CaixaBank Raises Profitability Target
By Helena Smolak
Spain's CaixaBank raised its 2024 profitability target after fourth-quarter net profit rose on higher net interest income.
The Spanish bank said Friday that it now expects its return on tangible equity--a key profitability metric for banks--to be above 15% in 2024, up from its previous target of above 12%.
The lender also raised its 2022-24 investor returns target to around EUR12 billion, previously guided at EUR9 billion.
For the fourth quarter, the bank's net profit grew 76% from the same period a year earlier to 1.16 billion euros ($1.26 billion). Analysts had forecast net profit of EUR1.21 billion, according to a consensus provided by the bank.
Net interest income stood at EUR2.75 billion, up 40% from a year earlier, but slightly missing the EUR2.76 billion expected by analysts. Net interest income, a key driver of revenue for retail banks such as CaixaBank, is the difference between how much a bank earns on clients' loans and how much it pays clients for their deposits.
CaixaBank's common equity Tier 1 ratio--a measure of a bank's resilience-- stood at 12.4% in December.
The lender declared a 2023 dividend of 39 European cents, up from 23.06 cents in 2022. It plans to launch a new share buyback program in the first half of 2024, CaixaBank said.
Write to Helena Smolak at helena.smolak@wsj.com
(END) Dow Jones Newswires
February 02, 2024 01:44 ET (06:44 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
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