CaixaBank (CABK) Q4 2024 earnings summary

Executive summary

• Net income rose 20.2% to €5,787 million, with ROTE at 18.1% and cost-to-income at 38.5%, surpassing strategic plan targets and guidance.

• Customer funds grew 11.7% to €685 billion, driven by deposits and wealth management inflows, and the loan book increased 2.2% year-over-year.

• Distribution targets for 2022-24 were exceeded, with €12 billion returned to shareholders and a sixth €500 million share buyback announced.

• Gained 280,000 clients, increased market share in payrolls, consumer, SME, and protection insurance, and maintained leadership in wealth management.

• The 2025-2027 Strategic Plan targets >15% ROTE, >4% business volume CAGR, and >€100 billion in sustainable finance mobilization.

Financial highlights

• Net interest income rose 9.8% to €11,108 million, and service revenues increased 4.6% to €4,995 million, both outperforming guidance.

• Total revenues increased 11.5% to €15,873 million; pre-impairment income up 16.1% to €9,765 million.

• Q4 net income was €1,539 million, up 33% year-over-year, mainly from higher revenues.

• Loan-loss charges decreased 3.7% to €1,056 million; cost of risk at 0.27%, below target.

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

Outlook and guidance

• 2025 NII expected to decline by mid-single digits; service revenues to grow low to mid-single digits; operating costs to rise by 3-5%; cost of risk to remain below 0.30%; ROTE expected at 16%.

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

• The 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.

• Dividend payout policy set at 50-60% of net profit, with interim and final dividends, plus excess CET1 above 12.5% distributed.

• Deposit growth for 2025 expected slightly above 3%, with interest-bearing deposit mix stabilizing near 30% and average cost of deposits in the low 60 basis points.