Abanca increases its profit by 8.2% in the first quarter, to 137 million

The entity, which has formalized more than 3,200 million euros in ICO credits, recorded a delinquency rate of 2%.

Abanca made a profit from 137 million of euros in the first quarter of the year, which represents an increase of 8.2% compared to the same period of the previous year. In these three months, the entity increased its recurring income, which grew by 10.7%, and recorded a NPL ratio of 2% and a coverage of doubtful assets of 83.4%.

In fact, doubtful assets fell by 19.5% (24.1% excluding Bankoa), bringing the delinquency rate to 2.0%, leading the sector and practically half that of the Spanish average (3.9%) and below the European average.

After the accounting integration of Bankoa and the acquisition of Novo Banco’s Spanish network, Abanca exceeded 100,000 million euros in business volume. Since the start of the pandemic, the bank has formalized more than 3,200 million euros in ICO credits and applied financial flexibility measures for families amounting to 1,200 million euros.

Advance on the margins

The basic margin grew 10.7% year-on-year as a result of the good performance of the net interest income and income from the provision of banking services. Net interest income improved 9.5%, while service provision income increased 13.7%.

This good performance was complemented by the efficiency improvement, which has made it possible to double the recurring operating margin compared to the same period of the previous year.

Isolating the effect of the integrations (Bankoa), ordinary costs fell by 7.9% thanks to the rationalization projects and synergies from the business integrations carried out, which were above the set targets.

The cost of risk, situated at 0.26%, remains contained thanks to the efforts made during 2020 in anticipation of provisions and the good credit quality of the portfolio. Regarding solvency, its capital ratio stands at 17.4% (13.3% maximum quality capital CET1).