CaixaBank (CABK) Investor Day 2024 summary

Strategic Priorities and Market Outlook

• Focus on growth, transformation, and sustainability, leveraging a strong competitive position after successful integration and streamlining efforts.

• Iberian economies expected to grow 2%-2.5% per year (2025-2027), with loan growth converging toward nominal GDP growth (4.6% avg.), supported by high savings rates and positive demographic trends.

• Business volumes (customer funds and lending) targeted to grow over 4% annually, with deposit growth above 3%, mortgage book growth above 2%, consumer lending above 6%, and business lending at 5%.

• Wealth management and protection insurance expected to grow over 6% and 10% per annum, respectively, driven by high savings rates and demographic shifts.

• International and SME lending to be prioritized, with digitalization and specialized managers enhancing service and efficiency.

Starting Position and Ambition

• Successfully executed 2022-24 plan, surpassing targets in business volume, wealth management, and cost synergies.

• Reinforced leadership in retail banking with #1 market share in Spain for business volume, wealth management, and life-risk insurance.

• Achieved €74.7Bn in sustainable finance mobilisation and distributed €12Bn in capital over 2022-24.

• 2025-27 ambition is to sustain high profitability, targeting average RoTE >15% and further growth.

• Strategic pillars: growth acceleration, transformation and investment, and distinctive ESG positioning.

Transformation and Technology

• EUR 5 billion IT investment planned, with EUR 1 billion dedicated to strategic transformation, including AI, cloud migration (targeting 50% adoption by 2027), and digital channel enhancements.

• Aim to have 30% of processes supported by AI by 2027, improving customer experience, efficiency, and lead generation.

• Expansion of digital and hybrid service models, with increased specialization among relationship managers and a focus on seamless integration of physical and digital channels.

• Recruitment of 1,000 IT professionals and 3,000 young talents over three years to support digital transformation and upskilling.

• Continued investment in resilience and cybersecurity to maintain top-tier standards.