CaixaBank wants to take advantage of the favorable environment for growth and increased lending
CaixaBank wants to take advantage of a “more favorable” economic environment to improve its profitability and lend to companies and families. In the 2025-2027 Strategic Plan unveiled today, the financial institution has committed to achieving a return on capital of 15%, which stands for ROTE in financial jargon. The latest rate of return was 16.9%, while the previous plan, which began in 2022, had a target of 12%.
The average profitability for the period 2022-2024 is about 14%. The expected lower profitability in the coming years compared to the current situation is due to the expected reduction in rates.
Customers of the plan will see loans to businesses and families grow by about 4% annually, the bank said in a statement.
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How will increased profitability be achieved? Fundamentally with attracting and connecting customers, as well as promoting digital contracts through the launch of new products and services. At least that’s what the organization is highlighting in the Plan, which also hopes to see better economic prosperity than has been seen in recent years. “We want to take advantage of a predictably stronger economic environment to take leaps forward in service quality, our technology capabilities and developing the talents of our people. All this will lead to greater economic growth and adequate rewards for our shareholders,” said CEO Gonzalo Gortazar. The manager again presents the Strategic Plan, as he did in 2018 and 2022, but this time alone, without the president. In 2018 he did it with Jordi Gual, and in 2022 with José Ignacio Goirigolzarri. And although he is still president, he will be replaced by Tomas Muniesa on January 1.
The bank has committed to investing €5 billion in technology during the implementation of the plan.
The bank has committed to investing €5 billion in technology during the implementation of the plan. Among the new mechanisms that want to be implemented is the use of igenerative artificial intelligence.
In terms of hiring projections, the group wants to recruit 3,000 young people between 2025 and 2027.Mainly with technical profiles.
Looking back, the bank gives a “positive assessment of the strategic plan for 2022-2024,” especially the integration of Bankia.