Interest rates, new customers lift BBVA Q3 profits

Spain’s second-largest bank BBVA reported a jump in net profits for the third quarter on Friday, thanks to rising interest rates and a record number of new customers.

BBVA, which mainly operates in Spain but also in Latin America and Turkey, exceeded analyst predictions to report 1.84 billion euros ($1.8 billion) in profits between July and September — a rise of 31 percent year-on-year.

The banking group said its strong results are largely down to a sharp increase in commercial activity in a context of rising interest rates, particularly in Mexico and Spain.

In the first nine months of the year, the group also garnered 8.6 million new customers, which it said is a record for the company.

But the group — which now has 87.4 million customers worldwide — saw a sharp increase in operating costs, which ballooned more than 12 percent due to global inflation.

BBVA also has high exposure in Turkey, where inflation topped 80 percent in September.

And its strong figures come as the Spanish government imposes temporary taxes on banks and energy firms to cover the cost of measures put in place to help Spaniards grapple with soaring inflation.

Socialist Prime Minister Pedro Sanchez told parliament that the new taxes on lenders should generate around 1.5 billion euros per year and will remain in place for two years.

vab/sr/rox/imm