbao Vizcaya Argentaria reported better-than-expected profit and revenue for the second quarter as strong activity boosted lending volumes.

The Spanish bank made a net profit of 2.79 billion euros ($3.02 billion) for the three months ended June 30 compared with EUR2.03 billion for the same period last year, it said Wednesday.

Gross income--its top-line figure--rose to EUR9.23 billion from EUR7.19 billion. This was mainly driven by loan growth, which led to a rise in net interest income--the difference between what banks earn on loans and what they pay clients for deposits--to EUR6.48 billion from EUR5.77 billion, it said.

Analysts expected BBVA's net profit at EUR2.46 billion, gross income at EUR8.65 billion and net interest income at EUR6.45 billion, according to consensus estimates provided by the company.

The lender's common equity Tier 1 ratio--a key measure of balance-sheet strength--stood at 12.75% at the end of the quarter, against expectations of 12.84%.

"We will comfortably surpass the ambitious goals we set for ourselves for the 2021-2024 period," Chief Executive Onur Genc said.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

July 31, 2024 01:32 ET (05:32 GMT)

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