CaixaBank expects to double profitability and generate 9,000 million capital

Strategic priorities of the first CaixaBank 2022-2024 Strategic Plan after Bankia’s integration, driving business growth, to strengthen leadership in the retail segment, to be the first bank for more companies, to improve its service model to adapt it to customer preferences as much as possible, and to consolidate itself as “a benchmark for sustainability in Europe”.

CaixaBank’s goalIncrease your income by 7% between 2022 and 2024driven by insurance activity (+10%) and moderate improvement in commissions (+2%), so net interest income rose 8%, supported by the new interest rate environment.

The strategic plan states that at the end of the period profitability (ROTE) will be above 12%, ie almost double the current levels, while the productivity rate will increase by 10 percentage points from 2021 until it falls below 48%. Another pillar will be the control of non-performing loans, which are expected to fall below 3% by the end of 2024.

Over the life of the plan, CaixaBank has set itself its internal goal of placing the highest quality CET1 capital between 11% and 12%, and implementing an “attractive” shareholder compensation policy that will be supported by revenue growth and cost neutralization. After the strong reduction in 2022 due to the synergy captured after the merger with Bankia.

9,000 million capital

Specifically, it hopes to produce around 9,000 million capital including dividends (with more than 50% ‘payment’), over 12% overcapitalization and 1,800 million deliveries corresponding to a share repurchase plan to be distributed this year. Regarding the latter, CaixaBank announced this Tuesday that the maximum monetary amount of the repurchase of shares will be 1,800 million euros, will not exceed 10% of the bank’s capital, the maximum duration will be 12 months, and its director will be Morgan Stanley Europe. SE.

In the energy transition of companies and individuals, CaixaBank seeks to mobilize €64,000 million in sustainable finance through the promotion of a range of initiatives focused on product offering, ESG advice, awareness and education.

President of CaixaBank, José Ignacio Goirigolzarri He drew attention to the Strategic Plan. focuses on the customer and “in developing the best offers that offer an excellent quality of service”. Realizing this roadmap for Goirigolzarri will enable CaixaBank to achieve three goals. “First, to deliver the best value proposition to our customers, second, to maintain an attractive dividend policy for shareholders, and third, to promote the energy transition of companies and society to make CaixaBank a benchmark in sustainability,” he said.

On his part, the CEO of the business, Gonzalo Gortazar He emphasized that the group is focused on its goals for the next three years. to increase revenuemaintain and continue to promote the best omnichannel customer relationship model and consolidate CaixaBank as the “comparative financial group in Europe” for its social and environmental commitment.

“Through the work of an exceptional workforce, we expect to achieve a 12% return over the life of the plan, a return that will contribute to our ability to properly remunerate all of our shareholders, and underscores the empowerment this will bring.” la Caixa Foundation and continuing to drive its core social work He stressed what it meant for his ability to act.”