Unicaja has obtained a net profit of 172 million euros at the end of the 2019 financial year, which means an increase of 12.9% compared to 2018. The improvement of this result is based on an increase in the gross margin, on the improvement of the contribution of the real estate business and on a decrease of the operating expenses, as well as on a reduced need for sanitation of non-productive assets.
The entity has allocated 230 million euros in the year to the provision of provisions aimed at improving future profitability under the new strategic plan. Unicaja has indicated that this effort has been possible thanks to the improvement of the operating margin before sanitation and the contribution of extraordinary capital gains such as those made in the sale of the stake in Ausol.
The gross margin rises 1.0% compared to 2018 due to the boost in revenues linked to products and services, to the improvement in the contribution of the real estate business, as well as to the increase in dividends.
Unicaja has said that another relevant factor in the evolution of the results is the reduction of operating expenses, of 2.0% in relation to 2018. This allows the operating margin before sanitation to increase 5.8%, reaching 402 million euros at the end of December.
The return on equity (ROE) stood at 4.4% at the end of December, 0.4 percentage points higher than the ratio of a year earlier.
REDUCTION OF NON-PRODUCTIVE ASSETS
Unicaja has reduced its gross exposure to non-productive assets (NPAs) by 1,117 million euros (-31.1%) in the last twelve months, with decreases of 29.9% in doubtful assets and 32.6% in the awarded.
The balance of doubtful assets of the group, at the end of the fourth quarter, decreased to 1,351 million euros and that of foreclosed properties, to 1,120 million.
The dubious fall translates into a decrease in the delinquency rate of 1.9 percentage points in the last twelve months, reaching 4.8%.
In terms of solvency, at the end of December 2019, Unicaja presents a ratio of first level ordinary capital (CET1) of 15.6% and total capital of 17.1%, with an increase in relation to the previous year of 0 , 2 percentage points and 1.6 percentage points, respectively.
In terms of fully loaded, Unicaja has a CET1 ratio of 14.0% and total capital of 15.5%, which also experience increases in the year of 0.5 percentage points and 1.8 percentage points, respectively.
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