CaixaBank will earn 1.005 million until March, up 17.5%

Group KaishaBank generated a corresponding net profit of €1,005 million in the first quarter of the year, compared to €855 million in the same period in 2023, representing an increase of 17.5%.

Gonzalo Gortazargeneral director, emphasizes in a statement that “in a context in which the Spanish economy continues to demonstrate strong resilience, at CaixaBank we start 2024 with good commercial performance, an overall improvement in market share and the maintenance of sustainable levels of profitability and efficiency.”

In the first three months of the year, CaixaBank recorded 1.135 million in taxes (493 million corresponds to bank taxes, an increase of 32% over the previous year), exceeding the profit generated during this period.

The Evolution of the Income Statement

CaixaBank’s earnings report for the first quarter of 2024 shows growth in all margin metrics, “reflecting the strength of the enterprise and good business dynamics with increased new lending volumes and positive net subscriptions for savings products in the context of contained interest rates.” .

In summary, year-on-year gross profit increased 12.7% to 3.496 million, driven by higher interest margins (+27.4%), reflecting the impact of new production and type environments.

Revenue from services (wealth management, protective insurance and bank commissions) amounted to EUR 1.197 million in the first quarter, down 1.3% compared to the same period in 2023 due to higher activity.

Growth in income from asset management (+15.8%) and protective insurance (+6.9%) offset lower banking fees (-10.8%), which included, among other things, lower fees for maintaining current accounts.

With all this, return on equity (ROE) At the end of March it reaches 13.4%, and the efficiency ratio improves again to 40.3%.

Business volume at maximum levels

The good dynamics of activity in the quarter are bearing fruit. business volume to one trillion euros, an all-time high, after rising by more than 15 billion euros last year.

Customer resources amount to 636,490 million and increase by 6,160 million (+1%) through the marketing of long-term savings products.

Likewise, resources on the balance sheet remained stable in the quarter at €463.505 million, with assets under management reaching €168.688 million (+4.9% for the quarter), following strong markets performance and corresponding subscription levels.

In this sense, net subscriptions for mutual funds, savings insurance and pension plans reach 3.442 million between January and March, with cash being the main driver of growth among funds.

Protection insurance continues to perform well, with premiums rising by 8.7% year on year.

In turn, the healthy loan portfolio remained stable during this period and amounted to 344.438 million (+0.1%). As for housing loans, portfolio depreciation continues to be observed, albeit at a slower pace, which, combined with the positive dynamics of new production, allows the recorded decline (-0.7%) to be the smallest of the last five quarters. In the case of consumption, the portfolio grew by 2%, and for companies – by 1.1%.

Production of new loans accelerates

Business activity continues at a good pace, a trend that began in late 2023 and accelerated in early 2024 when there was significant growth in new personal loan production. In particular, the volume of new mortgage loans in the first quarter amounted to 2.790 million, up 24.1% compared to the same period in 2023; and new consumer loans reached 3.029 million in the quarter, up 15%.

In terms of loans to companies, new production until March will exceed 10.5 billion euros, a period in which the signing of 43,000 transactions with small and medium-sized companies (28% more than a year ago) stands out.

Delinquency rate

The share of non-performing loans remained virtually stable during the quarter and below the sector average of 2.8% (down from 2.7% in December 2023) after applying a more stringent criterion for classifying doubtful assets within the prudential framework, thanks to the strict and reasonable credit risk management.

Doubtful balances increased slightly to EUR 10.794 million, without any deterioration in the organic dynamics of credit risks. For their part, the insolvency funds (€7.667 million) estimate the coverage ratio at 71%. The cost of risk (last 12 months) remains moderate at 0.29%.

The CaixaBank Group also has liquidity 157,022 million euros, and Liquidity coverage ratio (LCR) as of March 31 is 197%, which is significantly higher than the required regulatory minimum of 100%.

Concerning capitalThe CET1 ratio is 12.3% after the impact of the new 500 million share repurchase that began in March (-22 basis points) and which has now been fully deducted. In contrast, the positive dynamics of organic capital generation in the first quarter stand out, adding 36 basis points.

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