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Introduction & Market Context
CaixaBank (MCE:CABK) released its third quarter 2025 presentation on October 31, showcasing strong volume growth across all business segments despite a challenging market environment. The bank’s stock closed at €9.04, down 0.88% on the day, after reporting stable quarterly net income but improved growth metrics in several key areas.
The Spanish banking giant highlighted how Iberian economies continue to outperform the Eurozone, creating a favorable backdrop for its operations. With Spain’s PMI at 53.8 (versus Eurozone’s 51.2) and labor market growth of approximately 0.5 million year-over-year, CaixaBank has capitalized on the region’s economic resilience.
Quarterly Performance Highlights
CaixaBank reported nine-month net income of €4,397 million, representing a 3.5% increase year-over-year, though the most recent quarter showed signs of stabilization with quarterly net income of €1,445 million, unchanged from the previous year.
A key highlight was the resumption of net interest income (NII) growth, which increased 1.4% quarter-over-quarter after previous periods of pressure. Revenues from services also showed strong momentum, rising 5.7% for the nine-month period compared to the previous year.
As shown in the following summary of key performance metrics:
The bank’s asset quality continued to improve, with the non-performing loan (NPL) ratio reaching a record low of 2.27%. The cost of risk stood at 24 basis points trailing twelve months, in line with the bank’s improved full-year guidance of below 25 basis points.
Business Volume Growth & Market Share Gains
CaixaBank’s total business volume grew 6.8% year-over-year to €1,088 billion, significantly exceeding the strategic plan target of 4% CAGR. The bank’s client base expanded by approximately 390,000 year-over-year to reach 18.8 million clients in Spain.
The bank strengthened its leadership position with retail client penetration increasing to 40.4% (+100 bps yoy), with 72% of individual clients in Spain using CaixaBank as their primary bank. This strong client relationship has translated into market share gains across all key products.
The following slide illustrates CaixaBank’s strong operating momentum and market share gains:
Performing loans increased by 6.7% year-over-year to €368 billion, with growth across all segments. Residential mortgages grew 5.0% year-over-year, consumer lending increased 10.5%, and business lending rose 7.9%. New lending for the first nine months of 2025 reached €61.3 billion, up 20% compared to the same period last year.
Customer funds maintained their rising trend, growing to €720 billion with deposits up 5.8% year-over-year and wealth management balances increasing 8.6%:
Digital Transformation & Strategic Initiatives
CaixaBank’s digital banking platform, imagin, has become a cornerstone for client acquisition and growth. The platform reached 3.9 million clients, representing 11% year-over-year growth, and has become an effective engine for attracting new customers to the group.
As illustrated in the following slide, imagin has shown impressive growth across key metrics:
The bank has also made significant progress in rolling out client-focused strategic initiatives, including Facilitea Coches (automotive financing with ~18K financed vehicles), Facilitea Casa (property platform with ~45K listed properties), and innovative payment solutions like Pay Later and tap-to-pay functionality.
Wealth management has been another area of strong performance, with record net inflows of €10.3 billion, up 16.8% compared to the first nine months of 2024. CaixaBank maintains its position as the market leader in wealth management in Spain.
The following slide shows the record inflows bolstering wealth management growth:
Capital Position & Shareholder Returns
CaixaBank’s strong financial performance and capital generation have enabled significant shareholder returns. The bank announced an interim dividend of €1.2 billion, representing a dividend per share of €0.1679, up 13% year-over-year. Additionally, the bank is nearing completion of its sixth share buyback program of €500 million (approximately 85% executed) and has announced a new seventh buyback program for an additional €500 million.
The bank’s CET1 ratio stood at 12.44% after deducting the impact of the seventh share buyback, well above the 2025 threshold. Earnings per share increased by 13% year-over-year to €0.84, and the bank expects a full-year 2025 return on tangible equity (ROTE) of approximately 17%.
The following slide demonstrates how volume growth has exceeded strategic plan targets across all business segments:
Forward-Looking Statements
Looking ahead, CaixaBank has upgraded its full-year guidance, now expecting a return on tangible equity of around 17% for 2025. The bank also anticipates continued growth in net interest income and service revenues, supported by the positive economic outlook for Spain and Portugal.
The resumption of NII growth in the third quarter is particularly encouraging, as shown in this detailed breakdown:
CaixaBank’s CEO Gonzalo Burtazar emphasized the bank’s proactive stance during the earnings call, stating, "We’re not on the defensive. We have to defend our positions, but we think there are great opportunities in the current environment." CFO Javier Pano added, "We have very clear upside into that figure [NII]."
While the bank’s presentation highlights strong growth across multiple metrics, investors will be watching closely to see if the stabilization in quarterly net income is temporary or indicates a more challenging environment ahead. Nevertheless, CaixaBank’s market leadership, digital transformation initiatives, and strong capital position appear to provide a solid foundation for continued growth and shareholder returns.
Full presentation:
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