CaixaBank unveiled its 2025–2027 Strategic Plan in order to ensure sustainable levels of profitability “above 15% (ROTE)” in order to support the growth of loans to firms and households, which is on track to grow by around 4% CAGR during the next three years.
Maintaining this profitability will enable CaixaBank to continue remunerating its 558,000 shareholders “adequately,” including the FROB and ‘la Caixa’ Foundation, which will then be able to continue its Social Work.
The Group is pursuing key priorities including the following: accelerating business growth, drive business transformation and investment, and consolidate the company’s position as a “benchmark in sustainability.”
The Group stated that it will now be venturing into a new phase after wrapping up its 2022–2024 Strategic Plan.
The plan will take shape amid the economic recovery, despite uncertainty over the various ongoing “geopolitical conflicts and with higher than expected interest rates, coupled with rising levels of inflation.”
CaixaBank completed the various stages of integration with Bankia at the start of the plan and has reportedly met the “financial and qualitative targets set for the 2022–2024 period.”
The profitability, cost-to-income, NPL and certain other targets have reportedly been met, as well as “growth in market share in the main businesses and the promotion of social and financial inclusion.”
Notably, international business has grown more than anticipated during the period and the mobilization of sustainable finance has “exceeded the €64 billion target.”
The bank’s shareholder return has reportedly exceeded the initial target of €9 billion (around €9.5 billion have already been assigned), with a further commitment to reach “€12 billion under the framework of the 2022–2024 Strategic Plan.”
The Group is looking ahead to the next three years with “optimism” and finds itself in its best position of the past 10 years with “commercial strength, a strong balance sheet, enhanced digitalization and innovation capabilities, and reasonable profitability.”
With the 2025–2027 Strategic Plan, amid ideal conditions enabling CaixaBank to leverage growth opportunities, the Group aims to keep net interest income “stable by the end of the period, despite a likely environment of lower interest rates.”
In addition, service revenues are expected to grow “moderately (in the mid-single digit range), and costs are likely to increase by around 4% (CAGR – compound annual growth rate).”
The Group has reportedly exhibited financial strength over the past three years, and this is set to continue, with the aim of achieving a “ROTE of over 16% by the end of 2027 and of more than 15% on average over the 2025–2027 horizon.”
As mentioned in the announcement, the cost-to-income ratio should be “slightly above 40% and the NPL ratio is expected to fall to around 2%.”
CaixaBank said it will now continue to generate capital “organically” and liquidity will remain high, comfortably exceeding the “minimum regulatory requirements.”
With regard to the shareholder return policy, the Strategic Plan includes a commitment to pay out between “50% and 60% of consolidated net profit” in dividends, with an interim dividend payable each year, “plus any excess CET1 capital that exceeds 12.5%.”
Amid an ongoing process of deleveraging within the private sector, and with savings at an all-time high across the country, the bank is well placed to capitalize on these components, “with the outlook for the Iberian economies looking bright.”
In its Strategic Plan, CaixaBank aims to grow its business volume by more than 4% (CAGR) over the coming three years —”after achieving around 2% in the three-year period just ended— by seizing the opportunities and strengths it has across all customer segments in both Spain and Portugal.”
The plan deploys a growth strategy based “on customer acquisition, loyalty and engagement.”
The aim is to consolidate the trend of “increasing the number of banking customers” in which imagin —CaixaBank’s digital platform offering financial and non-financial services for young people— will continue “to play a key role in increasing the current customer base.”
CaixaBank will aim to support the online platform Facilitea, conceived as a virtual showcase of products offered by partners of the financial group, through a curated catalogue of “exclusive or high-end models, all of which can be accessed thanks to CaixaBank financing.”
Facilitea’s proposition will be expanded to include products, services and solutions that cover “mobility needs and other concerns that people face throughout their life.”
The Portuguese bank BPI (wholly owned by CaixaBank) will be at the heart of its strategy: customer acquisition, a drive “towards digitalization and artificial intelligence tools, and progress towards sustainability.”
As for its priorities, it is seeking to consolidate its position in mortgage loans and lending to businesses. BPI is expected to increase customer funds and loans “by close to 4% CAGR, mirroring CaixaBank’s own aspirations.”
Joint projects with Group subsidiaries “will also be stepped up.”