Unicaja renueva la cartera de crédito en busca de rentabilidad

Unicaja is refreshing its credit portfolio in search of profitability. New loans are outperforming the existing portfolio, and the retirement of old credits provides space to boost margins. The bank's CEO, Isidro Rubiales, explained during the second-quarter results presentation that the performance of the front book – the new credit production – is almost 40 points higher than the back book, the current portfolio.

This difference is observed across most portfolios, according to Rubiales. The bank is monitoring a credit price adjustment due to the maturity of loans contracted at lower rates, mainly in the public sector and among businesses. As old operations with lower returns exit the balance, they are replaced by new production with higher profitability.

The improvement in loan yields since the end of last year helped maintain a relatively stable client margin despite rising passive costs, according to the group's director of finance, Pablo González. From April to June, credit performance slightly increased for the second consecutive quarter, reaching 2.74%. However, deposit costs followed a similar trend, increasing by 0.47% in the first half of the year, resulting in a client margin of 2.26% at the end of the second quarter, down two points from the first quarter.

González stated that the group expects continued improvement in this metric. The bank anticipates further growth in interest margins due to slower interest rate revisions and expects a growth of between half a point and one point by the end of the year, as opposed to the previous guidance of simply beating the 2025 figure of 1.495 million.

Geopolitical uncertainty and fluctuations in oil prices complicate predictions on the European Central Bank's future monetary policy moves. The portfolio renewal coincides with an acceleration in new credit production. Unicaja issued €5.515 million in loans to the private sector during the first half of the year, a 19% increase compared to the previous year.

The surge was particularly strong in mortgages and consumer credit: new mortgage lending rose by 40%, and consumer credit by 26%. In businesses, lending increased by 7%. Unicaja is diversifying its credit portfolio, aligning with its strategic plan for 2025-2027, focusing on high-potential growth segments, especially corporate and consumer credit.

Rubiales noted that these businesses are also observing greater profitability compared to the existing portfolio. This shift is reflected in the credit growth: corporate lending increased by 6.6% year-over-year, consumer credit by 8%, outpacing the 1.8% growth in mortgage lending. Unicaja emphasizes that they haven't yet captured all the benefits of the measures included in their roadmap.

The second quarter marks half of the implementation period, with some talent and alliance investments yet to fully materialize, with the biggest improvements expected in 2027.