Excluding the impact of the absorption of Bankia, the result decreased by 62% compared to the first half of last year
CaixaBank closed the first half of 2022 with attributable profit of 1,573 million euros, which is 17.1% more than the same period of the previous year based on homogeneous perimeters and 23.1% more excluding extraordinary items related to the merger with Bankia.
This result, with the impact of the integration, represents a decrease of 62.4% year-on-year compared to 4,181 million last year, including a positive contribution for accounting purposes of 4,300 million for the negative goodwill or badwill, CaixaBank disclosed this Friday to the National Securities Market Commission (CNMV).
The group has reached a balance sheet total of EUR 704,505 million and a return on material capital (ROTE) over 12 months excluding exceptional elements of the merger of 7.9% (-1.25%), while the efficiency ratio is 56.1%.
The bank attributed the result to the “strong increase” in commercial activity and the synergies of the integration, as in these first six months new mortgage production increased by 58%, consumer finance by 21% and new production of loans to companies and corporate banking 57%.
The results of the first half, which are compared with the pro forma sum of Bankia and CaixaBank in the same period of the previous year without taking into account the extraordinary nature of the merger, show stability of income despite the decrease in the interest margin (- 3.6%) derived from the negative interest rate environment through the middle of the semester.
Dividend income decreased to 131 million (-13.5%) and mainly includes those paid by Telefónica and BFA for 38 and 87 million respectively (51 and 98 in 2021); the results of entities accounted for using the equity method decreased by 48.4% after the sale of Erste Group Bank; and revenues from financial operations are rising.
Recurring bank commissions remain stable (+1.1%) and recurring administration and amortization costs are reduced by 5.6% thanks to the synergies of the merger, while personnel costs are reduced by 7.5% due to job losses.
The operating margin increased by 10% excluding exceptional items and by 17.1% in the case of profit after bad debt provisions were reduced by 16.8% to 376 million euros.
The bank maintains a collective fund of remaining provisions of 1.257 million to cushion the consequences that the current uncertain macroeconomic scenario may have, especially unfavorable due to the pandemic and the invasion of Ukraine.
The NPL ratio ended the semester at 3.2%, the lowest level since December 2008, compared to 3.6% at the end of 2021 and 3.5% last March, while standing at 8,126 million and the funding ratio is rising from 63% to 65%, to 8,625 million.
Doubtful balances fell to 12,424 million: 1,209 million euros fell in the year and 937 million in the quarter, and the cost of risk for the last 12 months was 0.23%.
Insurance production, supported by the MyBox product offering, increased year-over-year by 25% in life premiums and 44% in non-life insurance, while mortgage production was 5,928 million euros (58%), with a “record” last quarter. which has reached a volume of 3,806 million.
Similarly, new business in consumer finance grew 21% to 5,142 million, and new business in corporate and corporate banking grew 57% year-on-year.
Healthy credit balance (excluding bad debts) was 351,012 million, growing 3.2% in the year and 3% in the quarter, consumer credit grew 2.6% from December and 1.9% in the quarter .
Similarly, 23% of the total amount of credit granted with the guarantee of the ICO has already been written off or cancelled, and of the remaining amount, 85% has already completed the grace period: of the total balance that was initially granted, 3.7% classified as delinquent.
On the other hand, customer money remained at 624,087 million euros (+0.7% yoy), impacted by the usual positive seasonality of demand savings at the end of the second quarter and the volatility of unit-linked markets and assets under management.
Assets under management were 145,324 million, down 8% year-on-year and 4.9% down in the quarter, reflecting the unfavorable behavior of the markets, although there was a net inflow of 19,976 million between deposits, savings and assets under management.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
