CaixaBank has a net profit of 845 million euros for the first 9 months of 2011
The main Catalan bank allocated 1.953 billion euros for insolvencies and raised its core capital to 11.8%, 2.9 percentage points more than the ratio it had in December 2010. These operations made their net profit decrease by 16.6% compared to the previous year. Besides, CaixaBank announced that Mexican billionaire Carlos Slim will quit its board to rejoin that of the bank’s industrial holding ‘Criteria CaixaHolding’. Slim’s seat will be occupied by former Chairman of Citigroup and the New York Stock Exchange John S. Reed.
Barcelona (ACN).- CaixaBank had a net profit of 845 million euros for the first nine months of 2011, after having increased its core capital to 11.8%. In 9 months, CaixaBank’s core capital went from 8.9% to 11.8%, according to a press release on Friday announcing its results up until September 30th, which have also been released to the Spanish Trade Market Authority (CNMV). CaixaBank’s net profit was 16.6% inferior to that achieved in the same period of 2010 because the Catalan bank decided to allocate 1.953 billion euros for insolvencies. However, the bank’s arrears payments ratio represents 4.65%, below the sector’s average of 7.15%. CaixaBank is the private bank created by the savings bank ‘la Caixa’ and it is Catalonia’s first financial entity, and the third in Spain.
CaixaBank is satisfied with their net profit, considering there is “a very complex business environment” at the moment. The Catalan bank, chaired by Isidre Fainé, aims to manage risk in advance and strengthen its finances. Therefore CaixaBank prioritises the recapitalisation process to increase the bank’s core capital and the operations to create provisions for insolvencies, CaixaBank managed to obtain 845 million euros of net profit from January to September 2011.
Carlos Slim switches CaixaBank’s board for Criteria CaixaHolding’s
The President of Inbursa, the Mexican billionaire Carlos Slim will switch his seat within CaixaBank’s board for a seat in the board of the bank’s industrial holding ‘Criteria CaixaHolding’, as announced on Thursday by the Catalan bank. The change of boards was decided by Carlos Slim and agreed with La Caixa’s management, which controls both CaixaBank and Criteria. CaixaBank’s board decided on Thursday to accept Carlos Slim’s resignation. In addition, they announced the Mexican billionaire, who has been considered the richest person on Earth, will join Criteria CaixaHolding’s board “soon”, in which he already sat on before becoming a member of CaixaBank’s board.
Carlos Slim’s seat in the Catalan savings bank’s board will be occupied by John S. Reed, as an independent member. Reed has been Chairman and CEO of Citicorp, Citibank and Citigroup for 16 years. In addition, he was also Chairman of the New York Stock Exchange from September 2003 to April 2005.