Avance in market share and financial performance
Ibercaja reported a net profit of 304 million euros for 2023, up 67.4% from 123 million in the prior year, marking a record year for the Aragonese bank. The organization notes that 2023 closed with strong momentum and, over three years, comfortably surpassed the targets set in the Desafío 2023 Strategic Plan. Return on equity (ROTE) reached 11.6%, exceeding the 9% target, a sign of sustained profitability and prudent capital management.
As the eighth-largest banking group in Spain, Ibercaja also posted notable improvements in other key indicators. The fully loaded CET1 capital ratio stood at 12.7%, surpassing the 12.5% objective, while asset quality, measured by the NPA ratio of gross non-performing assets to total lending, fell to 2.8% (vs. a 4% goal).
Amid inflationary pressures and rising interest rates, Ibercaja emphasizes that it delivered solutions to help clients seize opportunities in the investment landscape. The diversification toward higher-value products such as investment funds, pension plans, and savings insurance boosted client resources by 3.6%, to 71.506 billion euros.
These dynamics of interest rates and commercial focus enabled Ibercaja to grow net interest income and manage retail funding costs, resulting in an interest margin of 661 million euros, up 42.9% from the previous year. This, in turn, drove recurrent revenues to 1.257 billion euros, a rise of 30.6% year over year.
Concerning shareholder value, the bank has decided to distribute 60% of its profits to its four foundations—Ibercaja, Caja Inmaculada, Caja Círculo de Burgos, and Caja Badajoz—who deploy these resources in social, cultural, and regional development initiatives across their respective areas of operation.
In particular, the Ibercaja Foundation carried out around 3,000 initiatives in 2023, either on its own or in collaboration with others, benefiting more than one million two hundred thousand people. To comply with the Law on Banking Foundations, the Foundation continued to fund its Reserve Fund, which at the end of 2023 stood at 260 million euros, representing 80% of the amount required as of the end of 2025.
Market share trajectory
During 2023, Ibercaja offered a broad range of investment funds, pension plans, and life insurance products tailored to the needs of private individuals, families, and businesses, providing guidance and timely responses in volatile financial months. The bank achieved a historic net inflow in assets under management and life insurance totaling 4.703 billion euros, equivalent to all net entries over the last four years and lifting the balance of this segment to 37.754 billion euros, representing 52.8% of total client resources. The market share in asset management and life insurance rose to 5.6%, a 48 basis point gain from the end of 2022.
Investments focusing on investment funds stood out, with net new money of 3.485 billion euros in the twelve months, accounting for 19.0% of system-wide inflows and placing Ibercaja as the second-largest player in this sector. This strong momentum, along with advisory services from the network and a steady stream of new products, helped Ibercaja reach a record high in fund market share at 6.5%. The number of clients holding investment funds grew by 17% through the year, and the entire fund lineup posted positive returns, with a weighted average near 7%.
The new generation of risk insurance products also contributed positively, with life risk and non-life insurance showing combined growth of 7.6% year on year, reaching 56 million euros in new premiums. Life risk insurance rose by 5.4% and non-life by 8.3%. The overall premiums for risk insurance grew by 5.1% to 291 million euros, underscoring a favorable demand for coverage across the client base.
Loans, credit activity, and mortgage performance
Ibercaja renewed and expanded its loan offerings, adding more specific and personalized coverages and enabling online contracting to streamline the sales process. In terms of credit portfolios, commercial lending to clients aimed at facilitating financing needs rose to 6.383 billion euros, a 6.6% increase over the prior year. The bank’s mortgage lending strategy, oriented toward offering adaptable solutions to households amid shifting rates, helped mitigate the housing market slowdown and yielded a slightly better performance than the sector in new mortgage formalizations, which fell 5.1% year over year, compared with an 18.6% decline across the system. As a result, Ibercaja slightly expanded its share of the mortgage market.
Loans and credit facilities to non-residential businesses advanced by 19.6%, and the circulating credit volume grew by 5.9% from the previous year. This vigor contributed to a 2.1% increase in the overall corporate credit balance, reaching 8.533 billion euros and adding 13 basis points to Ibercaja’s market share in the twelve months. This progress reflects a sustained strategy focused on corporate clients in recent years and underscores Ibercaja’s commitment to supporting regional economic activity.
Digital leadership and client base
More than six in ten clients are now digital-focused, a milestone that mirrors the bank’s push toward digital channels. The gross loan portfolio at year-end 2023 stood at 28.611 billion euros, down 2.1% from 2022 due to accelerated amortizations and tighter provisioning in response to higher rates. Digital clients reached 63.4% of the total client base, and digital channels accounted for 41.9% of all transactions, with mortgages representing 30% and risk insurance 9% of digital activity. In the most recent period, 951,000 customers used online banking, 730,000 used mobile banking, and 422,000 relied on mobile payments. These numbers illustrate Ibercaja’s successful migration to a mostly digital customer experience, aligned with the evolving preferences of households and businesses. (Source: Ibercaja Group annual report, 2023; strategic plan outcomes, attribution to Ibercaja Foundation actions.)