Sees sustainable ROTE of above 15 in 20252027
ROTE would be above 16 by end 2027
Raises threshold to remunerate shareholders to above 12.5
Sees net interest income at end 2027 similar to 2024 levels
To invest 5 bln euros in IT over horizon
MADRID, Nov 19 Reuters Spain39;s Caixabank set out a threeyear plan on Tuesday to retain profitability as interest rates fall, aiming to boost loan growth and customer funds on the back of economic growth and expand its asset management business volume.
The 20252027 strategic plan comes as Europe39;s banks seek to book higher income from noncore banking revenue, with Spanish banks having already seen a peak in lending income.
Spain39;s biggest domestic lender by assets said it aims for return on tangible equity ratio ROTE to average 15 in the next three years as it expects solid economic growth to boost revenue and offset the impact of lower interest rates.
While that is down from 16.9 at the end of the third quarter, it expects ROTE a measure of profitability at the end of 2027 to climb back to above 16.
Shares in Caixabank were down 4 on Tuesday on some disappointment about its capital distribution targets, but have risen almost 50 this year as the bank benefited from higher interest rates and as Spain39;s economy outperformed big European peers. The European Central Bank has now started cutting interest rates, squeezing banks39; margins.
Caixabank said it planned to grow business volumes by around 4 between 2025 and…