Net profit up 30 to 1.67 bln euros, beats forecasts
Q2 NII up 14.3 yy to 2.79 bln, above forecasts of 2.76 bln
Revises up 2024 NII guidance to highsingle digit growth
Sees 2024 ROTE above 17 from previous guidance of above 16

MADRID, July 31 Reuters Spain39;s Caixabank on Wednesday beat secondquarter net profit forecasts thanks to a rise in lending income, and expects loan income and profit to exceed expectations this year amid higher interest rates.

Spanish banks are mainly retail lenders and have benefited from higher rates, charging more for loans while keeping a lid on rates paid to savers though higher deposits costs have started to squeeze margins on a quarterly basis.

Net interest income in the quarter, a measure of earnings on loans minus deposit costs, jumped 14.3 yearonyear to 2.79 billion euros 3.02 billion, slightly beating analyst forecasts of 2.76 billion euros.

For the full year, Caixabank expects high singledigit net interest income growth, from midsingle digit growth expected previously, as interest rates are seen declining later than expected and at a slower pace.

Net interest income however slowed down and just rose 0.4 against the previous quarter after the cost of deposits rose slightly, while yields on loans fell 3 points, leading to a decline of 6 basis points in the customer spread.

Central bankers have been warning that deposit costs would gradually pick up and hit margins.

The bank reported a 30.3 yearonyear rise in net profit to 1.67…