CAIXABANK: 4Q’19 RESULTS (ANÃLISIS BANCO SABADELL)
4Q'19 vs. 4Q'18 ResultsN.I.I.: € 1.231 Bn (-0.4% vs. +0.3% expected and 0.0% expected by the market consensus);
Total Revenues: € 1.995 Bn (+6.9% vs. +2.6% expected and +3.2% expected by the market consensus);
Operating Profit: € 820.0 M (+19.7% vs. +6.4% expected and +8.6% expected by the market consensus);
Net Profit: € 440.0 M (+102.8% vs. +64.1% expected and +85.3% expected by the market consensus);
4Q'19 vs. 3Q'19 Results
N.I.I.: € 1.231 Bn (-0.9% vs. -0.2% expected and -0.5% expected by the market consensus);
Total Revenues: € 1.995 Bn (-7.9% vs. -11.6% expected and -11.0% expected by the market consensus);
Operating Profit: € 820.0 M (-16.0% vs. -25.3% expected and -23.8% expected by the market consensus);
Net Profit: € 440.0 M (-31.7% in 3Q'19 vs. -44.7% expected and -37.6% expected by the market consensus);
The company has presented 4Q’19 results with only one snag: the worse performance in NII. Lending fell -0.2% vs. 3Q’19, which along with the worse repricing (more negative Euribor) and the lower ALCO contribution justify the drop. However, growth in fee revenues (+5% vs. 3Q’19) was far higher than expected (+2% consensus), underpinned by the dynamic situation in the insurance business and in asset management. This has even allowed the bank to raise its growth rate in Core revenues (+1.2% vs. 2019), slightly above the guidance (+1%), which was in question until now (we and the consensus both expected growth of around +0.8%).
Likewise, cost-saving measures are bearing fruit, and costs were reduced by -1.3% in a quarter that is seasonally negative vs. 3Q’19 (vs. flat performance expected). Thus, CABK has met yet another of its 2019 targets: +3% growth in costs vs. 2018 (vs. +3.2% expected).
Provisions have been significantly cut and the CoR remains stable at 3Q’19 levels, i.e. 15bps (
Caixabank is an investment company based in Spain. Co. is involved in investment portfolio management activities across two areas: Services and Financial Business and Insurance. In the services area, Co. provides investment solutions for companies involved in the infrastructure, energy, services and entertainment sectors. In the financial business and insurance area, Co. is engaged in the investments for international banks, insurance and specialist financial services. Co. focuses most of its banking investments in India, China, the U.S., and Central and Eastern Europe with a particular interest in retail banking. Co. is also involved in the disinvestments activities.
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