CaixaBank Group reported attributable profit of 1,573 million euros for the first half of 2022, showing a 17.1% year over year rise in consistent environments. The growth reflects strong business activity, with margin pressure from service revenues and cost reductions stemming from the Bankia merger alongside lower provisions. When the integration effects are considered, the interim result declines by 62.4% year over year, since the first half of 2021 posted 4,181 million euros. Approximately 4,300 million in positive accounting entries relate to negative goodwill from the deal.
BBVA’s results are highlighted by a 57% increase in the first half to 3,001 million euros.
CaixaBank Group strengthened its leadership in the Spanish market, ending the period with total assets of 704,505 million euros. Return on tangible equity, measured over a 12-month horizon excluding merger items, reached 7.9%, while productivity stood at 56.1%.
Mortgage and consumer loans
The chief executive officer noted the first half as very positive, highlighting the completion phase of the integration with Bankia alongside robust business activity. New lending to corporations and corporate banking rose by 21%, with overall new production up 57%. Despite client funds volatility and market fluctuations, insurance subscriptions, assets under management and deposits increased by 20,000 million euros, underscoring sustained momentum.”
Compared with pro forma totals for the previous year and excluding extraordinary merger items, CaixaBank and Bankia delivered stable income amid a net interest income decline from lingering negative rates through mid-year. Dividend income declined 13.5% to 131 million euros, with notable contributions from Telefónica and Bankia’s parent company at 38 and 87 million euros respectively, versus 51 and 98 million euros in 2021. Equity-method income fell 48.4% after the sale of shares, while Erste Group Bank reported gains in financial transaction earnings.
Fees and recurring revenues benefited from high transaction activity and growing payment-method operations, helping to offset the decline in merger-related revenue, and reinforcing loyalty programs that remained active in the period.
Less cost
Cost discipline remained a priority, with recurring management and depreciation expenses down 5.6% year over year in the first half, driven by merger synergies. Personnel costs were trimmed by 7.5% thanks to voluntary departures under existing contracts.
Stability in revenue combined with lower expenses produced a 10% rise in operating margin, excluding special items. Profit after provisions improved by 17.1% as bad debt provisions were reduced by 16.8%, to 376 million euros.
The non-performing loan ratio fell further, finishing the period at 3.2%. That compares with 3.6% at the end of 2021 and 3.5% in March, marking the lowest level since December 2008. Credit-loss reserves reached 8,126 million euros at the end of June, with coverage rising to 65% (8,625 million and 63% at year-end 2021, respectively).
Doubtful balances decreased to 12,424 million euros thanks to strong asset quality and active management of non-performing loans. This represented a year-over-year decline of 1,209 million and a quarterly drop of 937 million. The cost of risk for the last 12 months stood at 0.23%.
In the commercial arena, insurance production remained positive, supported by the MyBox product range. Life risk insurance premiums grew 25% annually, while non-life premiums rose 44%, reflecting broad-based demand for protection products.
Mortgage production also surged, up 58% year over year to 5,928 million euros, and new consumer finance loans reached substantial levels. Corporate lending increased by 21% to 5,142 million, and total new loan production rose 57% year over year. The healthy loan balance, excluding doubtful balances, stood at 351,012 million euros, up 3.2% year over year and 3% quarter over quarter. Housing loans grew 0.4% in the quarter, a notable trend after a long period without such gains, while consumer credit rose by 2.6% since December and 1.9% in the quarter. Financing to companies remained strong, up 5% and 4.2% respectively. Market share for Spanish corporate lending rose to 23.9%, up 13 basis points since December.
Client funds totaled 624,087 million euros as of June 30, with a modest year-over-year increase of 0.7%. The period reflected the usual end-of-quarter seasonality in demand deposits, alongside market volatility in unit-linked products and other assets managed for clients.
The CET1 solvency ratio stood at 12.4%, or 12.2% excluding IFRS9 interim adjustments. This level is comfortably above the regulatory minimum, though below the 13.1% posted at the end of 2021 due to the ongoing share buyback program, which can reach up to 1,800 million euros.