Unicaja Banco has obtained a net profit of 61 million euros at the end of the first semester of 2020, which is 47.5% less, after making an extraordinary endowment of 103 million euros in order to face, with high provisions, possible future impacts derived from the pandemic.
As reported by the entity this Monday, excluding this extraordinary endowment, the result of the first semester would have amounted to 133 million euros, with an increase of 14.8% compared to the same period in 2019 and would represent a return on equity (ROE ) of 6.8%.
The entity improved both the gross margin, with an increase of 6.8%, and the operating margin before write-downs, which grew 24.3%. In addition, at the end of the first semester, the CET-1 ratio stood at 15.8% 1 and the total capital ratio at 17.3% 1, among the highest in the sector, with an excess over the SREP requirements of 1,176 million euros.
For its part, revenues were affected by less activity derived from the state of alarm, which had a negative impact of 2.4% on the interest margin for the quarter. Additionally, a growing effort has been made to control operating expenses during this first semester of 2020, which has resulted in their reduction by 4.3% year-on-year, as a result of the review and reinforcement of the entity's cost containment plans. The write-downs and provisions are 107 million higher than the same period of the previous year.
The group's commercial activity, although it has been impacted by the COVID-19 crisis, has continued to grow. In this sense, it is worth noting the positive evolution of normal credit (performing), which increased by 2.7% in the year and was mainly based on credit to public administrations (+ 9.6%) and companies (+5.5 %).
On the other hand, the capture of on-balance-sheet resources has also been positive, where there has been a growth of 4.9% in the year, while off-balance-sheet resources have grown by 2.9% in the last quarter, offsetting in part, the negative evolution of the first quarter, which was mainly due to the impact that the negative evolution of the markets had on the valuations of said instruments.
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