Q3 net profit beats market forecasts
NII 2023 growth guidance lifted to 10 bln vs 9.25 bln
Targets stable NII performance in 2024

MADRID, Oct 27 Reuters Caixabank reported thirdquarter net profit on Friday which beat forecasts, helped by higher lending income, which the Spanish bank said would rise more than 50 in 2023 compared to 2022.

Spanish lenders are mainly retail lenders and are benefiting from rising interest rates, with higher returns on their loans, driven mainly by floating rate credit, while keeping deposit costs under control.

In Caixabank39;s case, yields on loans rose 48 basis points in the quarter to 4.23 while costs of deposits climbed 16 basis points to 0.71, widening the customer spread to 352 basis points compared to 320 bps in the second quarter.

That helped the bank offset subdued new mortgage lending, which fell 1.2 quarteronquarter.

The bank39;s net interest income, earnings on loans minus deposit costs, rose 71 yearonyear in the threemonths ending Sept. 30 to 2.74 billion euros 2.89 billion, above the 2.53 billion euros analysts expected.

Against that background, Caixabank revised its 2023 guidance for lending income to equal or above 10 billion euros from previously 9.25 billion euros, implying a rise of more than 50 against an net interest income NII of 6.55 billion euros in 2022.

For 2024, it expects its NII to have a stable performance from 2023.

Broker JP Morgan welcome an impressive NII performance and revised guidance for lending…