Thursday, February 2

CaixaBank quadruples its profits in 2021 after the merger with Bankia

CaixaBank got last year a profit of 5,226 million euross, which is almost quadrupling that of the previous year as a result of the extraordinary impacts due to the absorption of Bankia.

Without these extraordinary items, the bank’s profit from the business would stand at 2,359 million, 70.8% more than in 2020, when the results were affected by the high provisions made to deal with the crisis of the covid-19.

As a consequence of the absorption of Bankia, whose complete integration was carried out last November, the 2021 accounts include a accounting contribution of 4,300 million of negative goodwill and a cost of 1,433 million for the process of job restructuring and other concepts associated with the merger.

The group’s return on tangible assets (ROTE) stood at 7.6% and the CET-1 capital ratio rose to 13.2%. The delinquency ratio, for its part, remains stable at 3.6%.

The dividend income totals 192 million, 45 more than in 2020, mainly due to a higher one from BFA (98 million, which includes the income of an extraordinary dividend amounting to 54.5 million), Bankia’s parent company.

The CaixaBank’s turnover stands at 972,922 million euros. Customer funds amounted to 619,971 million, which represents growth of 49.2%, and assets under management stood at 158,020 million (+48.2%).

From 50% to 60% in dividends

CaixaBank’s Board of Directors has agreed to propose to the next general meeting of shareholders the distribution of a cash dividend of 0.1463 euros gross per share, charged to the recurring profits of 2021, to be paid during the second quarter of 2022. With the payment of this dividend, the amount of shareholder remuneration corresponding to the 2021 financial year will be 1,179 million euros, equivalent to 50% of the Consolidated result adjusted for the extraordinary impacts of the merger with Bankia.

The board has also approved the dividend policy for the 2022 financial year, consisting of a cash distribution of 50-60% of the consolidated net profit, payable in a single payment during 2023.

Related news

In a statement, the president of CaixaBank, José Ignacio Goirigolzarri, underlines that the profit and solid capital position will allow shareholders to be paid in the coming months more than 1,100 million in dividends, 50% of the profit obtained. “And our idea, facing the future, is to place our pay-out between 50% and 60%”, Goirigolzarri remarks.

The CEO of CaixaBank, Gonzalo Gortázar, highlights the culmination with successful integration of CaixaBank and Bankia and highlights that in 2021 they have also improved their position of financial strength. “We are beginning a year in which we will have to materialize the cost and income synergies derived from the merger and propose the entity’s strategic lines for the coming years,” explains Gortázar.