CaixaBank Raises 2026 Return on Tangible Equity Target to About 19%

Key Facts

CaixaBank raised its 2026 return on tangible equity target to about 19%, from a previous target of more than 18%, reflecting an improvement in its measure of capital profitability. Results for the first nine months showed group net profit of 4.96 billion euros, up 12.9% from 4.40 billion euros in the same period a year earlier. Return on tangible equity measures the return generated on tangible capital, so the higher target concerns profitability and does not represent a new forecast for net profit. The measure stood at 18.8% in the third quarter, compared with 18% in the previous quarter. Chief Executive Gonzalo Gortázar said the first nine months were "very positive," citing customer acquisition, increased activity and balanced business growth.

Profitability improved amid diversified revenue growth. Net interest income rose 2.9% to 8.19 billion euros in the first nine months, driven by business volume growth, the bank said. In the third quarter, net interest income increased 4.6% year on year to 2.8 billion euros, close to analysts' average estimate of 2.81 billion euros. It also rose 2.5% from the previous quarter. But stronger lending income did not fully feed through to the customer margin, as deposit costs rose 9 basis points during the quarter, compared with a 7 basis-point increase in loan yields. As a result, the customer margin narrowed by 2 basis points to 287 basis points, as higher interest rates began to support loan margins while deposits were repriced more quickly.

Service revenue helped broaden the income base, rising 7.7% to 4.18 billion euros in the first nine months. Wealth management revenue increased 12.5% to 1.67 billion euros as assets under management grew, while protection insurance revenue rose 14.5% to 1 billion euros. In the third quarter, insurance revenue grew 11.7% year on year and net fee and commission income increased 7.2%. Total income, which includes revenue, rose 4.4% to 12.66 billion euros through the end of the third quarter. Income before impairment charges also increased 4.6% to 7.65 billion euros, reflecting a broader range of revenue sources alongside interest income.

By contrast, credit loss provisions rose 8.8% year on year in the third quarter, while asset quality indicators showed low levels of non-performing loans and cost of risk. Non-performing loans totaled 7.73 billion euros at the end of September, and their ratio fell to 1.76%, while the coverage ratio reached 82%. Cost of risk remained at 0.24%, unchanged from the previous quarter. The bank said it expects cost of risk to remain below 25 basis points at the end of 2026. On liquidity, liquid assets totaled 151.51 billion euros and the liquidity coverage ratio reached 178%, compared with the required minimum of 100%.

The bank maintained its 2026 lending income guidance at more than 11 billion euros, compared with 10.67 billion euros in 2025. This guidance sets out the path for lending income alongside the stated target increase for return on tangible equity. CaixaBank had 21.1 million customers in Spain and Portugal, with net additions of about 480,000 customers in the preceding twelve months. Tax on net interest income and commissions totaled 452 million euros in the first nine months, compared with 446 million euros in the same period of 2025. On cash returns, the board approved an interim distribution of 1.28 billion euros, equivalent to 0.1844 euros gross per share, to be paid on 6 November 2026.

CaixaBank is scheduled to present its 2026 financial-year results on 5 February 2027, according to the date provisionally announced by the bank. The presentation date remains provisional until it is notified to the relevant Spanish regulator. The announcement follows nine-month results showing growth in net profit and service revenue, alongside higher credit loss provisions in the third quarter. The full-year results will be the next milestone for measuring the bank's performance against its lending income guidance and revised return target. The annual announcement will also allow a comparison of achieved profitability and earnings with results for the period from January to September.