Reports: CaixaBank Achieves €5.79B Net Profit in 2024, Surpassing 2022-2024 Targets
CaixaBank reports a proposed cash dividend payment of €0.2864 per share for 2024 earnings, totaling €2.028 billion. When combined with the interim dividend of €1.068 billion paid out last November, this brings the total payout to 53.5% of 2024 profits. Additionally, the board reports approval of a €500 million share buyback program, completing the €12 billion distribution plan outlined in the bank’s 2022-2024 Strategic Plan.
Gonzalo Gortázar, CEO of CaixaBank, reports that 2024 was “a very positive year,” noting that the bank successfully achieved all goals outlined in its 2022-2024 Strategic Plan, including business growth, improved service quality, strict risk management, and robust profitability recovery.
CaixaBank reports its commitment to supporting the economy and society through several initiatives. The bank promotes financial inclusion, with a presence in 3,609 municipalities, and granted 233,600 microcredits in 2024. Additionally, CaixaBank reports the launch of an aid plan to support those affected by the DANA, processing nearly 10,000 transactions in the process.
The bank’s results for 2024 report strong performance in business growth. Customer funds increased by 8.7%, while the performing loan portfolio rose by 2.2%. Notably, new loan origination surged by 32%, reaching €27.77 billion, with a focus on mortgages and consumer loans.
CaixaBank reports improvements across all profitability metrics, with a return on equity (ROE) of 15.4%, a cost-to-income ratio of 38.5%, and a low non-performing loan (NPL) ratio of 2.6% by year-end. Although net interest income in the fourth quarter reports a 1.9% drop from the previous quarter due to interest rate cuts, it reports a 9.8% increase year-on-year, reaching €11.11 billion for the full year.
CaixaBank also reports a strong liquidity position, with total liquid assets amounting to €170.72 billion and a CET1 ratio of 12.2%, factoring in the impact of the fifth share buyback program (currently ongoing) and the upcoming sixth program.
The CaixaBank Group reports a net attributable profit of €5.79 billion in 2024, marking a 20.2% increase from €4.82 billion in 2023. Serving 20.3 million customers across over 4,100 branches in Spain and Portugal, CaixaBank now manages more than €630 billion in assets.
In 2024, CaixaBank successfully completed its 2022-2024 Strategic Plan, achieving both its financial and qualitative objectives. The bank reports meeting targets for profitability, cost-to-income ratio, non-performing loans (NPL), market share growth in key sectors, and advancing social and financial inclusion efforts.
Shareholder Remuneration Exceeds Expectations
CaixaBank reports that it surpassed its initial 2022-2024 shareholder remuneration target of €9 billion, achieving a total distribution of €12 billion. The Board of Directors reports a proposal for a gross cash dividend of €0.2864 per share, based on 2024 earnings (€2.028 billion). When combined with the €1.068 billion interim dividend paid in November 2024, the total payout amounts to €3.096 billion, resulting in a payout ratio of 53.5%.
Additionally, the Board reports approval of a sixth share buyback program worth €500 million, further supporting shareholder returns.
Looking ahead, the Board reports the confirmation of the same dividend plan for 2025, aiming for a payout of 50% to 60% of consolidated net profit. This will be split into two payments: an interim dividend of 30% to 40% of the 2025 net profit to be paid in November 2025, and a complementary dividend subject to shareholder approval in April 2026.
Gonzalo Gortázar, CaixaBank’s CEO, reports that 2024 was a highly successful year, marking the completion of the 2022-2024 Strategic Plan. He highlights that the bank achieved all its key objectives, including business growth, enhanced service quality, robust risk management, and strong profitability recovery.
Gortázar also reports that CaixaBank’s financial strength enabled the bank to deliver an attractive shareholder remuneration over the past three years, totaling €7.7 billion in ordinary dividends. Of this, approximately €2.4 billion was allocated to the “la Caixa” Foundation, and €1.3 billion was directed to the FROB (Fund for Orderly Bank Restructuring), directly benefiting society through the bank’s profits.
In November 2024, CaixaBank introduced its new 2025-2027 Strategic Plan, focusing on maintaining sustainable profitability. The plan reports three key pillars: accelerating growth, driving business transformation and investment, and reinforcing the company’s leadership in sustainability.
Growth in Customer Funds
CaixaBank’s 2024 results reflect the bank’s ongoing strength and business expansion. Customer funds increased by 8.7%, adding €55 billion to the bank’s total. Business volume surpassed one trillion euros, and the customer base in Spain grew by 280,000, reaching a total of 18.5 million customers. CaixaBank reports that 71.8% of these customers are now engaged with three or more product families, and the number of digital customers surpassed 12 million by year-end.
Customer funds at CaixaBank reached €685.37 billion by the end of December 2024, reflecting an increase of €55 billion, or 8.7%, compared to the previous year. Wealth management balances saw a notable rise of 11.7%, reaching €263.25 billion, supported by strong net inflows into mutual funds and savings insurance, along with positive market conditions. Other customer funds grew by 7% to €422.12 billion, which included a 6.4% rise in customer deposits.
Strong Commercial Activity in Wealth Management
There was significant commercial activity within the wealth management sector throughout the year, and CaixaBank reports strong growth in net inflows for mutual funds, savings insurance, and pension plans. These inflows climbed from €5.34 billion to €11.41 billion in 2024. CaixaBank further reports solidifying its position as a market leader in wealth management, now holding 29.5% of the market share, widening the gap with its competitors.
Positive Loan Growth and Strong New Loan Origination
CaixaBank’s performing loan portfolio increased by 2.2% year-on-year to reach €351.51 billion. This growth was driven by both business and individual loans. The bank reports a substantial 32% increase in new loan origination to individuals, with total new loans reaching €27.77 billion. New mortgage production surged by 53% year-on-year, totaling €14.38 billion. CaixaBank reports that approximately 78% of these mortgages were granted at a fixed rate, comprising 43% of the total mortgage portfolio. Consumer credit also saw growth, with €11.98 billion in new credit granted in 2024, reflecting a 13% increase.
Improvement in Income and Profitability Margins
CaixaBank reports that net interest income rose by 9.8% year-on-year, reaching €11.11 billion, thanks to strong commercial efforts and favorable interest rates early in the year. However, the quarterly comparison showed a 1.9% decline, primarily due to interest rate cuts. In 2024, approximately 1.2 million home mortgage customers benefitted from lower mortgage payments.
Revenues from services, including wealth management, protection insurance, and banking fees, grew by 4.6% to €4.99 billion. Wealth management revenues rose by 12.1%, driven by higher volumes resulting from favorable market conditions and intensified commercial efforts. Protection insurance revenues also increased by 4.2%, though fee and commission income experienced a slight 1.1% decline due to changes in loyalty schemes.
CaixaBank’s gross income grew by 11.5% year-on-year to €15.87 billion, outpacing the 4.9% rise in recurring administrative expenses, depreciation, and amortization (€6.11 billion). This resulted in pre-impairment income of €9.77 billion, marking a 16.1% increase.
Enhanced Profitability and Cost-to-Income Ratio
CaixaBank reports notable improvements in profitability and cost control, with a return on equity (ROE) of 15.4% by year-end. The cost-to-income ratio also improved to 38.5%, reflecting the successful combination of business growth and strict cost management.
Financial Strength and Low NPL Ratio
CaixaBank continues to reinforce its financial strength, maintaining a very low non-performing loan (NPL) ratio of 2.6%. Doubtful loan balances fell by €280 million to €10.24 billion in 2024, thanks to effective risk management. The bank also reports a strong coverage ratio of 69%, with a cost of risk of just 0.27% over the last 12 months, demonstrating its strong control over credit risk.
Overall, CaixaBank’s 2024 performance reports robust business growth, effective risk management, and continued financial strength, allowing the bank to return significant value to shareholders while supporting sustainable business expansion.
