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CaixaBank posts Q4'16 profit on impairment reversals

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CaixaBank posts Q4'16 profit on impairment reversals

CaixaBank SA reported profit attributable to the group of €77 million for the fourth quarter of 2016, compared to a loss of €182 million in the year-ago period.

Net interest income amounted to €1.08 billion, up from €1.05 billion in the fourth quarter of 2015. Net fee and commission income also increased, to €544 million from €515 million.

The bank's share of profit of entities accounted for using the equity method reached €192 million in the 2016 fourth quarter, compared to a year-ago share of loss of €127 million.

Impairment reversals on financial assets and other provisions amounted to €108 million for the period, compared to impairment losses of €754 million in the same quarter a year ago. The amount includes the impact of a previously announced reversal of insolvency provisions, as well as the additional provisioning carried out in connection with interest rate floor clauses on sold mortgage contracts.

CaixaBank booked €774 million in losses on disposal of assets and others, compared to gains of €16 million a year ago.

For full year 2016, CaixaBank reported attributable profit of €1.05 billion, up from €814 million a year ago. ROE rose to 4.5% from 3.7%.

The nonperforming loan ratio stood at 6.9% at the end of 2016, down from 7.9% a year ago. The NPL coverage ratio declined to 47% from 56%.

CaixaBank's common equity Tier 1 ratio stood at 13.2% as of Dec. 31, 2016, compared to 13.4% three months ago and 12.9% a year ago. On a fully loaded basis, the CET1 ratio stood at 12.4% at 2016-end, down from 12.6% at the end of September 2016 and up from 11.6% a year ago.