Caixabank's Q3 net profit rises 22% helped by lending income

Caixabank Reports 22% Surge in Q3 Net Profit Driven by Lending Income

Caixabank Q3 2025 Financial Performance Overview

Net Profit Growth and Lending Income

MADRID, Oct 30 (Reuters) - Spain's Caixabank said on Friday its third-quarter net profit rose 21.7% from the same period in 2025, as a rise in lending income offset higher loan-loss provisions.

Impact of Interest Rates on Margins

Spanish banks are mainly retail lenders and have historically benefited from variable-rate lending. Higher interest rates are starting to support margins on their loan books, though that is being partially offset by a faster repricing in deposits paid out to clients.

Key Financial Highlights

Net Profit and Analyst Expectations

• The country's biggest lender by domestic assets reported a net profit of €1.76 billion in the July-to-September period. Analysts polled by Reuters expected a net profit of €1.63 billion.

Insurance and Fee Income Growth

• Results were also supported by a year-on-year rise of 11.7% in its insurance business and an increase of 7.2% in net fee income.

Net Interest Income Performance

Quarterly and Yearly NII Comparison

• Net interest income (NII), a measure of earnings on loans minus deposit costs, rose 4.6% in the quarter from the same period a year ago to around €2.8 billion. Analysts expected NII to come in at €2.81 billion. NII rose 2.5% against the previous quarter.

Loan-Loss Provisions

• Loan-loss provisions rose 8.8% against the same quarter last year.

Dividend Distribution

• The lender approved the distribution of an interim dividend of €1.28 billion, equivalent to €0.1844 gross per share, to be paid on November 6. Caixabank has a cash payout policy of between 50% and 60% of consolidated net profit.($1 = 0.8957 euros)

Reporting Credits

(Reporting by Jesús Aguado; editing by David Latona)