After a 2023 in which it reaped a record profit (304 million), Ibercaja continues on the path of growth in 2024. As reported this Tuesday to the National Securities Market Commission, the entity has earned 58 million euros in the first quarter of the year, which represents a year-on-year increase of 5.9% after having allocated 40 million to pay the bank tax.
In a context of high inflation and uncertainty, but also “higher than expected” interest rates, the entity attributes the improvement in results to “intense commercial activity.” This has boosted recurring revenues by 10.4% compared to the same quarter of the previous year to 322 million, so its profitability stood at 8.8% (ROTE)
In the new three-year strategic plan that it presented at the end of April, the entity plans to beat 10% profitability until 2026 and raise the fully loaded CET1 maximum quality ratio from 12.7% to 13.5-14%. In this first quarter of the year it is on the right path, since the fully loaded CET1 capital ratio increased to 13.1%, and placed the fully loaded total capital ratio at 17.7%, with the balance sheet already healthy .
To reinforce the solvency piggy bank, the bank has planned to reduce the pay out, after raising it to 60% to facilitate the Ibercaja Foundation to complete the alternative reserve fund for the bank's exit to the stock market, 320 million that already has been fully covered two years before the required deadline (end of 2025)
In the presentation of the strategic plan, the president of the entity, Francisco Serrano, stressed that this IPO is no longer an obligation and “is not contemplated” in the new plan. Of course, he stressed that it is not something that can be ruled out either, “because there can always be an opportunity.”
On the business side, the volume of customer funds grew by 5.3% year-on-year, up to 72,186 million, thanks to the “intense commercial activity in the formalization of time deposits and asset management and life insurance products.” ”. Off-balance sheet resources alone increased by 3.3% in the quarter, to 38,998 million euros, and already represent 54% of total customer resources.
In financing, new credit production increased by 4.9%, with expansions of 34.1% in financing to non-real estate companies, but the financed balance in stock still decreased by 1.7% due to the higher amount of early repayments .
The entity highlighted that, in parallel, it reduced its exposure to problematic assets by 4%, which include doubtful and foreclosed assets, whose net balance drops to 147 million and is already equivalent to less than 0.3% of the entity's total assets. the lowest percentage in the Spanish financial system.
In this period, the bank has issued its first green bond for an amount of 500 million aimed at financing mortgages and sustainable projects, and has been the first financial entity to obtain the AENOR Healthy Organization certificate.
