CaixaBank rakes in €1.7Bn to September

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Profits at the Spanish bank CaixaBank grew 18.8% to €1.7Bn in September 2018 thanks to improved revenues from basic banking services.

Part of this growth is down to improved profits from its Portuguese subsidiary BPI which contributed €168 million.

CaixaBank – the majority shareholder in BPI – stated that it had achieved these results mainly due to improved basic revenues from its basic banking service charges,  greater profits from BPI and a reduction in necessary allocations, and cost contention.

The group highlights a growth in revenues with a growth in gross margins of 6.3% worth €6.9Bn billion driven by “strong core business revenues”  (€6.1Bn, +4.5%).

The Portuguese subsidiary BPI contributed with €168 million and taking into consideration all of the subsidiary companies held by the Portuguese arm, its total contribution to the Spanish holding stands at €399 million.

The CaixaBank group now has a Tier 1 (CET1) Common Equity ratio that is fully loaded at 11.4% despite the extraordinary impact from repurchasing BPI non-controlling minority holdings and 51% of Servihabitat.

Its credit default rate was slashed to 5.1% when it stood at 6.4% in September last year with a cover ratio of 54%.