Unicaja Bank disclosed its results for the first three quarters of the year this Thursday, reporting net profit of 260 million euros, a 67.1% rise from the same period a year earlier. The group’s nine-month performance in 2022 shows a notable expansion in core income, with net commissions growing 11% annually, while administrative costs declined by 8.5% due to efficiency gains from restructuring. Loan demand softened, down 39.9% year over year, contributing to the reduced expense base and improved operating efficiency.
The gross margin increased by 3.3% year over year, and the operating margin before provisions rose by 20.5%, reflecting stronger operating discipline and favorable dynamics in the balance sheet.
Total lending and investment activity remained resilient, with lending to individuals rising by 2% year over year to 34,393 million euros and mortgage-backed financing up 1.9% to 31,574 million. The overall live loan portfolio stood at 53,343 million, up 0.5% from a year earlier. In the first nine months, new loans and credits reached 7,766 million, with 3,225 million allocated to private mortgages, representing 41% of the total.
Bank of Malaga noted a positive trajectory in results, highlighting a low cost of risk thanks to a favorable asset mix and robust coverage, alongside solid solvency levels. The stock of non‑performing assets (NPA) continued its downtrend, retreating 8.3% year over year amid lower foreclosures and associated outflows, totaling 393 million euros with an annual change of -18.8%. (CNMV note)
The reduction in NPAs occurred while maintaining high coverage and prudent risk management, according to the closing note submitted to the National Securities Market Commission (CNMV).
The coverage rate for non-performing assets reached 64.1%, with doubtful assets accounting for 64.7% and foreclosed assets at 63.4%. The default rate held at 3.5%, and the cost of risk remained at 29 basis points, versus 41 basis points in September 2021.
Unicaja Banco demonstrates a strong solvency profile, with fully loaded CET1 at 13.0% and a capital surplus above regulatory requirements of 1,635 million euros.
Balance
In the macroeconomic context, the bank described the environment as uncertain with inflationary pressures and heightened volatility in financial markets. Managed resources amounted to 101,106 million euros, down 3.6% from the prior year. Demand deposits rose 1.2% to 57,652 million, and retail resources accounted for 89% of total managed funds.
Off-balance sheet resources showed continued growth in savings insurance, up 2.3% in the third quarter to 4,270 million euros, an increase of 97 million. Accumulated assets in mutual funds stood at 11,205 million.
Financing activity was primarily driven by the expected expansion in personal lending (around 2% annually), mortgage activity (about 1.9%), consumer lending at 3.3%, and credit to public administrations near 1.2%. Total productive lending rose 0.5% year over year to 53,343 million euros.
The bank held about an 7.4% market share in new mortgage formalities over the last twelve months, with nearly doubling of its natural share in the Spanish banking sector. The outstanding balance of the business segment declined 3.5% year over year to 12,966 million, reflecting growth in 2021 backed by ICO-guaranteed lines.
Unicaja also maintained a highly diversified loan portfolio: 59.2% in individual mortgage financing, 24.3% to companies, 11.2% to public administrations, and 5.3% to consumption and other用途.
Income Statement
Net profit for the first nine months of 2022 reached 260 million euros, up 67.1% year over year, with net interest income totaling 765 million euros. In the third quarter, net interest income rose by 12 million compared with Q3 2021, supported by higher financial income from rising interest rates. The bank notes that the effects will show more clearly in the fourth quarter. (CNMV context)
On an annual basis, the interest margin stood at 3.6%, lower than the prior year, mainly reflecting a weaker contribution from wholesale activities, though the company pointed to a rebound and improving trend versus the first half of the year. The trade margin remained at 1.4%.
Net wage income posted a solid 11% year-over-year rise to 394 million, alongside growth in investment activities and mutual fund instruments. Gross margin reached 1,244 million, up 3.3% year over year. The retail segment’s interest margin and commissions accounted for about 78% of gross margin.
Cost containment advanced through the impact of restructuring measures, with 72% of planned staff exits and all planned office closures completed under the ERE approved in December 2021. Administrative expenses declined 8.5% year over year to 586 million.
The operating margin before provisions climbed 20.5% year over year to 590 million. Loan provisions dropped 39.9% year over year to 129 million, yielding a cost of risk of 29 basis points versus 41 in the prior year period. Operating profit reached 378 million, up 79.9% from the previous year.
Consolidated pretax profit stood at 357 million. Net profit amounted to 260 million, up 74.7% and 67.1% respectively, supporting a return on tangible equity (ROTE) of 5.5% at quarter end, compared with 3.4% a year earlier.