Caixa Ingenieros achieves unprecedented profit of 24 million euros with partner growth

BarcelonaCaixa Ingenieros' net profit soared last year to €24 million, a 22.3% increase compared to 2023 and an unprecedented level for the bank. The results, which add to the record already recorded in the previous year, are the first under Juanjo Llopis as CEO, who replaced Joan Cavallé on January 1st, who had held the position for nineteen years. The bank recorded a turnover of €8.581 billion, up 5.4%, and an interest income of €76.2 million, up 14.9%.

The credit cooperative also achieved a record membership level, with 216,320 (3,000 new), representing a 1.4% increase and an average of 6.1 financial products per customer, "the highest figure in the group's nearly 58-year history." Llopis, during the results presentation, emphasized that the group "is not paying attention" to movements such as BBVA's takeover bid for Banc Sabadell and is maintaining its strategy as a cooperative bank.

In any case, the president, Fèlix Masjuan, explained that the bank has no history of inorganic growth: "If an opportunity arises and we believe it could be positive, we will evaluate it, but we are not hungry for inorganic growth." The forecast is to add 7,500 new members this year, based on the satisfaction levels of existing members, as well as the incorporation of mobile banking in 313 towns and a coverage of 237,000 inhabitants, after winning the competition with CaixaBank to provide services to towns without bank branches. The other factor for increasing membership is the attractiveness of the cooperative banking model, said the CEO.

Masjuan highlighted the bank's defining features as a cooperative bank. Caja Ingenieros, which joined the Clade cooperative group last year, has achieved its results driven by its interest margin, the result of the difference between the price charged for loans and the price paid for deposits; and commissions for investment services. The group has improved its profitability by 1.1 percentage points, to 9.4%, and its CET-1 solvency position by the same proportion, to 18.3%.

Caixa Ingenieros reported a gross margin of €123.3 million, an increase of 23.9% year-on-year. The entity avoided entering price wars in mortgages, as occurred in the financial market, by attempting to maintain a stable interest margin.

Loan investment decreased compared to 2023 and stood at €1,977 million, a 1.7% decrease. Throughout 2024, the amortization of personal loans was still significant. Llopis explained that they have improved expectations for credit performance in 2024. They highlight off-balance sheet customer funds, especially in investment fund management, with 1.932 billion and a 22% increase, and life insurance and savings.

Better partner remuneration

At the general shareholders' meeting at the end of May, the group will propose a 5% return on capital contributions, 0.75 percentage points higher than the previous year. These figures place the pay out –the portion of profits allocated to remunerating members– by 22.74%. The goal is to allocate 18.4 million to reserves, a 23% increase; and 1.7 million to the education and promotion fund, a 28% increase. Llopis, in his debut as CEO of the entity, which he joined eight years ago, highlighted not only the results achieved but also the level of member satisfaction, at 50.1%, "when the sector average is -13.7%."

The CEO highlighted the opening of three new offices this year, one in Vic, another in Manresa, and another in Vilanova, bringing the total to 31 compared to 28 in 2024 in Catalonia, and 33 if the offices in Madrid and Alicante are included. The non-performing loan ratio stood at 2.9%, below the industry average of 3.3% but above the 2.7% of the previous year.

The bank, which is halfway through its Transforma 2026 strategic plan, forecasts that inflation will converge this year toward the 2% predicted by the European Central Bank (ECB) and that interest rates will range between 2% and 2.25%. One of the objectives is to increase member loyalty and broaden the membership base. Other goals of the plan are to consolidate the 9.3% profitability and exceed €9.5 billion in business volume, Llopis explained.