CaixaBank Profit Rises as Trading, Fees Offset Charges

CaixaBank SA, Spain’s third-largest bank, said profit rose more than 50 percent in the second quarter as gains from trading and fees offset a one-time charge on staff expenses.

Net income increased to 333 million euros ($364.5 million) from 217 million euros a year earlier, the Barcelona-based lender said in a filing to regulators Friday. Profit beat the 334 million-euro average estimate in a Bloomberg survey of nine analysts.

CaixaBank, which has plans to boost profitability four-fold by 2017, last month withdrew an offer for a Portuguese lender after facing shareholders rejection.

Net interest income, or the difference between what a bank charges for loans and pays for funding, was little changed at about 1.13 billion euros. The bank cut its net interest income growth guidance for 2015 to a range of 4 percent to 6 percent from a previous estimate of 7 percent to 9 percent, it said in a separate filing.

Bad loans as a proportion of total lending at CaixaBank dropped to 9 percent from 9.7 percent at the end of March, the bank said.

Total commissions at the bank increased 8 percent from a year earlier to 514 million euros, while trading gains almost doubled to 567 million euros. Both gains help compensate a one-time cost of about 300 million euros related to staff reduction.

CaixaBank offered in February 1.1 billion euros for the 56 percent it doesn’t already own at Banco BPI SA. The Spanish lender stepped back after shareholders rejected a key condition for the offer. Chairman Gonzalo Gortazar said the bank will analyze all options for its stake.

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