Sabadell Rises After Earnings Signal Recovery: Madrid Mover
Banco Sabadell (SAB) SA, Spain’s fifth-biggest bank, rose the most in more than a month after earnings showed a recovery in lending margins.
The shares advanced as much as 6.3 percent, the biggest intraday gain since Sept. 16, and were up 5.5 percent at 1.89 euros by 10:11 a.m. in Madrid. The main Ibex 35 index gained 0.3 percent and Banco Santander SA (SAN), which also published earnings today, was little changed.
“The market is taking it well because of the recovery in net interest income,” Fernando Pascual, a banks analyst at Espirito Santo in Madrid, said in a phone interview. Provisions were also lower than expected, he said.
Sabadell said net interest income, a gauge of the bank’s main lending business, rose to 451.2 million euros ($623 million) in the third quarter from 414.6 million euros in the previous three months. Impairment charges amounted to 261 million euros in the quarter. In the nine months, net income was 186.1 million euros.
To contact the editor responsible for this story: Stephen Foxwell at firstname.lastname@example.org