Spain's Banco Popular Q1 net profit up 18 pct

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MADRID, April 20 (Reuters) - Banco Popular (POP.MC) posted first-quarter net profit of 287.6 million euros ($390.8 million) on Friday, up 18.1 percent as the Spanish bank launched new products and boosted its margins.

In a statement, Banco Popular said net interest income, the difference between interest paid on deposit and gained on investments, rose 10.4 percent to 552.9 million euros.

A Reuters survey of six analysts showed Popular had been expected to post net profit of 291.5 million euros, with net interest income of 559 million.

Popular said its ordinary margin rose 12.8 percent thanks to a series of new insurance and risk products for businesses and individuals. Loans rose 14.7 percent to 80 billion euros, while, within that, mortgage lending climbed 13.9 percent.

Many analysts and economists are concerned that Spain's housing market could prove fragile after a decade-long boom. Popular said its number of bad loans fell to 0.73 percent from 0.82 last year.

((Reporting by Jane Barrett; Editing by Ben Harding/Will Waterman; Reuters Messaging: jane.barrett.reuters.com@reuters.net; email: jane.barrett@reuters.com; Tel: +34 91 585 8340))

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