CaixaBank First-Quarter Profit Falls 84% on Real Estate Cleanup

CaixaBank (CABK) SA, Spain’s fourth- biggest lender, said first-quarter profit fell 84 percent as it complied with a government order for banks to recognize losses for real estate.

Net income dropped to 48 million euros ($63 million) from 300 million euros a year earlier, the Barcelona-based bank said in a filing to regulators today. That missed the 162 million- euro average estimate of four analysts surveyed by Bloomberg.

Spanish banks including CaixaBank are responding to a drive by the government to make lenders recognize greater losses on real estate piled up on their books during the country’s property crash as it seeks to force the industry to restructure. The company said last month it would buy Banca Civica SA (BCIV) in an all-stock offer valued at 977 million euros as the banking overhaul gathers pace.

To contact the reporter on this story: Charles Penty in Madrid at cpenty@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

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