CaixaBank Targets Higher Profitability With 2019-21 Strategy
27 November 2018 - 6:09PM
Dow Jones News
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)
Copyright (c) 2018 Dow Jones & Company, Inc.
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