Spain’s CaixaBank announced that it has raised its profitability targets for 2024, following an increase in net profit during the fourth quarter. The bank now expects its return on tangible equity to exceed 15% in 2024, up from the previous target of above 12%. Additionally, CaixaBank has raised its investor returns target for 2022-2024 to approximately EUR12 billion.
During the fourth quarter, CaixaBank saw a significant growth in net profit, with a 76% increase compared to the same period the previous year, reaching 1.16 billion euros. Analysts had forecasted net profit of EUR1.21 billion for the bank. Net interest income, a significant driver of revenue for retail banks like CaixaBank, stood at EUR2.75 billion, a 40% increase from the previous year but just slightly below analysts’ expectations of EUR2.76 billion.
CaixaBank’s common equity Tier 1 ratio, which measures a bank’s resilience, was recorded at 12.4% in December. The bank plans to distribute a dividend of 39 European cents in 2023, up from 23.06 cents in 2022. Additionally, CaixaBank intends to launch a new share buyback program in the first half of 2024.
These developments highlight CaixaBank’s continued commitment to achieving strong financial performance and delivering value to its shareholders. The bank’s revised profitability targets demonstrate its confidence in its ability to generate sustainable growth and maximize investor returns.