CaixaBank, S.A.

During November 2024, CaixaBank launched its strategic plan for 2025-2027, which we see as achievable. Having completed the integration of Bankia and on the back of a more supportive operating environment, the new plan focuses more on growth. Its aim is to expand its customer base and grow across all business lines, although more significantly in consumer and small and midsize enterprise (SME) lending, accelerating deposit growth, insurance, and mutual funds. The bank aims to sustain profitability around current levels, with return on tangible equity (ROTE) above 16% by 2027, only slightly down from 16.9% at end-September 2024. We view the bank's profitability targets as sustainable under the different scenarios it has presented (with ROTE greater than15% in a lower

... and insurance franchise in Spain and solid performance support the bank's creditworthiness. CaixaBank's powerful franchise across Spain and its dominant domestic market position, with market shares in loans and deposits of about 25%, significantly benefit its credit profile. Additionally, CaixaBank owns large insurance operations (100% owned VidaCaixa S.A. and 49.9% owned SegurCaixa Adeslas), which are leading providers in life and property/casualty (P/C) insurance, respectively, and a source of fee income for the bank. The bank's strong banking and insurance franchises generate sound earnings, which we anticipate will continue. However, compared to domestic and international peers, CaixaBank's business remains geographically concentrated in Spain and Portugal....

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