CaixaBank (CABK) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 reached €1.7 billion, up 30.3% year-over-year, and H1 2024 profit rose 25.2% to €2,675 million, driven by strong net interest income and robust business activity.

• Loan origination rebounded, especially in mortgages (+43% H1 yoy), with performing loan book growth of 2.2% year-to-date.

• Customer funds grew 5.9% to €667 billion, supported by strong net inflows in wealth management and deposits.

• ROTE increased to 16.9% (+4.9pp yoy), with upgraded FY24 guidance for ROTE (>17%) and NII (high single-digit growth).

• Robust capital build supports high shareholder distributions, including €0.5bn share buyback and >€0.8bn interim dividend.

Financial highlights

• Net interest income grew 20.5% year-over-year to €5,572 million, with wealth and protection revenues up 12%.

• Cost-to-income ratio improved to 39.0%, with total operating expenses up 4.3% year-over-year.

• NPL ratio at 2.7%, with coverage at 70% and cost of risk at 0.29%.

• CET1 ratio at 12.2%, with a 343bps MDA buffer and strong liquidity (LCR 218%, NSFR 146%).

• EPS (12 months) reached €0.72, and book value per share was €4.88.

Outlook and guidance

• FY24 NII guidance upgraded to high single-digit growth; ROTE target raised to above 17%.

• NPLs expected to remain around current levels; CET1 management target at 11.5–12%.

• Dividend payout ratio set at 50–60% of consolidated net profit, with an interim dividend of at least €800 million in November.

• Fourth share buy-back programme of up to €500 million to commence after July 31, 2024.

• Committed to ~€12bn capital distribution for 2022–24e.