Caixabank collect the fruit to grow in Spain with … – Investing.com Spain

Caixabank collect the fruit to grow in Spain with … – Investing.com Spain

By Andrés González

BARCELONA (Reuters) – The financial conglomerate CaixaBank leverage the strength of its network and strengthening nationally to reflect on their accounts and ratios expected recovery in the Spanish economy in the coming years.

The Catalan club on Tuesday unveiled its strategic plan until 2018, passing through the consolidation of entities acquired during the crisis to see their income grow by an average of 5.7 percent per year, with a return (ROTE) that since 2017 will reach 12-14 percent compared to 3.4 percent today.

This, coupled with the containment of costs (efficiency ratio of 45 percent 2018, almost twelve points) will give room to the group to keep the dividend 50 percent cash benefit and even buy back shares or pay extra if you maintain a high quality capital above 12 percent, something waiting 2017.

“In the coming years we expect a sustained recovery in activity (…) Our vision is a leading financial group in Spain and one of the largest in Europe, with a global perspective” the president of the organization, Isidro Faine said.

This capital ratio will be greatly penalized by the investment portfolio after entry into force of new banking principles, which damage ratios of banks such as La Caixa, with major industrial portfolio.

CaixaBank (MADRID to be reduced from 16 percent today to 10 percent capital consumption of this portfolio of assets (which include 12 percent of Repsol (MADRID and 5 percent Telefonica), but declined to go into detail on how reorganize the portfolio to limit consumption.

“Regarding the detail of how it will reduce the investment portfolio and which will affect not let present the detail when dealing with listed companies and therefore would not be appropriate, “said Gortázar.

Analysts believe that the possibilities range from direct sales to indirect sales by issuing convertible bonds, or even transfer the portfolio to the foundation of which we hang other assets such as Natural Gas or Saba.

In the banking field, CaixaBank not rule pursue consolidation, although the pace is expected bottom after being one of the most active institutions during the current financial crisis, the latest initiative being bid for 55.9 percent unchecked Portuguese bank BPI that, to succeed, could result in a capital increase to strengthen their ratios, as recently shown a path Santander

“Measures to BPI obviously is a capital (in CaixaBank), there are other possibilities depending on what the outcome of the operation” reiterated Gortazar.

However, the company sees as limited consolidation in Spain, where the number of banks has fallen from 45 to 10 banks, even if it considers that there is scope, although lower than the injury sustained in its domestic market, in other Europe.

In Portugal, the bank could increase its presence bidding for NovoBanco, the entity that brought together the good assets of failed Banco Espirito Santo and BPI is in the spotlight.

“It may be that if necessary we study NovoBanco, but this is a possibility,” Faine said.

THE CREDIT WILL GROW … BUT SLOWLY

After several years of watching falling as a result of the crisis lending, the bank with the largest number of offices in Spain sees the light end of the tunnel of traditional banking business.

“Soon we believe we can observe an incipient recovery of the outstanding balance of the loan portfolio during 2015. In any case you faint increases below the nominal GDP growth will be treated” , Faine said.