*
Net profit up 21% to 855 mln euros, beats forecasts of 643
mln
*
Net interest income up 48.6% to 2.16 bln, above forecasts
*
Sees NII of above 8.75 bln in 2023 vs previous comparable
guidance of 8.5 bln
*
Retail deposits fall slightly against December
*
Shares rise around 3%
(Recasts to lead on lending income, updates shares)
By Jesús Aguado
MADRID, May 5 (Reuters) - Caixabank on Friday
beat first-quarter net profit forecasts, helped by higher
lending income, which the Spanish bank said would rise more than
30% in 2023 after raising its guidance, even as retail deposits
dipped compared with December.
Banks across Europe are benefiting from higher interest
rates, and Caixabank's net interest income (NII) rose 49%
year-on-year to 2.16 billion euros, beating the 2.02 billion
euros analysts expected.
Following the implementation of new accounting standards,
Caixabank revised its 2023 guidance for lending income to 8.75
billion euros, implying a rise of 34% against 6.53 billion in
2022.
The previous comparable NII guidance for this year was
around 8.5 billion euros.
At 0730 GMT, shares in Caixabank rose 2.8% after falling
13.7% so far this year.
JP Morgan welcomed the new lending income guidance,
adding that "fees & insurance and cost guidance remain
unchanged, which should drive mid-single-digit upgrades to
consensus estimates."
The bank reported a 21% rise in net profit to 855 million
euros ($944.1 million) in the January to March period, despite a
373 million euro impact from a new banking levy. Analysts polled
by Reuters expected a profit of 643 million euros.
Earnings at the country's biggest lender by domestic assets
were also supported by a solid performance at its insurance
services business, which rose 24%.
Loan-loss provisions rose 12% year-on-year and the cost of
risk, which measures the cost of managing potential losses,
ticked up to 26 basis points from 25 bps in December.
For 2023, it lowered its cost of risk's guidance to less
than 30 bps from previously less than 40 bps.
By the end of March, deposits from retail clients at
Caixabank fell 1.4% against December.
Deposit levels at banks have come into sharper focus after
the collapse of U.S. lender Silicon Valley Bank (SVB) in March
sparked jitters across the global banking sector.
At the end of March, Caixabank ended with a liquidity
coverage ratio of 192%, compared to 194% at the end of December.
($1 = 0.9056 euros)
(Reporting by Jesús Aguado; additional reporting by Emma
Pinedo; Editing by Inti Landauro, Varun H K and Jane Merriman)
