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BBVA lifts profit growth forecast after Q1 earnings beat estimates

Published 04/29/2024, 04:37 AM
© Reuters.

Investing.com -- BBVA has lifted its forecast for annual net attributable profit growth after the euro zone's fourth-largest lender posted higher-than-anticipated earnings in the first quarter.

Net profit by market value at the Spanish bank jumped by 19% to 2.2 billion euros in the January to March period versus a year ago, topping estimates of 2.06 billion euros, Reuters reported. A tighter interest rate environment, particularly in Europe, continued to boost net interest income, with the figure edging up by 15.4% to 6.5 billion.

The firm added that it now expects to achieve "double-digit" net income growth in 2024. It had only previously said that the number would increase this year.

In a statement, Chief Executive Onur Genç added that the results re-enforced BBVA (BME:BBVA)'s projections that its full-year results will be better than 2023.

Analysts at UBS flagged, however, that forecasts for earnings at BBVA's key Mexico division were "more tempered" following "signs of slowing" in net interest income growth in the country.

They said earnings risks related to BBVA still leaned "to the upside, but has to be seen in the context of Mexico showing more reduced capacity to keep providing room for upgrades."

Madrid-listed shares in BBVA were slightly lower in mid-morning trading on Monday.

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