Caixabank Q3 net profit beats consensus at 884 million euros, up 18.8%

CaixaBankSpanish banks and end of TLTRO; Caixabank top pick

The Corner | Caixabank posted an 18.8% rise in third quarter net attributable profit, beating consensus forecasts, and driven by a strong rise in revenues, including commissions.

Net interest income was up 5% quarter-on-quarter at 1.687 billion euros.

Morgan Stanley analysts noted that despite a slight uptick in costs, operating profit before provisions (Ppop) beat estimates by 8%, underpinned by a 25% drop in provisions, which was below expectations.

“Overall, Álvaro Serrano believes that the results are solid, concentrating especially on the Ppop and net profit. It is interesting that Caixabank is more sensitive to the Euribor at 12m. So its loan book takes longer to reprice, but Álvaro maintains that the NII consensus estimates for 2023 are too low. At 0.9x P/TNAV for a ROTE of 10.8% 2023, he reiterates his Overweight stance”.

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The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.