Catalan CaixaBank does a Barça

By Tania Suárez, in Madrid | Caixabank, one of the five Spanish banks declared systemic, has reached a recurring net profit for 2011 of €1,185mn (-12.8%). Its competitors –including Sabadell and Bankinter– admit that this results are much better than expected in margins and EAT (earnings after taxes). According to Bankinter,

“this results are due to the positive development of the client margin and the commissions.”

Caixabank has kept its turnover (-0.2%), and has strengthened its high solvency (12.5% of core capital) and liquidity (€20,948 mn). It has also made large provisions for insolvencies without making use of the general allowance fund (this fund remains at €1,835mn since 2009), thanks to its strong ability to generate revenues.

The main figures are the following: €3,710mn of interest margin (-7.3%); €6.272mn of gross margin (-1,7%); €1,053 mn of Net Present Value (NPV) (-13.1%). Also 0,27€ of Earnings per Share (EPS) (-15,6%) with an efficiency ratio of 51.5%. The Non Performing Loan ratio is (without being adjusted by the awarding of properties, conveyances in payment and other effects) 4.90% vs 3.65% from Dec.’10. A 60 % of coverage ratio vs. 70% from Dec.’10.

Its 12.5% of Core Capital vs 8.9% from Dec.’10 is, according to Bankinter, the most positive point of all. The BIS Ratio (Bank for International Settlements) is 12.8% vs 8.9% from Dec.’10.

Caixabank’s solvency strength is reflected in the solid capital position of la Caixa Group, according to the results achieved in the recent exercise carried out by the European Banking Authority (EBA). The EBA established allocate additional capital for la Caixa Group of only €630mn.