CaixaBank credit risk blitz drives 22% drop in loss reserves
Allowances taken from Q2 earnings fall to just €81 million
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
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