CaixaBank has obtained an attributable profit of 707 million euros in the first quarter of 2022, 21.9% more than the same period last year if the sum of the results of CaixaBank and Bankia is made without taking into account the extraordinary impacts of the merger. In that first quarter, the pro forma profit was 580 million. This year’s result, however, falls by 85.2%, from 4,786 million euros a year ago, if the net positive contribution of 4,300 million euros is accounted for by negative goodwill and the registration of 28 million euros. euros of extraordinary expenses net of taxes derived from the merger.
If extraordinary impacts are excluded, the bank bases the positive evolution of the results on the increase in the operating margin (+5.4%) and the reduction in provisions for bad debts (-23.2%) and other provisions (- 37.7%).
CaixaBank currently has more than 20.4 million customers in a network of nearly 5,000 branches in Spain and Portugal, and has some 700,000 million euros in assets.
According to the information that CaixaBank has published to the CNMV, the ‘core’ income stands at 2,761 million euros, a decrease of 1.7% marked by the fall in the interest margin (-5.4%) compared to the same period last year. Compared to the last quarter of 2021, the margin falls by 0.6%.
As for commission income, it grew to 969 million euros, 2.9% more compared to a year ago. Despite this, recurring bank commissions are reduced by 3.3% due to the unification of customer loyalty programs.
On the other hand, commissions for the sale of insurance (+2.3%) and those linked to the management of long-term savings products (+10.3%) grew by 2.3%.
According to the entity’s CEO, Gonzalo Gortázar, once 90% of the integration of the branches and the planned departures of employees have been completed, CaixaBank can now focus “on business growth”. In fact, the group plans to present its new strategic plan on May 17 to “define the direction and speed of the entity for the next three years.”
Customer credit this quarter reached 353,404 million euros, 0.1% more than the previous quarter, and customer funds are 619,892 million.
Credit for house purchase fell 0.8% quarterly (138,166 million euros) due to the amortization of the portfolio, despite the fact that it fell less than in previous periods. Credit to individuals for other purposes fell by 1.6% to 44,258 million, despite the fact that in this section there was an improvement of 0.6% in consumer credit, which reached 18,825 million.
On the other hand, CaixaBank highlights the 0.8% increase in credit to companies (148,575 million euros), which reaches 22% in the case of SMEs, and 5.4% in credit operations to the public sector (21,906 million euros).
According to CaixaBank, 7% of the total loans it has granted with ICO guarantees have already been amortized. Of the rest, 40% have already started the billing period at the end of the first quarter of 2022, and 91% will have done so by the end of the second. The entity points out that 97% of the credit with ICO guarantee is considered part of the healthy portfolio.
Results of investees
The result of the entities participated by CaixaBank falls 43.1% to 50 million euros because the entity has left the Austrian bank Erste Bank and has taken over Bankia Vida. Precisely the integration of Bankia Vida also explains the fall in the result of investees of 27.8% compared to the last quarter of 2022.
CaixaBank has reduced recurring administration and amortization expenses by 4.3% in the pro forma account due to the synergies of the merger. Specifically, personnel spending fell by 5.3% and general spending by 7.2%. The decrease is mainly due to the ERE applied by the entity in recent months.
Workers and branches
At the end of this quarter, CaixaBank had almost 42,000 workers, 3,290 less than at the end of 2021, a reduction of 7.3%. As for branches, the reduction has been practically 10%, with 4,485 branches this quarter, below the 4,970 at the end of last year. ATMs are currently 12,175, 6.4% less than the 13,008 of the last quarter.
On the other hand, CaixaBank has constituted this quarter a collective fund of 214 million euros to reflect the estimated impact of the war in Ukraine. In addition, it has 1,196 million euros in what you fund covid-19, a figure that stood at 1,395 million at the end of last year. The cost of risk for the last 12 months stands at 0.23%.
The data for the first quarter show that the NPL ratio stands at 3.5%, one tenth below the end of 2021, with a coverage rate that rises from 63% to 65% due to the fall in doubtful loans.
Specifically, the doubtful balances in the hands of CaixaBank currently total 13,361 million euros, a quarterly reduction of 272 million. The entity has a portfolio of 2,223 million euros in clean foreclosed assets available for sale. The figure represents a reduction of 56 million.
Capital and liquidity
CaixaBank has strengthened its capital and liquidity levels in the first quarter. The Common Equity Tier 1 (CET1) capital ratio stands at 13.4%, and the total proforma MREL ratio reaches 26.5%, thus meeting the level required for 2024.
Total liquid assets stand at 171,202 million euros, with growth of 2,854 million euros in the quarter. The Group’s Liquidity Coverage Ratio (LCR) as of March 31, 2022 is 315%, showing a comfortable liquidity position (325% median LCR in the last 12 months), above the required minimum of 100%.
The drawn balance of the ECB policy as of March 31, 2022 amounts to 80,752 million euros corresponding to TLTRO III.