CaixaBank (CABK) Q3 2024 earnings summary

Executive summary

• Net profit for the first nine months of 2024 reached €4.25 billion, up 16.1% year-over-year, driven by strong commercial activity, net interest income, and growth in customer funds.

• Customer funds increased 6.9% year-to-date to €673.83 billion, with new lending up 20% year-over-year.

• Wealth management and protection insurance revenues drove income growth, with efficiency gains and robust capital generation supporting high shareholder distributions.

• The 2022-2024 Strategic Plan goals have been met, with the 2025-2027 plan to be presented in November.

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

Financial highlights

• Net interest income for 9M24 was €8.37 billion, up 13.6% year-over-year; gross income rose 10.3% to €11.79 billion.

• Operating expenses increased 4.5% year-over-year, with cost-to-income ratio improved to 39.2%.

• Pre-impairment income grew 14.5% to €7.23 billion.

• EPS (ttm) at €0.74, up from €0.58 a year ago; ROE at 14.4%, up from 11.9%.

• Cost of risk at 0.28% (12-month trailing); NPL ratio at 2.7% with coverage at 71%.

Outlook and guidance

• FY24 NII expected to exceed €11 billion, with low single-digit growth in service revenues and costs to grow less than 5% year-over-year.

• ROTE target for FY24 raised to above 17%; capital distribution target for 2022-24 reaffirmed at €12 billion.

• The 2022-2024 Strategic Plan concludes this year, with the 2025-2027 plan to be presented in November.

• Dividend payout policy set at 50-60% of consolidated net profit, with interim dividend of €1.07 billion in November.

• Internal CET1 target ratio set between 11.5% and 12%, maintaining a significant buffer over regulatory requirements.