Q3 2024 Caixabank SA Earnings Call Transcript
Key Points
- CaixaBank SA (CAIXY) reported a 20% increase in new lending, indicating strong customer activity and growth potential.
- The bank achieved a 9% increase in off-balance sheet wealth management balances and a 5.5% rise in on-balance sheet deposits, showcasing robust growth in customer funds.
- Net interest income (NII) stabilized quarter-on-quarter, defying expectations of negative growth, and is projected to exceed EUR 11 billion for the fiscal year 2024.
- CaixaBank SA (CAIXY) announced an interim dividend at the top end of its range and received approval for a fifth share buyback, reflecting strong capital generation and shareholder returns.
- The bank's asset quality remains strong, with a non-performing loan (NPL) ratio of 2.69%, well below the industry average in Spain, and a comfortable NPL coverage of 71%.
- Despite strong new lending, the overall loan book growth remains limited due to a low growth environment and significant amortization processes.
- The competitive landscape in Spain remains intense, particularly in the mortgage and business lending sectors, which could pressure margins.
- The bank faces potential challenges from the proposed extension of the special banking tax in Spain, which could impact future profitability.
- CaixaBank SA (CAIXY) has a high proportion of interest-bearing deposits indexed to overnight rates, which may lead to volatility in funding costs as rates change.
- The recent floods in Valencia could have an impact on the bank's operations and potentially increase costs related to insurance claims and customer support.
Good morning, and welcome to CaixaBank's results presentation for the third quarter of 2024. As usual, we are joined today by our CEO, Gonzalo Gortázar; and our CFO, Javier Pano.
In terms of logistics, we plan to spend about 30 minutes with a presentation and about 50 minutes to 1 hour with the Q&A. The Q&A is live, and you should have received instructions by email on how to participate. My team and I will be at your full disposal after the call.
And without further ado, Gonzalo, the floor is yours.
Thank you, Marta. Good morning, everybody, and welcome to this presentation. You've seen our results this morning. I'd say as the slide says, it's a very strong operating momentum activity levels, particularly in customers is what I will highlight the most. New lending, up 20%, although in terms of balances, as you will see later, Obviously, we're still in a low growth environment,
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