CaixaBank (CABK) Q3 2024 earnings summary

Executive summary

• Attributable profit for the first nine months of 2024 reached €4,248 million, up 16.1% year-over-year, driven by strong net interest income, customer funds growth, and efficiency gains.

• Customer funds rose 6.9% to €674 billion, with notable growth in new lending and wealth management balances.

• Wealth management and protection insurance revenues drove income growth, with robust activity and efficiency improvements.

• Robust capital generation enabled high and recurrent shareholder distributions, with €7.4 billion executed and €2.1 billion announced toward a €12 billion target.

• Emphasis on ESG initiatives, financial inclusion, and rapid response to regional floods, with ongoing support for affected clients.

Financial highlights

• Net income for Q3 2024 reached €1.57 billion, up 3.3% year-over-year; 9M24 net income was €4,248 million, up 16.1% year-over-year.

• Net interest income for 9M24 was €8,367 million, up 13.6% year-over-year; Q3 NII was €2,794 million, up 2.0% year-over-year.

• Gross income for 9M24 rose 10.3% to €11,793 million; cost-to-income ratio improved to 39.2%.

• Operating expenses increased 4.5% year-over-year in 9M24.

• Cost of risk at 28 basis points (12-month trailing), NPL coverage at 71%, and NPL ratio at 2.7%.

Outlook and guidance

• FY24 NII expected to exceed €11 billion, with low single-digit growth in wealth, protection, and banking fees.

• Recurrent costs to grow less than 5% year-over-year; CoR expected around 0.30%; NPL ratio to remain near 2.7%.

• ROTE target for FY24 raised to above 17%.

• Capital distribution target for 2022-24 reaffirmed at €12 billion.

• Capital Markets Day to provide updated targets and strategic plan for the next three years.