Unicaja Banco accelerates provisions and limits its profit to 267 million

Unicaja Banco obtains a net profit of 267 million during 2023, which represents a drop of 0.4% compared to the end of the previous year, when it added 278 million. The entity explains that this result, which is different from the historical figures recorded by the sector, is due to the higher provisions. Specifically, it adds write-downs of 546 million that will allow it to accelerate the reduction of non-productive assets and improve structural profitability. The group fails to beat analysts’ estimates, which predict profits slightly above 300 million.

The Malaga bank has disbursed 63.8 million for the extraordinary tax, so “without the impact of the new temporary tax, the net profit would have amounted to 330 million, 19.0% more than in December 2022,” they highlight. Altogether, the tax contribution settled by the Group in 2023 has amounted to 461 million, 14% above that of 2023. However, income does rebound by double digits. Thus, the gross margin reached 1,776 million, 10.6% more, while interest income (interest margin) rose 26.1%, to 1,353 million.

In this sense, net commission income stagnated at around 533 million in a year marked by the “good evolution of insurance and investment fund activities.” In this way, the basic result, which is one of the main profitability indicators of the banking business, has increased by almost 40% in a year-on-year comparison.

As reported to the National Securities Market Commission (CNMV), the efficiency ratio once the effect of the temporary tax on banks has been discounted has improved by seven points and stands at 46.7%. For its part, the default rate has been reduced by 39 basis points in the year, to 3.14%, while the cost of risk remains contained at 29 basis points and the coverage ratio on doubtful assets is reduced by almost three points. up to 63.7%. In parallel, the ‘fullyfilled’ CET1 ratio increases and stands at 14.7%.

Following the presentation of results, the bank has announced a cash dividend of 132 million and a share repurchase program worth 100 million, pending receipt of approval from the board of directors and the European Central Bank (ECB). . The objective is to reduce the share capital by amortizing equivalent to 3.8% of the securities. The entity releases these figures in the midst of renovation of the dome. To the promotion of Isidro Rubiales last September to replace Manuel Menéndez, is added the election of José Sevilla as the new president of the entity after the resignation of Manuel Azuaga.

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