CaixaBank ended the first quarter of 2024 reaching a net profit of 1,005 million euros, 17.5% more than in the same period of the previous year, after increasing its interest margin by almost 30% to almost 2,800 million. The comparison with the first quarter of 2023 is influenced by the higher interest rates with which the first three months of 2024 have developed, 4.5% after the last increase undertaken by the European Central Bank (ECB) in October, while at the start of last year these were still around 3%. The entity points out that the ECB “will begin to cut interest rates in June”, “once it has noted progress in the “last mile” towards the 2% inflation target”, which will be followed by three more reductions throughout the year to close at around 3%, and at 2.25% in 2025. The shares of the financial entity lose around 3% today, Tuesday.
The bank explains the increase in results “thanks to its financial and commercial strength”, with a general growth in margins that “reflects the strength of the entity and good business dynamics, with increases in new credit production and net subscriptions positive in savings products, in a context of containment of interest rates.” The interest margin rose 27.4% to 2,781 million, which “reflects the impact of new production and the rate environment,” while the gross margin rose 12.7% to 3,496 million.
The bank highlights the “good pace” of commercial activity, accelerated since the last quarter of last year, “with relevant growth in the new production of loans to individuals.” New mortgage credit grew by 24.1% more in the first quarter, up to 2,790 million, and new consumer credit grew by 15%, up to 3,029 million.
CaixaBank emphasizes that its business volume is close to one trillion euros, with customer resources amounting to 636,490 million, 1% more, and healthy credit at 344,438 million. Resources on the balance sheet remain at 463,505 million euros and assets under management reach 168,688 million.
“In a context in which the Spanish economy continues to show strong resilience, at CaixaBank we begin 2024 with good commercial activity, general improvements in market shares and maintaining solid levels of profitability and efficiency,” highlights its CEO, Gonzalo Gortázar. , in a press release.
In it, Gortázar highlights that the bank paid 493 million euros for the banking tax, 32% of what was paid in the same period of 2023, with a total tax bill of 1,135 million, “a figure that exceeds the benefit obtained in this period”.
As of March 31, CaixaBank’s NPL ratio stood at 2.8%, slightly above the 2.7% at the end of 2023, “after applying a stricter criterion in the classification of doubtful debts within the prudential framework.” , thanks to rigorous and prudent credit risk management.” Therefore, doubtful balances increase to 10,794 million euros “without any deterioration being seen in the organic evolution of credit exposures.”
On the other hand, the coverage ratio stood at 71% at the end of the quarter, while the LCR liquidity ratio reached 193%. The CET1 capital ratio was at 12.3%, slightly below the percentage of a year before, “after the impact of the new share buyback of 500 million that began in March and which is now fully deducted” .
On the other hand, CaixaBank has conveyed this morning to the CNMV its “irrevocable” decision to fully redeem an issue of preferred shares eventually convertible into company shares for a total of 1,000 million euros, with a current outstanding balance of 395 million, and which was launched in June 2017.