Monday, August 8

Caixabank stretches the merger with Bankia to 4,801 million profit

The impact of the merger between Caixabank and Bankia continued to boost the income statement. The bank earned 4,801 million euros from January to September, about seven times more than in the same period last year, when it reported profits of 726 million euros.

This evolution includes an accounting contribution of 4,300 million euros for negative goodwill, a disbursement of 1,521 million by the ERE to more than 8,000 employees and other expenses of a lower amount due to integration costs.

Subtracting the negative impacts, the integration with Bankia totals 2,799 million euros and without extraordinary items, the adjusted profit is 2,022 million until September, three times more than a year ago.

Technological integration, last step

The CEO of the entity, Gonzalo GortázarHe pointed out in the presentation of results sent to the CNMV that the bank is “very focused” on the final execution of the integration, after six months of progress with the merger of employees, business models and systems. Therefore, he believes that integration is progressing “fast” and “in line with expectations”.

Now, after closing the workforce restructuring, It remains to finish the technological integration, which will take place on November 12., This same the bank will begin to change the account numbers of those clients who arrived from Bankia.

Regarding the accounts up to September, Gortázar pointed out that “a good result was achieved in a rate environment that puts great pressure on margins, by keeping income stable thanks to our business model, which is highly diversified towards intense commercial activity and on a larger scale. “

Margins increase

In this sense, income core, those that measure the pure banking business, grew 25.2 percent, to 7,708 million euros. Commissions rose 36.7 percent, to 2,604 million.

Regarding margins, interest margins registered an increase of 21 percent, to 4,416 million euros, gross rose 23.2 percent, to 7,771 million and the operating cost decreased by 51.8 percent, to 1,337 million due to integration expenses.

A) Yes, Caixabank’s profitability measured by the ROTE and excluding extraordinary items stands at 9.6 percent.

There is no data

Strong reduction in provisions

Beyond the capital gains from the integration of Bankia, the profit was also positively impacted by the reduction in provisions for non-payments due to the coronavirus.

LEndowments fell to € 616 million from € 2,406 million a year ago. Of this amount, 1,611 million were to anticipate impacts from the pandemic.

Total customer funds rose 46.2 percent due to the absorption of Bankia with an increase of 5.5 percent in the balance sheet and 12 percent in assets under management, which exceed 150,000 million euros.

The capital ratio at 13 percent

Regarding managed assets, the increase was 14.2 percent to exceed 100,000 million, with an increase of 7.5 percent in pension plans, to 46,701 million.

Doubtful balances remain in line with the figures presented three months ago, falling by 50 million euros, to 13,955 million with a coverage ratio of 64 percent. Thus, the NPL ratio remains at 3.6 percent.

With these results, la ratio de capital CET 1 fully loaded, the most followed by the market to measure the solvency of an entity, l13 percent, above that required by the ECB and among the highest among Spanish entities.