LISBON, July 26 (Reuters) - Portugal’s Banco BPI, which is the target of a takeover bid by Spain’s Caixabank, posted on Monday a sharper-than expected 39 percent rise in first-half net profit, as net interest income rose while impairments for bad loans fell sharply.
The country’s second-largest listed bank had a net profit of nearly 106 million euros ($116.4 million) in the period and its net interest income - the difference between interest charged on loans and interest paid on deposits - rose about 9 percent from a year ago to 360 million euros.
Analysts surveyed by Reuters had predicted, on average, a net profit of 93 million euros and net interest income of 338 million euros.
The bank’s fully-implemented common equity Tier 1 ratio at the end of June edged up to 10.1 percent versus 10 percent in March.
Provisions and impairments for bad loans fell about 46 percent, while the share of loans at risk of becoming non-performing decreased to 4.7 percent from 4.9 percent.
Net profit from overseas operations rose 17 percent to over 81 million euros in the first half, while the Portuguese operation had a net profit of 24.5 million euros in the period, up sharply from just 6.6 million a year earlier. ($1 = 0.9105 euros) (Reporting By Andrei Khalip)