Unicaja’s Q1 Profit Jumps 43% as Banking Tax Impact Eases

Unicaja of Spain announced on Monday that its net profit increased by 43 per cent in the first quarter relative to the same timeframe in 2024, as a diminished effect from the revived banking tax balanced out a decrease in lending revenue due to reduced interest rates. The lender announced a net profit of 158 million euros ($179.73 million) for the period from January to March. Analysts surveyed by Reuters anticipated a net profit of 132 million euros, per a Reuters report.

Unicaja recorded an expense of approximately 5 million euros related to the new banking tax as it modified the effect on a linear quarterly scale according to the existing tax laws, a representative from Unicaja stated. This contrasted with the prior year when a total of 79 million euros were recorded in the other income category during the first quarter.

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In a setting characterised by reduced borrowing expenses, Unicaja's net interest income, which indicates earnings from loans after accounting for deposit costs, decreased by 5.6 per cent in the quarter to 369 million euros, slightly above predictions of 367 million euros. Compared to the last quarter, NII decreased by 3.1 per cent.

($1 = 0.8789 EUR)