Unicaja Banco earns 165 million in the first half, 62% more

Unicaja Banco earns 165 million in the first half, 62% more

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Unicaja Banco, the fifth Spanish entity by volume of assets after the merger with Liberbank, registered in the first semester a net profit of 165 million euros, which represents an increase of 62% compared to the same period in 2021.

The result of the group was supported by the interest margin recovery in the last quarter, as well as the increase in net income from commissionsand in the reduced administration costs and the needs for credit restructuring, as reported to the National Securities Market Commission (CNMV).

The margin of interests reached the €501.6 million“beginning to recover the path of growth once the Euribor base was exceeded in negative territory”, with growth in the second quarter of 13.8% compared to the first, although it was 7.6% below the figure registered a year earlier.

The net commission income experienced a “solid increase”, of 12.8% year-on-year, reaching 264 million, growth driven by activities in investment funds, cards and insurance.

The improvement in the income statement was also based on the cost reductionwhich “already reflects the materialization of the first synergies derived from the application of the restructuring plans”, since 56% of the planned personnel departures have been carried out.

The administration expenses were reduced by 9% in relation to the first half of 2021, to stand at 390 million.

The margin of banking activity (interest income plus commissions less administration expenses) increased in year-on-year terms by 7.9%while the gross margin grew 0.8% and the operating margin before provisions, 14.5%.

Regarding the results of the purely banking business, Unicaja highlights the boost in commercial activity, which is reflected in the more than €5.3 billion in new loans and credits that were granted in the first semester, or in the increase of 2.1% over the previous quarter of managed resources.

underline that “despite the unfavorable economic-financial context for savings” due to high uncertainty, inflation and “high volatility” in financial markets, so far this year net subscriptions have been made in investment funds for an amount of 379 million, reaching assets of 11,759 million, 2.7% more year-on-year.

The positive evolution of the results has been accompanied by a asset quality improvementindicates Unicaja, detailing that the default rate remains at 3.5% and “still below the sector average” and the volume of non-performing assets (NPAs) decreased in year-on-year terms by 222 million, 5.4%.

The entity gives “Continuity with the traditional policy of prudence” and keeps andhigh levels of coverage in the face of “potential deterioration in environmental conditions”, with a coverage of non-performing assets of 64% and non-performing assets of 65%.

In the first semester, the needs of credit write-down they fell by 43.6% year-on-year, so the cost of risk fell to 27 basis points, compared to 58 in the same period of the previous year.

The bank also highlights its high levels of solvency, since CET 1 capital, the highest quality, stood at 12.8%, with an excess of capital over regulatory requirements of 1,583 million.

At the end of May, the technological and operational integration of freebank in Unicaja Bank, “According to the planned schedule and in less than a year”, a process that has involved the integration of 575 offices and centers, 1,249 ATMs and 2,700 mobile devices from the Asturian-rooted entity.

Within the strategic lines of Unicaja Banco is the promotion of the digital business, and at the end of the first semester, 59% of its clients already operated through this channel.

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