MADRID: Spain’s Caixabank said on Thursday its net profit rose 33% in the fourth quarter from the same period in 2023 as a rise in fees and commissions more than offset lower lending income.

The lender reported a net profit of 1.54 billion euros ($1.70 billion) in the September to December period, above the 1.43 billion euros expected by analysts.

The bank also announced a sixth share buy-back programme of 500 million euros, meeting its target of distributing 12 billion euros to shareholders announced in its 2022-2024 strategic plan.

Its board also approved a total cash payout of 53.5% against the consolidated net profit for 2024, equivalent to 2.028 billion euros, after proposing a cash gross dividend of 0.2864 euros per share. This dividend proposal was within its 50%-60% pay-out policy.

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Caixabank’s net interest income, a measure of earnings on loans minus deposit costs, in the quarter fell 0.3% year-on-year to 2.74 billion euros, slightly higher however than analysts’ forecasts of 2.71 billion euros.

Compared with the previous quarter, NII fell 1.9% as falling interest rates started squeezing margins.