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FINANCIALS: Caixabank Results Beat, Spread Positive. Unicaja Appears An Outlier

FINANCIALS

Caixabank (CABKSM: Baa2/BBB pos/BBB+ pos) results headlines also appear positive, which rather makes Unicaja’s miss yesterday rather a Spanish outlier. Revenues are a 3% beat, loan losses around 20% better than expectations, NPLs marginally better, and a 6% pre-tax beat. Guidance upgrades are in here as well. Spreads have outperformed since last results (-14bp vs. €IG banks -1bp) but have done little in the last month so these results also appear spread positive, to us.

  • “*CAIXABANK 2Q NET INCOME EU1.67B, EST. EU1.57B
  • *CAIXABANK 2Q NET INTEREST INCOME EU2.79B, EST. EU2.75B
  • *CAIXABANK BOOSTS NII GUIDANCE TO HIGH SINGLE DIGIT GROWTH
  • *CAIXABANK SEES FY ROTE ABOVE +17%, SAW ABOVE +16%
  • *CAIXABANK NEW SEES 2024 NPL RATIO AT AROUND 2.7%, SAW AROUND 3%” – BBG
  • “*CaixaBank 2Q-End CET1 Ratio 12.1% Vs. 12.5% >CABK.MC CAIXY” – DJ

Conf call is 1030 (London time) at: https://edge.media-server.com/mmc/p/vonbqt7q

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