The Spanish group earned 707 million euros in profits over the first three months of the year, or 21.9% more than in the first quarter of 2021 on a comparable basis.
The third Spanish bank CaixaBank posted a sharp increase in profit in the first quarter. The establishment benefited from the drop in its provisions and the synergies linked to its merger in early 2021 with its compatriot Bankia.
The Spanish group earned 707 million euros (716.6 million euros) in profits over the first three months of the year, or 21.9% more than in the first quarter of 2021 (514 million) on a comparable. Taking into account the impact of the merger with Bankia, net profit is however down 85.2%, Caixabank having recorded an exceptional capital gain of 4.3 billion euros at the start of 2021 due to the integration into its Bankia accounts.
The result published on Friday is higher than the forecasts of analysts polled by the financial information provider Factset, who expected an average of 611 million euros in profits. The merger between CaixaBank and Bankia gave birth to Spain’s leading bank in terms of assets in the national territory, although it remains ahead of Banco Santander and BBVA in terms of international presence.
This merger resulted in a massive departure plan, initially covering 8,300 jobs but reduced to 6,500 following negotiations with the unions. The bank spent 1.8 billion euros to finance it. “Almost 90% of office integrations and employee departures have been completed at this stage,” Caixabank CEO Gonzalo Gortázar said in a statement.
Thanks to these synergies, “we hope to consolidate our growth in 2022”, added Mr. Gortazar, while insisting nevertheless on the uncertainties linked “to the economic consequences” of the invasion of Ukraine by Russia. The third Spanish bank specifies that it has set up a fund of 214 million euros corresponding to “the estimated impact” of the evolution of the macroeconomic context since the start of the war.
