2nd UPDATE: La Caixa 08 Net Profit -28% Amid Hefty Provisioning
January 30 2009 - 9:47AM
Dow Jones News
La Caixa, Spain's top savings bank by assets, said Friday 2008
net profit fell 28% as weaker economic conditions resulted in
higher non-performing loans and hefty provisions.
La Caixa said in a presentation that net profit for 2008 fell to
EUR1.80 billion from EUR2.49 billion a year earlier, hit by the
absence of non-recurring gains, such as asset sales.
In 2007, La Caixa reported EUR360 million in extraordinary
gains. The company didn't immediately provide fourth-quarter
figures.
La Caixa also reported close to EUR1.39 billion in provisions
for 2008, as non-performing loans rose to 2.48% of total loans from
0.55% in 2007.
"In 1993, (Spanish bad loan ratios) were at about 9%, and this
year according to some forecasts it is possible that they (again
will) go up to 6%," La Caixa Chairman Isidro Faine said at a press
conference in Barcelona.
Faine declined to provide any forecasts for La Caixa's bad loan
ratios but told journalists he expects the savings bank to stay
below the average bad loan ratio in Spain.
Regarding La Caixa's stake in Spanish oil company Repsol YPF
(REP), Faine said La Caixa "is very pleased with its stake in
Repsol and doesn't see why it has to change anything."
Daily Expansion reported Friday that La Caixa and Caixa
Catalunya are studying offers on their combined indirect stake in
Repsol, separately from the negotiations held by Sacyr Vallehermoso
SA (SYV.MC) to sell its 20% holding in the oil company.
The banks have a combined 5% stake in Repsol through their
investment vehicle Repinves. In addition, La Caixa has a direct
stake of 9.8% in Repsol.
Meanwhile, La Caixa's Faine said that the bank's industrial
holding company Criteria CaixaCorp SA (CRI.MC) in 2008 increased
its stake in Spanish energy company Gas Natural SA (GAS.MC) by 2%
to 37.5%.
Criteria also boosted its stake in Abertis Infraestructuras SA
(ABE.MC) by 3.95% to 25%.
Company Web site: www.lacaixa.es
-By Luis Morais, Dow Jones Newswires; +34 627-045-967;
luis.morais@dowjones.com
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