Unicaja Banco earns 7% less, up to 43 million, after increasing provisions

The bank made extraordinary provisions for 25 million, which places the total endowed at 225 million.

Manuel Azuaga chairs the Unicaja shareholders' meeting in March 2021.

Unicaja Bank earned 7.4% less in the first quarter, up to 43 million euros, after continuing to increase provisions due to Covid-19. The bank thus becomes one of the few that has continued to endow against defaults related to the pandemic at the beginning of the year.

Specifically, the extraordinary provisions endowed by the bank between January and March amount to 25 million euros, with the cost of risk at 52 basis points (16 basis points without taking into account provisions against Covid-19). The level of provisions remained stable compared to the same dates in 2020.

The entity increased its interest margin 3.6%, thanks in part to the improvement in commercial activity, since its loan production grew by 39% in the segment of individuals and 36% in that of Business.

customer resources

The customer resources were up 9.6% up to March compared to the same dates of the previous year, given that resources rose 9.8% and off-balance sheet and insurance 8.9%. Operating expenses fell 6.1%.

The commissions of Unicaja Banco rose 0.9%, driven by collection and payment services, that offset the drop in commissions for the sale of non-bank financial products, which were “extraordinarily high” in the first quarter of 2020.

In the first quarter, the entity continued to reduce its non-earning assets 8.4%, while it improved its coverage level up to 65.9% after making extraordinary provisions against Covid-19 for 25 million, with which raises the total to 225 million at the end of the quarter. As for the capital, the bank placed its CET1 ratio fully loaded in 15.1%.

The balance of doubtful assets stood at 1,184 million and that of foreclosed real estate at 1,072 million. The delinquency rate, for its part, fell 0.5 percentage points to 4.2%.

Unicaja thus presents the latest results alone, since at the end of the next quarter the bank will have already integrated Liberbank, according to the schedule set forth in the agreement and as its financial director underlined this Wednesday, Paul Gonzalez, during the presentation to analysts.