Caixabank raises profit by 29% in 2016; the action low – Investing.com Spain

MADRID (Reuters) – Caixabank (MC:) rose to its benefit, a 28.6 per cent in 2016, a year marked by the increase in the provision related to surcharge applied on the mortgages placed on the market in your network, the lower cost of the loans and the high volatility in the markets.

For the full year, the profit attributable to Caixabank amounted to 1,047 million euros, driven by the strong increase of the revenues from its portfolio of investee companies, especially Repsol (MC:), which lastró the accounts in the previous year due to their strong decline in the stock market.

The interest margin fell 4.5 percent to 4.157 million in the year as a whole, although it did manage to rebound by 3.5 percent in the last quarter of 2016.

The consensus of analysts compiled by Reuters pointed to a net profit of 1,190 million euros in 2016 and a margin of interests of 4.122 million.

The gross margin remained virtually unchanged in 7.827 million euros.

In a press note separate, Caixabank announced a review of its goals for 2017 and 2018, adjusting them to the environment of interest rates incredibly low.

As a result, it reduced its forecast ROTE (return on tangible heritage) to 9-11 in 2018 from a previous target of 12-14.

at The same time, the entity confirmed its targets in terms of the dividend, with the return to the payment in full in cash of the remuneration to its shareholders.

In the banking business, without the inclusion of the Portuguese BPI (LS:), the entity now expects a slight increase of the interest margin (+1/+3 percent) and an increase less than one percent of their operating costs-recurring.

In the bag, the initial reaction to the results and forecasts was half-hearted and, at 0945 hours, the Caixabank shares fell 1.1 percent to 3.36 euros.

(Information by Robert Hetz; Edited by Inmaculada Sanz)

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