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”.
