Unicaja’s Third Quarter Net Profit Jumps As Liberbank Buys Books | Invest News

MADRID (Reuters) – Spain’s Unicaja said on Wednesday its recurring net profit rose 53% year-on-year in the third quarter due to lower provisions and higher commissions when integrating Liberbank.

Net profit without accounting gains for the country’s fifth-largest lender in terms of assets reached 54 million euros ($ 62.5 million) from July to September.

The decline in credit income, however, brought it below the 63 million euros forecast by analysts polled by Reuters.

Unicaja released pro forma figures for the quarter and the same quarter a year ago, allowing the year-over-year comparison to take into account its acquisition of the smaller lender Liberbank, which closed in late July.

The profit for the third quarter of 2020 amounts to 35 million euros.

Unicaja stock fell 2.6% to 0.9175 euro after rising more than 20% in the past three months.

On a cumulative nine-month basis, Unicaja recorded a badwill gain – a paper profit made when an asset is purchased below its book value – of € 1.301 billion. Including this gain, the net result amounts to 1.395 billion euros.

The accounting gain was generated by Liberbank’s equity of € 3.125 billion less fair value adjustments of € 994 million, leaving an adjusted book value of € 2.131 billion from a purchase price. of 830 million euros.

Net interest income (NII), or loan income minus filing fees, fell 11.2% in the third quarter from a year ago to 251 million euros, under pressure from interest rates. ultra low interest. It was down 5.7% from the previous quarter, in line with forecasts from analysts polled by Reuters.

Pressure on loan income prompted lenders to seek other areas of growth, such as fees, which rose 21% year-over-year in the quarter.

On Wednesday, Unicaja revised upward its cost savings from the acquisition to 210 million euros, from 192 million euros per year initially by 2023.

At the end of September, Unicaja’s total cost of risk, which is an indicator of potential future losses, fell to 41 basis points from 58 bps in the previous quarter. He aimed for a cost of risk of around 20 basis points for 2023.

(Reporting by Jesús Aguado; additional reporting by Emma Pinedo; editing by Inti Landauro, Keith Weir and Barbara Lewis)

Copyright 2021 Thomson Reuters.

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