CAIXY Caixabank (PK)

   By Pietro Lombardi and Nathan Allen 
 

CaixaBank SA (CABK.MC) raised its profitability target Tuesday as it presented its 2019-21 strategic plan ahead of its investor day.

The Spanish bank targets a return on tangible equity--a key measure of profitability--of above 12% by the end of 2021. This compares with a previous target of between 9% and 11% for 2018.

It confirmed it expects to pay a cash dividend of at least 50% of consolidated net profit.

The lender also sees it core tier 1 capital, a key measure of capital strength, at 12% by the end of 2021.

CaixaBank's fully loaded CET1 ratio was stable at 11.4% at the end of September, the bank said in its third-quarter results, while its RoTE stood at 9.4%.

During the 2019-2021 period CaixaBank expects core revenue to grow at a compound annual rate of around 5%, outpacing expected compound growth of 3% in recurring expenses.

Net interest income is seen growing at a compound annual rate of 5% in the period, compared with around 4% for fee and commission income and between 9% and 10% for insurance income.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com and Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

November 27, 2018 01:54 ET (06:54 GMT)

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