banca cívica

With the operation, the Barcelona-based bank, has more than 6,000 branches throughout Spain for the first time. CaixaBank, which tops the Spanish retail banking market, acquired Banca Cívica in August, which was the merger of five savings banks: Caja Navarra, Cajasol, Caja Guadalajara, Caja Canarias and Caja Burgos. From now on, all the branches, ATMs, IT systems, accounts and other financial products from all the five previous savings banks will be integrated into CaixaBank’s business. CaixaBank has adapted 1,170 ATMs from Banca Cívica, reaching a total number of 10,000 ATMs distributed throughout Spain.

The Barcelona-based bank, CaixaBank, which leads the Spanish retail banking market, is planning to lay off 3,000 workers in order “to adapt to the current context” and “improve the efficiency” of its resources. According to the Catalan financial company, the reform is “necessary” after having taken over Banca Cívica’s network and as they absorbing Banc de València’s too. CaixaBank has engaged in formal talks with the unions, which could be on-going until late April. The objective is to negotiate the exact measures to adjust the staff numbers to the business volume.

The CaixaBank President, Isidre Fainé, is optimistic about 2013, which “will be better than the year left behind”. The attributable net profits of CaixaBank, Spain’s main bank, decreased by 78.2% in 2012 compared to the previous year, as the Catalan financial entity focused on fully restructuring its business and purchasing other financial entities in order to enlarge its customer base and reach 13 million clients. The Catalan bank’s customer funds increased by 19.6%, up to €288.57 billion and its loans portfolio grew by 20.1%, reaching €223.45 billion. Furthermore, CaixaBank allocated €10.3 billion for provisioning charges and write-downs. The Barcelona-based financial entity had an income of €6.74 billion and a net operating income of €3.17 billion. In addition, CaixaBank will keep its €500 million budget for its social work foundation.

Banca Cívica has accepted the offer from the Catalan bank to pay €1.97 per share. With this operation, CaixaBank, the private bank created last year by the Catalan savings bank ‘La Caixa’, becomes Spain’s largest financial entity, ahead of BBVA and Banco Santander. After buying Banca Cívica, CaixaBank will have more than €342.6 billion in assets in the Spanish market. Banca Cívica was the merger of four savings banks: Caja Navarra, Caja Canarias, Caja de Burgos and Cajasol.