CaixaBank earned 1,005 million within the first quarter, 17% extra | Companies | EUROtoday

CaixaBank ended the primary quarter of 2024 reaching a web revenue of 1,005 million euros, 17.5% greater than in the identical interval of the earlier 12 months, after rising its curiosity margin by nearly 30% to nearly 2,800 million. The comparability with the primary quarter of 2023 is influenced by the upper rates of interest with which the primary three months of 2024 have developed, 4.5% after the final enhance undertaken by the European Central Bank (ECB) in October, whereas initially of final 12 months these have been nonetheless round 3%. The entity factors out that the ECB “will begin to cut interest rates in June”, “once it has noted progress in the “last mile” in the direction of the two% inflation goal”, which will likely be adopted by three extra reductions all year long to shut at round 3%, and at 2.25% in 2025. The shares of the monetary entity lose round 2% in the present day, Tuesday.

The financial institution explains the rise in outcomes “thanks to its financial and commercial strength”, with a normal development in margins that “reflects the strength of the entity and good business dynamics, with increases in new credit production and net subscriptions positive in savings products, in a context of containment of interest rates.” The interest margin rose 27.4% to 2,781 million, which “reflects the impact of new production and the rate environment,” while the gross margin rose 12.7% to 3,496 million.

The bank highlights the “good pace” of commercial activity, accelerated since the last quarter of last year, “with relevant growth in the new production of loans to individuals.” New mortgage credit grew by 24.1% more in the first quarter, up to 2,790 million, and new consumer credit grew by 15%, up to 3,029 million.

CaixaBank emphasizes that its business volume is close to one trillion euros, with customer resources amounting to 636,490 million, 1% more, and healthy credit at 344,438 million. Resources on the balance sheet remain at 463,505 million euros and assets under management reach 168,688 million.

“In a context in which the Spanish economy continues to show strong resilience, at CaixaBank we begin 2024 with good commercial activity, general improvements in market shares and maintaining solid levels of profitability and efficiency,” highlights its CEO, Gonzalo Gortázar. , in a press release.

In it, Gortázar highlights that the bank paid 493 million euros for the banking tax, 32% of what was paid in the same period of 2023, with a total tax bill of 1,135 million. “It is a fairly atypical case,” the executive said at a press conference. “The effective rate paid in the quarter is greater than 50%. It is a very high tax burden.”

Regarding the extraordinary tax, and the possibility of it being extended again, Gortázar has insisted that “it is not justified” and is “arbitrary”, and that if it is extended, “its design can be improved.” “It does not respond to a situation of extraordinary results. It is not debatable. Here a sector is being taken over and it is being arbitrarily punished,” said the CEO of Caixabank, who did not want to assess the multiple open fronts that its shareholder, Criteria, has open in several companies, such as Telefónica, Talgo or Naturgy.

As of March 31, CaixaBank's NPL ratio stood at 2.8%, slightly above the 2.7% at the end of 2023, “after applying a stricter criterion in the classification of doubtful debts within the prudential framework.” , thanks to rigorous and prudent credit risk management.” Therefore, doubtful balances increase to 10,794 million euros “with none deterioration being seen within the natural evolution of credit score exposures.”

On the other hand, the coverage ratio stood at 71% at the end of the quarter, while the LCR liquidity ratio reached 193%. The CET1 capital ratio was at 12.3%, slightly below the percentage of a year before, “after the impression of the brand new share buyback of 500 million that started in March and which is now totally deducted” .

The presentation of CaixaBank's quarterly results has coincided with the publication of GDP data, which shows growth of 0.7% between January and March in the Spanish economy, above expectations. In a context of economic growth, Gonzalo Gortázar has called on the Government to “take advantage of the current good times to ensure the medium and long term.” Regarding this, he has delved into the need to “reach great consensus”, for which he has also appealed to the “responsibility” of the opposition. “We must reduce the debt and the public deficit, improve productivity… There are many things to do. In Portugal we see public figures with healthy envy. Its public debt has dropped from 100% of GDP, with lower growth.”

The chief executive of CaixaBank has also noted that the reflection period of the President of the Government, Pedro Sánchez, “has not had an impact.” “The resilience of the economy is remarkable. We are in a situation of less stability than we would like, but we have to separate political events from day-to-day life from the markets,” explained Gortázar.

On the other hand, CaixaBank has conveyed this morning to the CNMV its “irrevocable” decision to fully redeem an issue of preferred shares eventually convertible into company shares for a total of 1,000 million euros, with a current outstanding balance of 395 million, and which was launched in June 2017.

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