UPDATE 1-BBVA's Q3 net profit falls 3.7% as currency declines offset higher margins
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Adds breakdown of net interest income in paragraph 3, details on four-year plan and failed Sabadell bid in paragraphs 4-5
MADRID, Oct 30 (Reuters) - Spain's BBVA BBVA.MC on Thursday said its third-quarter net profit fell 3.7% year-on-year as higher lending income was offset by a fall of the Mexican peso and lower trading gains in Spain, where it recently failed in its takeover bid for Sabadell SABE.MC.
The second-biggest lender in the euro zone after surpassing 100 billion euros ($117 billion) in market value on Wednesday booked a net profit of 2.53 billion euros in the July to September period. Analysts polled by Reuters expected a net profit of 2.57 billion euros.
However, net interest income - the difference between earnings on loans minus deposit costs - rose 13.2% year-on-year in the quarter to 6.64 billion euros, above analysts' forecasts of 6.43 billion euros thanks to solid underlying loan growth dynamics.
In July, BBVA presented a four-year plan aiming for accumulated profits of 48 billion euros without Sabadell backed by loan growth in Mexico and Spain.
Earlier this month, BBVA failed to convince Sabadell shareholders to back its 16.32 billion euro hostile takeover bid, ending an almost 18-month battle that became one of the country's most contentious deals in recent years.
($1 = 0.8575 euros)
(Reporting by Jesús Aguado; Editing by David Latona)
((jesus.aguado@thomsonreuters.com; +34 91 835 68 32; Reuters Messaging: Reuters Messaging: jesus.aguado.reuters.com@reuters.net))