Agrees on a new share buyback program this semester, subject to regulatory authorization

The CaixaBank Group obtained an attributable net profit of 4,816 million euros in 2023, compared to 3,129 million in 2022, which represents an increase of 53.9%, and will distribute a dividend of 2,890 million, it reported in a statement sent this Friday to the National Securities Market Commission (CNMV).

The entity, which provides service to 20.1 million customers through a network of 4,200 offices in Spain and Portugal, has proposed to the General Shareholders' Meeting the payment of a cash dividend of 0.3919 gross euros per share and , after obtaining regulatory authorization, will implement a new share repurchase during the first half of fiscal year 2024,

The president of CaixaBank, José Ignacio Goirigolzarri, highlighted that "in 2023, CaixaBank has been very close to its clients, companies and individuals, financing their projects and managing their savings. All of this, furthermore, through a commercial model that is committed to financial inclusion and supports the most vulnerable groups".

For his part, the CEO, Gonzalo Gortázar, has pointed out that "in a very demanding environment" CaixaBank has completed a very positive year in terms of commercial dynamism, in his words, by granting 280,000 financing operations to companies and 80,000 new mortgages to families, increasing the base of linked clients, which now reaches 71.5%".

In fiscal year 2023, the entity highlights the increase in core income (31.6%) to reach 15,137 million, driven by the interest margin, which amounts to 10,113 million (54.3%).

Caixabank attributes these data to the "favorable impact that the new rate environment has had on the banking business, as well as the good management carried out by the commercial network", which offsets the decrease in the net commissions item (-5.1% ).

Recurring banking fees were reduced by 9.4% year-on-year due to the elimination of deposit custody fees for large companies and the bonuses applied to customer loyalty programs, so the gross margin closed 2023 at 14,231 million, an increase of 28.3% compared to 2022.

This figure is supported by the interest margin, the result of the insurance service (19.6%) and the investees (26.4%), while personnel and general expenses grew by 4.7% and 6.1%, respectively.

The Group achieved a return on equity (ROE) of 13.2%, while its efficiency ratio stood at 40.9%, more than nine points lower than a year before (50.3%).

RESOURCES OF 630,330 MILLION

Customer resources amounted to 630,330 million, 3.1% more, which represents an increase of 19,030 million: on-balance sheet resources amount to 463,323 million (1.2%), due to the advance of savings insurance.

Term savings stand out, which exceeded 54.7 billion euros, with a growth of 109.4% driven by the remuneration of deposits.

Assets under management stood at 160,827 million (8.7%) "supported by the evolution of the markets and a relevant volume of subscriptions to savings and investment products", since net subscriptions to investment funds, savings insurance and Pension plans reached 5,339 million, 34% more, and the combined share of long-term savings and deposits closed the year at 26.2%.

CaixaBank also grew in the new production of protection insurance, with an increase of 7%, reaching 739 million euros.

The balance of the Group's healthy portfolio was above 344,000 million, with growth in the business and consumer portfolios, and a contraction in the housing portfolio, while the entity's mortgage financing was 9,382 million, and highlights the positive evolution in the fourth quarter.

In consumption, new production reaches 10,325 million in 2023 as a whole and that of companies reaches 37,005 million, both also with better performance in the final part of the year.

DIVIDENDS

The Board of Directors of CaixaBank has agreed to propose to the General Shareholders' Meeting the distribution of a cash dividend of 0.3919 gross euros per share charged to 2023 profits, which represents a payout of 60%, to be paid in April , and which involves distributing a total of 2,890 million among shareholders.

This dividend "reverts directly to society, given that around 50% of the amount will be paid by the 'la Caixa' Foundation, which develops its Social Work, and the State, through the FROB. Added to them are the 590,000 small shareholders , who will also benefit," explains the entity.

The dividend would be paid through two cash payments: an interim dividend to be paid during the month of November for an amount of between 30% and 40% of the consolidated net profit corresponding to the first half of 2024, and a complementary dividend to be paid in April 2025, subject to final approval by the General Meeting of Shareholders.

CaixaBank also intends, after obtaining regulatory authorization, to implement a new share buyback during the first half of 2024, with the aim of bringing the CET1 ratio in December 2023 closer to 12%.

RISK

During 2023, CaixaBank carried out "an active and prudent risk management policy, which has allowed it to maintain the non-performing loan ratio stable throughout the year (2.7%) and reduce doubtful balances by 175 million euros, reaching 10,516 millions.

Funds for bad debts stood at 7,665 million euros at the end of 2023 and the coverage ratio remained practically stable compared to the previous year at 73%: the cost of risk remained low (0.28%, accumulated 12 months) .