The Unicaja Banco Group recorded a net profit of 165 million euros during the first half of this year, which represents an increase of 62% compared to the same period of the previous year, as reported by the entity on Wednesday.
The group has explained that this result was based on the recovery of the interest margin in the last quarter, with a quarterly increase of 13.8%, on the consolidation of the contribution of net fee income, 12.8% more year-on-year, in the 9% year-on-year reduction in administrative expenses, to 390 million, after materializing the first synergies derived from the restructuring plans, and in the 43.6% year-on-year reduction in credit write-down needs , up to 89 million.
The entity has highlighted that the cost reduction already reflects the materialization of the first synergies derived from the application of the restructuring plans. Specifically, 56% of the planned staff departures have already materialized.
Likewise, the banking activity margin (interest margin plus commissions less administrative expenses) increased by 7.9% in year-on-year terms, reaching 375.2 million, while the gross margin grew by 0.8%, to 825 million euros, and the operating margin before provisions, 14.5%, standing at 389 million.
For its part, net income from commissions registered a “solid” increase, 12.8% in year-on-year terms, reaching 264 million.
The entity has also highlighted that the growth in the results of the purely banking business responds to the maintenance of the momentum of the commercial activity.
Thus, in the first half, more than 5,300 million in new loans and credits were granted, while the balance of retail ‘performing’ credit investment with mortgage guarantee increased by 1.8% year-on-year, to 31,528 million.
Likewise, managed resources increased by 2.1% compared to the previous quarter, by 0.9% for those of a retail nature.
For their part, sight deposits followed the trend of recent quarters, increasing by 2.6% year-on-year to reach 58,105 million, while term savings continued to fall to 5,543 million.
Despite the unfavorable economic-financial context for savings, marked by high uncertainty and inflation levels, and high volatility in the financial markets, so far this year the entity has made net subscriptions in investment funds for an amount of 379 million, reaching assets of 11,759 million, which represents a year-on-year growth of 2.7%.
Likewise, Unicaja Banco has highlighted that the positive evolution of the results has been accompanied by the consolidation of the improvement in the quality of the assets and the maintenance of “solid” levels of solvency.
THE NPL RATE REMAINS AT 3.5%
The delinquency rate remains at 3.5% below the sector average, close to 4%.
The volume of non-performing assets (NPAs) fell in year-on-year terms by 222 million euros, 5.4%, due to the good performance of sales, with gross outflows of foreclosed assets amounting to 315 million.
Giving continuity to the traditional policy of prudence and in the face of potential deterioration in environmental conditions, according to the entity, high levels of coverage are maintained.
Thus, the coverage rate for non-performing assets reached 64%, placing it among the highest among Spanish banks, while the coverage for assets in arrears stood at 65%, above the average for the sector.
Unicaja Banco has assured that it maintains “high” levels of solvency (maximum quality capital, CET 1 ‘fully loaded, stood at 12.8%), with an excess of capital over regulatory requirements of 1,583 million.
The technological and operational integration of Liberbank in Unicaja Banco was completed at the end of May, according to the planned schedule and in less than a year, achieving full integration from the technological, commercial and operational point of view.
