CaixaBank's 3Q Profit Boosted by Higher Lending Income

By Giulia Petroni

CaixaBank reported a rise in third-quarter profit on higher lending income despite a decline in its loans portfolio.

The Spanish bank on Friday said that net profit was 1.52 billion euros ($1.61 billion) in the three months ended in September, up 19% compared with the same period a year earlier.

Net interest income--the difference between how much a bank earns on clients' loans and how much it pays clients for their deposits--increased 12% on year to EUR2.74 billion in the quarter.

"The bank's performance in the first nine months of this year has been very positive," said Chief Executive Gonzalo Gortazar. "In the context of interest rate normalization, our results are solid, a consequence of good commercial dynamics and prudent credit risk management."

CaixaBank said the common equity tier 1 ratio stood at 12.3% in September, well above regulatory requirements. The return on tangible equity--a key measure of profitability--was 14.1% in the first nine months of the year.

Write to Giulia Petroni at [e-mail]

(END) Dow Jones Newswires

October 27, 2023 01:54 ET (05:54 GMT)

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