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• Business Volumes: Improved by 2.4% year on year.

• Off-Balance Sheet Funds: Grew 3.8% quarter on quarter.

• Performing Loans: Increased by 0.3% quarter on quarter.

• Net Income: Grew 43% year on year to EUR158 million.

• Return on Tangible Equity: 11% adjusted by excess of capital.

• Cost-to-Income Ratio: Improved by 3 percentage points to 46%.

• Non-Performing Loans (NPL): Fell 5% quarter on quarter.

• Foreclosed Assets: Decreased by 7% quarter on quarter.

• Total NPAs: 22% below first quarter '24.

• Coverage Ratio: Increased from 71% to 73%.

• Cost of Risk: 27 basis points, below guidance of 30 basis points.

• CET1 Ratio: Improved by 27 basis points to 15.4%.

• Loan-to-Deposit Ratio: Remained below 70%.

• Liquidity Coverage Ratio: 270%.

• Total Customer Funds: Fell 1.2% year to date, but 4.9% above first quarter '24.

• Mutual Funds: Reached EUR14.4 billion, 7% above the previous quarter and 22% above the previous year.

• Net Interest Income: Fell 3% quarter on quarter to EUR369 million.

• Gross Margin: EUR515 million, 11.5% above the previous year.

• Pre-Provision Profit: 18% above the previous year at EUR280 million.

• Pretax Profit: EUR227 million, 40% above the previous quarter and 23% above the previous year.

• Total Taxes: EUR69 million, including EUR5 million of the new banking tax.

• Net Income Growth: 30% above last quarter and 43% above the first quarter of 2024.

• Customer Spread: Around 250 basis points.

• Net Interest Income Margin: 170 basis points.

• Personnel Expenses: Grew due to salary improvements.

• Cost of Risk: 27 basis points, below 30 basis point guidance.

• NPL Ratio: Reached a new low of 2.6%.

• Foreclosed Assets Coverage Ratio: 76%.

• NPA Ratio: 1.2% in net terms.

• MREL Ratio: 27.4%.

• NSFR: 162%.

• Fixed Income Portfolio: EUR30 billion with a 2.6% yield.

• Warning! GuruFocus has detected 5 Warning Signs with UNJCF.

Release Date: April 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Unicaja Banco SA (UNJCF) reported a 43% year-on-year increase in net income for Q1 2025, reaching EUR158 million.

• The bank's return on tangible equity adjusted by excess capital improved to 11%, indicating enhanced profitability.

• Non-performing loans (NPL) fell by 5% quarter-on-quarter, with a significant year-on-year decline of 16%, improving the NPL ratio to 2.6%.

• The cost-to-income ratio improved by 3 percentage points year-on-year to 46%, reflecting better operational efficiency.

• CET1 fully loaded ratio increased by 27 basis points in the quarter to 15.4%, demonstrating strengthened solvency.

Negative Points

• Net interest income fell by 3% quarter-on-quarter to EUR369 million, impacted by lower day count and ongoing loan repricing.

• Total customer funds fell 1.2% year-to-date due to regular quarterly seasonality.

• Personnel expenses grew due to salary increases, contributing to a 4.5% rise in total costs.

• The bank's net interest income sensitivity to interest rate changes remains a concern, despite hedging efforts.

• The bank's guidance for flat fees in 2025 suggests limited growth potential in fee income.