Banco Sabadell Jumps as First-Quarter Profit Beats Estimatesby
Banco de Sabadell SA jumped to the highest in five months after first-quarter results beat estimates on lower provisions and increased lending revenue.
Net income climbed 44 percent to 252 million euros ($285 million) from 175 million euros a year earlier, Spain’s fifth-largest bank said Friday. That beat the 229 million-euro average of five analyst estimates compiled by Bloomberg.
Chairman Josep Oliu is building the business beyond Spain, while selling troubled assets such as sour loans. Banco Sabadell acquired Britain’s TSB Banking Group Plc in 2015 and opened a bank in Mexico earlier this year.
The shares rose as much as 6.7 percent and were up 4.5 percent at 1.77 euros as of 10:41 a.m. in Madrid. The stock has climbed about 10 percent this year, making it one of two Spanish lenders in the Ibex 35 index that have gains in 2016.
Net interest income, or the difference between what a bank charges for loans and pays on deposits, surged 51 percent from a year earlier to 974 million euros. It rose 1.2 percent from the previous quarter.
Provisions fell to 435 million euros in the quarter from 907 million euros a year earlier as the bad-loan ratio dropped 29 basis points in the quarter to 7.5 percent, the bank said.