Banco Bilbao Vizcaya Argentaria SA said Friday that it swung back to profit in the first quarter and maintained its capital target, which it raised back in January.
The Spanish bank posted net profit of 1.21 billion euros ($1.47 billion) for the quarter compared with a loss of EUR1.79 billion a year earlier, when it reported billions in impairments and provisions mostly related to the impact of the coronavirus pandemic.
Analysts had expected net profit of EUR961 million, according to FactSet.
Gross income, the bank’s top line, decreased to EUR5.16 billion from EUR5.78 billion, still above analysts’ expectations of EUR4.94 billion.
Net interest income–the difference between what lenders earn from loans and pay for deposits, and a key profit driver for retail banks–fell to EUR3.45 billion from EUR4.02 billion, the company said.
Analysts had expected net interest income of EUR3.50 billion, according to FactSet.
BBVA’s core tier 1 ratio–a key measure of capital strength–was 11.88% at the end of March compared with 11.73% at the end of December, within its target to maintain the ratio between 11.5% and 12%, it said.
Write to Mauro Orru at email@example.com; @MauroOrru94