The Unicaja Banco Group recorded a net profit of 260 million euros during the first nine months of this year, which represents an increase of 67.1% compared to the same period of the previous year, as reported by the entity on Thursday.
The group explained that this result was supported by the increase in ordinary income, with a growth in net commissions (11% more year-on-year), in the reduction of 8.5% in year-on-year terms in administrative expenses , up to 586 million euros, and in lower loan provisions, with a reduction of 39.9% year-on-year.
Specifically, the reduction in costs reflects the materialization of synergies derived from the application of the restructuring plans, after the merger with Liberbank, taking into account that 72% of the planned personnel departures have already materialized and 100% of the planned office closures.
The gross margin increased by 3.3%, to 1,244 million, while the interest margin reached 765 million euros, 3.6% below the figure recorded a year earlier, mainly due to a lower contribution of the wholesale business, although reflecting a recovery trend and improvement compared to the 7.6% decrease registered in the first half of this year.
In the quarter, it registered an increase of 12 million with respect to the third quarter of the previous year, favored by the growth of financial income due to the rise in rates, which will be more clearly reflected in the fourth quarter of the year.
For its part, net income from commissions registered a "solid" increase of 11% in year-on-year terms to 394 million, mainly driven by activities in investment funds and means of payment.
In this way, the operating margin (before provisions) increased by 20.5% year-on-year, standing at 590 million.
Credit provisions were reduced by 39.9% compared to a year earlier, to 129 million, so the cost of risk stood at 29 basis points, compared to 41 basis points in the same period in 2021.
The result of the operating activity was 378 million, 79.9% more than the previous year, while the consolidated profit before taxes was 357 million, with a year-on-year growth of 74.7%.
The entity has underlined that the "positive" evolution of the results has been accompanied by the maintenance of a low cost of risk, thanks to the risk profile of the portfolio and the high coverage, as well as the maintenance of "solid" levels of solvency.
The volume of non-performing assets (NPAs) continued its "favorable" path of continued decline, with a year-on-year fall of 8.3%, due to the decrease in the stock of foreclosed assets, which have registered gross outflows in the year of 393 million euros, with an interannual decrease of 18.8%.
The reduction of NPAs occurs, according to the entity, also maintaining high levels of coverage, giving continuity to the traditional policy of prudence followed by Unicaja Banco.
The coverage rate for non-performing assets reached 64.1%; that of doubtful assets stood at 64.7%, while that of foreclosed assets, at 63.4%.
NPL RATE STABLE AT 3.5%
Likewise, the default rate remained stable at 3.5% and the cost of risk stood at 29 basis points, compared to 41 basis points in September 2021.
Unicaja Banco has also underlined that it maintains high levels of solvency (maximum quality capital, CET 1 fully loaded, stood at 13%), with an excess of capital over regulatory requirements of 1,635 million.
In an unfavorable macroeconomic context for savings, marked by high uncertainty and inflation levels, and high volatility in financial markets, managed resources amounted to 101,106 million euros, after falling by 3.6% compared to the same period from the previous year.
The 'performing' credit investment of individuals increased by 2% year-on-year to 34,393 million and mortgage financing grew by 1.9%. In the first nine months, 7,766 million euros in new loans were granted.
