Ibercaja will increase its revenue by 5.9% till March by incomes 58 million euros | EUROtoday

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The first quarter of the yr ended for Ibercaja with a internet revenue of 58 million euros, un 5,9% ms than in the identical interval of the earlier yr, pushed by a ten.4% improve in recurring revenue, as much as 322 million euros, and as soon as the extraordinary tax on the sector was taken under consideration, which on this event has amounted to 40 thousands and thousands of euros.

As reported by the corporate this Tuesday at National Securities Market Commission (CNMV), the conduct of rates of interest and the administration of economic exercise have led to the rise within the curiosity margin. This, along with increased commissions and the contribution of internet revenue from insurance coverage, has boosted revenue.

Ibercaja has continued to deploy “intense commercial activity” in a context of “uncertainty for the development of financial activity with individuals and companies, in which inflation presents greater downward resistance than expected and interest rates remain the same.” at increased ranges than anticipated,” the statement said.

He interest margin grew by 8.2% in the quarter, to 170 million euros, due to the good performance of financial income. The profitability of credit reached 3.7% in the last quarter of the year compared to 0.5% of the cost of deposits, which represents a customer margin of 3.2%, which implies an improvement of 77 basis points in year-on-year terms.

Las net commissions, for their part, amounted to 116 million euros in the three months, 6.3% higher than the comparable period of the previous year. Non-banking fees have been the main drivers of this increase, with a growth of 10.7% year-on-year.

For its part, the net result of insurance has increased by 10 million euros. Thus, the gross margin, which includes the accounting for the banking tax, has reached 287 million euros, 8.2% more than the same quarter of last year. Excluding this tax, the gross margin would have grown by 11.3%.

As for the billsthese have increased by 8.9% due, mainly, to the increase in personnel costs, derived from the application of the new collective agreement and the greater number of employees, after the nearly 400 new hires that the bank made in 2023 .

Despite the increase in expenses and the imputation of the tax, Ibercaja maintains its total efficiency ratio at 57% (56.7% in the first quarter of 2023). Taking the amount of the tax on a monthly basis, which is equivalent to 10 million euros between January and March, the efficiency ratio would have been 51.6%, compared to 52.4% for the same period in 2023.

Provisions for credit risk and foreclosed assets amount to 17 million euros, after the significant provisioning effort made at the end of 2023 and the good evolution of asset quality throughout this first quarter. The cost of risk is set at 23 basic points.

Solvency and liquidity

Regarding solvency, the bank achieved a ROTE of 8.8% until March and also maintained its liquidity position. Thus, the capital ratio CET1Fully Loadedincreased in the first quarter to 13.1%, and the Capital ratio Total Fully Loaded it did so up to 17.7%. The default rate, 1.7%, is one of the lowest in the sector, with a differential of 197 basis points compared to the average; and the degree of coverage reaches 93.7%, one of the highest among comparable entities.

In the first quarter, the bank has increased the total managed resources of clients by 1%, up to 72,186 million euros, which represents 5.3% more compared to the first three months of 2023. This increase has been due to the intense commercial activity, focused on the formalization of new term deposits and the management of assets and insurance.

Between January and March, time deposits have increased by 1,739 million euros and asset and insurance management has increased by 3.3% to 38,998 million euros, a balance that already represents 54% of the total. customer resources.

In particular, the investment funds of Ibercaja have raised 621 million euros between January and March, equivalent to 8.6% of the total contributions achieved by the sector, thus continuing the outstanding differential performance obtained in 2023. The entity's investment funds have also stood out in this quarter due to the returns achieved, which at the end of March were positive in most investor profiles.

Refering to credit activity, new formalizations have amounted to 1,348 million euros, 4.9% more than the first quarter of the previous year, highlighting the increase of 34.1% in the case of those destined for non-real estate companies. The balance of gross loans (ex repos), for its part, has fallen still by 1.7% due to early repayments, seasonality and a lower availability of working capital.