CaixaBank (CABK) Q4 2025 earnings summary

Executive summary

• Net income for 2025 reached €5,891 million, up 1.8% year-over-year, with return on tangible equity at 17.5% and business volume growth of about 7%.

• Customer funds rose 6.8% to €731,936 million, and gross loans increased 6.4% to €384,334 million.

• Asset quality improved, with a record-low NPL ratio at 2.07% and cost of risk at 22 basis points.

• 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 group maintained strong market positions in Spain and Portugal, with high shares in deposits, investment funds, and lending.

Financial highlights

• Net interest income declined 3.9% year-over-year to €10,671 million, but recovered 1.5% in Q4.

• Revenue from services grew 5.4% to €5,266 million, driven by wealth management and protection insurance.

• Operating expenses increased 5.0%, with a cost-to-income ratio at 39.4%, below peer average.

• EPS increased 5% to €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

• Upgraded 2025-27 targets: business volume CAGR ~6%, NII growth ~4%, ROTE >18%, and cash payout 50-60%.

• NII guidance for 2027 set at €12.5 billion, with revenue from services expected to maintain mid-single-digit growth.

• Costs to grow around 4% annually, with lending and customer funds volume growth revised to around 6% CAGR.

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

• CET1 management target for 2026 set at 11.5%-12.5%, with a 12.5% threshold for additional distributions.