CaixaBank opens a new roadmap and aims to reach 16% profitability in 2027 in a scenario of falling interest rates that will be combated with increased business. Its 2025-2027 strategic plan projects growth at 4% annually in the main business areas and distributing to the investor between 50 and 60% of the profit via dividends, in addition to investing any excess capital above 12.5 in share repurchases. % CET1.
Among the main financial goals is maintaining income, despite the fall in interest rates – it projects that the heading will reach 16,000 million in 2027 compared to the 15,500 million with which it will close in 2024. It expects commissions to grow by a medium single digit per year and costs by 4%.
In business, it will seek to increase the volume managed by 4% per year, with similar expansions both in the credit portion and in managed client resources. Its intention is to lower bad debts from the current 2.7% to 2%, maintaining a provision piggy bank that covers 70% of doubtful debts, and maintaining the efficiency ratio below 40%.
In solvency it scales its target from 11-12 to 11.5-12.5%, with the commitment to invest any surplus capital above said threshold in repurchasing shares to improve investor remuneration (in September its CET1 was stood at 12.2%).
One of the shareholders is the State, with 18.1% of the bank’s capital through the Frob, which has already anticipated that its vocation is to preserve said share of capital, so that it will sell any package of securities that exceeds the participation in the upcoming share buyback plans launched by the bank. The “La Caixa” Foundation controls a stake of more than 31.2%.
The entity formulates its new roadmap after having met the goals set in the 2021-2024 plan set out after agreeing on the merger with Bankia in 2020. In that projection, it was proposed to double profitability until the ratio calculated on tangible equity (RoTE) was at 12%, when last September this parameter reached 16.9%; but it has also improved the delinquency projections – standing at 2.7% compared to the 3% with which it aimed to close this year.
Its efficiency rate reached 39.2% in September when its challenge was to lower it from 58 to 48% and investor remuneration expanded its commitment from 9,000 to 12,000 million euros, payable between ordinary dividends and via share repurchases.
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