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Caixabank's new accounting standards cut 2022 lending income by 389 million euros

A man uses a Caixabank ATM in Barcelona

MADRID (Reuters) - Spain's Caixabank on Friday said that the implementation of new accounting standards on its insurance business had a 389 million euro ($428.13 million) negative impact on the group's reported net interest income in 2022.

The lender provided the 2022 figures for comparative purposes, following the implementation of accounting models IFRS 17 and IFRS 9 in the insurance business as of January 1, 2023.

The insurance service results accounted for around 16% of Caixabank's lending income.

The new accounting standards for insurance contracts will primarily affect revenue lines related to the insurance business and its associated expenses.

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In 2022, Caixabank, the country's biggest domestic lender by assets, reported a net interest income, a measure of earnings on loans minus deposit costs, of 6.92 billion euros, which has now been restated to 6.53 billion euros.

The lender said that new accounting standards do not have a "material impact" on the 2022 bottom line as it would just reduce by 16 million euros the net profit to 3.13 billion euros.

At 0714 GMT, shares in Caixabank were down 1.8%.

The new accounting standard reduced its reported core tier 1 capital ratio by 20 basis points.

(This story has been corrected to show that core tier 1 capital was reduced, not raised, in paragraph 8)

($1 = 0.9086 euros)

(Reporting by Jesús Aguado; editing by Inti Landauro)