CaixaBank 3Q Profit Rose on Higher Net Interest Income

By Justina Lee and Xavier Fontdegloria

CaixaBank SA's third-quarter profit rose, helped by a rise in net interest income.

The bank Friday reported a net profit of 884 million euros ($881 million) from July to September, up 43% compared with the same period a year earlier.

Net profit beat analysts' expectations for EUR615 million, according to a consensus forecast provided by the bank.

The Spanish bank said net interest income stood at EUR1.69 billion compared with EUR1.59 billion in the same period a year earlier, more than the EUR1.64 billion expected by analysts.

Net interest income, a key driver of revenue for retail banks such as CaixaBank, is the difference between how much a bank earns on clients' loans and how much it pays clients for their deposits.

"When it comes to customer funds we have attracted almost EUR11 billion in net inflows across savings insurance, asset management and deposits, despite market volatility," said Gonzalo Gortazar, CaixaBank's CEO.

CaixaBank is set to benefit from rising interest rates as most of its revenue comes from retail lending, with a loan book that is sensitive to changes in borrowing costs.

CaixaBank said in May that it expects revenue to grow by around 7% annually between 2022 and 2024, and that it anticipates a rate on tangible equity (RoTE)--a key measure of profitability--of above 12% by 2024.

Write to Justina Lee at [e-mail] and Xavier Fontdegloria at [e-mail]

(END) Dow Jones Newswires

October 28, 2022 01:06 ET (05:06 GMT)

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