CaixaBank Reports Record Profit in 2024: A Detailed Analysis

Record Profits and Sustained Growth

CaixaBank has reached a new milestone in its financial history during the first half of 2024, generating an impressive net attributable profit of €2.675 billion. This figure represents a jump of 25.2% compared to the previous year, thus consolidating an upward trajectory that seems to defy the expectations of the sector.

CEO Perspectives

Gonzalo Gortázar, head of the bank, shared his optimism, describing the first half of the year as “successful on all fronts.” He stressed that the expansion of economic activity, which translates into a significant increase in client funds and the portfolio of healthy loans, is a testament to the bank’s good performance. With an increase of almost 45 billion euros in funds during the half year, CaixaBank strengthens its position as the undisputed leader in the financial sector.

Increase in Customer Resources

By June 2024, the entity reported that client funds reached 667,424 million euros, with a growth of 5.9% compared to December of the previous year. This increase is largely attributable to the seasonal normality of savings, which became evident in the second quarter, where assets under management also showed a robust increase of 7.3%.

Trends in the Credit Portfolio

On the other hand, the portfolio of healthy loans rose by 2.2%, reaching 351.7 billion euros, thanks to the positive dynamics in the demand for mortgages and other loans. Despite a slight contraction in the first half, new mortgage originations increased by a remarkable 42.8%, suggesting a robust recovery in this sector.

Increases in Financial Margins

The income statement reflects a notable improvement in commercial activity under a context of interest rate stability and economic growth. Between January and June, the interest margin increased by 20.5%, exceeding 5.5 billion euros, while income from wealth management and insurance also reflected unquestionable growth.

Strength in Liquidity and Solvency

In addition to its earnings growth, CaixaBank is in a solid position in terms of liquidity. A significant increase in liquid assets to €167.421 billion is correlated with a Liquidity Coverage Ratio (LCR) of 218%, ensuring the bank’s ability to sustain its operations in the face of possible market volatility.

Future Expectations and Closing of the Cycle

With a solid Common Equity Tier 1 (CET1) ratio of 12.2% and effective control of its non-performing loan portfolio, CaixaBank is in an enviable position to face future challenges in a constantly changing economic environment. This robust performance not only positions the bank favourably, but also invites reflection on the future of the banking sector and the opportunities that will arise in the coming years.

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