Ibercaja earns 54 million until March, 14.8% less, after paying 29 million for the bank tax

Ibercaja obtained a net profit of 54 million euros in the first quarter of the year, a figure 14.8% lower than that of the same period of 2022, after paying 29 million euros for the extraordinary tax to the bank, as reported by this entity thursday

Excluding the impact of this tax, which Ibercaja has already paid in full, the entity's net profit would reach 83 million euros, an increase of 30.5% compared to the first three of last year.

Ibercaja's recurring profit before provisions reached 141 million euros up to March, 56.7% more, thanks to higher recurring revenues, which increased by 25.8%, to 291 million euros.

The bank has highlighted that the strategy of diversifying its customer resources towards products with higher added value and the increase in interest rates have allowed it to strengthen its profitability ratios.

Ibercaja's recurring profit before provisions reached 141 million euros up to March, 56.7% more, thanks to higher recurring revenues, which increased by 25.8%, to 291 million euros.

The NPL rate stood at 1.6%, which is why it has hardly changed compared to the fourth quarter of 2022. This level represents a differential of 195 basis points compared to the sector average. In addition, the coverage ratio has increased by seven tenths, up to 90.7% and the CET1 'fully loaded' capital ratio has remained at 12.8%, four tenths more than in the previous three months.

customer resources

Ibercaja's customer funds have remained practically stable since the end of 2022 and total 68,571 million euros (-0.6% quarter-on-quarter), thanks to the behavior of asset management and life insurance.

The decrease compared to the previous quarter is explained by the increase in early repayments of mortgage loans, the volume of which has doubled compared to the first quarter of 2022, and the higher consumer spending by families due to the inflation environment.

Ibercaja has highlighted the high degree of diversification of its clients' resources, with 49.3% of the total in asset management and life insurance.

Thus, new inflows to investment funds, pension plans and savings insurance totaled close to 1,700 million euros in the first quarter, a figure that Ibercaja describes as “outstanding” and which has led it to reach a record volume of assets under management and life insurance of 33,788 million euros.

In particular, Ibercaja's investment funds have captured 1,400 million euros between January and March, equivalent to 15% of the total inflows to the sector, which has allowed them to add 25 basis points of market share in three months, up to 6 .1%, achieving a new historical milestone.

As explained by the financial entity, the current situation of interest rates has favored the bank to continue updating its savings life insurance offer as an investment alternative, due to its “attractive” guaranteed profitability, security and liquidity.

On the other hand, the new production of risk life insurance premiums have increased by 6.3% year-on-year and non-life premiums by 8.4% year-on-year.. In the same way, the portfolio of these insurances grew 4.9% year-on-year in the quarter, to 75 million euros -6.1% in non-life and 2.0% in life risk-.

The gross loan portfolio -ex repos- amounts to 28,982 million euros at the end of March, 0.9% below the close of the first quarter of 2022, due to fewer formalizations. Meanwhile, the rise in interest rates has led to an increase in the portfolio's credit yield of 140 basis points in the quarter.

Ibercaja has warned that the framework of uncertainty for companies has withdrawn their investment decisions, while the increase in interest rates is slowing down the purchase of housing by families and accelerating early repayments. This has had a negative impact on the demand for credit by these customer segments.

Thus, the formalization of loans and credits totaled 1,285 million euros between January and March, which represents a decrease of 16.7% compared to the first quarter of 2022.

Digital customers increase

Mobile banking app customers have increased by 11.3% year-on-year to 694,000, so that the total number of digital customers grows above 928,000, representing 60.7% of all Ibercaja customers.

The percentage of digital sales remains above 40%, on track to reach the 45% target set in the 2023 Challenge Plan by the end of the strategic triennium. In particular, the weight of the use of these channels continues to grow in the contracting of mortgages, which already accounts for 29.8%; and in risk insurance, 9%.