Record profits for Ibercaja. In fiscal year 2023, the Zaragoza-based entity obtained a historical net profit of 304 million euros, which represents an increase of 67.4% compared to the previous year, when it obtained 202 million.
The entity thus “successfully” concludes a three-year period in which it has “vastly” exceeded the objectives set in its 2023 Challenge Strategic Plan, obtaining a return on equity (ROTE) of 11.6% higher than the objective of 9%. .
They are not the only achievements of the eighth banking group in the Spanish financial system. As reported in a statement this Friday, the entity achieved a maximum quality capital ratio (CET1 Fully Loaded) of 12.7% compared to a target of 12.5%, and in asset quality, measured by the NPA ratio (gross problematic assets over credit investment), stands at 2.8% compared to a target of 4%.
In a context of inflationary tensions and rising interest rates, Ibercaja assures that it has offered its clients “solutions to take advantage of the investment opportunities that this situation offered them.” The diversification strategy towards products with greater added value such as investment funds, pension plans and life savings insurance has boosted its clients' resources by 3.6% to around 71.5 billion euros.
These interest rate coordinates and the commercial focus have allowed it to increase financial income and contain the costs of retail financing, which has resulted in an interest margin of 661 million, 42.9% higher than that obtained in the year former; which, in turn, has brought recurring income to 1,257 million euros (30.6% year-on-year).
After obtaining the best result in its recent history, Ibercaja has agreed to distribute a 'payout' of 60% of the results to its shareholder foundations (Ibercaja, Caja Badajoz, Caja Círculo de Burgos and Caja Inmaculada), with which they deploy their social, cultural character and promotion of the economic and territorial development of their respective areas of action.
The Ibercaja Foundation, in particular, developed nearly 3,000 initiatives of its own or in collaboration with other entities in 2023 that benefited more than one million two hundred thousand people.
Also, to comply with the Banking Foundations Law, it has simultaneously continued to feed the Reserve Fund, which at the end of 2023 already amounts to 260 million euros, which represents 80% of the total amount that must be allocated at the end of 2025. .
Digital customers at the end of 2023 already represent 63.4% of its customer base; and sales through these digital channels reach 41.9% of the total, highlighting the contracting of mortgages, which reaches 30% and risk insurance, 9%.
With these results, Ibercaja follows in the wake of the large Spanish banks, which closed 2023 to join the five main entities in the country - Banco Santander, BBVA, CaixaBank, Banco Sabadell and Bankinter - generating profits of 26,088 million euros, a 25.96% more than the previous year.
