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 €2.68 billion, driven by strong net interest income, robust business activity, and growth across all business lines.

• Customer funds increased 5.9% to €667 billion, with strong net inflows in wealth management and deposits; performing loan book grew 2.2% year-to-date, and new mortgage production surged 43%.

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

• Robust capital build and liquidity (CET1 at 12.2%, LCR at 218%) support high shareholder distributions, including €0.5bn share buyback and >€0.8bn interim dividend.

• Exceeded sustainable finance target, mobilizing over €67 billion by June 2024.

Financial highlights

• Net interest income grew 20.5% year-over-year to €5.57 billion; wealth and protection revenues up 12%, and cost-to-income ratio improved to 39%.

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

• CET1 ratio at 12.2%, MDA buffer at 343bps, and tangible book value per share of €4.15.

• EPS (12 months) reached €0.72; ROE improved to 14.4%.

• Loan-to-deposit ratio improved to 87%.

Outlook and guidance

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

• Dividend payout for 2024 set at 50–60% of consolidated net profit, with interim dividend in November and final dividend in April 2025.

• NPLs and cost of risk expected to remain stable; CET1 management target at 11.5–12%.

• Deposit growth for the year expected at mid-single digits, with positive trends in average balances.

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