Q1 net profit up 50 to 308 mln euros vs 233 mln euros forecast
Q1 NII rises 11.9 yy and 1.7 qq
Sees lending income rising around 3 in 2024, stable in 2025
Ups 2024 ROTE target to above 12, previous goal was above 11.5
Net profit at TSB falls 31 following decline in NII

MADRID, April 25 Reuters Spain39;s Sabadell forecast on Thursday its lending income to continue growing in 2024 after beating net profit forecasts in the first quarter, triggering a sharp rise in its share price.

Higherthanexpected interest rates have boosted lending income at Spanish banks, which have benefited from charging customers higher costs for floating rate loans, while keeping a lid on rates for savers.

Sabadell said it now expects its lending income to grow around 3 in 2024 and to remain stable in 2025. In February, the lender had forecast a lowsingledigit growth this year.

At 0748 GMT, shares in Sabadell rose more than 9 compared to a flattish performance in Spain39;s leading bluechip index Ibex35.

Shares were also supported by the execution of an already announced 340 million euro share buyback programme.

The customer spread, or the difference between returns on loans and cost of deposits, rose 10 basis points in the quarter compared to the previous quarter.

JP Morgan said that solid NII progression was helped by improving customer margins, better than expected delivery on fees and cost of risk coming in lower than expected.

Net interest income NII, the difference between earnings…