LISBON Oct 25 Banco Espirito Santo, Portugal's second-largest listed bank by assets, swung to larger-than-expected net loss of 381 million euros in the first nine months of 2013 from a year-ago profit as provisions for bad loans rose sharply.
BES also said in a statement on Friday that net interest income - the difference between interest charged on loans and interest paid on deposits -- fell 15 percent to 767 million euros from a year earlier.
Analysts surveyed by Reuters had predicted, on average, a net loss of 299 million euros and net interest income of 727 million euros.
Portugal emerged from a deep recession in the second quarter, but banks are still expected to struggle in the short term with the effects of the worst downturn since the 1970s in the bailed-out country.
BES had previously said that the peak of overdue loans could happen at the end of this quarter or the start of the next.
Its shares had closed 2.6 percent lower on Friday before the results were announced, while the broader market in Lisbon fell 1.3 percent. (Reporting by Andrei Khalip and Daniel Alvarenga)