Ibercaja offers freedom to steer its future, with a strong regional presence in Aragon and near completion of a reserve fund surpassing 300 million euros. Initiated a year and a half ago, this fund represents a decisive pause on an IPO, giving the bank another route for growth without stepping into the stock market. The Bank of Spain’s adherence to newer banking rules introduced after the 2008 crisis strengthens Ibercaja’s independence and anchors the ninth largest Spanish bank more firmly in Aragon, as it advances a strategic plan set to unfold in the next spring. The 2024-2026 strategic framework emphasizes accelerating digitalization and business transformation.
The Ibercaja Banking Foundation, which owns the majority stake, has been contributing regularly to the reserve fund since mid-2022 under the supervisory authority’s authorization. In line with the Cash Law, 60 percent of the profits transferred to shareholders has funded this mechanism, with about 260 million dollars contributed by September 30, constituting roughly 83 percent of the total target. The aim is to complete funding before the end of 2025.
Based on the last quarter of 2023, the reserve fund’s coverage could be even higher, contingent on the final reserve amount. The calculation uses total profits and risk-weighted assets at year end, with an initial target of 316 million. That figure is expected to rise slightly as the process unfolds.
While the organization has not specified an exact date for reaching 100 percent, expectations point to progress in the coming months as 2024 advances. One thing is certain: the milestone should be achieved well before the deadline for the alternative reserve. Since its market debut, there are still two years remaining until the end of 2025.
Changes at the top
With the 2013 law turning former savings banks into foundations, the aim was to reduce the participation rate in traditional credit institutions to below 50 percent. Privatization through public listing was one route; another was to create a reserve fund that would secure financing in difficult times.
Ibercaja was poised to shift to the stock market in 2020, but the auditor’s deadline passed and the pandemic, along with government responses, granted a two-year extension. In January 2022, the bank formally advanced its stock market plan by making it publicly available. The CNMV documentation outlined the steps toward listing. Market conditions, influenced by global tensions and volatility around the Ukraine conflict, discouraged a major move at that moment.
Months later, the Bank of Spain again adjusted deadlines to satisfy regulatory requirements and to support the alternative that Basque lender Kutxabank pursued years earlier.
2023 profit points to a record
This sequence allowed Ibercaja to release itself from the obligation to go public, a legal requirement that no longer binds it. The organization has not ruled out future stock market participation, but it would pursue that path only under favorable market conditions and without binding bond maturities.
Ibercaja is expected to announce its 2023 results in February, with likely record profits shared across the sector. Through the first nine months of the year, the institution reported 280 million euros in earnings, a growth of 68.6 percent.
The leadership, led by Victor Iglesias, is actively focusing on the rollout of the new 2024-2026 strategic plan, slated for release in April. As a preparatory measure, he announced this week a reshaping of the management structure, signaling pivotal priorities for the period ahead. The plan foresees a new area dedicated to payments and consumer business, along with the strengthening and integration of the newly formed Business Banking division. Strategy and transformation will benefit from intensified digital initiatives and a faster pace of organizational change.
In summary, Ibercaja continues to balance growth with prudent governance, expanding digital capabilities, and strengthening its reserve-based approach as a hedge against market volatility. The overarching objective remains to enhance financial resilience while preserving strategic flexibility for the years ahead.
[citation: Ibercaja annual review and regulatory filings, 2023-2024] [citation: Bank of Spain regulatory updates, 2013-2024]