Caixabank, Unions Reach An Agreement: There Will Be 6,452 Departures, 15% Of The Workforce

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Caixabank (CABK) has finally reached an agreement with the unions to carry out an adjustment plan of 6,452 employees, equivalent to 15% of the workforce, after reducing the initial proposal by 1,839 people (22%). The departures are expected to take place between November this year and March 2022. And all of them will be voluntary.

According to analysts, the associated impact on the profit and loss account is estimated at approximately 1.9 billion euros gross, with an associated impact on capital of approximately -90 basis points on the CET1 ratio reported at 31/3/21; both accounted for during Q2’21.

The agreement allows for a minimum of 770 million euros in total cost synergies, in line with the targets announced in the recent Bankia acquisition. According to analysts, these conditions are also consistent with an estimated ratio of >12% CET1 (without IFRS9 transitional impacts) at 30 June 2021, both reported and pro forma for all pending regulatory and merger-related impacts. CABK expects to provide further details during the upcoming Q2’21 results presentation.

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