Sabadell's Q3 net profit beats forecasts on higher lending income

Bbreaks down net interest income, new guidance

MADRID, Oct 26 (Reuters) - Spanish bank Sabadell's SABE.MC third quarter net profit beat forecasts on Thursday with a 46% year-on-year increase thanks to higher lending income, which offset a decline in new mortgages and margin pressure at its British unit TSB.

Spain's fourth-largest bank in terms of market value reported a net profit of 464 million euros ($491 million) in the July to September period.

Analysts polled by Reuters expected a net profit of 383 million euros.

Spanish banks, which are predominantly retail lenders, are benefiting from higher interest rates.

Sabadell's net interest income, earnings on loans minus deposit costs, rose around 29% year-on-year in the quarter to 1.24 billion euros, slightly higher than the expectations of 1.2 billion euros.

For 2023, the bank raised its NII growth guidance to around 25%, compared to a previous growth forecast of more than 20%.

($1 = 0.9483 euros)

(Reporting by Jesús Aguado; editing by Inti Landauro)

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