CaixaBank earns 4.397 billion until September, 3.5% more

BarcelonaCaixaBank closed the first nine months of the year with a net profit of €4.397 billion, 3.5% higher than during the same period of the previous year. This performance is attributed to strong commercial activity despite the trend towards lower interest rates, according to the bank. As a result of these results, the bank's board has approved an interim dividend of €0.1679 per share, representing 40% of the first-half profit, to be paid against 2025 earnings on November 7. The board has also decided to launch a new share buyback program, its seventh, valued at €500 million.

The assets of the group, of which Gonzalo Gortázar is CEO and Tomàs Muniesa is chairman, reached €660 billion, and its business volume, at €1.09 trillion, continues to rise, growing 6.8% year-on-year, with a medium market share in its balance sheet, as well as investment funds and pension plans. The data reveals the positive performance of its businesses. New loan origination between January and September, at €61.255 billion, increased by 20%, especially in mortgages (39%), but also in loans to businesses (16%) and consumers (12%).

High pace with mortgages

Gortázar emphasized that these results align with the group's objectives, which are outlined in the 2025-2027 strategic plan, based on the pillars of "sustained business growth" and "transformation" of the institution. At the press conference presenting the results, the group's CEO highlighted "the strong performance of commercial activity" and noted the positive trend in the Spanish economy, its main market, for which CaixaBank forecasts 2.9% growth this year and expects to maintain a rate exceeding 2% in 2026. He asserted that the rate of mortgage approvals, in a highly competitive market, will gradually slow but will continue to rise as long as the imbalance between supply and demand persists.

According to data released this morning, profitability (ROE) stood at 15.2% and the efficiency ratio at 39.2%. CaixaBank highlights the decrease in the non-performing loan ratio to a record low of 2.3% and the reduction of doubtful loans by €889 million. Regarding its social commitment, CaixaBank explains that of its 20.6 million customers in Spain and Portugal, 400,000 hold basic payment accounts for people at risk of social exclusion. The bank has a presence in 3,700 municipalities with branches, ATMs, or mobile offices.

Net Interest Margin

The year-on-year evolution of the income statement reflects, as was the case during the first six months, the reduction in market interest rates. This trend was partially offset by higher investment volumes, i.e., lending. Thus, the net interest margin – obtained from the difference between the interest charged on loans and the interest paid on deposits – stood at €7,957 million through September, representing a 4.9% decrease compared to the same period last year. However, the third quarter already shows a positive trend, with a 1.4% increase compared to the April-June period, which would suggest that the situation regarding interest rate trends is normalizing.

Service income (wealth management, protection insurance, and bank fees) grew by 5.7% to €3,883 million. The strongest boost came from wealth management, whose revenues increased by 13.4% to €1.484 billion. The CET1 capital ratio, the highest quality capital, stood at 12.4% due to the impact of the CRR3 (Basel IV) regulations coming into effect in January and the seventh share buyback program announced in October (€500 million). This ratio improved by 27 basis points in the first nine months of the year, excluding the two extraordinary items. The total amount of the interim dividend to be paid on November 7 is €1.181 billion. Furthermore, the execution of the sixth share buyback program, amounting to €500 million, announced in January and initiated in June, allows the company to meet its shareholder remuneration target of €12 billion under the 2022-2024 strategic plan. In fact, the company has announced a new share buyback program, its seventh, which falls under the 2025-2027 strategic plan, also for €500 million. This program will have a maximum duration of six months, and further details will be released later. The share buyback and subsequent cancellation of shares reduces share capital, resulting in each shareholder holding a larger stake and, consequently, a greater entitlement to dividend payments.