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1. Company Snapshot

1.a. Company Description

CaixaBank, S.A., together with its subsidiaries, provides various banking products and financial services in Spain and internationally.The company operates through Banking and Insurance, Equity Investments, and BPI segments.It also provides solutions related to security, protection, internationalization, and financing; traditional financial advice, independent advice, and broker services; asset management; liquidity management; capital markets, cash management, project finance, asset finance, and M&A services; and various financial services and solutions to public and private sector institutions, as well as distributes non-life and life risk insurance policies; and private banking services.


In addition, the company is involved in the real estate business.As of September 30, 2021, it had 5,415 branches and 13,678 ATMs in Spain; and 316 branches and 1,440 ATMs in Portugal.CaixaBank, S.A. was founded in 1904 and is based in Valencia, Spain.

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1.b. Last Insights on CABK

CaixaBank's recent performance has been positively driven by its attractive dividend yield, making it a top pick for investors seeking stability and income in uncertain times. The company's strong fundamentals and consistent payout history have drawn attention from investors. Additionally, CaixaBank's involvement in potential M&A activity, with BBVA's bid for Sabadell, may create opportunities for growth. Analysts expect BBVA to raise its offer, which could be 2% earnings per share accretive for BBVA's shareholders. The European market's volatility has also highlighted the appeal of dividend stocks.

1.c. Company Highlights

2. CaixaBank's Q3 Results: Strong Loan Growth and Improving NIM

CaixaBank's third-quarter results were robust, with a 7% increase in loans and customer funds, driven by the acquisition of 400,000 new clients in Spain on a net basis. Net interest income (NII) rose by 1.4% quarter-on-quarter, marking an inflection point after previous quarters. Revenue from services increased by 5.7% year-on-year, driven by wealth management and protection insurance. The bank's net income pro forma was €1.445 billion, flat year-on-year, with earnings per share (EPS) of €0.2024, beating estimates of €0.198. Expenses were on track to meet the guidance for the year, and the cost of risk improved to less than 25 basis points.

Publication Date: Nov -04

📋 Highlights
  • Loan & Customer Fund Growth:: 7% increase in loans and customer funds, with 400,000 new clients acquired in Spain.
  • Net Interest Income (NII) Recovery:: 1.4% quarter-on-quarter rise, reversing prior declines and marking a quarterly inflection.
  • Service Revenue Expansion:: 5.7% year-on-year growth driven by wealth management and protection insurance, exceeding expectations.
  • Capital Strength & RoTE:: CET1 ratio at 12.44%, with return on tangible equity upgraded to 17%, reflecting robust capital and profitability.
  • 2027 NII Outlook:: Projected to exceed €11.5 billion, with upside potential and earlier-than-anticipated growth due to reinvestment strategies.

Loan Book Growth and NIM Improvement

The bank's loan book grew 5%, driven by consumer lending (10%+) and business lending (4.5%). Customer funds increased 6.9% year-on-year, with a balanced growth in deposits and wealth management. The bank's net interest margin (NIM) is expected to benefit from the reinvestment of maturing bonds at higher yields, as noted by the CEO, Gonzalo Gortázar Rotaeche, "the ALCO is focused on reinvesting maturing bonds, with an average yield of 1.5%, and reinvesting at higher yields, which will be accretive to NII."

Capital Position and Dividend

The bank's CET1 ratio stood at 12.44%, with a strong capital position. The bank announced an interim dividend of €0.1679 per share and a seventh share buyback. The return on tangible equity (RoTE) was upgraded to circa 17%. The bank's capital position is expected to remain strong, with a CET1 target raised to 12.5% from 12.25% at the Capital Markets Day.

Valuation and Outlook

CaixaBank's valuation metrics indicate a reasonable price-to-tangible book value (P/TBV) ratio of 1.71, considering its strong capital position and improving NIM. The dividend yield stands at 4.82%, providing a relatively attractive return for investors. Analysts estimate next year's revenue growth at 4.1%. With a ROE of 16.26%, the bank is expected to continue delivering strong returns. The bank's guidance for NII and cost of risk is expected to drive future performance, with a focus on growing consumer lending and SME business.

3. NewsRoom

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Reassessing CaixaBank (BME:CABK) Valuation After a Strong Year-to-Date Share Price Rally

Dec -04

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10 EU Banks Unite to Launch Euro Stablecoin by 2026

Dec -03

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BNP Paribas Joins EU Bank Stablecoin Venture Helmed by Ex-Coinbase Germany Exec

Dec -02

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10 European Banks Form Stablecoin Company qivalis

Dec -02

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Wallbox Announces an Agreement With Core Banking Partners and Major Shareholders, Advancing Into Its Next Phase With a Renewed Capital Structure

Dec -01

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European Dividend Stocks: CaixaBank And Two More Top Picks

Nov -27

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3 European Dividend Stocks Offering Up To 7.0% Yield

Nov -10

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European Dividend Stocks To Consider In November 2025

Nov -10

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.32%)

6. Segments

Banking (Incl. Non-Core Real Estate)

Expected Growth: 5.5%

CaixaBank's core and non-core real estate lending activities will drive growth, leveraging its strong market position and increasing demand for mortgage financing in Spain.

Portuguese Investment Bank (BPI)

Expected Growth: 3.5%

CaixaBank’s growth is driven by its strong presence in Spain, increasing digitalization, and a diversified revenue stream, positioning it for steady growth in the banking sector.

Insurance

Expected Growth: 5.5%

CaixaBank’s growth is driven by its strong brand presence, increasing digitalization, and a diversified business model, enabling it to navigate the challenging Spanish banking landscape.

Corporate Center

Expected Growth: 4.3%

Strong brand presence, strategic investments in digital transformation, and a growing presence in Latin America drive CaixaBank's growth in Madrid, Spain.

7. Detailed Products

Personal Banking

CaixaBank's personal banking services provide individuals with a range of financial products and services, including current and savings accounts, credit cards, personal loans, and mortgages.

Business Banking

CaixaBank's business banking services offer companies and entrepreneurs a range of financial solutions, including business accounts, loans, and cash management services.

Private Banking

CaixaBank's private banking services provide high net worth individuals with personalized financial advice, investment management, and wealth management solutions.

Corporate Banking

CaixaBank's corporate banking services offer large corporations and institutions a range of financial solutions, including cash management, trade finance, and risk management services.

Markets and Investment Banking

CaixaBank's markets and investment banking services provide clients with access to capital markets, debt and equity issuance, and mergers and acquisitions advisory services.

Insurance and Pensions

CaixaBank's insurance and pensions services offer a range of life and non-life insurance products, as well as pension plans and retirement savings solutions.

Digital Banking

CaixaBank's digital banking services provide customers with online and mobile banking platforms, allowing them to manage their finances and conduct transactions remotely.

8. CaixaBank, S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

CaixaBank, S.A. operates in a highly competitive market, with many substitutes available to customers. However, the bank's strong brand recognition and extensive branch network help to mitigate the threat of substitutes.

Bargaining Power Of Customers

CaixaBank, S.A. has a large customer base, which gives customers significant bargaining power. The bank's customers have many options to choose from, and the bank must offer competitive rates and services to retain them.

Bargaining Power Of Suppliers

CaixaBank, S.A. has a diverse supplier base, which reduces the bargaining power of individual suppliers. The bank's large size and scale of operations also give it significant negotiating power with suppliers.

Threat Of New Entrants

The banking industry has significant barriers to entry, including regulatory hurdles and high capital requirements. This makes it difficult for new entrants to enter the market and compete with established players like CaixaBank, S.A.

Intensity Of Rivalry

The banking industry is highly competitive, with many players competing for market share. CaixaBank, S.A. faces intense competition from other banks, fintech companies, and digital payment providers, which puts pressure on its market share and profitability.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 68.52%
Debt Cost 5.63%
Equity Weight 31.48%
Equity Cost 7.79%
WACC 6.31%
Leverage 217.67%

11. Quality Control: CaixaBank, S.A. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
CaixaBank

A-Score: 7.5/10

Value: 5.8

Growth: 6.6

Quality: 7.4

Yield: 8.1

Momentum: 10.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Crédit Agricole

A-Score: 7.5/10

Value: 8.4

Growth: 3.7

Quality: 6.9

Yield: 10.0

Momentum: 7.5

Volatility: 8.3

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Stock-Card
DNB Bank

A-Score: 7.2/10

Value: 6.2

Growth: 4.9

Quality: 5.5

Yield: 9.4

Momentum: 8.5

Volatility: 9.0

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Stock-Card
Intesa Sanpaolo

A-Score: 6.9/10

Value: 6.2

Growth: 4.6

Quality: 5.7

Yield: 9.4

Momentum: 8.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
BNP Paribas

A-Score: 6.3/10

Value: 7.6

Growth: 3.4

Quality: 3.9

Yield: 8.8

Momentum: 7.5

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Commerzbank

A-Score: 5.4/10

Value: 7.0

Growth: 4.4

Quality: 5.1

Yield: 2.5

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.9$

Current Price

9.9$

Potential

-0.00%

Expected Cash-Flows