CAIXY Caixabank (PK)

   By Pietro Lombardi 
 

CaixaBank SA (CABK.MC) posted an unexpected second-quarter net profit that, despite being sharply lower due to hefty restructuring costs, beat analysts' expectations.

Net profit for the period was 89 million euros ($99.2 million) compared with EUR594 million a year earlier, the Spanish bank said Friday.

Caixa said it had EUR978 million in expenses in the quarter related to its restructuring program. In May, the bank reached an agreement with unions over a redundancy program potentially affecting more than 2,000 employees.

Gross income fell to EUR2.34 billion from EUR2.39 billion in the same period last year.

Analysts had expected the bank to post a EUR23 million loss for the quarter on gross income of EUR2.18 billion, according to a consensus forecast provided by the bank.

Net interest income--the difference between what lenders earn from loans and pay for deposits, and a key profit driver for retail banks--rose 0.9% on year to EUR1.24 billion.

Fees and commissions fell 4.7% to EUR636 million.

CaixaBank's core Tier 1 ratio, a key measure of capital strength, was stable at the end of June at 11.6%.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

(END) Dow Jones Newswires

July 26, 2019 01:38 ET (05:38 GMT)

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