The Unicaja Banco Group recorded in the first nine months of 2021 a net profit, in recurring terms (and excluding the accounting impact of negative goodwill from the integration of Liberbank and other merger adjustments), of 156 million euros, 41% higher in year-on-year comparison. The net profit including negative goodwill (badwill) stood at 1,395 million. Once the merger with Liberbank was completed on July 30, Unicaja Banco, on the one hand, has reinforced its commercial impulse, and on the other, has consolidated the positive evolution of improving the quality of the balance sheet, both in terms of reduction of the non-performing assets (a 7.0% decrease in non-performing assets and foreclosed assets) as well as an increase in coverage (72.1% of non-performing assets and 66.5% of all non-performing assets), among the highest of the sector.
In the set of the first three quarters of the year, the entity increased business volume, with a year-on-year growth of customer funds of 9.7% (highlighting the increase in mutual funds, which grew by 27.2% year-on-year) and an increase in the outstanding productive credit portfolio (non-doubtful) of 3, 4%, driven by this growth by mortgage activity, with a 56% increase in new formalizations and an increase in the outstanding balance of 4%, to exceed 31,000 million euros.
Unicaja Banco, after the integration, maintains some high levels of solvency (the highest quality capital, CET 1 fully loaded, stood at 13.6%), with a diversified risk portfolio and core revenues that evolved favorably (+ 2.4% year-on-year).
Unicaja Banco’s balance sheet after the integration of Liberbank stood at 109,144 million euros.
In recurring and homogeneous comparison terms, the balance sheet has maintained the positive trends of recent quarters both in liabilities, increasing customer funds, and in assets, especially in the mortgage portfolio. The growth of the business in off-balance sheet products also stands out, mainly in mutual funds. Likewise, the trend towards balance sheet consolidation has also been maintained, with a sustained and continuous reduction in the portfolio of non-performing assets, both in arrears and foreclosed.
The total volume of managed resources At the end of the third quarter of 2021 it was 104,897 million, 5.5% more than a year before in homogeneous terms. 90% of the managed resources come from retail clients, standing at 94,726 million, after a growth in year-on-year terms of 10.4%, of which 73,283 million correspond to on-balance-sheet resources (+ 9.7% year-on-year) and 21,443 million to off-balance sheet resources (+ 12.9% year-on-year). Demand deposits followed the trend of recent quarters, due to low interest rates, increasing by 10.1% in year-on-year terms to reach 56,969 million euros, while time savings continued to decline to stand at 6,420 million.
The increase in off-balance sheet resourcesFor its part, it focused on the mutual funds segment, which registered a year-on-year growth of 27.2%, with equity exceeding the figure of 11,800 million euros (11,811 million), with a quarterly net subscription of 389 million. Similarly, pension funds evolved positively, reaching the figure of 4,005 million, 7.8% higher than a year earlier.
Unicaja Banco has maintained its strategy of maximum solvency and continuous improvement of the quality of the balance sheet. At the end of the third quarter the delinquency ratio it stood at 3.4%, one of the best in the Spanish banking sector, after having fallen by 0.5 percentage points year-on-year. The total volume of non-performing assets decreased in the last twelve months by 10.4% (217 million decrease). At the same time, the reduction of the foreclosed assets portfolio continued, which amounted to 4% in year-on-year terms, thanks to the outflow of non-current assets in sales, most of which were finished homes (48%) and land (32%). All of this has led to an improvement in the non-performing assets ratio (NPAs) of 0.7 percentage points in the last twelve months, to stand at 7.3%.
At the same time, Unicaja Banco has raised the levels of coverage of both doubtful and foreclosed assets, reaching 72.1% coverage of doubtful assets (10.6 percentage points more than on the same date of the previous year) and 62.1% 1% of foreclosures (6.4 percentage points more in year-on-year terms), among the highest of the Spanish listed banks. The coverage of the total NPAs (doubtful and adjudicated) increased to 66.5%, among the
best in the industry.
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