{"id":35211,"date":"2023-05-05T07:34:42","date_gmt":"2023-05-05T07:34:42","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/spains-caixabank-q1-net\/"},"modified":"2023-05-05T07:38:34","modified_gmt":"2023-05-05T07:38:34","slug":"caixabank-sees-higher-lending","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/caixabank-sees-higher-lending\/","title":{"rendered":"Caixabank sees higher lending income in 2023 after strong quarter"},"content":{"rendered":"<p>By Jes\u00fas Aguado<\/p>\n<p>MADRID (Reuters) -Caixabank on Friday beat first-quarter net profit forecasts, helped by higher lending income, which the Spanish bank said would rise more than 30% in 2023 after raising its guidance, even as retail deposits dipped compared with December.<\/p>\n<p>Banks across Europe are benefiting from higher interest rates, and Caixabank&#8217;s net interest income (NII) rose 49% year-on-year to 2.16 billion euros, beating the 2.02 billion euros analysts expected.<\/p>\n<p>Following the implementation of new accounting standards, Caixabank revised its 2023 guidance for lending income to 8.75 billion euros, implying a rise of 34% against 6.53 billion in 2022.<\/p>\n<p>The previous comparable NII guidance for this year was around 8.5 billion euros.<\/p>\n<p>At 0730 GMT, shares in Caixabank rose 2.8% after falling 13.7% so far this year.<\/p>\n<p>JP Morgan welcomed the new lending income guidance, adding that &#8220;fees &amp; insurance and cost guidance remain unchanged, which should drive mid-single-digit upgrades to consensus estimates.&#8221;<\/p>\n<p>The bank reported a 21% rise in net profit to 855 million euros ($944.1 million) in the January to March period, despite a 373 million euro impact from a new banking levy. Analysts polled by Reuters expected a profit of 643 million euros.<\/p>\n<p>Earnings at the country&#8217;s biggest lender by domestic assets were also supported by a solid performance at its insurance services business, which rose 24%.<\/p>\n<p>Loan-loss provisions rose 12% year-on-year and the cost of risk, which measures the cost of managing potential losses, ticked up to 26 basis points from 25 bps in December.<\/p>\n<p>For 2023, it lowered its cost of risk&#8217;s guidance to less than 30 bps from previously less than 40 bps.<\/p>\n<p>By the end of March, deposits from retail clients at Caixabank fell 1.4% against December.<\/p>\n<p>Deposit levels at banks have come into sharper focus after the collapse of U.S. lender Silicon Valley Bank (SVB) in March sparked jitters across the global banking sector.<\/p>\n<p>At the end of March, Caixabank ended with a liquidity coverage ratio of 192%, compared to 194% at the end of December.<\/p>\n<p>($1 = 0.9056 euros)<\/p>\n<p> (Reporting by Jes\u00fas Aguado; additional reporting by Emma Pinedo; Editing by Inti Landauro, Varun H K and Jane Merriman)<\/p>\n<p><a href=\"https:\/\/lynettelockhart.com\/client\/spains-caixabank-beats-q1\/caixabanks-logo-is-seen-on-top-of-the-companys-headquarters\/\"><img decoding=\"async\" src=\"https:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ4402T-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ4402T-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Jes\u00fas Aguado MADRID (Reuters) -Caixabank on Friday beat first-quarter net profit forecasts, helped by higher lending income, which the Spanish bank said would rise more than 30% in 2023 after raising its guidance, even as retail deposits dipped compared with December. Banks across Europe are benefiting from higher interest rates, and Caixabank&#8217;s net interest [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":35212,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[1223],"class_list":["post-35211","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ4402T-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/35211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=35211"}],"version-history":[{"count":3,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/35211\/revisions"}],"predecessor-version":[{"id":35408,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/35211\/revisions\/35408"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/35212"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=35211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=35211"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=35211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}