CaixaBank closes 2011 with a net profit of €1.185 billion
CaixaBank, the main Catalan financial institution experienced a 12.8% drop in its net profit when compared to 2010. In 2011, it focused on increasing its core capital ratio to 12.5% -one of the highest levels in Europe- to strengthen its inner resources and, at the same time, left generic funds for insolvencies intact, cementing its robust position in the financial sector.
Barcelona (ACN).- Barcelona-based CaixaBank obtained a recurring net profit of €1.185 billion in 2011, 12.8% lower than its figures from 2010. However, CaixaBank -the private bank created last July by the savings bank ‘La Caixa’– raised its core capital to 12.5% thanks to strong provisions. The Catalan bank presented its results for 2011 on Friday. To increase its balance, the company registered provisions of €2.413 billion and €706 million for extraordinary events. Furthermore, the entity informed customers that the €1.835 billion of generic funds for insolvencies remained intact due to CaixaBank’s ability to create recurrent profits. In 2011, ‘La Caixa’ Group’s reorganisation process included CaixaBank’s entrance on the stock markets, which allowed the company to maintain its leadership inside the financial sector.
CaixaBank’s ability to generate recurrent income
CaixaBank, chaired by Isidre Fainé, maintained strong business volumes, despite a 0.2% drop when compared to 2010. Gross operating income before taxes and provisions totalled €3.04 billion, up 0.9% from 2010. Net recurrent income was €1.185 billion (-12.8% from 2010) framed into the “complex and volatile economic environment”, CaixaBank emphasised.
The entity strengthens solvency and liquidity
In 2011, CaixaBank further reinforced its levels of solvency, with a core capital ratio (Basel II) of 12.5% that cements its position as leader. CaixaBank’s core capital ratio at the end of 2011 was 3.6 points higher than one year earlier. According to the entity’s press release, this increase can be explained by the continued organic growth and it includes risk-weighted assets, as well as extraordinary items related to the group’s reorganisation.
The company’s liquidity totalled €20.948 billion and the generic provision fund remained at €1.835 billion, the same amount since the end of 2009. Recurring operating costs dropped 4% thanks to strict management and adjustment procedures. Therefore, and even after the absorption of the Catalan savings bank Caixa Girona and the private bank for SME companies Bankpime, CaixaBank’s efficiency ratio reached 51.5%.
A giant commercial financial entity
CaixaBank owns one of the largest networks in the Spanish financial system with 24,915 employees distributed in 5,196 branches and 8,011 ATMs at the customer’s disposal. The company has a market share of 21% in the personal banking segment and it also ranks high in on-line banking (with 6.9 million customers), mobile phone banking (more than 2.3 million clients) and electronic banking (10.5 million cards in circulation).
Total banking business of the Catalan entity reached €427.263 billion (-0.2% from 2010) and total customer funds amounted to €241,203 billion (1.1% more than in 2010). Furthermore, CaixaBank increased its market share in many other areas: individual pension and insurance plans (15.7%), mortgage guarantees (11.1%), savings plans (15.7%), investment funds (12.5%), deposits (10.3%), and private loans (11.5%), among others.