(Bloomberg) -- Banco Bilbao Vizcaya Argentaria SA raised its profit guidance for 2024 after beating analysts’ estimates in the first quarter.

The Spanish lender expects profit to show “double-digit growth” this year, Chief Executive Officer Onur Genc said in a statement on Monday. Previously, BBVA had only guided for higher net income, with analysts polled by Bloomberg forecasting an increase of 2.3%.

Profit in the three months through March jumped 19% from a year earlier to €2.2 billion ($2.4 billion), Spain’s second-largest lender said in a regulatory filling on Monday. That was well above the €1.95 billion estimated by analysts. 

Like many European competitors, BBVA has benefited from the European Central Bank’s interest rate increases, which have boosted lending margins and led to some of the highest earnings on record. While the effect is expected to level off as the ECB prepares to relax monetary policy, bank profitability is likely to remain high, creating more room for investor payouts.

Read More: Europe’s Largest Banks Top €100 Billion Profit for First Time 

Shares of the lender rose as much as 2.4% before reversing gains to trade 1.5% lower at 9:37 a.m. in Madrid. Before today, they had rallied 34% this year, beating a broader index of European lenders.

BBVA also raised its core revenue outlook on the back of strong lending income in Spain, it said in a presentation on Monday. First-quarter profit in the country jumped 37% from a year earlier, the lender said. Group net interest income rose 15% in the period.

BBVA Chairman Carlos Torres said in January the lender has €2.5 billion in excess capital, which it will keep returning to shareholders. The bank announced a share buyback worth €781 million on the same day. 

Rival Banco Santander SA is scheduled to report earnings on Tuesday.

(Updates with shares in fifth paragraph.)

©2024 Bloomberg L.P.