CaixaBank Raises Guidance as Lending Activity Picks Up

By Adria Calatayud

CaixaBank raised its 2024 guidance after it reported a higher net profit and revenue for the first quarter, benefiting from a pick-up in lending activity.

The Spanish bank said it now expects a return on tangible equity--a key profitability metric for banks--of more than 16% this year, having previously guided for more than 15%.

CaixaBank said it expects growth in net interest income--the difference between what bank earns on loans and what the pay clients for deposits--for 2024 in the mid single digits, having previously forecast the metric to be in line with 2023.

For the first quarter, the bank reported a net profit of 1.005 billion euros ($1.08 billion) for the first quarter compared with EUR855 million in the same period last year.

Gross income for the quarter grew 13% to EUR3.50 billion, while net interest income climbed 27% to EUR2.78 billion.

Analysts had forecast CaixaBank's net profit at EUR1.00 billion, net interest income at EUR2.71 billion and gross income at EUR3.47 billion, according to consensus estimates compiled by the bank.

CaixaBank said it saw commercial activity accelerate in the first quarter, with new loans to consumers, mortgages and loans to businesses growing.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

April 30, 2024 01:56 ET (05:56 GMT)

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