CaixaBank (CABK) Q4 2024 earnings summary

Executive summary

• Net income/profit for 2024 rose 20.2% to €5.79 billion, surpassing strategic plan targets, with ROTE at 18.1% and cost-to-income at 38.5%.

• Customer funds grew 11.7% to €685 billion, driven by deposits and wealth management inflows, and the performing loan portfolio increased 2.2%.

• The €12 billion shareholder remuneration plan was completed, including dividends and multiple share buybacks, with a payout ratio of 53.5%.

• Gained 280,000 clients, maintained leadership in wealth management with a 29.5% market share, and expanded digital and financial inclusion initiatives.

• Surpassed sustainable finance targets, mobilizing €86.8 billion, and launched the 2025-2027 Strategic Plan focused on growth, transformation, and ESG leadership.

Financial highlights

• Net interest income rose 9.8% to €11.11 billion; service revenues up 4.6% to €4.99 billion; gross income increased 11.5% to €15.87 billion.

• Pre-impairment income up 16.1% to €9.77 billion; cost-to-income ratio at 38.5%; ROE reached 15.4%.

• Loan-loss charges decreased 3.7% to €1.06 billion; cost of risk at 0.27%, below target.

• Q4 net income was €1.54 billion, up 33% year-over-year, with NII down 1.9% sequentially but service revenues up 6.7% year-over-year.

• Market capitalization at year-end was €37.3 billion, with a 40.5% increase in share price.

Outlook and guidance

• 2025-2027 plan targets ROTE >15% (and >16% in 2027), business volume CAGR >4%, and cost-to-income ratio in the low 40s by 2027.

• 2025 NII expected to decline mid-single digits; service revenues to grow low to mid-single digits; operating costs to rise 3-5%; cost of risk to remain below 0.30%.

• Dividend payout policy set at 50-60% of net profit, with interim and final dividends, and excess CET1 above 12.25% distributed.

• CET1 management target for 2025 set between 11.5% and 12.25%, with additional distributions above 12.25%.

• Loan book growth expected to approach 4%, led by consumer and corporate lending; mortgage growth normalizing as prepayments subside.