Unicaja's Q4 net profit rises 6% on higher fees, lower overall provisions (updated)

Unicaja Banco SA

03/02/2026 07:00

Q4 net profit rises 6.1% y/y but short of forecasts

Q4 NII falls 0.8% y/y, sees NII recovering in 2026

Lifts 3-year accumulated profit target above 1.9 bln euros

Ups total payout policy to 95% for 2026-2027

Recasts to lead on forecasts, includes new details from paragraph 8 onwards, new profit target and payout policy

By Jesús Aguado

MADRID, Feb 3 (Reuters) - Spanish bank Unicaja UNI.MC forecast a gradual recovery in lending income and higher profit for 2026 and 2027 on Tuesday, with loans set to increase on the back of the country's solid economy.

Banks in Spain 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 (NII), a measure of earnings on loans minus deposit costs, fell 0.8% year-on-year to 378 million euros in the fourth quarter, compared to forecasts of 375 million euros but rose 0.8% quarter-on-quarter.

For the whole of 2025, NII at the country's sixth-largest lender by market value fell 2.8% to around 1.5 billion euros, although it expects margins above 2025 levels this year.

Shares in Unicaja, which more than doubled in value last year, were 0.4% lower at 0854 GMT.

Net profit in the quarter rose 6% year-on-year to 130 million euros thanks to lower overall provisions and a 3% rise in fees, but fell short of forecasts of 151 million euros.

For the whole of 2025, net profit rose 10.3% to 632 million euros, with the bank forecasting a higher figure this year.

Broker Jefferies said that fourth quarter net profit missed expectations due to restructuring charges of 27 million euros and said that the 2026 looked "conservative".

Unicaja also lifted its forecast of an accumulated net profit for the 2025-2027 period to above 1.9 billion euros, compared to a previous target of above 1.6 billion euros on the back of higher loans.

Its performing loan book rose 1.9% year-on-year in the fourth quarter.

Unicaja raised its ordinary pay-out policy to 70% for 2026 and 2027 from a previous 60% target.

For 2026-2027, it aims for an around 95% total pay-out policy, from above 85%, saying it was considering additional remuneration through share buybacks or dividends, estimated at around 25% of consolidated net income.

 ($1 = 0.8466 euros)

 (Reporting by Jesús Aguado; Editing by David Latona and Alexander Smith)

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