Net interest income up 5.5 yy in Q2, above analysts39; forecasts
Net profit rises 21 to 117 mlns, above forecasts of 101 mlns
Shares rise 2

MADRID, July 21 Reuters A rise in lending income, boosted by steady growth in the total loan book and an improvement in customer spreads, drove a recovery in financial margins at Spain39;s Bankinter in the second quarter.

Banks across Europe have been under pressure from record low interest rates, but that is beginning to change.

Expected higher rates in the euro zone are seen as a boost to income for commercial lenders despite economic uncertainty and fears of recession.

In the second quarter, net interest income NII, earnings on loans minus deposit costs, rose 5.5 yearonyear in the second quarter to 346 million euros 352 million.

That beat the 329 million euros forecast by analysts and was 8 higher than the first quarter.

For the first half, NII grew 4. Chief financial officer Jacobo Diaz raised its growth guidance for NII from a low singledigit to a midtohigh singledigit growth for 2022.

Shares in Bankinter rose 2 compared to a 0.6 decline by Spain39;s bluechip index Ibex35.

The improvement in customer spreads and in net interest margins were behind the improvement in lending income, Nuria Alvarez, analyst at Madridbased brokerage Renta 4, said.

Higher euribor rates were also starting to filter into higher loan yields, though the increase in total mortgage loans books would be fully felt later in the year and in 2023,…