Q2 2025 CaixaBank SA Earnings Call Transcript
Key Points
- CaixaBank SA (CAIXY) reported strong volume growth with performing loans up 4.8% year-on-year and deposits increasing by 7%.
- Wealth Management saw an 8% increase despite market volatility, reflecting improved market share and strong economic performance in Spain and Portugal.
- Net income rose by 10%, and the company improved its guidance, particularly in revenues from services, expecting mid-single-digit growth.
- The bank's cost of risk and asset quality remained stable, with a non-performing loan (NPL) ratio of 2.3% and a cost of risk at 24 basis points.
- CaixaBank SA (CAIXY) achieved a return on tangible equity of 18.5% this quarter, nearing 20% if not for the banking tax.
- Net interest income (NII) pressures are evident, with a slight decline of 0.4% quarter-on-quarter, although stabilization is expected.
- The banking tax has a significant impact on the return on tangible equity, reducing it from nearly 20% to 18.5%.
- Despite strong lending growth, the bank did not upgrade its NII guidance, maintaining a mid-single-digit decline expectation.
- There is a potential impact from tariffs on the Spanish economy, estimated at around 0.2% on GDP, which could affect future performance.
- The bank's capital accretion was offset by organic risk-weighted asset growth, impacting the CET1 ratio.
Good morning, and welcome to CaixaBank's results presentation for the second quarter and the first half of 2025. As usual, we are joined today by our CEO, Gonzalo Gortázar; and our CFO, Javier Pano. In terms of logistics, we plan to spend about 30 minutes with a presentation and 45 minutes to 1 hour with the Q&A, which, as you know, is live. And after the call, my team and I will be at your full disposal. So without further ado, Gonzalo, the floor is yours.
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Thank you, Marta, and good morning, everybody. Second quarter of the year, we see a strong performance. And obviously, what we are doing as a consequence is improving guidance. I think the highlight is the volume growth. You've seen the numbers.
We're gaining clients, performing loans 4.8% year-on-year. Deposits 7% up. Wealth Management despite the volatility in the market is up 8%, it's quite remarkable, knowing where we're coming from and just reminding you the discussions
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