Sabadell net profit improved by 21% through June, less than expected – Yahoo Finance Spain

MADRID (Reuters) – Banco Sabadell announced Friday a net profit lower than expected due to higher extraordinary provisions that led him to also announce a forecast for the full year less than envisaged in an old strategic plan.

the CEO of the company, Jaume Guardiola, told a conference call with analysts that it expected net profit for the year would place “slightly below 800 million euros “.

at the end of 2013, the group presented a strategic plan to three years with the ambition to reach 1,000 million euros profit in 2016.

shares bank trading at midday with a higher drop to six percent after announcing before the opening of an increase in its net profit semiannual lower than predicted by higher than expected, adjustments of 92 million euros loan loss impairment in the Portuguese BCP , which holds a 5.07 percent and contributions to European resolution fund.

Driven by the integration of British TSB acquired in 2015, the bank earned 20.7 percent more than in the first half of the previous year to 425.3 million euros, compared with 485 million expected on average by analysts.

However, operational data met and even exceeded expectations in a context of margins and increasing credit. Net interest income (the difference between what it charges for lending and financing costs) rose 49.5 percent to 1,942.5 million euros, compared with an average forecast of 1.934 million.

with quarterly and yearly in its service fees for the first time since 2012 growth, the company also said it sees strong net interest income on the horizon of 2017.

the Catalan club responded to the expectation of the market on the possible implications for their business of the recent decision by the UK to leave the EU reaffirmed its commitment to the country and said the negative impact on their accounts of the sharp drop in the pound after the vote was 0.3 percent.

Sabadell, whose consolidated TSB balance already provides 28 percent in net interest income and 34 percent in favor, said he does not see a great impact on your business as a result of brexit.

As part of the national economic recovery, the company saw volume growth of outstanding credit by 3.2 percent compared to June 2015 and 0.8 percent in the first quarter. Delinquencies, meanwhile, returned to 2012 levels falling 67 basis points between April and July to stand at 6.83 percent.

The CET 1 capital ratio remained fully loaded in the 11.8 percent while allocations against non-performing loans fell 48 percent to 902 million euros

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