CaixaBank (CABK) Q3 2025 earnings summary

Executive summary

• Attributed profit for the first nine months of 2025 reached €4,397 million, up 3.5% year-over-year, with strong business activity and robust financial strength.

• Customer funds grew 5.1% year-over-year to €720,242 million, and gross loans and advances to customers increased 4.3% to €376,691 million, with net client acquisition of almost 400,000 in Spain.

• NPL ratio improved to 2.3% with a coverage ratio of 72%, reflecting effective risk management and record-low asset quality.

• Interim dividend of €0.1679 per share approved, with sixth and seventh €500 million share buyback programs launched, maintaining CET1 at 12.4%.

• Upgraded return on tangible equity guidance to around 17%, reflecting strong business trends.

Financial highlights

• Net income for the first nine months: €4,397 million, up 3.5% year-over-year, with EPS at €0.84 (+13% yoy).

• Net interest income declined 4.9% year-over-year to €7,957 million, but resumed growth in Q3 (+1.4% qoq); service revenues up 5.7% year-over-year.

• Wealth management revenues up nearly 12% year-over-year; protection insurance premiums up 12.7%.

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

• NPL ratio at 2.3%, coverage at 72%, cost of risk at 24 basis points trailing 12 months.

Outlook and guidance

• FY25 NII expected to decline by about 4%, but clear acceleration anticipated from the second half of next year.

• Cost of risk guidance improved to less than 25 basis points.

• Return on tangible equity guidance upgraded to circa 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.