CaixaBank generated a profit of $1,8 million (€1,7 million) in 2019. This was 14.1% lower than the previous year and largely due to the cost of a new employment agreement with the unions. The agreement affected roughly 2,000 employees and represented a gross expenditure of $1,07 billion (€978 million) for the entity.
According to the information sent to the National Securities Market Commission (CNMV), the labor agreement cost approximetly $755 million (€685 million) net. Without this agreement CaixaBank would have earned $2,6 million (€2,3 million). This represents a profit growth of 20.4% year on year.
The banking and insurance business was the main contributor of CaixaBank’s profit, generating $1,1 million (€1,06 million). BPI, Portuguese bank, contributed $366 million (€332 million) and the companies various holdings another $345 million (€313 million).
Read the most recent reports and opinions on the latest business news from the business sector with our Born2Invest mobile app.
Revenues from core businesses
Core revenues increased by 1.2% in 2019, to $9,1 million (€8,3 million). More specifically, net interest income stood at $5,4 million (€4,9 million), an overall rise of 0.9%; $2,8 million (€2,5 million) and an increase of 0.6% in 2018. Insurance business revenues rose 5.5% compared to other core revenues which amounted to $318 million (€289 million).
The gross margin amounted to $9,4 million (€8,6 million), and went down to 1.8%, due to the reduction in the results of entities accounted for using the equity method as a result of the non-attribution of Repsol (it left the oil company’s capital in July) and BFA.
The company also set aside $266 million (€242 million) for the Deposit Guarantee Fund and amade a contribution to the Single Resolution Fund of $113 million (€103 million). CaixaBank’s business volume grew by 4.7% in 2019 to $677 million (€611 million), driven in particular by customer resources, which amounted to $423 million (€384 million), up 6.9%, while gross customer credit stood at $250 million (€227 million), up 1.2%.
Specifically, consumer credit increased by 13.7% and business credit by 8.9%, while mortgage credit fell by 3.1% and public sector credit by 0.5%.
Assets under management increased by nearly 9% to $112 million (€102 million), including a 14.7% growth in pension plans. CaixaBank’s net “available-for-sale” portfolio in Spain amounted to $1,1 billion (€958 million), $240 million (€218 million) more than in 2018. The rental portfolio totaled $2,3 million (€2 million) net of provisions, $424 million (€385 million) less than the previous year.
Total property sales by CaixaBank reached $640 million (€581 million) in 2019 and doubtful balances fell by more than $2,6 million (€2,4 million) during the year to $9,5 million (€8,7 million).
CaixaBank closed the year with an NPL ratio of 3.6%, compared to 4.7% at the end of 2018, and a Common Equity Tier 1 (CET1) ratio of 12%. Liquid assets totaled $98 million (€89 million), with the growth of $10,8 million (€9,8 million) in the year, due to the positive evolution of commercial activities and a volume of new issues in excess of maturities.
CaixaBank’s staff now consists of 35,736 employees, 1,704 less, and a network of 4,595 branches, half a thousand less than in 2018.
In addition to its accounts, CaixaBank announced this Friday, January 31st, that it will propose to the shareholders’ meeting to be convened in February the distribution of a cash dividend of $0.17 (€0.15) gross per share, to be charged to the profit for 2019, to be paid during April.
With the payment of this dividend, the amount of shareholder remuneration for 2019 will be equivalent to 52.6% of the consolidated net profit, as reported by the company to the National Securities Market Commission (CNMV).
CaixaBank has reiterated its intention to remunerate shareholders by distributing a cash amount in excess of 50% of profit, setting the maximum amount to be distributed against 2020 at 60% of net profit.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in elEconomista.es, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Real estate crowdfunding in Italy is increasingly attracting investors
The positive trend in real estate in 2019 continued undeterred during the COVID-19 emergency, which indeed favored the birth of...
5 steps to help you build an eCommerce store
If you have decided to take the plunge and set up a web-based shop, starting an eCommerce business can be...
Many community colleges forge ahead with major expansions
COVID-19 has impacted community colleges. It is puzzling and sad to see that some community colleges have extremely dire financial...
Apart from the rise of the Ibex35, pharma stocks fell by 2.7% in the second quarter
All listed pharmaceutical companies have advanced on the stock market, but Grifols, whose shares have fallen by more than 12%,...
Why using ESG research in COVID-19 times is important
The Corona crisis presents companies with a variety of challenges. Investors who incorporate environmental, social and corporate governance (ESG) factors...
Crowdfunding6 days ago
Two innovative SMEs raised more than €500,000 each with equity crowdfunding in June
Business6 days ago
In the year 2025 if fiat currency can survive
Featured5 days ago
The fintech company Meelo, which determines good and bad payers in real time, appeals to retailers
Business5 days ago
American seaports provide thousands of contracting opportunities