Unicaja Banco Reports Half-Year Profit Rise and Operational Gains
Unicaja Banco, the fifth-largest Spanish subsidiary by assets following its merger with Liberbank, posted a solid first-half performance. Net profit reached 165 million euros, up 62% from the same period in 2021, underscoring a recovering earnings trajectory for the group.
The improvement was driven by a rebound in the group’s net interest income, alongside higher net commissions and lower operating costs as well as fewer credit restructurings, according to the CNMV disclosures. The margin on interest-bearing activities stood at 501.6 million euros, reflecting a return to growth once the negative Euribor floor eased, with a second-quarter increase of 13.8% from the previous quarter, though still 7.6% below the year-ago level.
Net commissions posted a robust rise of 12.8%, boosted by income from mutual funds, cards and insurance activities, which reached 264 million euros on an annual basis. In parallel, cost control measures began to bear fruit, with the restructuring program delivering early synergies as over half of the targeted staff exits were realized.
Administrative expenses declined by 9% versus the first half of 2021, with a target of around 390 million euros for the period. The banking activity margin, calculated as interest income plus commissions minus administrative costs, grew 7.9% year over year. Gross margin rose by 0.8% and operating profit before provisioning increased by 14.5%.
In purely banking terms, Unicaja highlighted a stronger activity mix, noting new lending and loan disbursements totaling 5.3 billion euros and a 2.1% quarterly rise in resources financed or managed in the first half. This improvement occurred despite a challenging macro environment characterized by inflation, high uncertainty and volatility in financial markets, aspects cited by the bank as affecting savings behavior and investment flows.
Mutual funds remained a bright spot, with net subscriptions reaching 379 million euros, lifting total assets under management to 11,759 million euros, a 2.7% year-on-year increase. Asset quality showed resilience, with the default rate steady at around 3.5% and the stock of non-performing assets decreasing by 222 million euros, or 5.4% year over year.
Unicaja emphasized a policy of prudent risk management and strong coverage. The bank reported non-performing asset coverage ratios of 64% for NPLs and 65% for non-performing assets overall, aiming to cushion against potential deterioration in the external environment.
Credit risk metrics also improved: the cost of risk fell by 43.6% year to date, from 58 basis points to a lower level, while the cost of risk in the period showed a notable improvement. The institution also cited solid capitalization as a core strength, with Common Equity Tier 1 capital at 12.8% and a capital surplus above regulatory requirements of about 1.583 billion euros.
By the end of May, Unicaja had integrated significant technology and operations within the bank’s own infrastructure. The consolidation effort encompassed 575 offices and branches, 1,249 ATMs and 2,700 mobile devices inherited from the Asturian group, completed ahead of schedule and within less than a year, reflecting a successful integration plan.
Strategic priorities for Unicaja Banco include accelerating digital banking and expanding its online channel. By the close of the reporting period, 59% of customers conducted at least part of their banking activity through digital means, illustrating the bank’s push toward a more digitalized customer experience.
Overall, the results reveal a bank navigating a mixed environment with discipline in risk and costs, while pursuing growth in lending and digital channels. The half-year performance supports a positive long-term outlook for profitability, balance sheet strength and customer-focused digital expansion, consistent with the group’s strategic trajectory and capital planning. (Source: CNMV filings and internal disclosures).”