CaixaBank forecasts a return of more than 12%

The CEO of CaixaBank, Gonzalo Gortázar. / Eph

The entity will generate 9,000 million of capital until 2024 and announces a repurchase of shares of up to 1,800 million euros this year


CaixaBank aspires to achieve a return of over 12% and an efficiency ratio of 48% in 2024, increase its net interest income by 8% and generate around 9,000 million euros of capital, according to the 2022-2024 Strategic Plan that the The bank has sent this Tuesday to the National Securities Market Commission (CNMV).

The strategic priorities of CaixaBank's 2022-2024 Strategic Plan, the first after the integration of Bankia, focus on driving business growth, strengthening leadership in the retail segment, becoming the first bank of more companies, evolving the model of attention to adapt it to the maximum to the preferences of the clients and to consolidate itself as "a benchmark in sustainability in Europe".

CaixaBank forecasts that the GDP in Spain will grow by an average of 3.4% in the three years of the plan and that the unemployment rate will gradually fall to 11.5% in 2024. Although the war in Ukraine and its effects on prices are slowing down the pace of recovery in the short term, the bank expects the new phase of the pandemic, the recovery of foreign tourism, the normalization of savings rates and the deployment of European funds to boost economic activity and demand for credit.

The plan anticipates a normalization of monetary policy in the coming quarters in response to high inflation, with the 12-month Euribor rising to an average of between 1.5% and 1.6% in 2023-2024. In Portugal, he expects economic growth to average at least 3% in 2022-24.

In this scenario, CaixaBank expects to maintain a high commercial activity in loans (mortgages, companies and consumption) and customer funds and aims to increase its income at a rate of 7% between 2022 and 2024, driven by insurance activity (+10 %) and the moderate evolution of commissions (+2%), so that the interest margin rose by 8%, supported by the new interest rate environment.

The strategic plan states that profitability (ROTE) will be above 12% at the end of the period, which is almost double the current levels, while the efficiency ratio will improve 10 points compared to 2021, until it is below the 48%. Another pillar will be the control of non-performing loans, which is expected to fall below 3% at the end of 2024.

During the term of the plan, CaixaBank has set itself the internal objective of placing the highest quality CET1 capital between 11% and 12%, applying an "attractive" shareholder remuneration policy that will be supported by the increase in income and the neutralization of costs after the strong reduction undertaken in 2022 due to the capture of synergies after the merger with Bankia.

Specifically, it plans to generate around 9,000 million in capital, including dividends (with a 'pay out' of more than 50%), excess capital over 12% and the delivery of 1,800 million corresponding to the share buyback plan that will be distributed this year. Regarding the latter, CaixaBank announced this Tuesday that the repurchase of shares will have a maximum monetary amount of 1,800 million euros, will not exceed 10% of the bank's share capital, its maximum duration will be 12 months and its manager will be Morgan Stanley Europe SE.

In the energy transition of companies and individuals, CaixaBank wants to mobilize 64,000 million euros in sustainable financing through the promotion of various initiatives focused on the offer of products, ESG advice, awareness and training.

In relation to BPI's financial objectives, it is proposed that revenues advance at an average annual rate of 9%, with profitability (ROTE) and efficiency that will converge with those of the group as a whole.

The president of CaixaBank, José Ignacio Goirigolzarri, has pointed out that the Strategic Plan focuses on the customer and on developing the best proposals offering "an excellent quality of service". For Goirigolzarri, the materialization of this roadmap will allow CaixaBank to "offer the best value proposition" for its customers, maintain an "attractive" dividend policy for shareholders and promote the energy transition of companies and society to become in "benchmark" in sustainability.

For his part, the entity's CEO, Gonzalo Gortázar, highlighted that the group's objectives for the next three years are focused on driving revenue growth, maintaining and continuing to promote the best omnichannel relationship model with customers and consolidate CaixaBank as "the benchmark financial group in Europe" for its social and environmental commitment.

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