Unicaja's Q2 net profit up 61% but lending income down qtr/qtr
Adds net interest income detail in paragraphs 4-5, loan performance in paragraphs 7-8
By Jesús Aguado
MADRID, July 30 (Reuters) -Spain's Unicaja UNI.MC posted a 61% rise in second-quarter net profit on Tuesday helped by lower provisions though lending income eased quarter on quarter due to higher funding costs.
Net profit rose to 184 million euros for the three months to June 30, slightly below the 191 million expected by analysts polled by Reuters as loans declined.
Spanish banks are mainly retail lenders and have benefited from higher interest rates for longer than initially expected as they charge more on loans while keeping a lid on rates paid to savers.
In that context, Unicaja's net interest income, a measure of earnings on loans minus deposit costs, rose 19.6% in the second quarter to 383 million euros ($414.4 million), in line with analysts' forecasts.
However, central bankers have been warning that deposit costs would gradually pick up and hit margins.
Against that background, cost of deposits rose 4 basis points versus the previous quarter while NII fell 1.8%.
The bank's total performing loan book shrank 5.9% year on year, while new residential mortgages, the bulk of its loan book, fell 12% against the same quarter last year.
Versus the previous quarter, however, new mortgage production rose around 30%.
($1 = 0.9079 euros)
Reporting by Jesús Aguado; editing by Inti Landauro and Jason Neely
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