Caixabank Chairman Believes Rates Hike Will Not Be Sufficient To Obtain A Level Of Profitability Higher Than The Cost Of Capital

CaixabankCaixabank: 7.8xP/E and double digit total yield

Alphavalue/DIVACONS | The chairman of Caixabank, José Ignacio Goirigolzarri, flagged on Thursday that the financial sector must obtain a level of profitability which is higher than the cost of capital, a challenge with which the normalisation of interest rates will help. That said, he believes this hike “will not be sufficient” to achieve this. So the banking sector will have to redouble the transformation efforts made during the last few years.

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