2023-07-28 10:51:37
CaixaBank closed the first six months of the year with a net profit of 2,137 million euros, 35.8% more than in the first half of last year, when it earned 1,573 million. In the last quarter, the Catalan entity earned 1,281 million, 49.8% more. According to the data published this Friday by the bank to the CNMV, the ‘core’ income of the banking activity has shot up by 31.3% to 7,110 million euros, especially due to the increase in the interest margin, which rises by 55.2% to 4,624 million. On the other hand, CaixaBank has reduced by 4.2% what he earns in commissionswith 1,846 million euros, especially due to the 7.6% drop in bank commissions, which no longer includes the custody of large companies’ deposits.
The chief executive of CaixaBank, Gonzalo Gortázar, has emphasized that “in a context of interest rate normalization, margins are advancing significantly”.
“This solid result is a consequence of the good progress of the commercial activityas well as the prudent management of credit risk, and places our return on equity at levels of 10% after a long period of very low returns”, said the executive.
Customer Resources
During the first six months of the year, CaixaBank has increased by 2.7% customer resourceslocated at 627,824 million euros, which he attributes to the growth of long-term savings.
In total, the entity has assets under management worth 156,111 million euros (+5.5%), with 111,340 million euros in assets managed in investment funds, portfolios and sicavs (+6.4%) ) and 44,771 in pension plans (+3.4%).
During the first six months, net subscriptions to investment funds, pension plans and savings insurance reach 5.1 billion euros.
CaixaBank has 26.5% of the combined market share in deposits and long-term savings.
The insurance business is also growing, with a result of 501 million (+18.5%), with an annual increase of 3.4% in the case of life-risk and 13.6% in non-life.
CaixaBank’s healthy credit portfolio closes the first semester at 354,199 million euros, up 0.8%. The entity highlighted the sustained growth in the business credit portfolio (+2.2%) and the good evolution of consumer credit (+1.2%), which compensated for the 2.6% reduction in mortgages.
Specifically, in the first six months of the year, 21,026 million euros of new credit was granted to companies, 5,172 million euros in consumer loans and 4,654 million euros in mortgages.
Despite the increase in interest rates, delinquency at CaixaBank continues to fall and is 2.6%, the best figure in the last 15 years, and below the 3.2% for the same period in 2022.
Specifically, doubtful balances are 10,317 million euros, 373 less than at the end of the second quarter of 2022.
On the other hand, the coverage ratio rises to 76%, with 7,867 million euros, and the cost of risk moderates to 0.27%.
CaixaBank has a collective fund of provisions with 874. The figure has dropped by 264 million euros because the funds have been partially distributed in specific provisions, so the entity points out that the overall level of coverage is remains at 1,137 million.
According to CaixaBank data, during the first semester the institution received 5,600 requests under the Code of Good Practice promoted by the Spanish government, of which 1,900 have been signed or are in progress. In addition, 3,500 fixed-rate mortgage novations and 10,000 refinancings to individuals and other additional payment arrangements have been made as part of the rate increase.
The investees
CaixaBank entered during the first semester 145 million in dividends for its investments, with 61 million euros for Telefónica or 73 for BFA.
The attributed results of entities valued by the participation method are 145 million more, 30.5% above the level of 2022. Likewise, CaixaBank has earned 143 million euros from the result of financial operations, a 41, 5% less than in the first semester of the previous year.
Liquidity and capital
At the end of the semester, CaixaBank had total liquid assets worth 146,646 million euros, an annual increase of 7,636 million.
The Group’s Liquidity Coverage Ratio (LCR) is 207%, while the capital ratio, CET1, is 12.5%.
shareholders
CaixaBank wants to do a new share buyback for 500 million euros, subject to regulatory approval, which will start before the end of the year. It will be the second within the framework of the entity’s Strategic Plan, since between May and December of last year shares worth 1.8 billion euros were already bought back.
Regarding the dividend policy, the Board of Directors approved in February a cash distribution of between 50% and 60% of the consolidated net profit, which should be paid in a single payment during the April 2024, subject to the final approval of the Shareholders’ Meeting.
In addition, on April 12 CaixaBank paid 0.2306 euros per share, reaching a remuneration to the shareholder for 2022 of 1,730 million euros, equivalent to 55% of the consolidated net profit.
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