October 26, 2018 / 6:12 AM / a year ago

UPDATE 1-Spain's Caixabank Q3 net profit down 27.6 pct due to Repsol sale

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MADRID, Oct 26 (Reuters) - Spain’s Caixabank on Friday posted a 27.6 percent fall in third-quarter net profit from a year earlier after it booked a 453 million euro ($515 million) one-off loss due to a stake sale in Spanish oil major Repsol.

Caixabank, Spain’s third largest bank, reported net profit of 470 million euros in the period July to September.

Caixabank was under pressure to sell its 9.4 percent stake in Repsol as it is trying to comply with tougher solvency requirements and regulators are demanding banks to focus on their core banking business.

As end-September, Caixabank’s fully-loaded capital ratio, the strictest measure of solvency, remained at 12.9 percent.

Taking into account the sale of its Repsol stake and real estate asset disposals, the fully-loaded capital ratio at end-September was 11.7 percent.

Net interest income, a measure of earnings on loans minus deposit costs, was 1.24 billion euros in the third quarter, up 3.1 percent from a year ago. NII was slightly below analysts’ forecasts of 1.23 billion euros for the quarter.

On a quarterly basis, net interest income was up just 0.7 percent on the previous period.

Like other European lenders, Spanish banks are struggling to glean earnings from loans with interest rates at historic lows and as increasing competition erodes margins. ($1 = 0.8800 euros) (Reporting By Jesús Aguado; editing by Sonya Dowsett and David Evans)

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