Q1 net profit 1.65 bln euros, above market forecasts
Mexico39;s net profit rises 59; Turkey up 31
Overall net interest income is up 20.5 yy
Capital ends March at 12.7 vs 12.75 in December

MADRID, April 29 Reuters Spanish bank BBVA beat forecasts on Friday with a 36.4 yearonyear rise in first quarter net profit, driven by a strong performance in emerging markets, led by Mexico.

Net profit came in at 1.65 billion euros 1.74 billion in the January to March period, more than the 1.24 billion euros forecast by analysts polled by Reuters.

Like larger Spanish rival Santander, BBVA has been expanding in emerging economies as it struggles to boost income in more mature markets, though some analysts point to risks from its exposure to current macroeconomic uncertainty in Turkey.

A strong performance in Mexico, Turkey and South America due to increases in interest rates there in 2021 and the first quarter of 2022 started to show in the results, the bank said in a statement.

Both Mexico and Turkey were among areas BBVA highlighted in its strategic plan outlined in midNovember. 

In Mexico, where BBVA makes around 50 of its earnings, net profit rose 59 from the same quarter a year ago, while net profit in Turkey, responsible for 15 of earnings, rose 30.6 yearonyear.

Quarterly results were also helped by a decline in provisions, while the group39;s net interest income, earnings on loans minus deposit costs, rose 20.5 to 4.16 billion euros, above the 3.89 billion euros…