Unicaja Banco Group reported a net profit of 267 million euros for the fiscal year 2023, reflecting a 4 percent decrease from the prior year. The bank disclosed these annual results to the National Securities Market Commission (CNMV) on Tuesday, detailing how various factors shaped its performance. Charge-offs for the full year stood at 546 million euros, a figure that helped the group accelerate the disposal of non-productive assets and strengthen structural profitability. The company also noted the presence of a provisional tax reform affecting banks; despite this, first-quarter figures showed a net profit of 63.8 million euros, which would translate to 330 million euros when annualized, signaling a 19 percent year-over-year improvement from December 2022.
Unicaja announced that the tax contribution agreed upon for 2023 reached 461 million euros, marking a volume 14 percent higher than the previous year. This uptick in tax outlays aligns with the group’s broader revenue progress and profitability trajectory, underscoring a sustained effort to balance earnings with regulatory obligations.
With a modest decline in expenses driven by stronger interest margins and increased commissions, the basic profitability indicator, defined as the sum of interest margin and commissions less operating expenses, rose by a substantial margin. The banking core profit grew by 39.6 percent year over year. All major margins advanced compared with the previous year: interest margin rose to 26.1 percent, gross profit margin reached 10.6 percent, and the operating margin before provisions climbed to 23.2 percent. This pattern indicates that efficiency gains and revenue diversification supported earnings resilience despite competitive pressures.
Additionally, the board of directors signaled plans to propose a cash dividend distribution of 132 million euros, subject to approval at the next ordinary general meeting. This proposed return to shareholders reflects confidence in the group’s ongoing capacity to generate stable cash flow and dividends even amid macroeconomic uncertainties.
Looking ahead, the board, awaiting authorization from the European Central Bank, is also considering a share repurchase program aimed at reducing the company’s social capital. The proposed program would potentially repurchase treasury shares representing up to 3.8 percent of the capital, with a ceiling of 100 million euros. This plan would be implemented within regulatory limits and capital management considerations as part of an overall strategy to enhance long-term value for investors.
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Turning to the 2023 results, retail customer resources stood at 88.825 million euros. Off-balance sheet and insurance resources rose by 4.1 percent on an annual basis to 21,087 million euros. Total resources managed by the group increased by 0.6 percent year over year to 98,747 million euros. These figures illustrate the bank’s capacity to grow client deposits and the breadth of its asset management activities, even as it navigates a challenging rate environment and evolving market dynamics. The overall earnings profile benefited from steady fee income and disciplined expense management, reinforcing the group’s approach to building durable profitability.