CIXPF - CaixaBank S.A. (CAIXY) Q4 2023 Earnings Call Transcript
2024-02-02 12:29:02 ET
CaixaBank, S.A. (CAIXY)
Q4 2023 Earnings Conference Call
February 2, 2024 03:00 AM ET
Company Participants
Marta Noguer - Head, Investor & Shareholder Relations
Gonzalo Gortazar - Chief Executive Officer
Javier Pano - Chief Financial Officer
Conference Call Participants
Maksym Mishyn - JB Capital
Ignacio Ulargui - BNP Paribas Exane
Sofie Peterzens - JPMorgan
Alvaro Serrano - Morgan Stanley
Britta Schmidt - Autonomous Research
Andrea Filtri - Mediobanca
Carlos Cobo - Societe Generale
Marta Sánchez Romero - Citi
Hugo Cruz - KBW
Fernando Gil de Santivañes - Bestinver
Presentation
Marta Noguer
Good morning, everyone, and welcome to CaixaBank Results Presentation for the Fourth Quarter and the Full Year of 2023. As usual we are joined today by our CEO, Gonzalo Gortazar; and our CFO, Javier Pano.
In terms of logistics, we plan to spend about 30 minutes with a presentation and about 45 minutes to one hour with the Q&A. The QA is live and you should have received instructions by e-mail on how to participate. Let me end by saying that my team and I will be at your full disposal after the call.
And without further ado, let me hand it over to our CEO. Gonzalo the floor is yours.
Gonzalo Gortazar
Thank you, Marta and good morning to everybody. We'll get straight into the first highlights of today. And I would highlight three ideas when you look at the title sustainability, profitability, and distribution.
We have clearly made a significant improvement during 2023 in terms of net income up 54% core revenues. That's leading to lower efficiency ratio, meaning obviously, better one that is at 40.9% and a return on tangible equity of 15.6%. It's been a very significant move over one year almost six percentage points. And obviously, that pleases us, I'm sure pleases shareholders as well. And we feel this new level is a sustainable one as we will discuss during the presentation.
We remain strong in terms of balance sheet. Non-performing loans have been stable, year-to-date in fact slightly reduced in terms of absolute numbers and stable in terms of NPL ratio and equity and CET, Core Equity Tier 1 at 12.4% gives us a very significant MDA buffer, which is allowing us that combination of profitability and strong capital generation to announce our payout at 60% the top of the range in our policy for this year 2023. That's €0.39 as a dividend and we're also announcing the intention to conduct a new share buyback in the first half subject obviously to regulatory approval.
We are confirming our payout policy for next year, 50% to 60% and we are adding the payment of interim dividend as you will see that we expect to be paid in November based on a range of 30% to 40% of the first half net profit.
So, next year rather than having one single dividend payment as we will be having this April with that €0.39 we will be having two an interim and then a complementary one....
CaixaBank, S.A. (CAIXY) Q4 2023 Earnings Call Transcript