CaixaBank SA’s second-quarter net profit rose

CaixaBank SA’s second-quarter net profit rose despite a sharp increase in provisions but was still lower than expectations.

Net profit rose 31% to 115 million euros ($136.2 million), the Spanish bank said Friday. In the same quarter last year, the lender posted a charge of almost a billion euros related to a labor agreement.

Gross income fell 8.7% to EUR2.13 billion, as net interest income, fees and trading income declined.

Analysts had forecast second-quarter net profit of EUR198 million on gross income of EUR2.02 billion and loan-loss provisions of EUR534 million, according to a consensus forecast provided by the bank.

The bank set aside EUR755 million in provisions related to the coronavirus pandemic. This pushed its allowance for insolvency risks to EUR819 million in the quarter, compared with just EUR81 million a year earlier.

Pietro Lombardi

source:marketwatch.com