MADRID, May 6 (Reuters) – Spanish bank CaixaBank posted a net profit of 4.79 billion euros ($ 5.76 billion) on Thursday in the first quarter thanks to an accounting profit of several million that it obtained after the acquisition of the financial institution nationalized Bankia.
CaixaBank said that Bankia’s equity was 13,090 million euros at the end of March and that, after accounting adjustments after putting various assets and liabilities at fair value of 3,474 million euros and a final acquisition price of Bankia of 5,314 million at the The closing of the operation on March 23, recorded a negative goodwill of 4.3 billion euros.
Negative goodwill is an unrealized profit that occurs when an asset is purchased below its book value.
Without taking into account the accounting profit of the merger, Caixabank’s net profit multiplied almost six times compared to a year ago to 514 million euros, after not having made any additional provision against the COVID-19 pandemic .
Analysts consulted by Reuters forecast a net profit in the first quarter of 342 million euros, without considering the accounting profit.
(1 dollar = 0.8333 euros)
(Report by Jesús Aguado, edition by Inti Landauro; translation by Flora Gómez in the Gdansk newsroom)