MADRID, Oct 28 (Reuters) - Spain’s fifth-biggest lender Banco Sabadell on Friday posted an 11.6 percent rise in nine-month net profit from a year earlier as it continued to reap the fruits of last year’s acquisition of British peer TSB.
Net profit in the first nine months of 2016 came in at 647 million euros ($706.27 million), beating a Reuters forecast of 621 million euros. Net interest income, or profit from loans minus funding costs, rose 29 percent to 2.89 billion euros.
Sabadell benefited from lower provisions both in the first nine months and in the third quarter. Analysts had expected lower impairments as it had already provisioned 350 million euros in the second quarter to comply with new Bank of Spain rules.
These extraordinary charges prompted Sabadell to warn in July that its full-year net profit would be slightly below 800 million euros compared to a target of 1 billion euros. (Reporting By Jesús Aguado; Editing by Angus Berwick)