...May 17, 2022 MADRID (S&P Global Ratings) May 17, 2022--According to its 2022-2024 strategic plan announced today, CaixaBank S.A. (A-/Stable/A-2) should improve its profitability substantially in the years ahead. The bank aims to achieve a return on tangible equity in excess of 12% by 2024, up from 7.2% at year-end 2021 (adjusted for extraordinaries related to the Bankia merger), on the back of stronger earnings and flat costs. By itself, this is unlikely to drive positive rating actions, but should contribute to the needed closure of its profitability gap versus stronger peers. Specifically, under its new strategic plan, CaixaBank aims to increase revenue at a 7% compound annual growth rate in 2022-2024, with growth targeted across all business lines. Bankia's customer base still offers potential for further penetration, particularly for off-balance-sheet resources and insurance. Moreover, CaixaBank's net interest income will benefit substantially from the higher interest rate environment....
