Ibercaja aims to maintain profits of €300 million by 2026 without an IPO

Ibercaja has launched its strategic plan for 2024-2026, which revolves around “customers and sustainability” and improves the ability to sustain profits 300 million euros excluding IPOwith which many attempts have been made in recent years.

“This is not included in the strategic plan, because in March the Ibercaja Foundation completed the creation of a reserve fund in order not to have the obligation to go public, in accordance with the Savings Bank Law, with 320 million euros derived from ordinary dividends. from the bank. It is no longer a legal obligation, but simply an opportunity“, explained the bank’s president, Francisco Serrano, during a presentation held in Zaragoza.

Its new plan “Now Ibercaja” establishes that at the end of the three-year period the enterprise has strengthened its solvency, setting the CET1 full load ratio between 13.5% and 14% from the current 12.7%; maintained LCR liquidity ratio above 190% and kept the non-performing assets (NPA) level below 3.5%. and achieving a return on investment (ROTE) of over 10%, allowing it to continue to cover the cost of capital for a medium to low risk profile.

“To say that Ibercaja will achieve an ROI of 10% between 2024 and 2026 is more commendable than last year’s 11.6%,” said company CEO Victor Iglesias, as rate cuts are expected, leading to lower profitability and increased costs due to the new law. agreement to increase wages and the risk of new defaults.

Another goal set in the plan is a cumulative increase in the base of customers known as “loyal” (“customers who maintain a strong relationship with the bank,” as Iglesias explained). 10% between 2024 and 2026: 50,000 new individual customers, 6,000 business customers and 2,000 SME and large enterprise customers.

For all this, the project has been allocated a specific budget of 45 million euros for this year, which, if added to the resources provided in the regular budget, will amount to a total 110 million euros investments this year in Iberkaya, “of which more than half will be aimed at technological, operational and commercial transformation.”

The company’s growth will continue to be driven by geographic areas of consolidated expansion. Madrid and the Mediterranean Arcat the same time, it will strengthen the commercial leadership it already has in Aragon, La Rioja, Guadalajara, Burgos and Badajoz, and will also contribute to the renewal of its customer base.

The above-mentioned growth, according to the president of Ibercaja, “is due to the political instability that we have been experiencing for many years in Spain.” Thus, Francisco Serrano recalled that “Since the restoration of democracy, 16 electoral processes have been held, 8 of them in the last eight years.. This succession of elections creates instability and has led to the fragmentation of parliament. This is not a very good breeding ground for investment.” Finally, in this sense, he stated that “there is a need for a central space to approach dialogue and negotiation. We have legal security, but if we had stronger and more stable institutions, growth would be more sustainable,” he said.