Kutxabank reached a net result of 396.2 million of euros between January and September 2024, after growing 2.8% compared to the same period of the previous year. The bank thus exceeds its strategic objectives of growth and diversification, driven by ‘core’ activity, which grew by 16.4%, to 1,514.5 million euros, due to the increase in interest margin (+23.4% to 1,031.8 million) and the positive evolution of services and insurance. Added to this are income from off-balance sheet resources, such as investment funds, delegated portfolios and pension products.
Kutxabank’s commercial activity until September has stood out in net subscriptions of managed investment funds, which grew by 7.1%; with a new record in consumer loans, which grew by +22.4%; has increased trade credit activity by 30%; has materialized more than 2,300 million in new mortgage loans; and financing in the wholesale segment has grown by more than 1,000 million. In response to this evolution of the business, the entity registered an increase of 88,000 new customer registrationswith a growth of 20%.
This evolution responds to the group’s investment and diversification strategy, in a context, furthermore, of growth in the Spanish economy and lower interest rates. So, Credit to families and companies has grown in the new first months 0.4%, up to 47,328 million euros. Consumer loans have set a new record, with an increase of 22.4%, up to 557 million. Activity in commercial credit also grows more than 30%, up to 138.6 million.
According to the entity, in the first nine months of the year there has been “a progressive recovery in mortgage production.” This evolution has resulted in the achievement of a volume of 2,386 million new mortgage loans subscribed in the period.
In line with Kutxabank’s strategic objectives, financing in the wholesale segment registered an increase of 2.3%, compared to the first nine months of 2023, after growing by more than 1,000 million, to 14,838 million. By segment, credit investment in corporate banking increased by 3.7% and reached 6,442 million and business investment exceeded 2,100 million, after increasing by 6.1%. Credit for real estate development increases by 20.3% for the financing of 3,313 homes, already equaling the number reached in 2023. Regarding institutional banking, Kutxabank’s credit balance is close to 5.6 billion.
The client resources managed by the bank chaired by Antón Arriola total 93,444 million and are 11% higher than those registered in the first nine months of 2023. As of September, a growing contribution of off-balance sheet resources (investment funds, EPSVs and pension funds and discretionary portfolios) that, for the first time, exceed 40,000 million and reaffirm the Group’s position as the fourth largest investment fund manager in Spain.
Advancement of individual forecast
Between January and September 2024, Kutxabank has been the third entity with the highest net subscriptions in investment funds managed, with entries worth 1,484 million -close to 7% of the total market-, up to 28,894 million euros. The entity’s share in this area is 7.4% and, in sustainable investment funds, 13.9%. The evolution of individual pension products has also been notable: thus, the assets of the EPSVs managed by the group have increased by 4.9%, to 6,447 million, with a share in this market of 47.5%.
Recently, Kutxabank has reached an agreement to acquire 63% of Talde Gestión, with which it is firmly committed to the growing alternative asset market. With this operation, the entity will promote its business model and will reinforce the value proposition of its Wealth Management unit.
On the other hand, Kutxabank has once again consolidated itself as the bank with the best default, solvency and efficiency ratios in the supervised sector. In the first three quarters of the year, it has continued to improve its position until it reduced it to 1.33%; 211 basis points below the sector average, which stands at 3.44% as of August. It also maintains its solvency position, with a CET1 ratio phased in of 18.9%, after improving by 84 basis points so far this year.
So, The European Central Bank has just informed Kutxabank that it maintains the capital requirements for the entity. “In this way, a Pillar 2 supervisory requirement (Pillar 2 Requirement – P2R) of 1.20% of its risk-weighted assets in 2025 will continue to be applicable. Consequently, the entity must maintain minimum levels of 7.675% and 11.70% for the CET1 Ratio and the Total Solvency Ratio”, explained Kutxabank. “As of September, the group’s capital ratios far exceeded these requirements.”
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