Banco Bilbao Vizcaya Argentaria (BBVA) has announced a rise in net profit for the third quarter, despite challenges posed by hyperinflation adjustments in Turkey. The Spanish bank reported a net profit of €2.08 billion ($2.21 billion) for the quarter, compared to €1.84 billion for the same period last year.
Strong Gross Income and Net Interest Income Growth
BBVA’s gross income, which represents the bank’s top-line figure, increased to €7.96 billion from €6.84 billion. Notably, net interest income, the difference between what banks earn on loans and pay clients for deposits, experienced a significant jump of 23% year-on-year to reach €6.43 billion.
Analysts had predicted BBVA to report a quarterly net profit of €2.01 billion on gross income of €7.38 billion, according to consensus estimates compiled by the bank.
Key Drivers of Success
BBVA attributes its positive results to its recurring revenue streams, including net interest income and net fees and commissions. These revenue streams have allowed the bank to offset the impact of higher negative adjustments due to hyperinflation in Turkey during the quarter.