CaixaBank achieves record profits in 2024By Ion Jauregui - Analyst ActivTrades
CaixaBank closed 2024 with the best result in its history, reaching a net profit of €5,787 million, 20% higher than in 2023. This growth was driven by intense commercial activity and the effect of high interest rates. The result exceeded analysts' forecasts, consolidating the bank's leadership in the sector.
Fundamental Analysis
The bank announced a new share buyback program for a maximum value of €500 million, completing its €12 billion distribution plan set out in its 2022-2024 strategy. In terms of shareholder remuneration, CaixaBank will distribute a final dividend of 0.2864 euros gross per share in April, reaching a total remuneration equivalent to 53.5% of net profit for the year. Net interest income grew by 9.8% year-on-year to 11,108 million euros, although it fell slightly in the last quarter due to the easing of the European Central Bank's (ECB) monetary policy. Income from services increased by 4.6% to 4,995 million euros, with significant growth in asset management (12.1%) and protection insurance (4.2%). CaixaBank also improved its efficiency, reducing its efficiency ratio to 38.5% and raising its return on tangible assets (RoTE) to 18.1%. Its healthy loan portfolio increased by 2.2%, with strong growth in mortgages (53%), corporate loans (24%) and consumer loans (13%). With an NPL ratio of 2.6% and a CET1 of 12.2%, the bank is in a solid position to face its new strategic plan 2025-2027.
Technical Analysis
If we look at the chart with the WACD indicator showing the VWAP in graph with BUY/SELL signals, and below the three smoothed averages (SMA/EMA/WMA) and the cumulative Delta, showing sentiment, we can see that on January 28th there was a strong trend reversal signal which has subsequently been accompanied by another signal yesterday at 11 o'clock and the movement of the averages has pierced the line. If we look at the cumulative delta a bullish move has been pronounced accompanied by several blue candlesticks signaling bullish sentiment, subsequently from the last signal this also confirmed with bullish sentiment. At the moment RSI is highly oversold at 75.11% marking this extension of the three extremely open bullish averages. The current session Caixa in its first hour has opened with a strong bearish pressure, so it could indicate that the price could correct if it does not hold at least at 5.876 euros/share. There are two other support zones where the price could relapse if it loses its current support, the zone of 5.742 euros and 5.648 euros, being the minimum of 5.570 euros. The logic of the evolution of the share after the share buyback is the revaluation so it is very likely that the company's objective is to try to pierce the 6 euros per share towards new highs. Although the share price of the first hour indicates a temporary slowdown in this evolution.
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