MADRID, April 30 Reuters BBVAs profit returned to prepandemic levels in the first quarter after the Spanish bank did not set aside any specific COVID19 provisions but lending income remained under pressure.

The groups net profit came in at 1.21 billion euros 1.47 billion in the first quarter compared with a loss in the same quarter a year ago.

Profit was higher than the 905 million euros expected by analysts polled by Reuters, and was also above the 1.182 billion recorded in the same quarter in 2019, before the pandemic.

Spains secondbiggest bank in terms of total assets said profit was also driven by strong recurrent revenues and lower overall impairments.

In the first quarter last year, BBVA had booked a loss of 1.79 billion euros due to 3.5 billion euros in pandemic provisions and a goodwill charge in the United States.

Banks across Europe, already squeezed by record low interest rates, are under growing pressure from rising bad debts as a result of the effects of the COVID19 pandemic.

Overall, net interest income, earnings from loans minus deposit costs, fell 14.2 to 3.45 billion euros, slightly below market forecasts of 3.5 billion, mainly due to Turkey, BBVAs third biggest market.

Net interest income in Turkey declined by 35.3 compared with the same quarter a year ago due to the contraction of spreads between income on loans and payments for deposits plus the increase in funding costs in the country.

Sabadell, Spains fourthbiggest bank by assets, also beat…