CaixaBank (CABK) Q3 2025 earnings summary

Executive summary

• Net profit for the first nine months of 2025 reached €4.4 billion, up 3.5% year-over-year, driven by strong business momentum and commercial activity, with customer funds up to €720 billion and gross loans rising 4.3%.

• Business volume rose 6.8% year-over-year to €1.09 trillion, with net client acquisition in Spain of nearly 400,000 and strong growth in lending and customer funds.

• NPL ratio improved to a record low of 2.3%, with coverage ratio at 72% and cost of risk at 24 basis points, reflecting robust asset quality.

• Interim dividend of €0.1679 per share (totaling €1.18 billion) approved for November 2025, alongside sixth and seventh €500 million share buyback programs.

• The neobank imagin grew its customer base by 11% year-over-year to 3.9 million, with business volume up 24% and continued digital innovation.

Financial highlights

• Net interest income was €7.96 billion, down 4.9% year-over-year, but up 1.4% sequentially in Q3, with service revenues up 5.7% and wealth management income up 13.4%.

• Gross income increased 2.8% to €12.12 billion, with pre-impairment income up 1.2% and administrative expenses rising 5.2%.

• Cost-to-income ratio at 39.2%, well below peer average.

• Customer funds reached €720 billion (+6.9% yoy), with deposits up 6.2% and wealth management balances up 8.6%.

• Performing loans grew 6.7% year-over-year, with consumer loans up 10.5% and business loans up 7.9%.

Outlook and guidance

• FY25 NII expected to decline by about 4%, but service revenues projected to rise mid-single digit and operating costs to increase around 5%.

• Cost of risk guidance improved to below 25 basis points.

• FY25 ROTE guidance raised to around 17%.

• CET1 management target for 2025 set at 11.5–12.5%, with a 50–60% cash payout target.

• 2026 and 2027 NII expected to be above previous strategic plan targets, with upside to €11.5 billion in 2027.