Banco Sabadell SA, the Spanish bank bidding for a British lender, said profit more than doubled in the first quarter as provisions fell and lending revenue jumped.
First-quarter net income rose to 174.6 million euros ($188.6 million) from 81.2 million euros a year earlier, the bank said in a filing to regulators Friday. Profit beat the 139.9 million-euro average estimate in a Bloomberg survey of 11 analysts.
After a recovery in their home market, Spanish banks including Banco Sabadell are resuming expansion abroad to diversify their risk and increase profit as record-low interest rates squeeze margins. Sabadell has offered about 1.7 billion-pounds ($2.5 billion) for Britain’s TSB Banking Group Plc and has sold 1.6 billion euros of stock to fund the takeover.
Net interest income increased 21 percent to 643.1 million euros in the first three months of the year.
Banco Sabadell shares rose 2.7 percent to 2.31 euros as of 9:24 a.m. in Madrid. The stock has climbed 14 percent so far this year, less than the 15 percent gain in the STOXX 600 Banks Index.