CaixaBank obtains a net profit of 833 million euros

Barcelona (ACN) - CaixaBank achieved a net profit of 833 million euros in the first half of 2011, representing an 11% increase. The group stresses that has strengthened its capital standing by 11.3%, 2.4 points higher than in December 2010. The reorganisation of CaixaBank was completed a year ago after absorbing La Caixa Bank (along with some stocks from third party companies) and building on Criteris CaixaCorp, the holding corporation of La Caixa. This was as part of a state-wide effort to strengthen the Spanish financial sector, as well as strengthening the position of the company itself.

CaixaBank presented the first results of its company history, which started trading on 1 July this year, debuting on the Spanish stock market with its 630.000 shareholders. It is the third largest financial institution in Spain and the tenth largest bank in stock exchange capitalization within the Eurozone. Currently, the liquid assets total 21,633 million euros, almost all of which are immediately available. The NPL ratio stands at 4.3%, below the industry average, and the coverage ratio has risen to 67%. The positive result of the 11% rise in profits have dispelled any doubts that were cast by the falls in profit that the company experienced in the first half of 2010. However, this improvement of profit is the result of the extraordinary gains the group secured from the sale of 50% of the non-life insurance company Mutua Madrileña, generating a staggering capital gain of 463 million euros. As such an extraordinary business opportunity is not set to repeat in the next quarter, it is expected that the following period will see a fall in profits, returning the yields to the typical average.