BBVA's quarterly profit rise partly overshadowed by higher provisions in Turkey
BBVA•BBVA's third-quarter net profit rose 19% to €3.02 billion, while loan-loss provisions increased 24% to €1.95 billion, including a 74% jump in Turkey. Net interest income climbed 22% to €8.08 billion, and shares fell around 4.6%.
1. Profit and provisions
BBVA reported third-quarter net profit of €3.02 billion, up 19% year-on-year and roughly in line with analysts' forecasts. Net interest income rose 22% to €8.08 billion, above the €7.88 billion forecast. Group loan-loss provisions increased 24% to €1.95 billion, compared with forecasts of €1.86 billion.
2. Regional performance
In Turkey, net profit rose 9% to €258 million as lending income increased 45%, but loan-loss provisions jumped 74%, reflecting economic uncertainty fuelled by high inflation. CEO Onur Genç said he expected higher cost of risk in Turkey to be compensated by net interest income; BBVA's €1 billion 2026 net profit goal for its Turkish business had some downward bias. Mexico net profit rose 19%, while Spain's fell 5.5%. BBVA shares were down around 4.6%.
