Gradual income from lending improves, leading to profit surpassing expectations for Unicaja.
Unicaja Banco Outperforms Expectations in Q2 2024
Unicaja Banco, a leading Spanish bank, has reported its financial results for the second quarter of 2024, showcasing a resilient performance despite some minor decreases in key metrics.
The bank's net profit for the quarter stood at 179 million euros, marking a 2.4% decrease compared to the same period last year. However, this figure surpassed analysts' forecasts of 169 million euros, indicating a robust performance.
Unicaja's net interest income for the quarter saw a 2.5% year-on-year decline, but managed to register a 1.5% increase compared to the previous quarter. This improvement is noteworthy, given the challenging economic environment.
The bank's performing loan book remained almost flat year-on-year but showed a 3.5% quarter-on-quarter rise. This growth was further reflected in the surge of consumer lending, which increased by 40% year-on-year in the same period.
Total fees also experienced a 3.5% increase in the quarter, with the bank expecting low single-digit growth for total fees this year, an upgrade from a previously expected "flattish" performance.
New business lending saw a significant boost, increasing by 43% year-on-year in the April to June period. Despite this decline from 1.54 billion euros in 2024, the bank remains optimistic about its growth prospects.
Unicaja expects its net interest income for this year to be above 1.45 billion euros. To reflect this optimism, the bank announced an interim dividend of 169 million euros against 2025 results, a 10% increase compared to 2024.
In terms of market performance, Unicaja was the best performer in Spain's blue-chip index, with a rise of over 5%. This outperformance occurred amidst a backdrop of a relatively modest 0.4% increase in the index itself at the time of the report.
Spain's banks, including Unicaja, have benefited from higher costs of loans tied mostly to variable rates. This trend is expected to continue, contributing to the bank's overall financial health.
For more detailed information about Unicaja's net interest income, profit performance, and expectations for 2025, it is recommended to consult the bank's official annual reports, earnings releases, and investor relations presentations from 2021 through 2024, as well as any available 2025 guidance. Additionally, financial news sources covering Unicaja's recent performance can provide valuable insights.
In Q2 2024, Unicaja Banco's net profit, though down by 2.4% Year-on-Year, outperformed analysts' expectations at 179 million euros. Beyond net profit, the bank's total fees exhibit a 3.5% increase in the quarter. Additionally, Unicaja's business lending saw a 43% Year-on-Year growth in new loans, a testament to its robust brokerage and finance investment strategies.
