UPDATE: La Caixa 2008 Net Profit -28% Amid Hefty Provisioning
30 Januar 2009 - 2:59PM
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.
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 go up to
6%," said La Caixa Chairman Isidro Faine 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 energy 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.
Company Web site: www.lacaixa.es
-By Luis Morais, Dow Jones Newswires; +34 91 395 81 32;
luis.morais@dowjones.com
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