CaixaBank Increases its Profit by 53.4%

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CaixaBank Increases its Profit by 53.4%



During the first nine months of this year, the Spanish CaixaBank Group had a net attributable profit of approximately 1,488 million euros, that is 53.4% ​​more than in September of last year, it means this is the best result in this Group’s history, as well as we can highlight that the quarterly profit is 649 million euros the best so far.

This evolution up to the ninth month of the year was marked by the consolidation of the overall integration of BPI’s February results, which impacted the main items in the income statement and the intense commercial activity of this entity.

The Quarterly Interest Margin was 3.55 billion euros (15.2% compared to 15.1% in the first half of the year and against the 3,542 million expected by the consensus. Gross Margin rose to 6,491 million (9.3% more than the 5.7% in the first half and compared to the expected 6,408).

On the other hand, the Operating Margin stood at 3,039 million (7.7% compared to -4.4% in the first half and the 2,943 million forecast); and the net attributable profit reached 1,488 million (53.4% ​​compared to 31.6% in the first half and the expected 1.358 million).

In addition, the company announced yesterday, before the market closed, the payment of a dividend with the charge to 2017 of 0.07 euros per share (dividend yield of 1.8%) next November 2nd.

This morning, CaixaBank shares are slightly increasing, with earnings below the quarter of a percentage point in a session of bullish trend in Ibex 35. The securities move around the 3,836 euros, which means a revaluation in 2017 higher than the 23 percentage points.

Estimations of Experts

Some of the most important analysts in the area indicate that the results have been located in the interest margin by 1% on the consensus estimates, however the net commissions remained in line with the expectations of experts and analysts of the area.

According to them, stability at quarterly levels in interest margin has been observed, despite the fact that the Euribor benchmark is much more depressed during the second quarter of the year, while net commissions yield close to 7.5 %, being affected by the seasonality of the period. All this has led to a decline in gross margin during the quarter which is estimated to have been -7.4%, thus improving consensus estimates by approximately 4%.

In addition, they add that they have seen some expenses of exploitation of contents, this in spite of the integration of the BIS and in addition it indicates that it must be remembered that the Margin before the provisions collected in the third quarter of last year incredible expenses that surpassed the 121 million, so the comparison was much simpler to do.

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