CaixaBank Q2 2025 slides: Strong H1 performance drives improved guidance

Introduction & Market Context

CaixaBank (BME:CABK) presented its second quarter 2025 results on July 30, showcasing a strong first-half performance that has allowed the Spanish banking giant to improve its full-year guidance. The bank’s stock closed at €8.00 on July 29, up 1.65% ahead of the results announcement, reflecting positive market sentiment.

The presentation highlighted how CaixaBank continues to benefit from robust Iberian economies, which are outperforming the broader Eurozone. According to the bank’s data, Spain and Portugal have seen real GDP growth of 8.0% and 8.2% respectively since Q4 2019, compared to 5.8% for the Eurozone as a whole.

This economic outperformance provides a favorable backdrop for CaixaBank’s operations, with Spain’s growth being driven by strong consumer spending, tourism revenues (+8% yoy), and a robust labor market that added 584,000 jobs year-over-year.

Executive Summary

CaixaBank reported a net income of €2,951 million for the first half of 2025, representing a 10.3% increase compared to the same period last year. The bank’s return on tangible equity (ROTE) reached 18.5% on a trailing twelve-month basis, significantly above its previous guidance.

The strong performance was underpinned by high volume growth across all business segments, with performing loans increasing by 5% year-over-year, deposits growing by 7%, and wealth management assets under management rising by 8%. The bank also added approximately 360,000 new clients over the past year.

These results mark a significant improvement from the first quarter, when the bank reported a 3.5% quarter-on-quarter decline in net interest income (NII) that contributed to a 4.45% stock price drop following the earnings release. In contrast, the second quarter results show NII stabilizing with just a 0.4% quarter-on-quarter decline, with the bank expecting Q2 to represent the cycle low.

Quarterly Performance Highlights

The bank’s loan book growth has accelerated across all key segments, with performing loans reaching €369 billion as of June 30, 2025, up 4.9% year-to-date and 3.9% quarter-on-quarter. This growth was particularly strong in residential mortgages, which increased by 3.0% year-to-date and 1.8% quarter-on-quarter, reversing previous negative trends.

New lending has shown impressive double-digit growth, with total new lending (excluding BPI) reaching €43.4 billion in the first half of 2025, up 27% compared to the same period last year. New residential mortgages increased by 46% year-over-year in Q2, while business lending jumped 46% year-over-year and 45% quarter-on-quarter.

Customer funds exceeded €700 billion for the first time, reaching €718 billion as of June 30, 2025, representing a 4.7% increase year-to-date and 3.9% growth quarter-on-quarter. This growth was driven by both deposits and wealth management, complemented by seasonal factors and a rebound in markets following a correction in March-April.

The wealth management business delivered another strong semester despite market volatility, with net inflows of €5 billion in the first half of 2025. CaixaBank maintains its position as the market leader in wealth management in Spain with a 29% market share.

Strategic Initiatives

CaixaBank continues to make progress on its strategic initiatives focused on growth and digital transformation. The bank has significantly increased its digital client base, adding approximately 600,000 new digital clients year-over-year to reach 12.4 million. Digital onboarding increased by 45% year-over-year in the first half of 2025, while digital sales grew by 22%.

The bank’s digital-first approach for younger clients through its Imagin platform has proven successful, with client numbers growing to 3.8 million (+11% yoy) and business volume increasing to €20 billion (+23% yoy). Imagin has established itself as the mobile banking leader among 16-34-year-olds in Spain, with a 40% penetration rate, significantly ahead of its closest competitor at 24%.

CaixaBank has also launched several innovative solutions to drive business evolution, including FaciliteaCasa (a real estate portal), Tap to Pay (the first such service by a Spanish bank), and Facilitea Coches (a mobility platform). These initiatives have shown promising early results, with the Tap to Pay service processing approximately 720,000 transactions year-to-date.

In Portugal, the BPI segment continues its successful journey of growth and profitability, with business volume increasing to €68.7 billion (+6.1% yoy). BPI has consistently gained market share across all segments in Portugal and reported a net income of €235 million for the first half of 2025, with its ROTE reaching 19.3%.

Forward-Looking Statements

Based on the strong first-half performance, CaixaBank has improved its full-year 2025 guidance. The bank now expects revenues from services to show mid-single-digit growth year-over-year, a cost of risk of approximately 25 basis points, and a ROTE of over 16%.

This improved outlook represents a positive shift from the more cautious tone in the first quarter, when concerns about declining net interest income and the impact of banking taxes weighed on investor sentiment. The stabilization of NII in the second quarter, with expectations that it has reached its cycle low, suggests a more favorable trajectory for the remainder of the year.

The bank’s solid capital position (12.5% CET1) and ample liquidity (217% LCR) provide a strong foundation for continued growth and shareholder returns. With record low non-performing loans (2.3%) and high coverage (70%), CaixaBank appears well-positioned to navigate any potential economic headwinds while continuing to execute its growth and transformation strategy.

Full presentation:

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