CaixaBank (CABK) Q1 2026 earnings summary

Executive summary

• Net income reached €1,572 million in Q1 2026, up 7% year-over-year and over 5% quarter-on-quarter, driven by robust commercial activity, business growth, and improved asset quality.

• Business volume grew by approximately 7% year-over-year, with customer funds up 6.3% and performing loans up 7.2%.

• Asset quality reached record levels, with NPL ratio at 1.98% and coverage at 79%, supporting a low cost of risk of 23 bps.

• Return on tangible equity (ROTE) guidance upgraded to above 18% for the year, reflecting improved profitability and business momentum.

• Announced a new €500 million share buyback, continuing capital return to shareholders.

Financial highlights

• Net interest income was €2,662 million, up 0.6% year-over-year; gross income increased 2.9% to €4,127 million.

• Service revenues rose 7.5% year-over-year, with wealth management up 9.5% and protection insurance up 13.5%.

• Operating expenses increased 4.6% year-over-year, in line with guidance; cost-to-income ratio at 39.6%, well below peer average.

• Pre-impairment income grew 1.8% year-over-year to €2,475 million.

• EPS for the last 12 months was €0.85.

Outlook and guidance

• ROTE guidance raised to above 18% for 2026, with positive outlook for NII and service revenues into 2027 and 2028.

• NII expected to exceed €11 billion in FY26, with service revenues and operating costs projected to rise by around 5% and 4.5%, respectively.

• Cost of risk expected to remain below 0.25% for FY26, with strong asset quality and resilient macro environment.

• CET1 management target for 2026 remains at 11.5%-12.5%, with a cash payout target of 50-60%.

• Dividend policy for 2026 maintained at 50–60% payout of consolidated net profit, with two cash payments planned.