Blogs and advice from Industry leading Specialists
Valuable Opinions, Comments & Gossip
Financial related News & Articles relating to Spain
Latest News, Stories
& Hot Topics
Various Tools & Widgets to help with your financial needs
Tools & Widgets to
help with finances
Polls, Surveys and Opinions featured throughout Tumbit
Featured Polls, Surveys & Stats
Discussions, Advice & Topical Chat
Discussions, Advice & Topical Chat

Spain's Caixabank aims for pre-crisis profit levels within 3 years

Source: Reuters - Tue 3rd Mar 2015
Spain's Caixabank aims for pre-crisis profit levels within 3 years

Spain's 3rd-biggest lender Caixabank on Tuesday said it was aiming to restore its pre-crisis profitability levels within 3 years by growing revenues and becoming more efficient.

The Barcelona-based bank, one of the few Spanish lenders that weathered the financial crisis without public aid, said it aimed to expand revenues by 5.7% annually over the next 3 years.

It also aims to lower its efficiency ratio, or expenses as a percentage of revenue, to below 45% by 2018 to put it in line with big Spanish peers.

Caixabank said it would achieve that not by job cuts but through a rise in productivity and a spending freeze, which, combined with EU450 Mln of expected synergies after recent buys, should offset rising wage and administration costs.

Known for cautious credit and capital policies, Caixabank said it wanted to cut its bad loans ratio to below 4%, from 9.9% at the end of 2014, and keep its so-called CET1 fully loaded capital ratio at between 11 and 12%.

This should boost its so-called ROTE (return on tangible equity) profitability ratio to between 12 - 14% from 2017 onwards, up from 3.4% currently, it said.

"Our vision is one of a financial leader both in Spain and in Europe," Chairman Isidro Faine told a news conference.

Shares climbed as much as 2% at the open on Tuesday, later pared gains to be down 0.2% at EU4.08 at 1145 GMT in a Spanish stock market falling 0.45%.

Analysts said the new forecasts were in line with expectations and that potential new acquisitions and announcements made on Tuesday, including dividend payouts of at least 50% of profits in coming years and the prospect of a special dividend in 2017, would be the main drivers for the shares.

"This increased commitment towards cash remuneration is the most positive area of today's information, though market enthusiasm is likely to be tempered by the potential need to raise equity to fund BPI, and more importantly, the large capital consumption likely to be attached to Novo Banco's potential acquisition," said Credit Suisse analysts.

The bank last month bid for Portugal's BPI and confirmed plans to pursue an acquisition of state-rescued Novo Banco to challenge for market leadership in Portugal.

But Angolan investor Isabel dos Santos has proposed an alternative merger between BPI and Portuguese peer Millennium , a source said on Tuesday.

Recommended Reading :

* Spain's CaixaBank bids for Portugal's BPI

* CaixaBank rolls out contactless wristbands across Spain

Comment on this Story

Be the first to comment on this Story !!

Related Partners

Recommended Items

Related Articles

Related Blogs

When shopping for bodyjewelrytips, never buy anything that has nickel. The best type of material is the steel, titanium, wood, anodized gold or gold. Most nickel products will rust and may infect your ear. If you have pierced the naval or eye, you do not need to worry, as that is the most versatile part of the body. You can wear rings, straight, curved or fancy and captive beads. There are many leading body piercing jewelry that offer some of the biggest collection at very affordable price. In regard to shopping, always go to a wholesale shape as that is the sure place of getting any type of body piercing jewelry. The only thing that you need to be careful about is the material used to make the jewelry. There are instances when body piercing might go wrong and the result is an infection. In order to avoid this, make sure that the person doing the piercing is qualified to do so. After piercing is done Bodys piercing trends, you should keep the area sterilized and clean. Use warm water to wipe dirt. Never use spirits as they will corrode the area resulting to a wound which might cause an infection.