Cristian-era records were set as Caixa Enginyers closed 2023 with a net income of 19.6 million euros, marking a 71.9% rise from 2022. This level of profit, never before reached by the cooperative bank, was highlighted by its chief executive, Joan Cavallé, during the year-end results presentation.
The institution attributes the business upturn to a dynamic economy driven by higher consumer activity. The interest margin surged, reaching 66.37 million euros and expanding by 83.32% as a direct result of rising rates. The group’s leadership will ask the assembly to approve a 4.25% payout to members, corresponding to a profit distribution rate of 23.28%.
2023 marked the first full year of the Transform 2026 strategic plan, which included a brand revamp and a reinforced role as a cooperative bank celebrating 55 years of existence. Gross margin reached 99.5 million euros, up 42.2% thanks to the gains in interest income.
Cavallé described the year as historic and noted that deposits recovered after six years of negative rates, with some shift from current accounts to term deposits. The remuneration on new deposits increased by two percentage points over the year.
The higher interest rates did not deteriorate asset quality. The group’s delinquency rate remained contained, rising modestly from 2.47% in 2022 to 2.71% in 2023.
The total assets of the group stood at 4,428.3 million euros, down 6.3% primarily due to a 7% reduction in the investment credit balance to 2,012 million euros. This change reflects softer demand and the prepayments and early settlements of loans by individuals. The early repayment rate for mortgages rose from 4.3% in 2022 to 6.7% in 2023, and mortgage novations increased from 1.4% to 5.9%.
The entity improved across all key indicators, including profitability which advanced to 8.22%, efficiency at 71.51%, CET-1 solidity at 17.05%, and structural liquidity at 171%. Caixa Enginyers now serves 213,000 members, with 175,000 actively engaged, and maintained 33 offices.
Cavallé, presenting the year’s results alongside the chairman, Félix Masjuan, explained that for 2024 the bank aims to grow both its membership and business volume. The two leaders noted that very few institutions can boast a return on equity of 17%, a figure Caixa Enginyers has achieved.
Masjuan also commented on the probable intensification of competition for funding in the banking sector as surplus liquidity shrinks. He added that the most intense competition currently centers on lending rather than on deposits.
The group expects to reach 250,000 members by 2026 and to achieve a business volume of 10.8 billion euros that same year, up from 8.139 billion euros in 2023.