Unicaja's Q3 net profit rises 10% on loans; deposit costs rise (updated)

Unicaja Banco SA

Yesterday 06:58

Includes details on profit and NII targets in paragraphs 4 and 6, cost of deposits in 5, on capital ratio in 9
MADRID, Oct 30 (Reuters) - Spanish lender Unicaja UNI.MC on Friday reported a 10% rise in third-quarter net profit, beating forecasts, on the back of higher loans supported by solid economic growth in Spain.
Spanish banks have historically benefited from variable-rate lending. Higher interest rates are starting to support margins on loan books, though that is being partially offset by faster repricing in deposits paid out to clients.
Spain's sixth-largest lender by market value reported net profit of €182 million ($203 million) in the July-to-September period, above the €171 million forecast by analysts in a Reuters poll.
The bank expects mid-single-digit growth in net profit in 2026. 
Net interest income, a measure of earnings on loans minus deposit costs, rose 5.5% year-on-year in the quarter to €395 million, compared to forecasts of €392 million. NII rose 3.5% from the previous quarter after costs of deposits rose 6 basis points, quarter-on-quarter.
Unicaja expects low-to-mid-single-digit growth in NII in 2026.
Performing loans rose 4.9% year-on-year in the third quarter.
New consumer lending rose around 50% year-on-year in the quarter, while new mortgage lending was up 11% in the same period. New business loans fell around 10%.
The bank's fully loaded core tier-1 capital ratio, the strictest measure of solvency, fell to 15.4% from 15.7% in the previous quarter as higher rates reduced the value of its sovereign bond holdings and broader debt portfolio.

($1 = 0.8957 euros)

 (Reporting by Jesús Aguado; Editing by David Latona)
 ((jesus.aguado@thomsonreuters.com; +34 91 835 68 32; Reuters Messaging: Reuters Messaging: jesus.aguado.reuters.com@reuters.net))