CaixaBank Total posted earnings of 3,659 million euros from January to September, rising 48.2 percent from the same period in 2022 due to a wider banking margin amid rising interest rates. The group reported to the CNMV, Spain’s market supervisor, that recurring income from banking activities reached 11,128 million, up 34.3 percent year over year.
Specifically, the interest margin—the difference between the profitability of assets such as loans and the interest paid by the bank—stood at 7,364 million euros, a 60.7 percent increase from the prior year. Net interest income grew as insurance operating results improved by 21.2 percent and bancassurance investment income rose 47.6 percent, offsetting a decline in net commissions.
Net commissions totaled 2,741 million through September, marking a 5.3 percent decrease versus the previous year. In line with sector dynamics, current banking fees declined by 9.1 percent on an annual basis, driven by measures such as eliminating deposit custody fees for large corporate clients and removing bonuses tied to customer loyalty programs.
As a result, the gross profit margin, combining the institution’s total current income, reached 10,689 million euros, up 28.9 percent from the same period a year earlier through September.
Financial profitability climbs
The group delivered a strong performance, with profitability rising through September as measured by ROTE, the return on tangible capital, and ROE, the return on equity. ROE stood at 11.9 percent in September, up from 7.2 percent a year earlier, while ROTE reached 14.1 percent, up from 8.4 percent a year ago. The efficiency ratio also improved to 42.7 percent.
Supported by healthy credit quality and strong customer funds, business volume remained steady through September, showing a 0.2 percent gain for the year to date. Assets under management rose to 155,264 million euros, a 5 percent increase year over year, driven by positive net subscriptions in investment funds and portfolios.
CaixaBank’s solid loan portfolio closed September at 345,388 million euros, reflecting a 1.7 percent decline so far this year.
Default rate stays at a low level
The bank noted that lending to corporations and consumers offset declines in home purchase loans. There was an overall portfolio reduction of 3.9 percent so far this year due to higher devaluations and reduced mortgage production in the context of rising interest rates.
New loan production for January to September amounted to 27,700 million euros, with 7,700 million euros allocated to consumer loans and 6,680 million euros to mortgages. Bad debt remained exceptionally low, though the September rate rose by a tenth from the prior quarter to 2.7 percent, matching the level at the end of 2022.
Against the backdrop of improving asset quality indicators, doubtful balances declined to 10.2 billion euros, down by 490 million euros for the year. As of September, CaixaBank employed 44,771 people, with 146 new hires this year and 4,199 branches in operation, representing a net reduction of about 205 branches over the nine months.