CaixaBank predicts a return of more than 12%

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The entity will generate 9,000 million euros in capital until 2024 and announces a share buyback this year for an amount of up to 1,800 million euros

According to the Strategic Plan 2022-2024 that the bank sent to the National Securities Market Commission (CNMV) on Tuesday.

The strategic priorities of CaixaBank’s 2022-2024 Strategic Plan, the first after Bankia’s integration, are focused on driving business growth, strengthening leadership in the retail segment, becoming the first bank of more companies, developing of the attention model to adapt it to the maximum to the wishes of the customers and to consolidate itself as “a benchmark in sustainability in Europe”.

CaixaBank forecasts that Spain’s GDP will grow by an average of 3.4% over the three years of the plan and that unemployment will gradually decline to 11.5% by 2024. Although the war in Ukraine and its impact on prices will pace of recovery in the short term, the bank expects the new phase of the pandemic, the recovery of foreign tourism, the normalization of savings rates and the use of European funds to stimulate economic activity and demand for credit.

The plan foresees a normalization of monetary policy in the coming quarters in response to high inflation, with the 12-month Euribor rising to an average of between 1.5% and 1.6% in 2023-2024. In Portugal, he expects economic growth to average at least 3% in 2022-24.

In this scenario, CaixaBank expects to maintain a high commercial activity in loans (mortgages, corporate and consumer) and customer funds and aims to increase its revenues by 7% between 2022 and 2024, driven by insurance activities (+10%) and the moderate Commission evolution (+2%), so that the interest margin increased by 8%, supported by the new interest rate environment.

The strategic plan states that profitability (ROTE) will be above 12% at the end of the period, which is almost double its current level, while the efficiency ratio will improve 10 points from 2021 to below 48. %. Another pillar is the control of non-performing loans, which are expected to fall below 3% by the end of 2024.

Over the life of the plan, CaixaBank has set itself the internal target of placing the highest quality CET1 capital between 11% and 12%, by implementing an “attractive” shareholder remuneration policy that will be supported by the increase in the revenues and neutralization of costs following the strong reduction implemented in 2022 as a result of achieving synergies following the merger with Bankia.

Specifically, it plans to generate approximately 9,000 million in capital, including dividends (with a “payout” of more than 50%), excess capital of more than 12% and the delivery of 1,800 million in accordance with the share repurchase plan that will be paid this year. year. With regard to the latter, CaixaBank announced Tuesday that the share buyback will have a maximum amount of 1,800 million euros, will not exceed 10% of the share capital of the bank, the maximum duration will be 12 months and the manager Morgan Stanley Europe will be. LIKE THIS.

In the energy transition of companies and individuals, CaixaBank wants to mobilize 64,000 million euros in sustainable financing by stimulating various initiatives aimed at product offerings, ESG advice, awareness and training.

With regard to BPI’s financial targets, it is proposed to increase revenues by an average of 9% annually, with a profitability (ROTE) and efficiency that will converge with those of the group as a whole.

CaixaBank’s president, José Ignacio Goirigolzarri, pointed out that the Strategic Plan focuses on the customer and on developing the best proposals that offer “excellent quality of service”. For Goirigolzarri, the realization of this roadmap will enable CaixaBank to provide “the best value proposition” for its customers, maintain an “attractive” dividend policy for shareholders and promote the energy transition of companies and society to set a “benchmark” to be made in the field of sustainability.

For his part, the CEO of the entity, Gonzalo Gortázar, emphasized that the group’s objectives for the next three years are to drive revenue growth, maintain and continue to promote the best omnichannel relationship model with customers and consolidate CaixaBank. as “the financial benchmark group in Europe” for its social and environmental commitment.

Source: La Verdad

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