Grupo Unicaja recorded a net profit of 158 million euros in the first quarter of the year, an increase of 43% over the same period of the previous year (111 million euros in March 2024), with double-digit growth in both the gross margin (11.5%) and the pre-provision profit (18.2%).
The Group's result is supported by a robust net interest income, close to 370 million euros, as well as by the growth in net fees and commissions and the reduction in the item of 'Other operating income and expenses', which included the temporary tax on credit institutions (79 million euros in the first quarter of 2024). This tax has been replaced by a tax on net interest income and commissions, which Unicaja has accrued under taxes on profits.
Despite the 4.7% year-on-year increase in administrative expenses, the higher growth in gross margin led to a 3.1 percentage point (p.p.) improvement in the efficiency ratio to 45.6%. The ROTE profitability ratio improved by 4.3 percentage points (p.p.) compared with March 2024, reaching 9.7%.
Balance sheet
Year-on-year growth of 4.9% in total resources under management
Managed funds, including wholesale funds, showed a positive evolution, with an increase of 4.9% in the last twelve months to 105,105 million euros, with a substantial weight of very stable and highly granular individual funds.
Retail deposits amounted to 92,424 million, a year-on-year increase of 4.9%, while off-balance sheet funds and insurance grew by 9.4% to 23,436 million.
In this first quarter and among savings products, the performance of mutual funds (with a year-on-year increase of 22% and 6.6% compared to the fourth quarter of 2024) is particularly noteworthy, where net subscriptions tripled to 958 million euros, a new all-time high, as well as an increase in market share to 9.1%, according to Inverco's data. The accumulated assets of these funds stood at 14,426 million.
The balance of performing loans increased by 0.3% in the first quarter to 46,511 million euros, thus resuming the growth path with a low risk profile. Within the framework of the 2025-2027 Strategic Plan, the growth of Corporate and Consumer credit is positioned as a key axis for income diversification, a commitment that is already showing tangible results, given the 0.7% and 1.4% advances, respectively, in just three months of execution.
In year-on-year terms, consumer credit recorded growth of 5.8%, with a high weight of pre-approved loans and loans from digital channels, which accounted for 40% and 43%, respectively, of the total amount formalized in the first quarter.
As of March 2025, the bank had granted 2,595 million euros in new loans and credits, of which 714 million were mortgages to individuals, representing 27.5% of the total. The market share in mortgage formalizations amounts to 5% of the national total
Improved balance sheet quality and high coverages
The results for the period were also accompanied by an improvement in the quality of the balance sheet, which demonstrates the strength of the business model.
The NPL ratio fell 13 basis points (b.p.) in the quarter, to 2.58%, and the cost of risk remained contained at 27 b.p.
The volume of non-performing assets (NPAs) continued its downward trend, with a year-on-year drop of 22.1%, due to a 29.9% decrease in the stock of foreclosed assets and a 15.7% decrease in non-performing loans.
The quality of credit can be seen in aspects such as the evolution of entries in NPLs, which fell by 37.7% year-on-year (nearly half of which corresponded to NPL without defaults or with defaults of less than 90 days), and with outflows of more than 100 million euros.
The reduction of NPAs has been accompanied by the reinforcement of the already high coverage levels, which are among the highest in the sector, thus continuing Unicaja's traditional policy of prudence. The coverage ratio for non-performing assets reached 72.7%, for NPLs 70.4% and for foreclosed assets 76.1%. The sharp reduction in NPAs and the increase in coverage resulted in a year-on-year fall of 30.1% in net NPAs.
Solvency and liquidity
CET 1 fully loaded at 15.4% and solid liquidity position
Unicaja maintains high and solid solvency levels[1] . At the end of the first three months of 2025, it had a highest quality phase-in capital level (CET 1 Common Equity Tier 1) of 15.5%, a Tier 1 capital ratio of 17.4% and a total capital ratio of 19.5%. These ratios exceed the levels required to the institution by 7.3 percentage points in CET 1 and 6.9 percentage points in total capital.
In fully loaded terms, the bank had a CET 1 level of 15.4%, a tier 1 capital ratio of 17.3% and a total capital ratio of 19.4%. CET 1 fully loaded increased by 88 b.p. over the last twelve months, thanks to the organic generation of earnings.
Thus, the entity has 2,067 million in excess of regulatory requirements
On the other hand, the Texas ratio stood at 24.9%, an improvement of 6.7 percentage points over the last year.
The bank maintains a solid liquidity position, reflected in the Loan to Deposit ratio, which stood at 69.2%, a short-term liquidity ratio (LCR) of 270%, and a stable funding availability ratio (NSFR) of 162%.
Income statement
Gross margin grew by 11.5%
Net interest income, at 369 million euros, remained solid, despite the scenario of falling interest rates.
Net fee and commission income reached 132 million euros in the quarter, up 1.6% year-on-year. The good commercial dynamics led to an increase in assets under management, especially in mutual funds, whose net fee and commission income rose by 17% year-on-year. Insurance fees also performed positively, with a 6.1% increase compared to the same period last year.
Gross margin reached 515 million, 11.5% higher than in March 2024. The efficiency ratio stood at 45.6%, a year-on-year improvement of 3.1 percentage points, while ROTE improved by 4.3 percentage points compared to March 2024, to 9.7% .
Operating income (pre-provision profit) amounted to 280 million in the first quarter. Loan-loss provisions increased by 3.8%, bringing the quarterly cost of risk to a contained level of 27 basis points. Net operating income amounted to 227 million euros. Consolidated pre-tax profit amounted to 227 million euros, and net income totaled 158 million euros.
Strategic Alliances
Unigest, management company of Grupo Unicaja, has reached preferential collaboration agreements with BlackRock, Allianz Global Investors and Candriam, prestigious international fund managers, to promote the growth of multi-asset funds, as part of its strategy aimed at consolidating and strengthening its offering.
With these alliances, it reinforces its position as an important player in mutual fund management in Spain, thanks to a broad portfolio adapted to different financial objectives and risk levels.
Innovation
Unicaja has launched a Generative AI Hub to advance in the development of use cases, in its commitment to make this technology a transversal pillar of its corporate strategy to achieve improvements in productivity and customer experience.
On the other hand, work continues on the definition of innovation laboratories to analyze how these disruptive technologies can help generate innovative business models.
Sustainability
The bank continues to work in favor of sustainability, with the promotion of initiatives such as the extension of the decarbonization objectives to new sectors of the credit portfolio; the publication of the 2024 report on the allocation and impact associated with the green bonds issued, whose projects enabled the avoidance of an environmental impact of 80,982 tons of carbon dioxide (CO2) (compared to the 54,791 tons avoided in 2023), or the beginning of the implementation of an ESG rating for the corporate portfolio, within the credit risk processes.
Similarly, it has renewed the collaboration agreement with Fundación Adecco to promote the labor inclusion of women at risk of social exclusion, and, at a regional level, it has joined the Habita Extremadura Program to promote the construction of more than 3,000 subsidized housing units until 2027, and has also established an alliance with the property administrators of Castilla y León to finance sustainable energy rehabilitation works in homeowners' associations.
Finally, in the area of financial education, through the Edufinet Project (promoted by Unicaja and Fundación Unicaja), the seventh edition of the Financial Guide was presented and a program of actions was carried out within the framework of Global Money Week 2025, which benefited more than 2,600 people.
[1] Capital ratios include net income, net of accrued dividends, computability pending approval by the European Central Bank.
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