In This Article:
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Total Customer Funds Growth: 3.6% year-on-year; off-balance sheet funds grew almost 7%.
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Banking Margin Growth: 18% in the first nine months of the year.
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Cost to Income Ratio: 44%.
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Net Income: 58% above 2023, reaching EUR451 million in the first nine months.
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NPL Balances Reduction: 22% year-on-year.
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MPA's Coverage Ratio: Increased from 66% to 70% year-on-year.
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Total Provisions Decrease: 32% year-on-year.
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Cost of Risk: 24 basis points, below initial guidance of 30-35 basis points.
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Common Equity Tier 1 (CET1) Ratio: 15.4% in the third quarter.
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Tangible Book Value Per Share Growth: 7% in the first nine months of 2024.
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Loan to Deposit Ratio: 70%.
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Net Interest Income Growth: 19% in the first nine months of the year.
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Total Costs Increase: 5.4% above 2023.
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Pre-Provision Profit Improvement: Almost 22% compared to the first nine months of the previous year.
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Return on Tangible Equity (ROTE): Improved to 8%.
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NPL Ratio: Decreased to 2.8%.
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Gross NPA Ratio: Fell to 4.8%.
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Net NPA Ratio: Stands at 1.5%.
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Liquidity Coverage Ratio (LCR): Above 300%.
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Net Stable Funding Ratio (NSFR): 157%.
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Fixed Income Portfolio: Grew to EUR27.3 billion.
Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Unicaja Banco SA (XMAD:UNI) reported a 58% increase in net income compared to 2023, indicating strong profitability growth.
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The bank's asset quality trends remain positive, with NPL balances falling 22% year-on-year and foreclosed assets decreasing by 36%.
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Customer funds grew by 4.3% year-on-year, with off-balance sheet funds increasing by almost 7%, supported by a 6.3% quarterly increase in mutual funds.
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The bank's CET1 ratio reached 15.4% in the third quarter, reflecting a strong capital position.
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Unicaja Banco SA (XMAD:UNI) has a robust liquidity position, with an LCR ratio above 300% and a loan-to-deposit ratio of 70%.
Negative Points
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Performing loans fell by 2.3% in the quarter, indicating challenges in loan growth.
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Net interest income was flat in the quarter, with a 19% growth over the first nine months, but future NII may be impacted by declining interest rates.
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Total costs increased by 5.4% in the first nine months of the year, driven by higher personnel expenses.
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The bank faced a EUR10 million adjustment related to the Spanish banking levy, impacting other revenues and expenses.
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Fees fell by 5% in the first nine months of the year, attributed to commercial campaigns and a focus on more loyal customers.
Q & A Highlights
Q: Your corporate loan book has picked up quarter-on-quarter. Are you doing anything differently to improve your market share? And what was the reason for a decline in new mortgage production? A: We have established a strategy to enhance our capabilities and relationships with corporates and SMEs, which is starting to show positive developments. Regarding ICO loans, we have around EUR1 billion remaining, and we are comfortable with our provisions and classifications. The decline in new mortgage production is due to market conditions and competition.