(Gives breakdown on Q3 results)
MADRID, Oct 31 (Reuters) - Spain’s Caixabank posted on Thursday an increase of 37% in third quarter net profit as it posted lower one-off losses than in the same quarter last year, while lending income remained flat.
Net profit for the quarter came in at 644 million euros ($718.83 million), above an average of 559 million euros forecast by a Reuters poll.
In the third quarter of 2018, the lender had booked a loss of more than 400 million euros due to the sale of a 9.4% stake in Repsol.
Cost savings and growth in the more profitable enterprise and consumer business also boosted the quarterly bottom line of Caixabank, the country’s third-largest lender in terms of total assets, the lender said.
Caixabank has been one of the most active players in a consolidating Spanish banking industry, taking over BPI in February 2017 in a bid to boost revenues.
Net interest income (NII) - a measure of earnings on loans minus deposit costs - rose 0.3% against the same quarter last year to 1.24 billion euros, in line with analysts’ forecasts. Against the previous quarter, it remained almost completely flat.
Against a backdrop of ultra-low interest rates, Caixabank had already reduced in July its guidance for core revenue to a growth of around 1% in 2019 from the 3% expected previously.
It also said at the time that its NII would grow close to 1% from a previous growth guidance of around 2%.
The lender finished September with a core tier-1 capital ratio of 11.7% compared to 11.6% in June.
$1 = 0.8959 euros Reporting By Jesús Aguado; Editing by Ingrid Melander