← Back

CaixaBank: CaixaBank's Strong 2025 Performance: A Closer Look

CaixaBank reported a net income of EUR 5.9 billion, up 1.8% in the year, with a return on tangible equity (ROTE) of 17.5%. The bank's revenue from services grew 5.4%, driven by wealth management and protection insurance, while expenses grew 5.0%. Earnings per share (EPS) came in at EUR 0.1969, beating estimates of EUR 0.1925. The bank's net interest income (NII) was down 3.9%, in line with guidance, but volumes grew 7%, with customer funds and lending above expectations. As Gonzalo Gortazar, the CEO, noted, "We had a very good year, with a balanced growth in activity."

CABK.MC

EUR 11.415

0.04%

A-Score: 7.2/10

Publication date: January 30, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Net Interest Income (NII) Growth: NII grew 1.5% in Q4 2025, driven by 7% volume growth in customer funds and lending, though full-year NII declined 3.9% annually.
  • Return on Tangible Equity (ROTE): ROTE reached 17.5% in 2025, with a target to increase to 20% by 2027, supported by cost-income ratio reduction from low 40s to high 30s.
  • Nonperforming Loans (NPLs): NPL ratio fell to 2.07% in Q4 2025, surpassing the 2027 target of 1.75%, with 4Q gross NPL inflows at a 10-year low.
  • Customer Deposits and Costs: Noninterest-bearing deposits rose EUR 17 billion in 2025, stabilizing interest-bearing deposits at 27% average, with deposit costs down 10 bps Q-on-Q.
  • Capital and Cost Management: CET1 ratio reached 12.56% in 2025 (up 13 bps YoY), with EUR 5 billion allocated to AI/digital investments (2025–2027) to drive productivity and cost base reduction from 2027 onwards.

Financial Performance

The bank's asset quality improved, with a reduction in non-performing assets and a cost of risk of 22 basis points. The NPL ratio decreased to 2.07%, ahead of the bank's target of 2% by the end of 2027. The bank's liquidity position remains strong, with an LCR above 200% and an NSFR just below 150%. CaixaBank's guidance for 2027 includes an ROE of 20%, a cost income ratio of the high 30s, and a 4% annual growth for NII.

Valuation Metrics

CaixaBank's current valuation metrics indicate a Price-to-Tangible Book Value (P/TBV) of 2.11, a Net Interest Margin (NIM) that is not explicitly stated but can be inferred to be around 302 basis points, and a Dividend Yield of 3.67%. Analysts estimate next year's revenue growth at 7.0%. Given the bank's strong performance and guidance, its current valuation appears reasonable, with a P/E Ratio of 13.78 and an ROE of 15.64%. The bank's ability to maintain its dividend yield while investing in growth initiatives is a positive sign.

Outlook

CaixaBank's management is confident in its ability to achieve its guidance, driven by a strong economy and a conservative approach to cost of risk. The bank's focus on digital investments and technological transformation is expected to drive productivity gains and cost savings. With a strong position in Spain and a growing operation in Portugal, CaixaBank is well-positioned to continue its growth trajectory.

CaixaBank's A-Score