... ratings reflect the bank's leading position in retail banking and insurance in Spain, diversified revenue generation, adequate capital buffers, and a stable funding and liquidity position. The ratings also factor in the large, albeit declining, stock of problem assets (non-performing loans (NPLs) and foreclosures) and still material exposure to market risk through equity holdings. Improving Asset Quality: Spain's economic recovery is supporting CaixaBank's positive asset-quality trends. The bank has reduced problem assets by 34% since the peak at end- September 2013. However, at end-September 2017 the problem asset ratio was still above the European average at 9%. Reserve coverages for NPLs and foreclosed assets are adequate. Fitch Ratings expects asset quality to continue improving in 4Q17 and 2018, underpinned by better economic environment in Spain and Portugal. Problem Assets Weigh on Capital: CaixaBank maintains satisfactory capital...
