The following is a summary of the CaixaBank, S.A. (CAIXY) Q4 2023 Earnings Call Transcript:

Financial Performance:

• CaixaBank reported a 54% increase in net income in Q4 2023 and proposed an interim dividend payment to be made in November.

• A significant increase in business lending, consumer lending, and mortgages was observed, boosting their financial performance.

• They maintained a strong balance sheet throughout the year, with an efficiency ratio of 40.9% and a return on tangible equity of 15.6%.

• The company's CET1 stood strong at 12.4%, showing a notable capital distribution capacity rise to approximately €12 billion.

• The bank's net income for the quarter was €115 billion, with a NII surge of 40% year-on-year and 54% for the year.

• CaixaBank ended the year with an increase in customer funds by 1.8% quarter-on-quarter and loan book reduction by 2%.

• The cost of risk remained around 30 basis points, with an expectation to partially use their €800 million in unassigned provisions in 2024.

• The bank reported a trading value of 0.9 times tangible book and less than 0.8 times to 0.7 times book value, with a tangible book at 4.2%.

Business Progress:

• CaixaBank further reinforced its focus on sustainable finance, with mobilization rising to €50.8 billion, surpassing the target for the three-year plan.

• The bank showed progress in its market share of savings insurance, now standing at 36.5%.

• An emphasis was laid on the recovery and sustainability of profitability along with robust capital distribution capacity.

• With strategic efforts on growth in all areas, the bank noted a market share in new lending production above 20% expected to increase in 2024.

• For 2024, the bank aims to achieve organic growth of their business with no intention of mergers and acquisitions outside core markets.

• The bank announced that there'll be more updates on their capital distribution plans during the second half of the year.

• Focusing on key business engines, they expect to maintain an NII in line with 2023 at €10.1 billion.

• The bank aimed to focus on synergies with former Bankia clients and reducing OREO exposure in 2024.

• They also disclosed plans around managing the rate sensitivity and the associated risk management strategies.

• Looking towards 2025, the rate sensitivity is expected to maintain around 5% with plans of implementing more hedges in place.

More details: CAIXABANK SA UNSP ADR EA REPR 1/3 ORD EUR0.00 IR

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