Madrid: 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 per cent to 252 million euros ($285 million, Dh1 billion) from 175 million euros a year earlier, Spain’s fifth-largest bank said on 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 per cent and were up 4.5 per cent at 1.77 euros as of 10.41am in Madrid. The stock has climbed about 10 per cent 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 per cent from a year earlier to 974 million euros. It rose 1.2 per cent 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 per cent, the bank said.
