Computes an impact of 78.6 million euros due to the temporary banking tax
Unicaja Group tripled its net profit in the first quarter of 2024, registering profits of 111 million euros compared to 34 million euros in the same period of 2022, as reported this Monday to the National Securities Market Commission (CNMV). ).
This result has been recorded despite having computed in the first quarter the entire temporary tax on banks, whose impact was 78.6 million euros. Excluding the payment, the net profit would have been 189 million euros, with an increase of 93.2% compared to the same period in 2023.
The group’s result was supported by both the increase in ordinary income and a decrease in provision needs and other results. Specifically, the interest margin increased by 32.3% year-on-year, up to 390 million, with a greater contribution from the retail business, due to the repricing of the variable-rate credit portfolio and the higher interest rates on new production. , as well as the wholesaler, associated with the improvement of the liquidity position.
The gross margin reached 462 million, 23.9% more than in March 2023, as a result of the growth in the interest margin, while the commercial or customer margin increased 17 basis points in the first quarter and 90 basis points in interannual rate to stand at 2.91%.
For its part, net commission income remained above 130 million euros. They decreased by 3.5% year-on-year, mainly in the collections and payments line, due to the boost from the connection to ‘zero commission’ plans.
The efficiency ratio stood at 48.6% with a year-on-year improvement of 8.3 basis points, while the return on tangible capital (RoTE) improved by 1.4 percentage points compared to March 2023, to 5. 4%. This ratio rises to 6.0% if the excess capital is adjusted over a ‘fully loaded’ CET1 of 12.5%.
The operating margin (before provisions) stood at 237 million. Credit provisions were reduced by 13.3%, placing the quarterly cost of risk at a level of 25 basis points. The result of the exploitation activity was 188 million.
Regarding risk management, the entity highlights that the default ratio was reduced to 2.98% compared to 3.6% a year earlier. The balance of doubtful loans was reduced by 23.5% compared to March 2023, to 1,460 million euros.
The bank also points out that more than 60% of doubtful entries in the year were subjective markings, which represent 34% of the doubtful portfolio. Furthermore, the “good performance” of sales of gross real estate foreclosed assets stands out, the stock of which fell by 32.9% year-on-year. Non-productive assets as a whole continued their downward path, reducing in year-on-year terms by 28.0%.
At the same time, coverage levels stood at 66.1% for doubtful assets, and 73.9% for foreclosed assets. The coverage of total NPAs (doubtful and foreclosed) stood at 69.7%.
SOLVENCY AND LIQUIDITY
At the end of the first quarter of 2024, Unicaja reached a level of maximum quality ‘phase in’ capital (CET 1 Common Equity Tier 1) of 14.5%, a level 1 capital ratio of 16.4% and a total capital of 19.6%.
These ratios “easily” exceed the levels required of the entity by 6.3 percentage points in CET 1 and 6.8 percentage points in total capital.
In ‘fully loaded’ terms, the entity had a CET 1 level of 14.5%, a level 1 capital ratio of 16.4% and a total capital ratio of 19.5%. The fully loaded CET 1 increased 103 basis points in the last twelve months, thanks to the organic generation of results and the reduction of risk-weighted assets.
In this way, the entity presents, at the end of the quarter, 1,800 million in excess over regulatory requirements. On the other hand, the Texas ratio stands at 31.6%, with an improvement of 10.7 percentage points in the last year.
In terms of liquidity, at the end of the first quarter the entity had a loan to deposit ratio of 17.3%, while the liquidity coverage ratio (LCR) was 294% and the Availability of stable resources (NSFR) stood at 157%.
BALANCE
Managed resources, including wholesalers, increased by 1.4% in the first quarter, reaching 100,151 million euros, with a significant weight, 77%, of individual resources. Within balance sheet resources, which grew 1.4% in the period, time deposits stand out, which increased by 4.2% in the quarter and 51.5% in the last twelve months.
Off-balance sheet funds increased 1.6% in the quarter, with investment funds growing 3.7%, driven by appreciation in net asset values and positive net subscriptions. The accumulated assets of investment funds stood at 11,823 million, after growing 3.7% in the quarter; and that of pension funds reached 3,664 million, with a quarterly increase of 1.4%.
In relation to financing activity, performing credit to individuals (not doubtful) decreased by 1% in the first quarter of the year. Consumer financing grew 1.6% in the quarter. Performing credit investment (not doubtful) stood at 47,528 million, reducing 1.6% in the quarter, taking into account that this chapter has been affected by early repayments and a moderate demand for new credit. The outstanding balance of the business loan portfolio, 12% covered with ICO guarantee, decreased by 2.4% in the quarter.
New loan formalizations reached 1,757 million, of which 520 million correspond to mortgage financing for individuals, which represents 29.6% of the total. The market share in new mortgage formalizations stood at 5.2% of the total in Spain, according to data as of February 2024, accumulated from the last 12 months, being higher in the regions with greater economic dynamism, such as Malaga, Seville or Madrid.
Finally, Unicaja points out that its performing credit portfolio maintains a “low risk profile” and is “highly” diversified: 62.6% corresponds to mortgage financing, 21.5% to companies, 9.6% to public administrations and 6.2% for consumption and other purposes.
PLAN DIGITAL
The bank also highlights the momentum in the execution of its digital plan, contemplated in the 2022-2024 Strategic Plan, whose objective is to improve digital adoption, acquisition and sales ratios.
Thus, at the end of the first quarter, 70% of clients were digital and the contribution of digital channels to the contracting of new consumer loans represented 43% of the total and 30% for subscriptions in investment/management funds portfolio delegate.
