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CaixaBank: The new strategic goals for the period 2022-2024

CaixaBank: The new strategic goals for the period 2022-2024

CaixaBank has announced its strategic plan for 2022-2024 which includes setting a target for increasing shareholder returns through increased core income and cost savings achieved after its merger with Bankia.

The Spanish bank stressed that it expects to raise funds of 9 billion Euros during the period, including dividends with a repayment rate of more than 50% and repurchase of shares of 1.8 billion Euros.

The goal is to increase revenues by about 7% in the period 2022-2024, due to the increase in insurance revenues and the slight increase in commissions and fees. This will lead to an 8% increase in net interest income.

Profitability, or the return on tangible equity, is expected to almost double at current level, exceeding 12% by the end of 2024.

The cost-to-income ratio should improve to less than 48% from 58% at the end of last year, while the percentage of non-performing loans is expected to fall below 3% by the end of 2024.

The Tier 1 capital adequacy ratio is expected at 11% -12%.

Source: Capital