Unicaja's Q3 net profit rises 5.4% helped by higher fees (updated)

Unicaja Banco SA

31/10/2025 07:20

Recasts to focus on gradual NII recovery, adds shares, details  on fees, new profitability targets in paragraphs 7, 9-11

Q3 NII down 2.4% y/y but up 0.2% q/q

Sees 2025 NII above 1.47 billion from previous forecast above 1.45 billion

Net profit rises 5.4% helped by fees and lower provisions

Lifts 2025 ROTE target to around 12% from about 11%

By Jesús Aguado

MADRID, Oct 31 (Reuters) - Spain's Unicaja UNI.MC forecast on Friday a gradual recovery in lending income in 2025 as a rise in new loans, fees and lower provisions helped the bank beat profit expectations in the third quarter, driving its shares up 3%.

Spanish banks are mainly retail lenders and have benefited from higher costs of loans tied mostly to variable rates, but recent reductions in borrowing costs are squeezing margins.

Unicaja's net interest income - a measure of earnings on loans minus deposit costs - fell 2.4% against the same period a year ago to 375 million euros ($437 million), slightly above analysts' forecast of 372 million euros.

Compared to the preceding quarter, however, NII rose 0.2% thanks also in part to lower deposit costs.

The country's sixth-biggest bank by market value said it expected NII to finish 2025 above 1.47 billion euros, from a previous guidance of 1.45 billion euros. This would still be a decline compared to the 1.54 billion euros posted in 2024.

Net profit in the quarter rose 5.4% to 165 million euros, exceeding analysts' forecast of 153 million euros.

Unicaja shares were up 3.4% by 0909 GMT.

Analysts at Jefferies also welcomed a solid solvency level as the lender's core tier-1 fully-loaded ratio, the strictest measure of capital, rose to 16.1% in the quarter from 15.8% in the previous three months.

The profit beat was helped by a decline of 16% in overall provisions and a rise of 3.4% in fees, which offset a rise of 5% in costs.

This helped lift its 2025 return-on-tangible equity ratio target, a measure of profitability, to around 12% from around 11% previously.

The bank's performing loan book was almost flat year-on-year in the quarter but new loans rose, supported by a solid domestic environment.

($1 = 0.8575 euros)

(Reporting by Jesús Aguado; editing by Joan Faus)

((jesus.aguado@thomsonreuters.com; +34 91 835 68 32; Reuters Messaging: Reuters Messaging: jesus.aguado.reuters.com@reuters.net))