CaixaBank posts record €5.9B profit in 2025, boosts dividend and targets

CaixaBank’s 2025 net profit rose 1.8% from a year earlier to €5.891 billion, supported by increased business both in lending and customer resources.

The outcome is the bank’s largest profit on record, according to filings with Spain’s CNMV securities regulator.

The performance came at a time of falling interest rates, which affected the bank’s underlying revenues. Net interest margin declined by 3.9% y-o-y.

Nonetheless, CaixaBank stated that the increase seen in the third and fourth quarters, along with higher commercial momentum, had offset the effects of reduced rates on group-wide earnings.

Business volume grew 6.9% to reach €1.1 trillion by year’s end. The performing loan book expanded by 7%, while customer resources expanded by 6.8%, demonstrating broad-based growth across the group activities.

Dividend proposal and shareholder remuneration

The board of directors will propose to the next General Shareholders’ Meeting the distribution of a complementary dividend of €2.32 billion against 2025 results.

That brings the total dividend for the year to €3.499 billion, or €0.50 gross per share, 15% higher than the previous year.

This complementary dividend of €0.3321 gross per share will be paid in April, following the approval in the shareholders’ meeting.

This second payment brings total shareholder remuneration for 2025 to 59.4% of consolidated net profit.

Last November, CaixaBank distributed an interim dividend of €1.179 billion.

Simultaneously, the bank was also carrying out a €500 million share buyback programme.

The board has therefore committed to the same dividend policy through 2026: payout of 50%-60% of net profit in cash.

Fees, profitability, and the expansion of digital

With wealth management growing by 11.2%, income from services increased by 5.4% to €5.266 billion. All recurring revenues are included in gross income, which increased 2.5% to €16.27 billion.

Due to reduced interest rates, return on tangible equity (ROTE) was 17.5% as opposed to 18.1% a year earlier.

According to CaixaBank, the profitability level still shows that it can make money off of its equity base.

Additionally, the group showcased Imagin’s performance as a digital neobank.

The platform ended the year with around 4 million users, a 10% rise, and €22 billion in sales, a 25% increase.

This amounts to about 2% of the group’s overall revenue.

Revised strategic targets

The bank has surpassed the targets it had set as of early 2025, due to strong business performance and a stronger capital position, chief executive Gonzalo Gortázar said in a statement.

Consequently, CaixaBank has set decisive growth and profitability goals in its strategic plan.

The 2027 ROTE target was changed from the prior 16% aim to about 20%.

For the years 2025–2027, an average ROTE of more than 18% is predicted.

Additionally, the bank increased its projection for net interest income, which was originally expected to exceed €11 billion by 2027.

It now anticipates “close to 12.5 billion euros” because of increased volumes, improved macroeconomic conditions, and favourable interest rate patterns.

Capital strength and asset quality

In 2025, credit quality metrics continued to improve. At year’s end, the non-performing loan ratio dropped from 2.6% to 2.1%.

The coverage ratio rose to 77%, although the stock of questionable loans decreased by €1.611 billion.

The fully loaded CET1 capital ratio increased from 12.2% at the end of the previous year to 12.6%.

The bank’s liquidity coverage ratio was 202%, far higher than the required minimum of 100%.

Reaction of the market

In early trading on Friday, CaixaBank shares increased more than 3.6% as investors responded to the findings.

The stock led gains on Spain’s IBEX 35 index, rising 3.68% to €10.85 around 30 minutes after the market began.

The shares are up 2% so far this year.

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