Morgan Stanley | Overview of Q2: 80% of the banks have exceeded in terms of PBT, clocking up the 6th consecutive quarter with a positive surprise. And the main driver of the outperformance in revenues has been the NII, whose strength has arrived ahead of schedule (growing 11%/5% YoY/QoQ). The NII should remain strong in 2023, as we are factoring in a further 50bp rise in interest rates, and with…
Morgan Stanley | Global financial institutions. We revise our order of preference. This list represents the stocks where there is greater conviction at a global level with a time frame of 3-6 months. We periodically revise this list to make it more dynamic and reflect the changes in vision and market conditions. Today we are incorporating Caixabank to that list (we are 10% above consensus and there is a risk…
The growth was underpinned by the bank’s business in loans and long-term savings products and lower expenses due to synergies from the merger with Bankia. This led to a rise in operating profit (+5.4%), and a reduction in loan-loss provisions (-23.2%) and other provisions (-37.7%). The NPL ratio declined to 3.5% in the fourth quarter and the coverage ratio rose to 65%, following the fall of EUR 272 million in…
Excluding the effect of the merger, Caixabank recorded an adjusted profit of €2.022 billion in the year to September, due to commercial activity and lower provisions, compared to €726 million a year ago. According to Norbolsa analysts, “Caixabank’s results are better than expected at the bottom line (+23.1% vs. estimate) mainly due to a very low cost of risk in the quarter (18 b.p. vs. 45 b.p. e). Apart from…
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…
The Catalan bank has informed the trade unions of the adjustment resulting from the merger with Bankia. The plan, in principle, includes the lay-off of 8,291 workers, 18% of the group’s workforce in our country, although the final figure could be lower depending on the negotiations that began last week. Until now, the most significant restructuring plan in the Spanish financial industry was carried out by Bankia in 2013 and affected 4,500 workers.
Before clompleting its merger with Bankia, Caixabank wants to reorganise its balance sheet and will put up for sale portfolios of problematic assets worth 1 billion euros. The doubtful assets CaixaBank intends to divest have been divided into two portfolios. The first, called ‘Project Hermitage’, is made up of ‘unsecured’ credits valued at some 600 million euros. The second one, under the name ‘Louvre Project’, consists of credits worth some 400 million euros with a real estate guarantee.
Last night the boards of Bankia and Caixabank approved its merger. The operation, which will retain the CaixaBank brand, is structured as a merger of Bankia into CaixaBank. The combined entity’s total assets will exceed €664 Bn, a volume that will make it the largest bank in the domestic market, with an important position at a European level and a market capitalisation of over €16 billion. The management aims at a target of 770M euros of cost savings and revenue synergies of €290M.
Alphavalue | The ECB´s reflationary strategy has caused doubts among investors about the business plans of Spanish banks, in particular Caixabank, articulated in terms of the improvement in the net interest margin over the expected future rise in interest rates (which, incidentally, we do not expect any time soon).
Morgan Stanley | We lower profit estimates for Spanish banks at an average 4.6-5% for 2020-2021 given the sensitivity of these to a further flattening of the rate curve as a result of a more dovish ECB.