CaixaBank (CABK) Q4 2025 earnings summary

Executive summary

• Net profit reached €5.891 billion in 2025, up 1.8% year-over-year, with business volume growing around 7% and customer funds rising 6.8%, surpassing initial targets.

• Return on tangible equity (ROTE) was 17.5%, with upgraded targets of 20% by 2027 and >18% average for 2025-27.

• Record-low NPL ratio at 2.07% and cost of risk at 22 bps, reflecting strong asset quality.

• Dividend per share increased by 15% to €0.50, with a payout ratio of 59.4% at the upper end of the 50%-60% range.

• The neobank imagin grew its client base by 10% to nearly 4 million, with business volume up 25%.

Financial highlights

• Net interest income declined 3.9% year-over-year to €10.671 billion, but recovered 1.5% in Q4.

• Revenue from services increased 5.4% to €5.266 billion, driven by wealth management and protection insurance.

• Operating expenses rose 5.0% to €6.415 billion, with a cost-to-income ratio at 39.4%.

• EPS for the year was €0.83, with a PER of 12.52 and a dividend yield of 4.35%.

• Portugal operations reported €473 million net income, with business volume up 7.5% and efficiency ratio at 42%.

Outlook and guidance

• Strategic Plan targets ROTE of 20% by 2027, NII of €12.5 billion in 2027 (4% annual growth), and business volume CAGR of 6%.

• Dividend payout policy remains at 50%-60% of net profit, with CET1 ratio targets of 11.5%-12.5% and a 12.25% threshold for extraordinary distributions.

• Revenue from services expected to maintain mid-single-digit growth; costs to grow around 4% annually.

• Non-performing loans targeted below 1.75%, and cost of risk to remain below 25 bps.

• Focus on sustainable finance, aiming for over €100 billion mobilised by 2027.