Caixabank closed the first quarter with 855 million euros in net profit, up 21.1% from the same period a year earlier, despite paying 373 million euros as an extraordinary bank tax.
In a disclosure to the Spanish market regulator CNMV, the bank shared its January-to-March results, noting that the levy effectively reduced group profits by 30%.
The quarter’s earnings were driven by strong commercial activity and a solid balance sheet, with a return on equity (ROTE) of 10.5% at the end of March, up from 7.6% a year earlier.
Despite the improvement, CaixaBank clarified that profitability remained below the cost of capital.
Recurring revenue rose 30%
Interest income from the core banking business reached 2,163 million euros by March, up 48.6% from the first quarter of 2023. The gross margin rose 16.7% to 3,101 million, pressured by the bank tax.
The bank highlighted that operating income from the core business—referred to as basic income—grew 30.4% to 3,449 million euros.
Net commissions stayed almost flat at 937 million euros, with a 1% decline in recurring types attributed to the removal of custody charges on deposits from large corporates and the expansion of loyalty programs for individual customers.
Nevertheless, growth was strongest in activities related to payment instruments.
Investments valued using the equity method, including bancassurance positions, added 79 million euros, while insurance services generated 263 million euros, up 23.6% on the prior year after the new accounting standard was adopted.
The bank also benefited from higher dividend income, reaching 68 million euros this quarter versus 1 million a year earlier, including all dividends from Telefónica recorded in the period.
On the other hand, revenue from financial operations declined to 82 million euros, down 42.7%.
The extraordinary bank tax reduced other income and operating expenses by 373 million euros, a drag that left the item at a negative 491 million points.
Consequently, the gross margin increased to 3,101 million euros, while the rise in recurring administrative and depreciation costs (+2.4%) lifted the operating margin to 1,659 million euros, up 33.4%.
Credit quality remains solid
Regarding late payments, the level remained at record lows despite inflation and rate pressures, standing at 2.7% at the end of 2022 levels.
Doubtful balances decreased by 243 million euros quarter-on-quarter to 10,447 million, signaling continued asset quality improvement.
Bad debt provisions stood at 7,921 million euros at the end of March, with the coverage ratio rising to 76% from December, while the cost of risk over the last twelve months stood at 0.26%, up from 0.23% in the previous quarter.
Client funds rise modestly
Client funds reached 614.6 billion euros at the end of Q1, up 0.5% from the prior period, supported by growth in long-term savings products and a rebound in financial markets.
Assets under management climbed 4.1% quarter-on-quarter to 154.0 billion euros, helped by favorable market conditions and net subscriptions approaching 3.8 billion euros.
Healthy credit balances stood at 351.2 billion euros at end-March, essentially flat for the quarter.
In terms of segment trends, the housing loan portfolio declined 1.4% as higher depreciation weights increasingly influence the mix in a rising-rate environment, while consumer loans and corporate borrowings rose by 0.4% and 1.2%, respectively.
New credit generation rose year-on-year across all main lines: mortgages +6%, consumer credit +4%, and corporate lending +21%, CaixaBank noted.
The CET1 ratio, calculated with the IFRS 17 impact, stood at 12.6% with a 20-basis-point reduction from the extraordinary application of the standard.
Liquidity remained strong, with total liquid assets at 132.867 billion euros at quarter end.
CaixaBank maintained 15.620 billion euros in excess liquidity under the ECB’s TLTRO III facility as of quarter end.
Across Spain and Portugal (excluding branches or offices abroad), the network counted 4,263 branches, down 141 from year-end 2022, while headcount rose slightly to 44,654, reflecting a net increase of 29 employees.
CEO Gonzalo Gortázar commented that the year began with “very strong business dynamics” amid a resilient economy.
The two largest shareholders reiterated their stance that profits are returned to society, with CaixaBank’s profits supporting the La Caixa Banking Foundation (32.24%), Criteria (which funds social work) and the State (17.3%) as a secondary shareholder.
As noted in the quarterly report, CaixaBank continues to align its operations with prudent risk management and a focus on sustainable growth, reinforcing its role in financial stability and social impact. (CaixaBank quarterly disclosure, 2025).