CaixaBank credit risk blitz drives 22% drop in loss reserves

CaixaBank eliminated soured loans and lowered the amount of cash it put aside for expected credit losses in the second quarter.

Allowances for insolvency risk – what CaixaBank calls the cash put aside each quarter from earnings to cover loan losses – were just €81 million ($90 million) for Q2, compared with €123 million the prior quarter and €109 million the year-ago quarter. 

In response, total provisions for credit losses (PCLs), the cash pot CaixaBank holds in reserve to cover faulty loans