CaixaBank Second-Quarter Profit Beats Estimates on Trading Gains

CaixaBank SA, Spain’s third-biggest bank, posted second-quarter earnings that beat analyst estimates after trading gains helped offset charges for covering refinanced loans.

CaixaBank’s profit fell 38 percent to 73 million euros ($97 million) from a year earlier, the Barcelona-based bank said in a filing to regulators today. Earnings beat the average 66.5 million-euro estimate in a Bloomberg survey of six analysts.

CaixaBank has announced plans to cut about 2,600 jobs and is selling part of its stake in Mexican financial services company Grupo Financiero Inbursa SAB as it takes steps to absorb losses caused by Spain’s economic crisis and property crash. Trading gains rose sixfold to 327 million euros from a year ago.

While net interest income climbed 7.1 percent to 967 million euros from a year earlier, it was down 2.5 percent from the first quarter as gross lending dropped 3.2 percent from March, CaixaBank said.

Bad loans as a proportion of total lending rose to 11.2 percent from 9.4 percent in March, the bank said.

CaixaBank said it had 26 billion euros of refinanced loans at the end of June and had covered the cost of new Bank of Spain rules on classifying and covering losses on those assets. An additional 3.3 billion euros of loans were classified as being in default, leading to a 375 million-euro charge against earnings. Stripping out the impact of refinancing, the bad-loan ratio would be 9.8 percent, CaixaBank said.

CaixaBank said it would target cost savings of 423 million euros in 2013, 654 million euros in 2014 and 682 million euros in 2015 as it restructures its business after acquisitions.

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