The entity’s profit, which is 33% higher than last year, excluding the positive effect of the integration with Bankia, is boosted by the rise in mortgage rates
CaixaBank closed the year 2022 with a net attributable profit of EUR 3,145 million in 2022, which is 29.7% more than last year thanks to “the commercial strength and the synergies of the integration” with Bankia, the group emphasizes. Factoring in the extraordinary accounting effect the merger contributed last year would see the benefit drop nearly 40% as the million-dollar positives resulting from the integration between both groups were recorded in 2021.
In 2022, the year in which the integration process was completed, CaixaBank managed to maintain its commercial rhythm despite the uncertain context due to the invasion of Ukraine and achieved its financial and activity targets.
CaixaBank Chairman José Ignacio Goirigolzarri stated that “2022 has been a hugely important year for CaixaBank. We successfully completed the integration process of the largest merger in the financial sector in our country; we have presented to the market our first post-merger strategic plan, a plan that should guide us in the period 2022-2024 to achieve the ultimate goal of our integration, which is to lead the transformation process of the financial sector; and we have long established our brand purpose: ‘Being close to people for everything that matters’”.
The chairman of CaixaBank emphasized the fact that the entity ended the year with greater financial strength and a solid capital position, enabling it to pay a dividend of EUR 1,700 million to shareholders, an amount that increases to EUR 3,500 million if the share’s EUR 1,800 million buyback program are added. “This puts us on track to reach our goal of paying out up to €9,000 million over the period 2022-2024,” he said. The state will receive 16% of that amount through the FROB, in the same stake it holds in the group.
For his part, the CEO, Gonzalo Gortázar, emphasized that “at CaixaBank we have closed a very positive year in terms of commercial dynamism, credit quality and financial strength. We are particularly pleased with the strong growth in the business, which reflects our ability and willingness to support the economy of households and businesses, and with the improvement in results, which allows us to deliver the remuneration to our shareholders and our contribution to the Obra Social of the Foundation “la Caixa”.
The results for 2022 in comparable terms, without taking into account the extraordinary benefits of the merger, show a turnover that increased by 5.8% to EUR 11,997 million, driven by the increase in interest income by 7.7% %, in a context of interest rate hikes, and 33.1% of income and expenses from insurance contracts, with commission income in line with last year (+0.6%). All this compensated for the lower income in the line of bancassurers (-26.2%).
Specifically, bank commissions grew by 1.7% in the year, although recurring bank commissions showed a slight decline of 0.3% due to the elimination of deposit-custody commissions and the unification of customer loyalty programs. from clients not paying basic corporate commissions. Meanwhile, wholesale banking commissions were up 20.5%, a sign of good behavior thanks to increased activity in the year.
Dividend income for their part, which amounted to 163 million euros in 2022 (-15%), includes the registration of dividends from Telefónica and BFA for 69 and 87 million respectively. In addition, the attributable results of entities accounted for using the equity method, with EUR 264 million in 2022, decreased by 39.5% year-on-year, impacted in part by scope changes following the sale of Erste Group Bank and the global consolidation of Bankia Vida. Meanwhile, income from financial operations increased (+47%).
Turning to the evolution of the gross margin, it increased by 5.5% in the year, to EUR 11,594 million, and recurring administration and amortization expenses decreased by 5.6% year-on-year, supported by the realization of synergies related to the integration of Bankia, enabling a 19.8% growth in operating margin.
In 2022, the entity has completed the process of voluntary departure of professionals under the collective labor agreement, which translates into a decrease in personnel costs of 8.1% over the whole of 2022.
commercial dynamics
CaixaBank has strengthened its commercial dynamism in 2022, despite the uncertain context, in all channels through which it conducts its activities (from the most extensive branch network in Spain to external or digital channels, such as inTouch, CaixaBankNow and imagin) and thanks to a wide range of products and services designed to meet the needs of every type of customer.
During the 2022 financial year, there is a growth in loans, both for individuals and for companies, with an increase in the healthy loan portfolio (doubtful balances excluded) by 3.3% to EUR 351,225 million. In concrete terms, the healthy commercial portfolio grew by 7.6% in the year, the consumer portfolio by 4.1% and the mortgage portfolio by 0.7%.
In the course of 2022, CaixaBank has made significant efforts to manage questionable balances, which have fallen to EUR 10,690 million following the good evolution of asset quality indicators and the active management of defaults supported by the sale of portfolios. For example, doubtful balances fell by 2,943 million euros in the year and 952 million in the quarter. For example, the non-performing loan ratio will be reduced to 2.7% at the end of 2022, a historic low and almost one point below the December 2021 level (3.6%), with a reduction in the ratio in all loans. segments.
During the 2022 financial year, the provision of mortgages in Spain more than doubled (+108%) to EUR 14,299 million, thanks to MyHome, CaixaBank’s ecosystem of solutions with everything needed for the home. In terms of mortgage lending, CaixaBank maintains its commitment to fixed-rate loans as an element that gives customers certainty about what they will pay over the life of the loan. Throughout 2022, more than 90% of housing purchase contracts will be formalized at a fixed rate.
In consumer loans in Spain, new financing for the full year has reached EUR 10,235 million, representing an increase of 16% compared to 2021. In loans to businesses, new production amounts to EUR 41,560 million, after growth of 23 %, driven by a model characterized by specialization and proximity to the business fabric.
In terms of liability management, without taking into account the negative impact of the market on long-term savings products, funds increased by 1.1% as CaixaBank managed to raise net funds amounting to EUR 6,888 million. At the end of the year, customer assets amounted to EUR 609,133 million, down 1.7% over the full year, taking into account the impact of market volatility.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
