Caixabank reports attributable profit of €1,005 million (+17,5%) for 1Q24

Jefferies | Caixabank | BUY | CABK SM | €5.12 | PT: €5.80 | % to PT: +13% | CaixaBank 1Q24 – In-line Prin and Guidance | 1Q24 in line at net income level. The 3% beat on NII is perhaps the major highlight (offset by small miss on others/LLCs), but very much confirming the dynamics already observed elsewhere hitherto. Upgraded FY24 NII guidance to MSD growth year-on-year (consensus already at 3% year-on-year) and RoTE >16% (consensus at 16.3%), with all previous guidance metrics unchanged.

CaixaBank reported 1Q24 net income of €1,005m, in line with company compiled consensus. PBT was also in line, with pre-prov profits a 1% beat. Income was a 1% beat and costs were in line with consensus.
• NII was 3% above cons., up 1% quarter-on-quarter and up 27% year-on-year.
• Wealth Management + Protection Insurance + Banking fees (equivalent to net fees + Insurance service result in the former disclosure) were in line with consensus, with other revenues 11% higher. These include the banking tax at €493m.
• Total costs were in line with consensus.
• Total impairments of €368m vs. consensus of €351m, 5% higher; an implied 29bps cost of risk.
• Customer loans were in line with consensus, flat quarter-on-quarter and down 2% year-on-year. Customer deposits were 1% higher than consensus, up 1% quarter-on-quarter and up 4% year-on-year.
• Capital: CET1 ratio of 12.3% was in line with consensus, with CET1 a 1% beat, and RWAs 1% higher than consensus.
• Upgraded guidance: FY24 NII to grow mid-single digit year-on-year (versus in line with FY23 before, consensus was already at 3% year-on-year growth) and FY24 RoTE> 16% (versus > 15% before, consensus at 16.3%).
• Maintained guidance: FY24 revenues from wealth management and protection revenues plus banking fees to grow low-single-digit year-on-year; FY24 costs to grow <5% year-on-year; FY24 CoR c0.30%; FY24 NPL c3%; 2022-24 distribution capacity €12bn.

About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.