CaixaBank (CABK) Q4 2023 earnings summary

Executive summary

• FY23 net income reached €4.8bn, up 53.9% YoY; core revenues rose 31.6% to €15.1bn, with profitability and efficiency improving.

• Strong capital generation and a resilient funding base supported higher shareholder distributions; FY24 targets include ROTE above 15%.

Financial highlights

• FY23 net interest income was €10.1bn, up 54.3% YoY; gross income rose 28.3% to €14.2bn.

• FY23 net income was €4.816bn, up 53.9% YoY; 4Q23 net income was €1.157bn, up 75.5% YoY.

• FY23 recurrent costs were €5.812bn, up 5.2% YoY; loan-loss charges totaled €1.097bn, up 11.7% YoY.

• FY23 core revenues rose 31.6% to €15.137bn; net fees and commissions fell 5.1% to €3.658bn, while insurance service result increased 19.6% to €1.118bn.

Outlook and guidance

• FY24 NII is guided in line with FY23; wealth, protection and banking fees are expected to grow at a low-single-digit rate YoY.

• FY24 recurrent cost growth is expected below 5% YoY; cost of risk near 0.30% and NPL ratio near 3%, including full alignment to the prudential default definition.

• FY24 ROTE target is above 15%, with a strong capital position and CET1 management target of 11.5–12%.

• 2022–24 capital distribution capacity is ~€12bn; FY24 cash payout target is 50–60%.