• Banca CaixaBank reduces to 7,791 those affected by its ERE after pressure from the Government

The new

CaixaBank

reached a profit of 4,786 million euros in the first quarter of the year, compared to 90 million in the same period of 2020, once the extraordinary impacts associated with the merger with

Bankia had been

incorporated

. Without these extraordinary items, the bank's profit would stand at 514 million, 5.7 times more than in 2020, when the results were affected by the provisions made to face the

coronavirus

crisis

.

CaixaBank

published the first quarter results on Thursday at the CNMV, the first to include the assets and liabilities of the nationalized bank and the book capital gains resulting from the integration process on its balance sheet. The accounts do not include the results generated by

Bankia's

activity

in the period, since the operation was closed at the end of March, so the merger has not had any impact on the different lines of activity.

The balance sheet, on the other hand, does reflect the incorporation of

Bankia's

assets and liabilities

at their fair value as of March 31, which is the date that has been taken as the reference for the merger for accounting purposes. Thus, after the incorporation of

Bankia's

equity

, the

CaixaBank Group

account

reflects an extraordinary entry associated with the merger (negative goodwill) of € 4,300 million, which together with the extraordinary expenses of the integration and the ordinary result gives led to an accounting attributable profit in the first quarter of 4,786 million.

The negative goodwill is the result of discounting from

Bankia's

equity

(13,088 million euros) the acquisition price paid by

CaixaBank

(5,314 million euros) and a series of accounting adjustments when putting different assets and liabilities at fair value (3,474 million euros), explains the entity chaired by

José Ignacio Goirigolzarri

. The operation has made

CaixaBank

the leading entity in the Spanish market, with more than 663,500 million euros in assets (+ 47%), a net worth of 35,552 million (+ 40.6%), market shares of around 25 % and 21.1 million customers in

Spain

and

Portugal

.

In a statement, the entity's CEO,

Gonzalo Gortázar

, stressed that the recurring profit of 514 million reached until March is "a figure that already shows a clear progress towards normality."

CaixaBank's

'core' income

- without integrating

Bankia's

activity

- stood at 2,066 million euros at the end of the first quarter, which represents a year-on-year increase of 1%.

Net interest income fell 0.7%, to 1,191 million, in an environment of negative interest rates, a fall that is offset by income from insurance contracts (+ 9.3%), results associated with insurance companies (+ 39.2%) and the growth of commissions (+ 0.2%).

The gross margin stood at 2,063 million euros, 4% more, and the income of the investee portfolio grew by 34.4% compared to 2020, to 77 million euros, thanks mainly to the improvement in the attributable result of

SegurCaixa Adeslas

. On the other hand, recurring administration and amortization expenses fell 3.3% in the interannual rate, to 1,149 million euros, thanks to early retirements in 2020, the management of the cost base and lower expenses incurred in the context of the

coronavirus

.

Between January and March, the entity has recorded extraordinary expenses associated with the integration of

Bankia

amounting to 40 million euros. Taking into account the aggregation of the

CaixaBank

and

Bankia

income statements

, the proforma result without extraordinary items associated with the merger would be 580 million euros, compared to 184 million in the first quarter of last year.

Net interest income would stand at 1,639 million euros (-, 3%), while the

proforma

core

income

of both entities would increase by 0.7%, to 2,808 million. Specifically, commission income would reach 941 million (+ 1.6%), the proforma gross margin would stand at 2,774 million euros (+ 0.5%) and recurring administration and amortization expenses would be reduced by 2.6 %, up to 1,593 million.

As a result of the integration, managed customer funds increased 39.6% in the interannual rate in the quarter, to 579,934 million, and gross customer loans reached 363,821 million, with an increase of 49.2% in the trimester.

The non-performing loan ratio now stands at 3.6%, three tenths more than at the end of 2020, and the coverage ratio remains at 67%, with a doubtful balance amounting to 14,077 million euros.

For its part, total liquid assets stood at 147,146 million euros, with a growth of 32,695 million euros in the first quarter, mainly due to the integration of

Bankia

.

Regarding the

Covid

crisis

,

CaixaBank

recalls that during 2020 more than 17,000 million euros were granted in loan arrears in

Spain

, of which 11,276 came from CaixaBank and 5,825 million from

Bankia

.

Half of the moratoriums have already expired and at the end of April 8,498 million euros remain in force.

Non-performing balances represent only 0.4% of the loan portfolio.

As of March 31, the balance

drawn down

in loans with

ICO

guarantees

reached 22,001 million euros, of which 13,301 came from

CaixaBank

and 8,700 million from

Bankia

.

According to the criteria of The Trust Project

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